CO Code § 8-44-105 (2021)
2021 Colorado Code|Title 8 - Labor and Industry|Article 44 - Insurance|Part 1 - General Provisions|§ 8-44-105. Provisions of Policies - Primary Liability - Notice of Injury

 Every contract insuring against liability for compensation or insurance policy evidencing the same shall contain a clause to the effect that the insurance carrier shall be directly and primarily liable to the employee and, in the event of death, to said employee's dependents to pay compensation, if any, for which the employer is liable, thereby discharging to the extent of such payment the obligations of the employer to the employee; that, as between the employee and the insurance carrier, notice or knowledge of the occurrence of the injury on the part of the employer shall be deemed notice or knowledge, as the case may be, on the part of the insurance carrier; that jurisdiction of the employer, for the purpose of articles 40 to 47 of this title, shall be jurisdiction of the insurance carrier; and that the insurance carrier, in all things, shall be bound by and subject to the orders, findings, decisions, or awards rendered against the employer under the provisions of said articles. Such policy shall also provide that the employee shall have a first lien upon any amount which becomes owing to the employer from the insurance carrier, and the insurance carrier shall pay the same directly to the employee or the employee's dependents, thereby discharging to the extent of such payment the obligation of the employer to the employee. The policy shall not contain any provisions relieving the insurance carrier from payment when the employer becomes legally incapable or insolvent or is discharged in bankruptcy or otherwise during the period that the policy is in operation or the compensation remains owing.   History. Source: L. 90: Entire article R&RE, p. 522, § 1, effective July 1.    Editor's note:   This section is similar to former § 8-44-105 as it existed prior to 1990.   ANNOTATION   The policy of the workmen's compensation act is to hold the employer primarily liable to the employee for disability proximately resulting from accidents arising out of and in the course of the employment. Century Indem. Co. v. Klipfel, 99 Colo. 213 , 61 P.2d 842 (1936); Tri-State Ins. Co. v. Indus. Comm'n, 151 Colo. 494 , 379 P.2d 388 (1963).   But this section provides that the insurance carrier is directly and primarily liable to the employee for compensation, if any, for which the employer is liable, thereby discharging to the extent of such payment the obligations of the employer to the employee. Century Indem. Co. v. Klipfel, 99 Colo. 213 , 61 P.2d 842 (1936); Indus. Comm'n, v. Lopez, 150 Colo. 87 , 371 P.2d 269 (1962); Tri-State Ins. Co. v. Indus. Comm'n, 151 Colo. 494 , 379 P.2d 388 (1963).   And the insurance policy, and not the liability of the insured, measures the liability of the insurer. Where an employer lets out part of his work to contractors and insurers his liability to employees, the insurer's liability extends only to employees of the employer -- its policy so providing -- and not to those of the contractors. United States Fid. & Guar. Co. v. Turkey Creek Stone, Clay & Gypsum Co., 75 Colo. 611 , 227 P. 569 (1924).   Compensation carrier's intentional misconduct in the processing of a claim is neither a “direct” nor a “natural” consequence of an employment injury. Travelers Ins. Co. v. Savio, 706 P.2d 1258 (Colo. 1985).   A case involving a claim by an employee against a compensation insurance carrier for the tort of bad faith is like a first-party, direct coverage case because workers compensation benefits serve a purpose similar to that served by direct coverage insurance contracts. Travelers Ins. Co. v. Savio, 706 P.2d 1258 (Colo. 1985).   Coverage by an insurer is coextensive with the liability of the employer. Indus. Comm'n v. Lopez, 150 Colo. 87 , 371 P.2d 269 (1962).   And if an employer extends his operation by engaging in a joint venture, so does the insurance policy extend its coverage. Indus. Comm'n v. Lopez, 150 Colo. 87 , 371 P.2d 269 (1962).   The omission by an employer to list or pay a premium upon an employee does not affect the right of the employee to receive compensation from the carrier. Indus. Comm'n v. Lopez, 150 Colo. 87 , 371 P.2d 269 (1962).   The duties of an insurer are contractual and may be discharged by making payments pursuant to a final adjudication of liability. Indus. Comm'n v. Spoo, 151 Colo. 581 , 380 P.2d 49 (1963).   But an insurer's reliance on an award in process of review is not the measure of its liability, and its good faith cannot serve as a substitute for discharging its legal obligations. Indus. Comm'n v. Spoo, 151 Colo. 581 , 380 P.2d 49 (1963).   Employer may insure with two insurance companies against injury to an employee in two successive accidents. Tri-State Ins. Co. v. Indus. Comm'n, 151 Colo. 494 , 379 P.2d 388 (1963).   And two insurers are equally liable. Where an employer pays each of two insurance companies to indemnify him against liability for accidental injury to an employee, presumably both insurers are financially responsible, and each contracts to indemnify the employer for a portion of a disability caused by two accidents for which the employer is unquestionably liable. Century Indem. Co. v. Klipfel, 99 Colo. 213 , 61 P.2d 842 (1936); Tri-State Ins. Co. v. Indus. Comm'n, 151 Colo. 494 , 379 P.2d 388 (1963).