Insurance consumers are in a vulnerable position when they purchase Colorado insurance policies, because they are dependent upon the insurance company to provide for them in the event of an accident or disastrous event. Colorado insurance laws ensure that insurance companies act in good faith toward their policyholders. This includes requiring insurance companies to keep their own interests equally weighted with the interests of the insured. Unfortunately, insurance companies have ways of handling insurance claims that favor their own interests. If your insurance company has denied your auto, health, or disability insurance claim, you can contact a Colorado Springs insurance dispute lawyer to help settle your insurance dispute.
The Colorado Division of Insurance regulates insurance companies doing business in Colorado. This state government division also handles consumer complaints against insurance companies. However, state insurance departments are often too busy to handle the influx of complaints received, so they defer complaints to the court system. This leaves insured individuals in the position of having to take their insurance company to court to resolve disputes. Employer or self-funded ERISA group health insurance plans are generally regulated by the federal government and may be subject to arbitration, rather than bad faith lawsuits, to settle insurance claim disputes.
Colorado insurance laws cover many different aspects of insurance transactions. Many of these laws relate to prohibited insurance claims settlement practices that are considered unfair or deceptive. According to Colorado Revised Statutes 10-3-1104, these prohibited activities include:
- Failing to put in place standards and procedure for investigating claims received by their policyholders
- Misrepresenting important information regarding policy coverage when the policy is purchased
- Failing to process insurance claims in a timely manner
- Offering settlement amounts that are unreasonably low for legitimate insurance claims
- Unnecessarily delaying the processing of insurance claims
- Failing to establish and follow procedures for handling customer complaints
- Making settlement payments to the insured or claimant without a statement explaining under which part of the policy coverage the payment is being made
- Denying claims without first conducting a thorough investigation of the available information
Even with Colorado insurance laws on the consumer’s side, it can be intimidating to pursue an insurance dispute or a bad faith claim against an insurance company. Colorado insurance companies have the resources and experience to negotiate settlements in their own favor. In addition, they have attorneys at their disposal to defend against bad faith claims. Therefore, it is important to have legal representation before going up against a Colorado insurance company. If you have been denied a valid person injury or auto accident claim, a qualified Colorado insurance bad faith lawyer can make sure your best interests are represented in a Colorado Springs insurance dispute or Colorado bad faith lawsuit.
If you have been in an accident, Colorado Springs Personal Injury Lawyer Andrew C. Bubb will review your case for free and discuss with you all of your legal options. In some cases you may be able to recover compensation for medical expenses, lost wages, property damage, and pain and suffering. Call 1 (800) 773-4492 today or contact us through our website contact forms.
Related Insurance Information
- Colorado Insurance Bad Faith Lawyer
- Colorado Insurance Disputes Attorneys
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- Colorado Springs Insurance Dispute Attorney
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