Colorado’s Cooperation Law, enshrined in C.R.S. § 10-3-1118, was designed to protect policyholders from unfair denials based on alleged failures to cooperate. It sets a clear legal standard: If an insurer wants to rely on a non-cooperation defense, it must first follow a series of procedural steps, including sending formal written notice, giving the insured time to respond, and allowing an opportunity to cure any alleged deficiencies. Failure to comply with these statutory mandates means the insurer cannot use non-cooperation as a defense.

Jon Bukowski wrote an excellent article about this law after its passage in Forfeiture of Benefits For Failure To Cooperate Stopped Under New Colorado Law.

In Simchat Torah Beit Midrash v. Philadelphia Indemnity Insurance Company, this statutory safeguard became a focal point of pre-trial litigation. Simchat, a nonprofit religious organization, suffered extensive property damage after a historic windstorm. When it sought coverage from its insurer, it encountered resistance. The insurance company argued that Simchat had hindered its investigation by refusing additional inspections, effectively failing to cooperate with the claims process. However, Colorado law does not permit insurers to simply declare non-cooperation and deny coverage—their obligations under the Code are strict, and in this case, the court found that Philadelphia Indemnity had failed to meet them.

In granting Simchat’s motion, 1 the court ruled that the insurer was barred from arguing non-cooperation at trial. The decision relied heavily on Colorado precedent, which reinforced the requirement that insurers strictly adhere to the statutory process before invoking a non-cooperation defense. The court found that Philadelphia Indemnity had not provided proper notice, nor had it given Simchat the necessary opportunity to cure any alleged failure. As a result, the insurer’s key defense was eliminated before the trial even began—a significant legal victory for the policyholder.

So, what happened with the case? This week, the trial went to the jury. The strength of the Code was not enough to secure a win. Despite the insurer’s procedural failure, the jury ultimately sided with Philadelphia Indemnity, delivering a zero verdict. This outcome raises important questions about the practical impact of Colorado’s cooperation code. While the statute provides crucial protections to insured parties, preventing insurers from unfairly leveraging cooperation clauses to deny claims, it does not guarantee a favorable jury verdict.

The takeaway? Winning a procedural battle over Colorado’s cooperation law does not ensure success in an insurance dispute. Policyholders must still present compelling evidence that their claim was wrongfully denied, and insurers, even when stripped of certain defenses, can still prevail in front of a jury. Colorado’s statutory safeguards provide essential due process protections, but as this case illustrates, policyholders still have to prove the rest of the case.

Thought For The Day 

“You can’t win them all, but you can try.” 

 —Babe Ruth

1 Simchat Torah Beit Midrash v. Philadelphia Indemnity Ins. Co., No. 1:23-cv-00594 (D. Colo. Mar. 3, 2025).