July 19, 2019

SB 13-124: Amending Definition of “Intermediary” to Hold Intermediaries to the Same Standards as Carriers Regarding Prompt Claim Payment

On Tuesday, January 29, 2013, Sen. John Kefalas introduced SB 13-124 – Concerning Requirements of Intermediaries in the Business of Insurance, and, in Connection Therewith, Enacting the “Consumer Protection Act of 2013.” This summary is published here courtesy of the Colorado Bar Association’s e-Legislative Report.

The bill adds to the definition of “intermediary” specific functions that an intermediary performs. Intermediaries are held to the same standards as carriers regarding prompt payment of claims. The bill allows the commissioner of insurance to investigate complaints against intermediaries that fail to comply. It also prohibits specific acts by intermediaries and defines the willful violation of the prohibitions as an unfair method of competition and an unfair or deceptive act in the business of insurance. The bill is assigned to the Business, Labor, & Technology Committee.