USAA v. Wenzell: Colorado Supreme Court Clarifies That C.R.S. § 10-3-1118 Failure-to-Cooperate Requirements Do Not Apply to Policy Conditions Precedent
In April 2026, the Colorado Supreme Court clarified C.R.S. § 10-3-1118 did not abrogate the common law distinction between general failure-to-cooperate defenses and defenses based on specific policy conditions precedent. In USAA v. Wenzell, the Court held (6-1) that only defenses based on an insured’s general common law duty to cooperate, rather than on conditions […]
Colorado Supreme Court Limits “De Facto Insurer” Liability in Hertz Corp. v. Babayev
Opening its opinion with the quote, “If you call a tail a leg, how many legs has a dog? Five? No; calling a tail a leg don’t make it a leg,” the Colorado Supreme Court made clear that labels alone do not transform a rental car company into an insurer. On April 27, 2026, the […]
Colorado Bill Increases Statutory Damage Caps
Colorado House Bill 24-1472, approved on June 3, 2024, increased statutory damage limitations under C.R.S. §§ 13-21-102.5 (noneconomic losses) and 13-21-203.7 (wrongful death). For civil actions filed on or after January 1, 2025, other than medical malpractice suits and those filed against health care workers, the total for noneconomic damages cannot exceed $1,500,000. The previous […]
Senate Bill 20-217 Enhance Law Enforcement Integrity Signed Into Law
On June 19, 2020, Governor Jared Polis enacted sweeping law enforcement reforms in Colorado with the signing of Senate Bill 20-217 (the “Bill”). While the full, practical impact of the Bill will take time to be fully understood, the immediate effect is the creation of an individual cause of action against police officers for violations […]
Colorado House Bill 20-1290 Failure to Cooperate Signed Into Law
On July 2, 2020, Governor Polis signed into law Colorado House Bill 20-1290. The Act concerns the ability of an insurer to use a failure-to-cooperate defense in an action in which an insured has made a claim for insurance coverage and applies to all litigation that occurs on or after September 14, 2020. Now, to […]
Are You Ready for COVID-19 Business Interruption Claims?
Insurers that issue business and commercial liability policies should brace themselves for what may be several years of business interruption claims and lawsuits resulting from COVID-19-related state and local “shut down” orders. Numerous lawsuits have already been filed against insurers across the country and are providing an early glimpse into emerging “hot topics” in COVID-19 […]