CO Code § 13-80-107.5 (2021)
2021 Colorado Code|Title 13 - Courts and Court Procedure|Article 80 - Limitations- Personal Actions|§ 13-80-107.5. Limitation of Actions for Uninsured or Underinsured Motorist Insurance - Definitions

  Except as described in section 13-80-102 (2), but notwithstanding any other statutory provision to the contrary, all actions or arbitrations under sections 10-4-609 and 10-4-610, C.R.S., pertaining to insurance protection against uninsured or underinsured motorists shall be commenced within the following time limitations and not thereafter:   An action or arbitration of an “uninsured motorist” insurance claim, as defined in sections 10-4-609 and 10-4-610, C.R.S., shall be commenced or demanded by arbitration demand within three years after the cause of action accrues; except that, if the underlying bodily injury liability claim against the uninsured motorist is preserved by commencing an action against the uninsured motorist within the time limit specified in sections 13-80-101 (1)(n) and 13-80-102 (1)(d), then an action or arbitration of an uninsured motorist claim shall be timely if such action is commenced or such arbitration is demanded within two years after the insured knows that the particular tortfeasor is not covered by any applicable insurance. In no event shall the insured have less than three years after the cause of action accrues within which to commence such action or demand arbitration.    An action or arbitration of an “underinsured motorist” insurance claim, as defined in section 10-4-609 (4), C.R.S., shall be commenced or demanded by arbitration demand within three years after the cause of action accrues; except that, if the underlying bodily injury liability claim against the underinsured motorist is preserved by commencing an action against the underinsured motorist or by payment of either the liability claim settlement or judgment within the time limit specified in sections 13-80-101 (1)(n) and 13-80-102 (1)(d), then an action or arbitration of an underinsured motorist claim shall be timely if such action is commenced or such arbitration is demanded within two years after the insured received payment of the settlement or judgment on the underlying bodily injury liability claim. In no event shall the insured have less than three years after the cause of action accrues within which to commence such action or demand arbitration.       As used in this section, unless the context otherwise requires:   “Action” means a lawsuit commenced in a court of competent jurisdiction; and    “Arbitration demand” means a written demand for arbitration delivered to the insurer that reasonably identifies the person making the claim, the identity of the uninsured or underinsured motorist, if known, and the fact that an uninsured or underinsured motorist insurance arbitration is being demanded.       An uninsured or underinsured motorist cause of action accrues after both the existence of the death, injury, or damage giving rise to the claim and the cause of the death, injury, or damage are known or should have been known by the exercise of reasonable diligence.     History. Source: L. 94: Entire section added, p. 2825, § 3, effective July 1. L. 2014: IP(1) amended,(SB 14-213), ch. 344, p. 1537, § 4, effective July 1. L. 2015: IP(1) amended,(SB 15-264), ch. 259, p. 950, § 32, effective August 5.    ANNOTATION   The three-year period in which to commence an action against the uninsured and the two-year period to commence an uninsured motorist claim may run concurrently if the plaintiff knew or, in the exercise of reasonable diligence, should have known that there was no applicable insurance at the time of the accident. The requirement that a plaintiff use due diligence does not reward self-denial or self-indulgence; therefore, the uninsured's oral advisement at the time of the accident that he or she does not have insurance is enough to commence the two-year limitation period in which to bring a claim against an uninsured motorist carrier. Sulca v. Allstate Ins. Co., 77 P.3d 897 (Colo. App. 2003).   Two-year period began to run at time of accident, when uninsured driver admitted to having been uninsured or, at the latest, when the insured told his or her doctor he or she was involved in uninsured motorist litigation. Therefore, failure to join the insurer as a defendant until more than two years later required dismissal of the claim against the insurer. Trigg v. State Farm Mut. Auto. Ins. Co., 129 P.3d 1099 (Colo. App. 2005).   “Relation back” doctrine based on mistake of identity did not apply where plaintiff sued the uninsured motorist for negligence and later added the plaintiff's insurer based on a separate transaction or conduct arising from the insurance contract. Trigg v. State Farm Mut. Auto. Ins. Co., 129 P.3d 1099 (Colo. App. 2005).   The two-year period described in the second clause of subsection (1)(a) cannot apply to shorten the length of time to sue an insurer; it can only be applied to lengthen the three-year limitations period by as much as two years if the insured has preserved its rights by suing the driver and the injured person learned the driver was uninsured and filed suit against the insurer within two years after learning of that status. Rider v. State Farm Mut. Auto. Ins. Co., 205 P.3d 519 (Colo. App. 2009).   The statute of limitations in subsection (1)(a) does not begin to run when the insured consults with an attorney or an attorney informs the insured that he or she has a claim, but when an insured knew, or should have known in the exercise of reasonable diligence, that there was no applicable insurance. Olson v. State Farm Mut. Auto. Ins. Co., 174 P.3d 849 (Colo. App. 2007).   Language of statute conditions the two-year limitations period applicable to uninsured motorist claims on the insured's awareness of the tortfeasor's lack of any applicable liability insurance whatsoever, and it clearly conditions the limitations period applicable to underinsured motorist claims on something other than the insured's awareness that the liability insurance coverage of the tortfeasor makes him or her underinsured relative to the injured party. An action against an underinsured motorist may be brought within two years after the insured victim receives payment of a settlement or judgment on a bodily injury claim. Pham v. State Farm Auto. Ins., 2013 CO 17, 296 P.3d 1038.   A demand satisfying the statute of limitations described in subsection (1)(b) can be made only under a preexisting mandatory arbitration agreement and not where the parties' agreement acknowledges only that arbitration may occur by consent. Cork v. Sentry Ins., 194 P.3d 422 (Colo. App. 2008).   Subsection (1)(b) requires payment of a liability claim settlement within the three-year limitations period. Stoesz v. State Farm Mut. Auto. Ins. Co., 2015 COA 86 , 410 P.3d 561.   A settlement agreement does not constitute “payment” for purposes of extending the limitation period for an additional two years. Stoesz v. State Farm Mut. Auto. Ins. Co., 2015 COA 86 , 410 P.3d 561.   An uninsured motorist does not receive payment of a settlement for purposes of the statute of limitations until he or she is legally entitled to the funds through acceptance of the settlement agreement. Kovac v. Farmers Ins. Exch., 2017 COA 7 M, 401 P.3d 112.   A “civil action” is a lawsuit that has actually been commenced in a court of competent jurisdiction. Ortivez v. Davis, 902 P.2d 905 (Colo. App. 1995).