On January 1, 2020, disclosure of insurance policy coverage and limits to insureds and to claimants or their attorneys becomes mandatory when requested by an insured, the clamant or the claimant’s attorney.
House Bill 19-1283 requires that an insurer that issues commercial automobile or personal automobile liability insurance coverage to provide to the claimants or the claimant’s attorney a statement setting forth the following information with regard to each known policy, including umbrella insurance:
1. The name of the insurer;
2. The name of each insured party, as the name appears on the declarations page of the policy;
3. The limits of the liability coverage; and
4. A copy of the policy.
This information must be provided not more than 30 calendar days after receiving a written request. The request can be made by the claimant or their attorney directly to the insurer, or by a written request to the insured party thereby compelling disclosure to the claimant of the name and coverage of each known insurer.
An insurer that violates the disclosure requirement is liable to the requesting claimant for damages in an amount of $100.00 per day beginning on the 31st day following the receipt of the claimant’s written request and continuing until the information is provided. Additionally, an insurer that fails to make the required disclosure is also responsible for the attorney’s fees and costs incurred by the claimant in enforcing the penalty.
The statute forbids claimant and any attorney of the claimant from disclosing to any party the information provided except to discuss the information with the claimant’s insurer. However, the statute is silent as to any penalty for a disclosure violation.
The legislative declaration for enacting this statute is stated to promote transparency in the insurance claim process and 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. Additionally, the Legislature declared that the statute will help Colorado residents evaluate whether their uninsured or underinsured motorist coverage will be triggered and allow an insurer who provides uninsured or underinsured motorist coverage or policies more time to evaluate and place reserves on claims.
The Department of Regulatory Agencies has issued a Bulletin to provide guidance for insurers on this issue. Link to Bulletin No. B-1.34
Please feel free to call or send a note if you have any questions or would like to discuss this matter. I’ll be glad to assist. I can be reached at:
Phone: (303) 296-2828
Fax: (303) 296-3131