Colo. High Court Asked to Determine Timeliness of Claim For Unreasonable Denial of Insurance Benefits

DENVER — A Colorado federal judge has asked the state’s highest court to resolve the issue of whether a claim for unreasonable delay or denial of insurance benefits arising under Colorado Revised Statutes §§ 10-3-1115 & -1116 is subject to the one-year statute of limitations applicable to actions arising under “penal statutes.”

On Feb. 8, Judge William Martinez certified the question to the Colorado Supreme Court in order to determine whether a hail damage coverage dispute is time-barred.

The insureds’ residence was covered under a homeowners’ policy issued by American Family Mutual Insurance Co. On Aug. 30, 2013, they filed …