Insurance companies, mostly in part due to the sensitivity of the nature of their business, have to be obligated to always act in good faith towards their clientele. In Colorado, there are consumer laws protecting you from insurance companies acting in bad faith, something that a consumer advocate is always on the lookout.
Under the consumer laws in the state of Colorado, insurance companies are required to promptly investigate your claim. After you file a claim, a good insurance company should immediately look into the incident that has caused you to file the claim and to decide whether there are enough grounds to approve the claim.
Once the insurance company has looked into your claim and approved it, they should promptly pay you even without pressure from a consumer advocate. This would be the second guideline that insurance companies have to abide with in terms of acting in good faith. If your insurance company failed to do this, you can file a bad faith insurance claim against them.
The third guideline stated by Colorado law states that the insurance company should communicate regularly with you so as to keep you informed of the status of your claim. If on the other hand, they are having trouble assessing the claim, they should at least keep you in the loop of what is happening with your claim and their investigation.
Any undisputed portion of a claim should be promptly paid by the insurance company. If your claim is denied, the insurance company must provide a clear explanation why is it denied. If your claim is accepted, a personal injury settlement may occur. Be wary of settlements if you are not sure how the settlement process works, as you may end up getting the shorter end of the stick. The Personal Injury Law Firm of Colorado can help guide you through this sticky situation with their expertise.
Insurance companies are very important because of the services that they offer. Sometimes, this importance has made some companies think that they can get away with almost anything. The good thing is that the consumer law is on the side of the consumer on this issue.
If you are still unaware of this issue or you want to learn more how to protect your rights or learn how you can get a personal injury settlement from your insurance company, consulting a lawyer would be the best course of action.