(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: L. 2020: Entire section added, (HB 20-1290), ch. 229, p. 1116, � 1, effective September 14.
10-3-1119. Policy documents - language consistent with advertisement for product - definitions. (Repealed)
Source: L. 2023: Entire section added, (HB 23-1004), ch. 64, p. 229, � 2, effective January 1, 2024. L. 2024: Entire section repealed, (HB 24-1440), ch. 320, p. 2142, � 4, effective May 31.