INSURANCE BAD FAITH DEMAND LETTER – COLORADO
To: [Insurance Company Name, Claims Department Address]
From: [Insured/Claimant Name, via Counsel if applicable]
Date: [DATE]
Claim Number: [CLAIM NUMBER]
Policy Number: [POLICY NUMBER]
Insured: [INSURED NAME]
Date of Loss: [DATE OF LOSS]
Type of Coverage: [Coverage Type]
1. INTRODUCTION AND PURPOSE
This letter constitutes a formal demand to [INSURANCE COMPANY] ("Insurer") for immediate payment. Insurer's unreasonable delay or denial of this claim exposes it to double damages under C.R.S. § 10-3-1116.
2. FACTUAL BACKGROUND
- Date of Loss: [DATE] — [describe loss]
- Timely Notice: Provided on [DATE]
- Cooperation: Full cooperation provided
- Coverage: Covered loss with limits of [$LIMITS]
3. CLAIM HISTORY AND INSURER'S CONDUCT
- [DATE]: Claim submitted
- [DATE]: [Describe unreasonable delays or denial]
- Current status: [Unpaid / Underpaid / Denied]
4. LEGAL BASIS – COLORADO BAD FAITH
Statutory Bad Faith (C.R.S. § 10-3-1116)
A first-party claimant whose claim is unreasonably delayed or denied may recover:
- Two times the covered benefit; plus
- Reasonable attorney's fees and costs.
An insurer's delay or denial is unreasonable if it lacked a reasonable basis. The statute applies to claims under policies issued or delivered in Colorado.
Common Law Bad Faith
Colorado also recognizes common law bad faith for breach of the duty of good faith and fair dealing. Travelers Ins. Co. v. Savio, 706 P.2d 1258 (Colo. 1985).
5. DAMAGES
Insured demands:
- Policy benefits: [$AMOUNT]
If unreasonable delay/denial continues:
- Double damages (2x covered benefit): [$DOUBLE]
- Reasonable attorney's fees
- Interest and costs
6. DEMAND AND DEADLINE
Deadline: [DATE – 30 days]
Failure to pay will result in litigation seeking double damages under C.R.S. § 10-3-1116.
7. PRESERVATION NOTICE
Preserve all claim file documents and communications.
8. ATTACHMENTS
- Exhibit A: Policy declarations
- Exhibit B: Loss documentation
- Exhibit C: Correspondence history
Signed:
[Name / Attorney]
[Contact Information]