Originally published by Brandee Bower .
As a follow up to my blog of November 5, 2014, Fair and Impartial Appraisers in Colorado, I wanted to write on DORA Regulation 5-1-14 which deals with penalties against insurance companies for failing to promptly address first party property claims in Colorado.
All insurers that write property policies shall make a decision on a claim and/or pay benefits due with sixty (60) days of receipt of a valid and complete claim unless there is a reasonable dispute between the parties, provided that the insured has complied with the terms of the policy.
The Commissioner of Insurance may impose the following penalties on an insurance company for failure to make a decision/prompt payment within sixty (60) days:
For a claim under $100, a fine of $20.
For a claim over $100, 8% annual interest computed from the time a valid and complete claim was received, the dispute was resolved or the insured complied with the terms of the policy, until the time the benefits due are paid.
In addition,…
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