B90F47D92663649787258527006E18D4 Hearing Summary

Majority Leader Garnett, sponsor, presented House Bill 20-1290, concerning the ability of an insurer to use a failure-to-cooperate (FTC) defence in an action in which the insured has made a claim under insurance coverage for an incident.  The bill requires that an insurer meets certain conditions before a FTC defense can be pleaded or proven in an action concerning an insurance policy providing first-party benefits or coverage.  The conditions include what must be included in a written request and the time frame for a response.  The bill also lays out requirements for an insurer seeking to use the FTC defense.  Representative Garnett distributed Amendment L.001 to the committee (Attachment A).

The following panel testified on the bill: Marc Levy, representing himself, testified in support of the bill and discussed the use of the FTC defense by the insurance industry. David Roth, representing Colorado Trial Lawyers Association (CTLA), testified in support of the bill and provided an example of a case wherein the insurer used the FTC defense. The panel responded to committee questions regarding current law surrounding the use of a FTC defense and the requirements set out in the bill.

The following people testified on the bill: Frank Patterson, representing Colorado Civil Justice League (CCJL), testified in opposition to the bill. Evan Stephenson, representing CCJL, testified in opposition to the bill. Kurt Henkel, representing Colorado Defense Lawyers Association, testified in opposition to the bill. The panel responded to committee questions.

Kevin Cheeny, representing CTLA, testified in support of the bill.

Representative Garnett explained Amendment L.001, and committee discussion ensued.

Representative Garnett made concluding comments on the bill, and committee discussion ensued.