The world of insurance and liability is one that changes regularly, and one source of such changes is new laws that may be passed in this realm. The state of Colorado recently passed a bill, HB19-1283, that serves as a perfect example by requiring insurers that provide liability insurance to disclose statements and written requests within a certain time period.
At the offices of John D. Halepaska, our auto accident injury attorneys are here to help with all the ins and outs of such new laws as they’re passed, particularly as they pertain to any of our clients. Here are some basics on HB19-1283, including direct text, what it means for you and how this bill came to be in Colorado.
Firstly, let’s lay out the relevant text from HB19-1283:
Automobile insurance policy disclosures – liability – appropriation. The act requires an insurer that provides or may provide commercial automobile or personal automobile liability insurance coverage that pays all or a portion of a pending or prospective claim to provide to a claimant via mail, facsimile, or electronic delivery, within 30 calendar days after receiving a written request from the claimant, a statement setting forth the following information with regard to each known policy of insurance of the named insured, including excess or umbrella insurance:
- The name of the insurer;
- The name of each insured party, as the name appears on the declarations page of the policy;
- The limits of the liability coverage; and
- A copy of the policy.
An insured party, upon written request of a claimant or a claimant’s attorney, shall disclose to the claimant or claimant’s attorney the name and coverage of each known insurer of the insured party.
An insurer that violates the disclosure requirement is liable to the requesting claimant for damages in an amount of $100 per day, beginning on and including the 31st day following the receipt of the claimant’s written request. The penalty accrues until the insurer provides the information required. An insurer that fails to make a required disclosure is also responsible for attorney fees and costs incurred by a claimant in enforcing the penalty.
The claimant and any attorney of the claimant shall not disclose the disclosed information to any party; except that the claimant and an attorney of the claimant may discuss the information with the claimant’s insurer.
For those who need a bit of a translation, this bill requires insurers of personal or commercial auto liability coverage to provide written requests, statements and other information within 30 calendar days after first receiving their request. Such information includes insurer name, insured party names, limits of liability coverage and a copy of the policy in question. Insurers who violate this requirement will be liable for $100 per day past this 30th day to the claimant making the request, and this penalty will continue every day until the insurer complies.
HB19-1283 was first introduced to the House and assigned to Judiciary on March 28, 2019. It went though several stages of reading and special orders before being passed on the third reading by the Senate on April 30, 2019, and was sent to the Governor’s office on May 15, 2019. The governor signed the bill into law on May 22, 2019.
For more on HB12-1283 on disclosure of insurance liability coverage, or to learn about any of our personal injury or auto injury attorney services, speak to the staff at the offices of John D. Halepaska today.