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Bill Detail: HB20-1076

 

Title Regulation Of Claims Against Insurance Companies By Insured Parties
Status House Committee on Health & Insurance Postpone Indefinitely (01/22/2020)
Bill Subjects
  • Health Care & Health Insurance
  • Insurance
House Sponsors D. Williams (R)
Senate Sponsors
House Committee Health and Insurance
Senate Committee
Date Introduced 01/08/2020
Description

The bill states that if an insurer or an insured party requests an
administrative hearing concerning an allegation that an insurer has
breached the terms of an enforceable policy or other contract:
  • The commissioner of insurance (commissioner) shall hold
the hearing not later than 60 days after receiving the
request;
  • Neither the commissioner nor the division nor any
administrative court may impose or require a fee of any
party in association with the hearing;
  • The commissioner shall conduct the hearing pursuant to the
Colorado rules of procedure for small claims courts;
  • The commissioner shall issue a ruling, and the ruling is not
subject to appeal and does not prevent de novo judicial
proceedings;
  • If the commissioner determines, pursuant to the hearing,
that the insurer has breached the terms of an enforceable
policy or other contract, the commissioner may award
treble damages and attorney fees to the insured party; and
  • Any determination made by the commissioner, the division
of insurance, or an administrative law judge pursuant to the
hearing is admissible as evidence in any subsequent civil
action.
The bill states that in any civil action in which a plaintiff claims
that an insurer wrongfully denied a claim submitted by the plaintiff
pursuant to an enforceable policy issued by the insurer to the plaintiff:
  • The court shall not charge the plaintiff any fee to recover
costs associated with a jury trial; and
  • The defendant insurer may not file a motion for summary
judgment, a directed verdict, a judgment on the pleadings,
or any other alternative outcome if the plaintiff has
requested a jury trial.
The bill states that in any civil action in which the trier of fact
determines that an insurer wrongfully denied a claim submitted by a
plaintiff pursuant to an enforceable policy issued by the insurer to the
plaintiff, that the insurer denied the claim in bad faith, and that the
plaintiff suffered damages as a result of the wrongful denial, the court
shall award treble damages, court costs, and attorney fees to the plaintiff.
The bill states that it is an unfair method of competition and an
unfair or deceptive act or practice in the business of insurance for an
insurer to unilaterally change or cancel, or attempt to unilaterally change
or cancel, the terms of a prepaid policy of insurance until the policy is due
for renewal.

Committee Reports
with Amendments
Full Text
Full Text of Bill (pdf) (most recent)
Fiscal Notes Fiscal Notes (01/21/2020) (most recent)  
Additional Bill Documents Bill Documents
Including:
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  • Past fiscal notes
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