Bad Faith Law Reaches Liability Policies, Judge Says

Law360, New York (February 26, 2013, 5:36 PM EST) -- Insurance carriers that unreasonably delay or deny coverage to additional insureds named on liability policies should pay double damages and attorneys' fees under a Colorado bad faith law aimed at first-party claimants, a federal judge ruled Monday, siding with a developer facing construction defect claims.

Weighing a contentious issue that hasn't been settled in Colorado, U.S. District Judge R. Brooke Jackson held that under the statute, developer D. R. Horton Inc. counted as a first-party claimant in its fight with five insurers over coverage of defense...
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