Opinion ID: 2584004
Heading Depth: 1
Heading Rank: 3

Heading: The Use Test

Text: The General Assembly has declared that the purpose of the No Fault Act is to avoid inadequate compensation to victims of automobile accidents; to require registrants of motor vehicles in this state to procure insurance covering legal liability arising out of ownership or use of such vehicles and also providing benefits ... to persons injured in accidents involving such vehicles. 10-4-702, 3 C.R.S. (2002). The Act requires insurers to pay certain expenses related to injuries arising out of the use or operation of a motor vehicle. 10-4-706(1)(b)(I), 3 C.R.S. (2002). The UM statute, by contrast, does not absolutely mandate coverage but instead requires insurers to provide coverage against uninsured motorists for injuries arising out of the ownership, maintenance or use of a motor vehicle, unless rejected in writing by the insured. 10-4-609(1)(a), 3 C.R.S. (2002). We have described the legislative intent underlying the UM Act as the General Assembly's desire to provide compensation for injury caused by an uninsured motorist equal to that obtainable for injury caused by an insured motorist. State Farm Mut. Auto. Ins. Co. v. Nissen, 851 P.2d 165, 168 (Colo. 1993). At issue in this case is the meaning of the phrase arising out of the use of a motor vehicle, found in both statutes. As discussed below, we have previously interpreted this phrase in many different settings. Because the language in each statute is virtually identical and because each statute derives from the same legislative purpose, our interpretation of the phrase arising out of the use of a motor vehicle applies to both. Compare Trinity Universal Ins. Co. v. Hall, 690 P.2d 227, 230 (Colo.1984) (construing the phrase arising out of the use ... of a motor vehicle for purposes of the No Fault Act) and McMichael, 906 P.2d at 102 (citing to Hall and construing the term use for purposes of the UM Act) and Kohl v. Union Ins. Co., 731 P.2d 134, 135-36 (Colo.1987) (construing the phrase on account of the use of a motor vehicle for purposes of Colorado's liability statute, § 42-7-102, 11 C.R.S. (2002)) with Cung La v. State Farm Auto. Ins., 830 P.2d 1007, 1009-12 (Colo.1992) (construing arising out of the use of a motor vehicle for purposes of the UM Act, noting that its meaning must be construed identically to the construction of arising out of the use for purposes of the Liability Act, also construing arising out of the use of a motor vehicle for purposes of the No Fault Act in the same case, applying the same analysis for both the UM and No Fault provisions). The terms use and arising out of are not statutorily defined terms for insurance purposes, and, as we have indicated above, they are not otherwise defined in the insurance contract. Thus, we must look to the intent of the parties at the time of contracting, taking into account any legislative intent that would impact upon the issue. See Nissen, 851 P.2d at 166 (Our starting point is the plain language of the [insurance] contract and the intent of parties as expressed in that language.).