12-555. Uninsured and underinsured motorist coverage; claims; time limits

A. An insurer is not liable for uninsured motorist coverage benefits unless the person making the claim gives written notice to the insurer of the person's intent to pursue the claim against the uninsured motorist portion of a motor vehicle policy within three years after the date of the accident that caused the bodily injury, except that a person may make an uninsured motorist claim within three years after the earliest of the following:

1. The date the person knew that the tortfeasor was uninsured.

2. The date the person knows or should have known that coverage was denied by the tortfeasor's insurer.

3. The date the person knows or should have known of the insolvency of the tortfeasor's insurer.

B. An insurer is not liable for underinsured motorist coverage benefits unless the person making the claim gives written notice to the insurer of the person's intent to pursue the claim against the underinsured motorist portion of a motor vehicle policy within three years after the date of the accident that caused the bodily injury and the person has made a claim with the tortfeasor's insurer or filed an action against the tortfeasor within the time limits prescribed by section 12-542 or within the corresponding limitation period provided under the law of the location where the accident occurred. Notwithstanding this subsection, a person may make an underinsured motorist claim within three years after the date the person knows or should have known that the tortfeasor has insufficient liability insurance to cover the person's injuries.

C. If settlement of an uninsured or underinsured motorist claim is not reached:

1. The insurer shall provide written notice to the person at the last known address on record with the insurer by first class mail, within two years after receiving the written notice prescribed in subsection A or B of this section, that the person must request arbitration or file suit pursuant to the terms of the insurance contract within three years after providing the written notice prescribed in subsection A or B of this section or the insurer is not liable for uninsured motorist coverage benefits or underinsured motorist coverage benefits.

2. A person shall request arbitration or file suit pursuant to the terms of the insurance contract within three years after providing the written notice prescribed in subsection A or B of this section. If the person does not comply with this paragraph, the insurer is not liable for uninsured motorist coverage benefits or underinsured motorist coverage benefits.

D. An insurer shall bring an action for subrogation and reimbursement pursuant to section 20-259.01 within two years after the date the insurer first makes payment to the insured under the uninsured motorist coverage.