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Colorado's Insurance Bad Faith Statute

We purchase insurance (car accident insurance, medical insurance, disability insurance, homeowners insurance) to protect us when tragedies happen.  Sadly, and while the insurance company is happy to collect the premium, they are not always as eager to pay the claim.

In Colorado, the legislature has enacted  C.R.S. Section 10-3-1115 (1)(a) that states  no insurance company can “unreasonably deny or delay payment of a claim of benefits” to first-party claimants. "First party claims" are, generally,  those involving insurance you purchased.  What exactly does “unreasonable” mean? The law explains: “An insurer’s delay or denial was unreasonable if the insurer delayed or denied authorizing payment of a covered benefit without a reasonable basis for that action.”

While many different claims may fall under this statute, common examples include:

Homeowner insurance;  Uninsured Motorist insurance;  Underinsured Motorist insurance;  certain types of health or disability insurance;  and Med-pay insurance in a car insurance policy.

If an insurance company violates the statute, penalties may apply, including attorney fees and costs.  At Silvern & Bulger PC we have an established a track record of significant courtroom victories. Whether you are seeking long term disability or short term disability benefits, or need helping fighting for your medical or other insurance benefits, or compensation for a car accident or other personal injury (motorcycle or trucking accident, slip and fall), or the death of a loved one, we will fight for your rights.  We handle most insurance claims, including car accident insurance, uninsured and underinsured motorist, liability insurance, and disability (long term disability and short term disability), medical and life insurance.