Colorado’s New Law Regulating Insurance Companies for Unreasonable Delay and Denial-Effective August 6, 2008
The new law provides Colorado citizens the power to make sure insurance companies pay claims in a reasonable and timely manner.
What is this new law? House Bill 08-1407. The objective of the law is to put a stop to unreasonable denials or delays by insurance companies. The law increases the penalties on insurance companies for their unreasonable conduct with respect to claims.
“A first-party claimant whose claim for payment of benefits has been unreasonably delayed or denied may bring an action in a district court to recover reasonable attorney fees and court costs, and two times the covered benefit.”
Who benefits from the new law? Colorado citizens claiming insurance benefits from their own insurance company. Injured people in Colorado have been powerless to bring large claims against insurance companies because attorneys’ fees could eat up … Read More