Bonbeck Parker v. The Travelers Indemnity

BONBECK discusses the interpretation of “amount of loss” and its effect on the scope of a panels authority. In overview, the 10th Circuit Court of appeals, interpreted “amount of loss” encompasses causation and therefore it is within the panel’s authority to determine causation. The Court stated that under the Colorado appraisal policy language, which differs slightly from some other states, that a panel makes the determination of how much damage occurred, including causation, and this argument cannot then be rehashed in litigation. The Court noted that the insurer had other reasons for which it may deny coverage following appraisal such as notice, cooperation, or misrepresentation of material fact.