Most insurance bad faith claims in Colorado are governed by the Unfair Claims Settlement Practices Act. This law protects consumers against insurance companies that unreasonably deny or delay claims. Such conduct is referred to as bad faith. The Unfair Claims Settlement Practices Act applies to auto, home, health, and disability insurance. It may apply to other types of insurance, but the law does not apply to workers’ compensation, life insurance or title insurance.
Unfair Claims Settlement Practices Act
Under the Unfair Claims Settlement Practices Act in Colorado, insurance companies are required to act in good faith by following these practices:
- The insurance company must acknowledge your claim.
- The insurance company must act promptly in response to your communications.
- The insurance company must investigate your claim promptly.
- The insurance company must not delay the process with extra forms.
- The insurance company must provide plausible reason for delays or non-payment.
- The insurance company must evaluate your claim fairly.
- The insurance company cannot deny your claim without giving a valid reason.
Potential remedies under the law include past benefits owed, double damages, and attorneys’ fees. So if you have a claim worth $35,000.00, and you prove the insurance company unreasonably delayed or denied paying the claim, then you could receive double the $35,000.00, plus your attorney’s fees.
When you have been injured in an accident the policy you purchased should provide you the coverage you bargained for, but insurance companies regularly deny or delay payment of claims for no good reason. If this has happened to you, contact Colorado Personal Injury Attorney Gregory A. Hall to discuss your case. Attorney Hall will help you obtain the benefits you’re owed. If you believe an insurance company has unreasonably delayed or denied your claim and need legal advice contact:
The information on this website is not legal advice.