The purposes of this part 5 are to provide a mechanism for the payment of covered claims under certain insurance policies, to avoid excessive delay in payment and financial loss to claimants or policyholders because of the insolvency of an insurer, to assist in the detection and prevention of insurer insolvencies, and to provide an association to assess the cost of such protection among insurers.
Source: L. 71: p. 756, § 1. C.R.S. 1963: § 72-34-2.
ANNOTATION
Intent to protect the public. In enacting the CIGA, the general assembly intended to protect the public and did not intend to hinder or foreclose its recovery by requiring a claimant to litigate to recover the full amount of the uninsured motorist coverage rather than entering into a settlement. The public and judicial policies in Colorado favor the settlement of such disputes. Colo. Ins. Guar. Ass'n v. Harris, 827 P.2d 1139 (Colo. 1992).
Penalties are not "covered claims"; and, therefore, statutory penalties otherwise available to claimants under the workers' compensation law may not be assessed against the association. Mosley v. Indus. Claim Appeals Office, 119 P.3d 576 (Colo. App. 2005).