C.R.S.
Section 10-3-1118
Failure-to-cooperate defense
(1)
To plead or prove a failure-to-cooperate defense in an action concerning an insurance policy providing first-party benefits or coverage, each of the following conditions must be met before the defense is asserted in a court of law or an arbitration:(a)
The insurer has submitted a written request to the insured or the insured’s representative for the information the insurer seeks via:(I)
Electronic means if the insured or the insured’s representative has consented to receive electronic documents from the insurer; or(II)
Certified mail;(b)
The information is not available to the insurer without the assistance of the insured;(c)
The written request provides the insured sixty days to respond;(d)
The written request is for information a reasonable person would determine the insurer needs to adjust the claim filed by the insured or to prevent fraud; and(e)
The insurer gives the insured an opportunity to cure, which must:(I)
Include the furnishing of written notice to the insured of the alleged failure to cooperate, describing with particularity the alleged failure, within sixty days after the alleged failure; and(II)
Allow the insured sixty days after receipt of the written notice to cure the alleged failure to cooperate.(2)
A failure-to-cooperate defense acts as a defense to the portion of the claim materially and substantially prejudiced to the extent the insurer could not evaluate or pay that portion of the claim.(3)
The existence of a duty to cooperate in a policy does not relieve the insurer of its duty to investigate or to comply with section 10-3-1104.(4)
Any language in a first-party policy that conflicts with this section is void as against the public policy of Colorado.(5)
An insurer is not liable for a claim in a civil action based upon a bad-faith breach of contract under common law or under sections 10-3-1115 and 10-3-1116 because the insurer solely provides the insured with the required amount of time:(a)
To respond to the insurer’s written request as specified under subsection (1)(c) of this section; and(b)
To cure the alleged failure to cooperate as specified under subsection (1)(e) of this section.
Source:
Section 10-3-1118 — Failure-to-cooperate defense, https://leg.colorado.gov/sites/default/files/images/olls/crs2023-title-10.pdf
(accessed Oct. 20, 2023).