http://www.burgsimpson.com/bad-faith-insurance.htmlhttp://www.burgsimpson.com/auto.htmlGovernor Ritter has signed into law a new piece of legislation that will dramatically impact the way in which a personal injury cases are handled in the state. This law is due to become effective on August 11, 2010, and will apply to all recoveries on and after that date.
Currently, insurance companies in Colorado permitted to make claims for reimbursement (known as "subrogation") they pay to or on behalf of their own insureds who are injured due to the fault of another. This includes payments made in respect of health care benefits, disability benefits, lost income and the like.
These reimbursement claims are made against at fault parties, regardless of whether the injured party is fully compensated or not. This new law (House Bill 10-1168) will prevent insurance companies and healthcare benefit providers from bringing a claim for reimbursement against at fault parties until the injured party has first been fully compensated (“made whole”) for all damages arising out of their injury.
The law will only apply to personal injury lawsuits, including those involving uninsured/under-insured motorists. It will not apply to workers' compensation or property damage lawsuits.
