Colorado recently enacted a law that provides remedies against insurance companies for unreasonably delaying or denying a claim. The new law, House Bill 08-1407, provides meaningful remedies to those who have had claims unreasonably denied or delayed by insurance companies. The law applies to the following types of insurance: auto, home, health, disability. It may apply to other types of insurance, but the law does not apply to workers’ compensation, life insurance or title insurance.
Prior to the enactment of this law, injured people were at a huge disadvantage in bringing claims against insurance companies, largely because the cost of bringing the lawsuit outweighed the potential benefits of obtaining a recovery. House Bill 08-1407 gives people the power to take legal action when insurance companies fail to pay their claims in a reasonable and timely manner. 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 under House Bill 08-1407 you could receive double the $35,000.00, plus your attorney’s fees.
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