HB 17-1319

House Bill 17-1319, also known as "Appraisals For Insurance Claims," sets rules for insurance appraisals in Colorado. It ensures that the appraiser and umpire are unbiased by requiring them to disclose any conflicts of interest and prohibiting direct communication between parties unless everyone agrees. This bill affects anyone involved in an insurance claim appraisal process, including homeowners or businesses dealing with property damage claims. Since it has been signed into law, these standards now apply, meaning that all appraisals for insurance purposes must follow these fairness rules to protect both insurers and policyholders.

Official Summary

The bill, addressing appraisals conducted for insurance purposes, sets standards for when an appraiser, including an appraisals umpire, is considered fair, impartial, and neutral. The bill imposes the following requirements: An appraiser is prohibited from having a direct, material interest in the amounts determined by the appraisal process; An appraiser, including an appraisals umpire, must disclose to all parties any known fact discovered at any time that a reasonable person would consider likely to affect the appraiser's interest in the amount determined by the appraisal; Both the insurer and the insured, and their representatives, are prohibited from communicating with the other party's appraiser without the consent and participation of both parties; except that appraisers may directly communicate with each other to reach an agreed-upon settlement amount; The insurer, the insured, and their representatives, including adjusters, attorneys, and appraisers, must not have ex parte communications with the umpire during the appraisal process; and The umpire must not have ex parte communications with the insurer, including adjusters, the insured, and their representatives, including public adjusters.(Note: This summary applies to this bill as introduced.)

Votes