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United States Fidelity & Guaranty Co. v. Budget Rent-A-Car Systems Inc.12/1/1992
strictly construed against the party drafting the instrument. Green Shoe Mfg. Co. v. Farber, 712 P.2d 1014, 1016 (Colo. 1986); Perl-Mack Enters. Co. v. Denver, 194 Colo. 4, 568 P.2d 468 (1977); Christmas v. Cooley, 158 Colo. 297, 406 P.2d 333 (1965). Therefore, Budget's assertion that subparagraph 6(B) constitutes a standard excess coverage clause cannot be sustained. Rather the rental agreement must be construed in favor of JCC, requiring Budget as the drafter thereof to provide primary insurance coverage to JCC.
If, as Budget contends, subparagraph 6(B) constitutes a standard excess coverage clause, it is unenforceable because contrary to this state's legislatively pronounced public policy. As the owner of a motor vehicle, Budget is required to carry compulsory liability coverage by the express terms of the Act. Section 10-4-705 of the Act states in pertinent part as follows:
Coverage compulsory. (1) Every owner of a motor vehicle who operates the motor vehicle on the public highways of this state or who knowingly permits the operation of the motor vehicle on the public highways of this state shall have in full force and effect a complying policy under the terms of this part 7 covering the said motor vehicle . . . .
§ 10-4-705(1), 4A C.R.S. (1987). A complying policy is defined as one containing "legal liability coverage for bodily injury or death arising out of the use of the motor vehicle to a limit, exclusive of interest and costs, of twenty-five thousand dollars to any one person and fifty thousand dollars to all persons in any one accident . . . ." § 10-4-706(1)(a), 4A C.R.S. (1987). An "insured" for purposes of liability coverage includes "any person using the described motor vehicle with the permission of the named insured." § 10-4-703(6), 4A C.R.S. (1987).
These statutory provisions require the owner of a motor vehicle who knowingly permits the vehicle to be operated by any driver on the public highways of this state to acquire minimum liability insurance for that vehicle. Budget owned the automobile involved in the accident and knowingly permitted JCC to operate it. The fact that Budget elected to self-insure its vehicles is immaterial; self-insurers must comply with the standards applicable to commercial insurers with respect to liability responsibility. § 10-4-716, 4A C.R.S. (1987).
The Act is designed to avoid inadequate compensation to automobile accident victims and to expedite payments due to such victims. See Allstate Ins. Co. v. Allen, 797 P.2d 46, 49 (Colo. 1990). In furtherance of these goals, the Act requires every motor vehicle owner to maintain an automobile insurance policy providing minimal levels of personal injury protection benefits to accident victims without regard to fault. American Standard Ins. Co. v. Ekeroth, 791 P.2d 1220 (Colo. App. 1990), cert. denied, 797 P.2d 1299 (Colo. 1990). These policies and statutory provisions in essence require motor vehicle owners to assume direct and primary responsibility for personal injuries resulting to others from the authorized operation of such motor vehicles, to the extent mandated by the Act. In my view, Budget's effort to evade its responsibility of providing primary coverage to JCC for personal injuries resulting from the authorized operation of Budget's automobile is contrary to the public policy evidenced by the Act. The contractual terms in question are, therefore, unenforceable.
For the forego
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