June 25, 2019

Colorado Supreme Court: Umbrella Policy that Includes Supplemental Liability Coverage Is Not a Motor Vehicle Liability Policy

The Colorado Supreme Court issued its opinion in Apodaca v. Allstate Ins. Co. on June 20, 2011.

Insurance Law—Statutory Construction—Uninsured/Underinsured Motorist Coverage—Umbrella Liability Policies.

The Supreme Court held that an umbrella policy that includes supplemental liability coverage for automobiles or motor vehicles is not an “automobile liability or motor vehicle liability policy” under CRS § 10-4-609(1)(a). Consequently, under § 10-4-609, an insurer issuing an umbrella policy is not required to offer uninsured/underinsured motorist (UM/UIM) coverage as part of the umbrella policy. The Court reached this result based on the plain language of the UM/UIM statute, and rejected the argument that public policy considerations compel a different result. The Court therefore affirmed the court of appeals’ judgment.

Summary and full case available here.

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