What Happens If You Get a DUI in Colorado with an Out-of-State License?

When disaster strikes and you file an insurance claim, you expect your insurance company to act promptly and fairly. Unfortunately, this doesn’t always happen. In some cases, insurance companies delay processing claims, leaving policyholders in a difficult financial situation. But when does a delay go from being an inconvenience to bad faith? Can you sue an insurance company in Colorado for delaying your claim? The answer depends on the circumstances, and Colorado law provides protection for policyholders facing unreasonable delays.

What Is Considered an Unreasonable Delay in Colorado?

Insurance companies are legally required to handle claims in good faith, which includes processing them in a timely manner. While some delays may be understandable—such as those caused by complex investigations—there are limits to how long an insurance company can take. In Colorado, an “unreasonable delay” occurs when the insurance company fails to pay or deny a claim within a reasonable amount of time without a valid reason for the delay.

Under Colorado Revised Statute § 10-3-1115, it is considered an unfair practice for an insurance company to unreasonably delay or deny the payment of a claim. Colorado law further defines this by requiring that insurers act within a reasonable time frame when investigating, processing, and paying claims. If the delay is found to be unreasonable, the policyholder may have grounds to file a lawsuit for bad faith.

How Long Should a Claim Take in Colorado?

There is no set timeframe that applies to all insurance claims, as the complexity of the claim and the type of insurance coverage can affect how long the process takes. However, Colorado law requires insurance companies to:

• Respond to your claim within a reasonable period of time after receiving notice of the claim.
• Complete investigations promptly.
• Provide a written explanation if they need more information to process the claim.
• Make a decision - approve or deny the claim - within a reasonable amount of time after receiving the necessary information.

If your claim has been delayed for weeks or months without explanation, or if the insurance company is repeatedly asking for unnecessary documentation, this may be considered an unreasonable delay.

What Are Common Excuses for Delaying a Claim?

Insurance companies may use various tactics to delay claims, especially when they are trying to avoid paying a large settlement. Some common excuses include:

• Claiming that the investigation is ongoing with no clear timeline for resolution.
• Repeatedly requesting additional documents, even when they are not necessary.
• Failing to respond to your inquiries or providing vague responses.
• Arguing that they need more time due to staffing or workload issues.

While there are legitimate reasons for an insurance company to take time to investigate a claim, they cannot drag out the process indefinitely. If your insurance company is offering these excuses without providing a clear reason for the delay, it may be time to consider legal action.

When Does a Delay Become Bad Faith?

A delay becomes bad faith when the insurance company fails to meet its obligations under the policy and Colorado law. If the delay is unreasonable, intentional, or part of a broader pattern of avoiding payment, this can be grounds for a bad faith lawsuit. For example, if your insurer delays payment by asking for the same information multiple times, denying your claim without explanation, or failing to communicate with you, it may be acting in bad faith.

Colorado’s laws are designed to protect policyholders from these unfair practices. Under § 10-3-1116, if you successfully prove that your insurance company acted in bad faith by delaying your claim, you may be entitled to:

• The full amount of your claim.
• Two times the amount of the covered benefit as a penalty.
• Attorney fees and court costs.

This means that if your insurance company unreasonably delays your claim and you win a bad faith lawsuit, you could recover not only the amount you were originally owed, but also additional compensation for the delay.

What Evidence Is Needed to Prove Bad Faith for a Delayed Claim?

To successfully sue an insurance company for bad faith in Colorado, you will need to provide evidence showing that the delay was unreasonable and intentional. Some key pieces of evidence that can strengthen your case include:

• Records of all communications with your insurance company, including emails, letters, and phone calls.
• Proof of when the claim was filed and the steps you took to comply with the insurance company’s requests.
• Documentation of any delays or repeated requests for information.
• Expert testimony, if necessary, to show that the insurance company acted in bad faith by delaying payment.

By keeping thorough records and documenting every interaction with your insurer, you can build a strong case to show that the delay was intentional and unjustified.

What to Do If Your Claim Is Being Delayed

If you believe your insurance company is delaying your claim in bad faith, it’s important to take action. Here are some steps you can take:

• Request a written explanation: Ask your insurance company to provide a detailed, written explanation for the delay. If they fail to do so or offer vague reasons, this can be a red flag.
• Follow up regularly: Keep track of every communication you have with the insurance company and follow up regularly to check on the status of your claim.
• Consult with an attorney: If your insurer is still dragging their feet, it may be time to speak with an experienced bad faith attorney who can evaluate your case and advise you on the next steps.

At the Law Office of James Colgan, we specialize in helping policyholders hold insurance companies accountable for bad faith practices. If your insurance company is delaying your claim and you believe it is acting in bad faith, our experienced bad faith insurance attorneys can help you understand your rights and pursue compensation. Don’t let your insurer take advantage of you. Contact us today to schedule a consultation and discuss your case.