Chapter 13 - § 13.7 • SOURCES OF INDUSTRY STANDARDS UPON WHICH AN EXPERT CAN RELY

• Jurisdiction: Colorado

§ 13.7 • SOURCES OF INDUSTRY STANDARDS UPON WHICH AN EXPERT CAN RELY

While proof of industry standards is required to measure the reasonableness of an insurer's conduct, the question is from what sources such standards are derived. Courts in a number of cases have tried to answer this question.

In Thompson v. State Farm Mutual Automobile Insurance Co., 457 F. Supp. 3d 998 (D. Colo. 2020), which is discussed in detail in § 7.7, the court noted that under Travelers Insurance Co. v. Savio, 706 P.2d 1258, 1274 (Colo. 1985), "[t]he reasonableness of an investigation is based on proof of industry standards." 457 F. Supp. 3d at 1004. The court pointed out that in American Family Mutual Insurance Co. v. Allen, 102 P.3d 333, 344 (Colo. 2004), the court held that the Unfair Claims Settlement Practices Act, C.R.S. § 10-3-1104(1)(h), is "'valid, but not conclusive, evidence of industry standards.'" Moreover, in Peden v. State Farm Mutual Automobile Insurance Co., 841 F.3d 887, 890...