Thursday, August 2, 2018

Validity of UIM Rejection Form Language in Commercial Auto Policy Upheld (Mem. Op.)

In a memorandum opinion in the case of Rarick v. Federal Services Ins. Co., 2:13-cv-03286-JFL (E.D. Pa. July 10, 2017 Leeson, J.), whch involved an employee who challenged the rejection form signed by his employer on a commercial motor vehicle insurance policy, the District Court held that the employee (as a third party beneficiary) had standing to challenge the validity of the rejection of UM/UIM coverage form.

The court additionally confirmed that rejection forms under Section 1731 of the Pennsylvania Motor Vehicle Financial Responsibility Law apply to commercial policies. 

The District Court in Rarick ultimately held that, as there were only minor deviations in the form as compared to the form language in 75 Pa.C.S.A. Section 1731, the validity of the form was upheld.

Anyone wishing to review this case may click this LINK.

I send thanks to Attorney Scott Cooper of the Harrisburg, PA office of Schmidt Kramer for bringing this case to my attention.

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