Centennial Insurance Bad Faith Lawyers

Bad faith is an act or omission by the insurer that is unreasonable in light of the circumstances. It involves failing to investigate fairly, ignoring evidence that supports coverage, delaying payment without legitimate reason, or denying a claim without a reasonable basis stated in writing. The insurer is required by Colorado law to act in good faith and deal fairly with you. If the company's internal files show it knew the claim was likely valid but denied it anyway, or if it delayed your benefit payment for months without explanation, that can constitute bad faith. The key is whether the insurer's conduct was unreasonable, not whether you ultimately disagree with its conclusion.

Colorado law requires insurers to act promptly and fairly. There is no single deadline that applies to all cases—it depends on your specific policy language, the complexity of the claim, and what the insurer needs to investigate. However, unexplained delays of weeks or months, especially when the insurer has the information needed to decide, can constitute bad faith. The insurer must communicate with you about the status and any reasons for delay. If you submitted all requested documents and the company is still stalling, that is a red flag. We recommend obtaining a case-specific review of your claim timeline and policy language as soon as possible, so we can advise whether delay has crossed the line into bad faith.

Yes. Colorado law allows a prevailing plaintiff in a bad faith insurance claim to recover reasonable attorney fees and litigation costs from the insurer. This is separate from your actual damages (the unpaid or underpaid benefit). You do not pay these fees out of pocket if you hire us—McCormick & Murphy handles bad faith claims on a contingency basis. This means we earn a fee only if your case is settled or wins. Any advanced case costs are separate from the contingency fee and will be discussed with you upfront.

The insurer must prove that you violated a material policy requirement and that the violation actually prevented the covered loss. Simply pointing to fine print in the policy is not enough. The insurer must show that its policy requirements were reasonable, that you received clear notice of them, and that you failed to meet them in a way that mattered. For example, if the company says you missed a deadline to submit medical records, but you can show that you submitted records on time or that the company had enough information to decide before that deadline, the denial may be unreasonable. We examine the policy language, the company's communications to you, your actions, and the insurer's claim file to determine whether any policy violation was real and material, or whether the denial was pretextual.

No. Whether your insurer is based in Colorado, another state, or operates nationally, it must follow Colorado's bad faith law when handling claims from Colorado residents. The same standards of fair investigation, prompt communication, and reasonable payment apply. If you received treatment at a local hospital like AdventHealth Littleton, or if the loss occurred on roads in the Centennial area such as E-470 or Arapahoe Road, we can work with those records and Arapahoe County Sheriff's Office reports as needed. Our office is in Denver, and we handle bad faith claims across the metro area and state. The insurer's location does not shield it from Colorado law.