In the case of
Baldridge
v. Amica Mut. Ins. Co., No. 2:17-cv-00273-AJS (W.D. Pa. June 30, 2017
Schwab, J.), the Federal Western District Court of Pennsylvania addressed the issue of whether underinsured motorist
coverage was available to the Plaintiff for stacking purposes on one of his
four personal vehicles which the Defendant insured.
According to the Opinion, there was no dispute that the
Defendant insurance company insured the four (4) personal vehicles of the Plaintiff.
There was also no dispute that the Plaintiff
had UIM coverage in the amount of $300,000.00 on three of the four personal
vehicles.
The question before the court
was whether the Plaintiff was entitled to UIM coverage on the fourth vehicle,
which was noted to be a Mustang.
The
more specific question for the court to resolve was whether the Plaintiff had
UIM coverage in the amount of $900,000.00 ($300,000.00 multiplied by three vehicles)
or $1.2 million dollars ($300,000.00 multiplied by four vehicles).
The carrier asserted that, because it never provided
liability coverage on the Plaintiff’s Mustang, the carrier was never required
to also offer the Plaintiff’s UIM coverage on that vehicle.
The Defendant carrier produced a portion of
the insurance policy it issued to the Plaintiff which confirmed that the
Mustang was “not covered” for liability.
Rather, that vehicle was covered only for damage to the Mustang for
accidents other than collision loss.
After a review of the waiver/rejection of UIM coverage statutes found at
75 Pa. C.S.A. §1731 and §1734, the court agreed with the carrier’s position and
found that, because the Mustang was not insured for liability purposes, the
Defendant carrier was never required to offer UIM benefits on that vehicle.
As such, no signed waiver of UIM benefits with
respect to the Mustang was required by law.
Accordingly, the court ruled in favor of the Defendant
carrier on the motion presented.
Anyone wishing to review this decision may click this
LINK.
I send thanks to Attorney Joseph Hudock of the Pittsburgh, Pennsylvania law firm of Summers McDonnell, Hudak & Guthrie, P.C., for bringing this case to my attention.