CO HB1290

Insurers seeking to use a failure-to-cooperate defense in first-party insurance claims must submit a written request to the insured via electronic means (with consent) or certified mail, allowing 60 days to respond.

Information requested must not be available to the insurer without the insured's assistance and must be reasonably necessary for claim adjustment or fraud prevention.

Insurers must provide written notice describing the alleged failure within 60 days and allow the insured 60 days to cure the failure before asserting the defense.

Failure-to-cooperate defense applies only to the portion of the claim materially and substantially prejudiced by the insured's non-cooperation.

Policy language conflicting with these requirements is void as against public policy, and insurers retain their independent duty to investigate claims.