§ 10-1-131 — Duties to third parties - rules

(1) Pursuant to rules promulgated by
the commissioner, an insurer shall notify any additional insured by endorsement on
a general liability policy, whose interests are affected by a claim, of the results of
the insurer's investigation of such claim and the status of the claim within a
reasonable period of time as determined by the commissioner. Such notice shall
include a statement confirming or denying coverage of the claim and, if coverage is
denied, the reasons for denying coverage of the claim or any portion of the claim. In
the event coverage has not been determined, a copy of the reservation of rights
letter shall constitute sufficient notice.

(2) Failure to notify any additional insured by endorsement on a general
liability policy pursuant to this section shall subject the insurer to the provisions of
sections 10-3-1108 and 10-3-1109.

(3) The provisions of this section shall not apply to those claims under a
general liability policy upon which a lawsuit has been filed.

Legislative History

Source: L. 2003: Entire article RC&RE, p. 604, � 1, effective July 1.