Opinion ID: 615422
Heading Depth: 2
Heading Rank: 3

Heading: Interpretation of Insurance Policies

Text: In construing the terms of an insurance policy, Colorado law mandates that the court apply ordinary principles of contract interpretation. Cyprus, 74 P.3d at 299. Policy terms are to be interpreted as understood by an ordinary person, not by one engaged in the insurance business. Allstate Ins. Co. v. Juniel, 931 P.2d 511, 516 (Colo.App.1996). Further, the court should, if possible, give effect to the reasonable expectations of the insured. Regional Bank of Colorado, N.A. v. St. Paul Fire & Marine Ins. Co., 35 F.3d 494, 497 (10th Cir.1994) (applying Colorado law); Cotter Corp. v. Am. Empire Surplus Lines Ins. Co., 90 P.3d 814, 828 (Colo.2004) (stating that the four corners rule protects an insured's reasonable expectation of a defense). Any ambiguity in a policy must be construed against the insurer and in favor of coverage. Chacon v. Am. Family Mut. Ins. Co., 788 P.2d 748, 750 (Colo. 1990). Ambiguity exists where a policy term admits of more than one reasonable interpretation. Hoang v. Assurance Co. of Am., 149 P.3d 798, 801 (Colo.2007).