Colorado Counts Private Limitation of Action Provision from Moment of Loss or Damage

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Insurance is a contract. If the contract terms are clear and unambiguous they must be enforced when brought to a court for decision. In Midtown Investments, LP, a Delaware foreign limited partnership v. Auto-Owners Insurance Company, a Michigan corporation, Civil Action No. 20-cv-01594-PAB-STV, United States District Court For The District Of Colorado (March 8, 2021) the Plaintiff filed suit more than two years after the loss and the insurer moved to dismiss.

ZALMA OPINION

People who are unhappy with a decision of an insurer to refuse to pay a claim, who have actually read the policy, can easily avoid running afoul of the private limitation of action provision in Colorado and other states that apply the limitation period as written. In California by Regulation and court opinions, the limitation period is tolled from the time the loss is reported to the insurer until the insurer denies the claim. If that rule had been followed in Colorado the suit would have been timely filed.