Colorado Department of regulatory agencies	 
Division of Insurance
3 ccr 702-5
Regulation 5-1-15
NOTIFICATION TO ADDITIONAL INSUREDS WHOSE INTERESTS ARE AFFECTED BY A CLAIM UNDER A GENERAL LIABILITY POLICY
Section 1.	Authority
Section 2.	Basis and Purpose
Section 3.	Rules
Section 4.	Enforcement
Section 5.	Severability
Section 6.	Effective Date
Section 7.	History
Section 1.	Authority
This regulation is promulgated pursuant to §§ 10-1-109 and 10-1-131, C.R.S.
Section 2.	Basis and Purpose
The purpose of this regulation is to implement rules concerning notification to additional insureds whose interests are affected by a claim on a general liability policy.
Section 3.	Rules
A.	Definitions
As used in this rule:
1.	A “general liability policy”  shall mean any insurance policy that provides insurance against negligent acts or omissions related to any contractor or completed operations activity.
2.	An “additional insured by endorsement”  shall mean a person or entity that is named on an endorsement to the general liability policy.
3.	A “reasonable period of time”  shall mean within ninety (90) calendar days after a liability claim is received, provided the insurer is able to identify the additional insured by endorsement based on a review of the records of the insurance company or information obtained from the named insured.
B.	Notice Requirements
An insurer shall notify any additional insured by endorsement on a general liability policy, whose interests are affected by a liability claim, of the results of the insurer's investigation of such claim and the status of the claim within a reasonable period of time.
Notice to the additional insured of the results of the insurer's investigation of the claim and the status of the claim shall be satisfied by providing:
1.	A statement confirming or denying coverage;
2.	If coverage has been denied, the reason for the denial; or
3.	If coverage has not been determined, a copy of the reservation of rights letter.
A statement of the applicable policy language shall be a sufficient statement of an insurer's reason for denial of coverage.
In the event a copy of the reservation of rights letter has been sent to the additional   insured   by endorsement pursuant to subparagraph 3, and coverage is subsequently confirmed or denied, notice pursuant to subparagraphs 1 or 2 shall be given within ninety (90) days after such coverage determination.
This regulation shall not apply to claims under a general liability policy upon which a lawsuit has been filed.
Section 4.	Enforcement
Noncompliance with this regulation may result, after proper notice and hearing, in the imposition of any of the sanctions made available in §§ 10-3-1108 and 10-3-1109 C.R.S. and any other sanctions available under Colorado law.
Section 5.	Severability
In the event any part of this regulation is determined to be invalid, the remainder of the regulation shall not be affected thereby.
Section 6.	Effective Date
This regulation is effective January 7. 2007.
Section 7.	History
New Regulation, effective May 1, 2001.
Amended Regulation, effective January 1, 2007.