(1) Pursuant to rules promulgated by the commissioner, an insurer shall notify any additional insured by endorsement on a general liability policy, whose interests are affected by a claim, of the results of the insurer's investigation of such claim and the status of the claim within a reasonable period of time as determined by the commissioner. Such notice shall include a statement confirming or denying coverage of the claim and, if coverage is denied, the reasons for denying coverage of the claim or any portion of the claim. In the event coverage has not been determined, a copy of the reservation of rights letter shall constitute sufficient notice.
Failure to notify any additional insured by endorsement on a general liability policypursuant to this section shall subject the insurer to the provisions of sections 10-3-1108 and 103-1109.
The provisions of this section shall not apply to those claims under a general liabilitypolicy upon which a lawsuit has been filed.
Source: L. 2003: Entire article RC&RE, p. 604, § 1, effective July 1.
Editor's note: This section is similar to former § 10-1-132 as it existed prior to 2002.