When an insurance company seeks to limit or exclude coverage under the terms of an insurance policy, the insurer bears the burden or proving that a particular loss falls within an exclusion in the contract.
In a dispute concerning an insurer’s duty to defend against a claim asserted against its insured in a civil suit, Colorado applies the “complaint rule.” This rule provides that the allegations of the relevant complaint against the insured, together with the language of the relevant insurance policy, provide the bases for evaluating whether an insurer has a duty to defend.
Viewing the undisputed facts in the record in the light most favorable to Ruebel & Quillen, LLC’s client, the Court concluded that the claims asserted against the insured by a third party may involve a theory of recovery covered by the policy. To that end, the Court concluded that the insurer did owe a defense to the insured.
Please visit this link to view the full order on Leagle.
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