§ 10-3-1101 — Legislative declaration

(1) The purpose of this part 11 is to
regulate trade practices in the business of insurance by defining, or providing for
the determination of, all such practices in this state that constitute unfair methods
of competition or unfair or deceptive acts or practices, and by prohibiting the trade
practices so defined or determined. No rules or regulations may be promulgated to
adversely affect free and open competition in the sale of insurance.

(2) It is in the best interests of the citizens of this state to have transparency
in the insurance claims process to further the public policy of encouraging
settlement and preventing unnecessary litigation. Claimants and injured parties
should fully understand the total amount of insurance coverage available to them.
In addition, because payment of uninsured and underinsured motorist benefits
covers the difference between the amount of the limits of any legal liability
coverage and the amount of the damages sustained, it is important that the citizens
of this state have accurate and reliable information about the amount of legal
liability coverage available for a claim. Providing information to Colorado residents
concerning the amount of liability coverage will:

(a) Help Colorado residents evaluate whether their uninsured or
underinsured motorist coverage will be triggered; and

(b) Allow an insurer who provides uninsured or underinsured motorist
coverage or policies more time to evaluate and place reserves on claims.

Legislative History

Source: L. 73: R&RE, p. 857, � 1. C.R.S. 1963: � 72-14-1. L. 2019: Entire section amended, (HB 19-1283), ch. 250, p. 2426, � 1, effective January 1, 2020.