Your Insurance Company Owes You An Explanation – No Really, It’s The Law
If you’ve ever pursued a claim against your own auto insurance company, you may have wondered what they did to arrive at their decision of how much to offer to pay for your claim. If you resolved the claim without an attorney, you may have taken a settlement at face value without asking for an explanation of the basis for the insurer’s offer. In Colorado, thanks to the Unfair Claim and Settlement Practices Act, you’re entitled to know more.
Colorado Revised Statute §10-3-1104(1) sets forth unfair methods or deceptive acts or practices in the business of insurance. Subsection (h)(xiv) declares that it is an unfair claims settlement practice when an insurance company fails “to promptly provide a reasonable explanation of the basis in the insurance policy in relation to the facts or applicable law for denial of a claim or for the offer of a compromise settlement.”
In effect, if you want to know the basis for your insurance company’s offer or claim denial, all you need to do (in theory) is ask. The reason an insurance company is required to provide responsive information is so that you as the insured have an opportunity to provide additional documentation to support an increased offer or justification to afford coverage. Sometimes insurance companies will readily give the basis for their offers and/or denials and you can obtain a higher offer or at least know that all pertinent facts were considered before the company ultimately denied your claim.
Sometimes, however, you might feel like you’re getting the runaround or maybe the insurance company ignored your request entirely. In order for you to be fairly compensated when your insurance company fails to do the right thing, it’s crucial that these events are properly documented. That’s why it’s a good idea to consult with experienced Colorado Springs Injury Attorneys early on when you have an Uninsured/Underinsured Motorist claim with your insurance company. Contact the Colorado Springs Injury Attorneys at Rosenbaum & Wootton, P.C. by calling 719.634.0102 or by clicking on this link to schedule your FREE INITIAL CONSULTATION.
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