Tuesday, November 30, 2010

Pennsylvania Supreme Court to Consider Payment of Prorated Deductibles in Property Damage Subrogation Cases

The Pennsylvania Supreme Court has granted allocatur in the case of Jones v. Nationwide Property and Casualty Insurance Company, 2010 WL 4643224 (Pa. Nov. 17, 2010), on the issue of whether a car insurer can repay only a prorated portion of an insured's deductible when recouping expenses through subrogation from a third party at fault. The Court more specifically framed the questions presented, as follows:

AND NOW, this 17th day of November 2010, the Petition for Allowance of Appeal is GRANTED. The issues, as stated by petitioner are: (1) Does Pennsylvania law require that a party suffering damages be made whole before an insurer is entitled to subrogation? (2) Does the Pennsylvania Insurance Commissioner have the authority to promulgate a regulation regarding allocation of subrogation proceeds between an insurance company and its insured following subrogation recovery? (3) Is the Pennsylvania Insurance Commissioner's regulation allowing insurers to allocate subrogation proceeds on a pro rata basis void because it violates Pennsylvania substantive common law, the “made whole” doctrine? 

  Source: "State Supreme Court Takes Case on Prorating Dedectibles" by Amaris Elliott-Engel, The Legal Intelligencer, November 30, 2010.

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