Tag Archives: Prompt Payment

Undisputed Amounts of a Loss Should Be Promptly Paid

Undisputed amounts of loss were discussed at the ABA property insurance law subcommittee last week. I have never met an insurance adjuster who said his company refused to pay undisputed amounts of loss when coverage was admitted. But, I have had insurance defense attorneys argue there is no legal obligation to pay undisputed partial amounts … Continue Reading

Lloyds Delaying Payment on Many Claims

Lately I have had several public insurance adjusters call me about a specific problem with Lloyds.1 The public adjuster and the Lloyds (third-party) adjuster agree on the scope and amount of damages on a claim. Then Lloyds never pays. It’s not that Lloyds refuses to pay. They just don’t pay, like for a real long … Continue Reading

Carriers Can’t Hide Behind Laundry List of Requested Items and Avoid the Texas Prompt Payment Act

After a claim is filed, the insurance company is certainly entitled to receive from a policyholder reasonable information that the insurance company requires to decide whether to accept or reject the claim. Unfortunately, as a way to delay the claim and discourage the policyholder, many insurance companies create daunting laundry lists of items from the … Continue Reading

Partial Payments of Insurance Claims and Claims Delay – A Need for Higher Interest Rate Penalties and Claims Practice Regulations

Should any debtor hold on to money that is agreed owed? It seems like an absurd question, but in the insurance claims world, many insurance companies know that it is very profitable to "play the float." Even the most famous insurer admits that "playing the float" is very profitable, as I noted in Playing the … Continue Reading

Colorado’s Unreasonable Delay Statutes

As promised in my post, Statute of Limitations in Colorado, this week I will discuss Colorado’s unreasonable delay statutes. In Colorado, insured’s have a cause of action they can utilize when pursuing a claim for benefits due after a loss pursuant to their policy of insurance. Colorado Revised Statute Section 10-3-1115(1)(a) states: A person engaged in … Continue Reading

Calculation of Damages Under Colorado’s Insurance Prompt Payment Statutes, C.R.S. 10-3-1115 and 10-3-1116: Part IV

As discussed in my prior posts on August 10, 2011, February 16, 2012, and August 16, 2012, Colorado law on calculation of C.R.S. § 10-3-1116 statutory penalties is slowly developing. The Prompt Payment statutes, CRS §§ 10-3-1115 and 10-3-1116 (the “Statutes”), provide remedies to certain first-party insurance claimants, including recovery of two times the covered … Continue Reading

Update: Calculation of Damages Under Colorado’s Insurance Prompt Payment Statutes, C.R.S. 10-3-1115 and 10-3-1116

My August 10, 2011 post, How Will Colorado Courts Calculate Damages and Penalties Under Colorado’s Prompt Payment Statutes? discussed the relatively new statutes in Colorado which provide penalties against insurers including two times the covered insurance benefit, attorney’s fees, and costs to first party policyholders whose insurance benefits were unreasonably delayed or denied. The post … Continue Reading

A Christmas, Hanukkah and Kwanzaa Gift All Wrapped Into One: the Colorado Court of Appeals Kisselman Opinion Is a Long Overdue Holiday Gift For Policyholders

One of my favorite Winston Churchill quotes is, “If you are going through hell, keep going.” This continuing review of recent Colorado insurance coverage law is another reminder to policyholders, public adjusters, and plaintiff’s insurance coverage lawyers of the light at the end of the tunnel. (Also, the Broncos’ two losses forced me to change … Continue Reading

Insurer’s Unfounded Litigation Tactics May Justify Punitive Damages in Addition to Damages Under Colorado’s Insurance Prompt Payment Statutes C.R.S. 10-3-1115 and -1116

An insurer’s duty of good faith and fair dealing to its insured continues even after litigation is filed against the insurer. Colorado recognizes that an insurer’s litigation tactics may be considered by the jury in determining unreasonableness and punitive damages. See Tait ex rel. Tait v. Hartford Underwriters Ins. Co., 49 P.3d 337 (2001) (trial … Continue Reading

How Will Colorado Courts Calculate Damages and Penalties Under Colorado’s Prompt Payment Statutes?

Before August 2008, property policyholders in Colorado who were wrongfully denied insurance benefits largely relied on lawsuits alleging claims for breach of contract, breach of the covenant of good faith and fair dealing (the common law tort of bad faith), and requests for exemplary damages as a means of redress against their insurance companies. In … Continue Reading

“Unreasonable” in Colorado: Fair Debatability is Only Part of the Analysis in Determining Whether the Insurer’s Delay or Denial of Coverage was Unreasonable

In Colorado, actions for common law bad faith require the insured to prove unreasonable denial or delay in payment of a claim and that the insurer knew or recklessly disregarded the unreasonableness of its actions. Colorado’s 2008 prompt payment statute, C.R.S. § 10-3-1115, carves out a standard different from common law bad faith, based only … Continue Reading