SB 17-204

Senate Bill 17-204 changes Colorado’s insurance laws by making it so only the person directly insured can claim double damages and attorney fees if their property or casualty insurance claims are unreasonably delayed or denied. Previously, a third party could make these claims on behalf of the insured individual. The bill also requires the insured to notify their insurer before they can seek these additional damages and fees. Since it has been signed into law, this change is now in effect and impacts how property and casualty insurance claims are handled in Colorado.

Official Summary

Current law allows a third party, 'on behalf of' the insured, to claim double damages and attorney fees from a property and casualty insurer for an unreasonable delay or denial of benefits. The bill eliminates the 'on behalf of' language so that only the named insured may claim double damages and attorney fees from a property and casualty insurer. The bill also requires an insured to provide notice to the property and casualty insurer of the insured's intent to file for double damages and attorney fees under the law.(Note: This summary applies to this bill as introduced.)

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