The Colorado Supreme Court decided that insurance adjusters cannot be held personally responsible for claims of bad faith on March 14, 2023. The decision is a win for the insurance business, and it could affect other states as well.
Skillett v. Farmers Insurance Exchange started because of a disagreement about a car accident. Skillett filed a lawsuit against Farmers Insurance Exchange, saying that the company did not pay her claim out of bad faith. Skillett also sued the individual insurance claims adjuster who handled her claim, saying that the agent was careless and hurt her.
The trial court threw out Skillett’s claims against the adjuster because, under Colorado law, the adjuster could not be held personally responsible for bad faith. The Colorado Court of Appeals ruled against the insurance company and said that the adjuster could be held personally responsible for bad faith.
The Court of Appeals’ decision was overturned by the Colorado Supreme Court, which said that the insurer was not personally responsible for bad faith. The Court decided that the bad faith insurance laws only let people sue the insurance company, not the assessor. The Court thought that making adjusters directly responsible would cause problems between insurance companies and their employees and would make insurance companies less likely to hire qualified adjusters.
The Court’s ruling is a win for business groups and insurance companies. It will make it harder for people to sue insurance companies for being dishonest, and it will protect insurance companies from expensive cases.
The ruling of the Court is also a win for people who buy insurance. It will help make sure that insurance companies are held responsible for their actions and that consumers can get the benefits they are due to under their insurance policies.
What does this mean for people who work in insurance?
The decision of the Colorado Supreme Court is a big deal for the insurance business. It makes the law clearer and gives insurance workers much-needed peace of mind. The decision should make it easier for people to file lawsuits against insurance companies and employees and make the claims process run more smoothly.
If you work in insurance, you should know about the Colorado Supreme Court’s ruling and how it affects your job. You should also know the laws and rules that are in effect in your state. If you have any questions about the choice, you should talk to an attorney who specializes in insurance law.