Colorado new law that regulates insurance companies undue delay and refusal of the action August 6, 2008
The new law gives citizens the opportunity to Colorado to make sure that insurance companies pay claims in a reasonable and timely manner.
What is the new law? House Bill 08-1407. The challenge of the law – to stop the unjustified refusal or delay on the part of insurance companies. The law increases the penalties to insurance companies for their unreasonable behavior in respect of the claims.
"The first party that demanded the payment of benefits unduly delayed or denied, can pre & # 39; to reveal a lawsuit in the District Court for the recovery of smart lawyers and court costs, as well as twice-covered benefits."
To benefit from the new law? Colorado citizens who apply for insurance payments from their insurance company. Injured in Colorado were powerless before the & # 39; to manifest greater demands on the insurance companies, as attorneys & # 39; charges could with & # 39; there is a large part of their settlement money. The new law gives citizens the opportunity to Colorado to make sure that insurance companies pay claims in a reasonable and timely period by requiring insurance companies to pay unreasonable borrowed payments double damage and attorneys & # 39; charges.
For example, let me say that your claim has a loss of 30 000 dollars, and the insurance company unreasonably delayed or refused the request. Under the new law, you can get more than twice the $ 30,000 plus attorneys & # 39; fees (say $ 10,000). Therefore, the insurer would have to pay you $ 70 thousand (of which $ 10 000 would pay your attorneys and fees) for their violation of the new law.
"A person who is engaged in insurance activity, may not unreasonably to delay or deny payment of claims for payment which must be owned by, or on behalf of any of the first applicant."
What type of provider may be punished by the new law? The law applies to health insurers, the insured disability, auto insurance, and almost any other type of insurance. The law does not apply to workers & # 39; insurance coverage, life insurance, and insurance law. If you believe that the workers & # 39; compensation insurance, life insurance and / or insurance of property rights unreasonably denies your claim, you can not use this new law, however, you can use the other laws that will help you look for benefits.
When does the new law? The new law comes into force on August 6, 2008. However, in the language of the law is not clear as to crash on this date. It is unclear whether this law applies only to claims after August 6, 2008, or whether it applies to claims that are going on the last couple of years.
If you want to see this bill:
- go to the website of the General Assembly of Colorado http://www.leg.state.co.us/
- Click on the "Digest of bills"
- Go to the 2008 Bill Digest
- "Bills Digest – 2008" classified; click on "Insurance"