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Colorado's new law to regulate insurance companies for unreasonable delay and denial Effective 6th August 2008

The new law provides Colorado citizens the power to ensure implementation of wage insurance in a reasonable and timely manner.

What is this new law? House Bill 08-1407. The aim of the Act is to put an end to unreasonable delays or denials by insurance. The law increases the penalties for insurance for their inappropriateBehavior in relation to the claims.

"A first-party claimant whose claim for payment of benefits wrongly denied or delayed and may bring an action in a district court to recover reasonable legal fees, and twice the benefit."

Who benefits from the new law? Colorado citizens, the insurance benefits from their own insurance. Injured in Colorado have been powerless to bring claims against big insurance companiesCompany because of legal fees could devour a large portion of their settlement money. The new law provides Colorado citizens the power to make sure insurance companies pay claims in a reasonable and timely pay unreasonably by requiring insurance companies to the benefits payable, Double damages, and attorney's fees.

For example, say your claim is for damages in the amount of U.S. $ 30,000 and the insurance company unreasonably delayed or denied the claim. Under the new law, you couldtwice the $ 30,000 plus attorneys' fees (say, 10,000 U.S. dollars). Therefore, you should not pay the insurance is $ 70,000 ($ 10,000, of which fees you would pay your legal costs) for violation of the new law.

"A person who operates the business of insurance may not unreasonably delay or payment of a claim for benefits or on behalf of a" first-party claimants to deny guilt. "

What type of insurance can be penalized by this new law? The Lawapplies to health insurance, disability insurance, and almost any other type of insurance. The law does not apply to workers compensation insurance, life insurance and title insurance. If you believe that the workers' compensation, life insurance, and / or title insurance company has unreasonably denied your claim, you can not use this new law, but you can take advantage of the situation, other laws, to seek benefits you.

When the new law comes into force? The new law comes into force on 6 August 2008. However,the language of the law is not clear, as is happening in practice at this time. It is unclear whether the law applies only to claims, after 6 August 2008 or, if it applies to claims which are ongoing for the past year or two.