Colorado § 10-3-1118 Failure-to-cooperate defense

Colorado Statutes

§ 10-3-1118 — Failure-to-cooperate defense

Colorado·Title 10 Insurance·Art. Regulation of Insurance Companies

(1)To plead or prove a failure-to-cooperate defense in an action concerning an insurance policy providing first-party benefits or coverage, each of the following conditions must be met before the defense is asserted in a court of law or an arbitration:

(a)The insurer has submitted a written request to the insured or the insured's representative for the information the insurer seeks via:

(I)Electronic means if the insured or the insured's representative has consented to receive electronic documents from the insurer; or

(II)Certified mail;

(b)The information is not available to the insurer without the assistance of the insured;

(c)The written request provides the insured sixty days to respond;

(d)The written request is for information a reasonable person would determine th

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(1) To plead or prove a failure-to-cooperate defense in an action concerning an insurance policy providing first-party
benefits or coverage, each of the following conditions must be met before the
defense is asserted in a court of law or an arbitration:

(a) The insurer has submitted a written request to the insured or the
insured's representative for the information the insurer seeks via:

(I) Electronic means if the insured or the insured's representative has
consented to receive electronic documents from the insurer; or

(II) Certified mail;

(b) The information is not available to the insurer without the assistance of
the insured;

(c) The written request provides the insured sixty days to respond;

(d) The written request is for information a reasonable person would
determine the insurer needs to adjust the claim filed by the insured or to prevent
fraud; and

(e) The insurer gives the insured an opportunity to cure, which must:

(I) Include the furnishing of written notice to the insured of the alleged
failure to cooperate, describing with particularity the alleged failure, within sixty
days after the alleged failure; and

(II) Allow the insured sixty days after receipt of the written notice to cure the
alleged failure to cooperate.

(2) A failure-to-cooperate defense acts as a defense to the portion of the
claim materially and substantially prejudiced to the extent the insurer could not
evaluate or pay that portion of the claim.

(3) The existence of a duty to cooperate in a policy does not relieve the
insurer of its duty to investigate or to comply with section 10-3-1104.

(4) Any language in a first-party policy that conflicts with this section is void
as against the public policy of Colorado.

(5) An insurer is not liable for a claim in a civil action based upon a bad-faith
breach of contract under common law or under sections 10-3-1115 and 10-3-1116
because the insurer solely provides the insured with the required amount of time:

(a) To respond to the insurer's written request as specified under subsection
(1)(c) of this section; and

(b) To cure the alleged failure to cooperate as specified under subsection
(1)(e) of this section.

Colorado § 10-3-1118 (Failure-to-cooperate defense) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.