Third Circuit Applies Gallagher v. GEICO Household Exclusion Decision as a Matter of Course

In the case of National General Insurance Company v. Sheldon, No. 20-3222 (3rd Cir. July 14, 2021 [Not Precedential], the Third Circuit Court of Appeals affirmed a district court’s decision that the household exclusion contained in the carrier’s policy was invalid under Pennsylvania law as set forth in the case of Gallagher v. Geico, 201 A.3d 131 (Pa. 2019).

According to the Opinion, the Plaintiff was injured while operating his motorcycle which was insured with Dairyland Insurance.

The Plaintiff settled the third party claim and the UIM claim on the motorcycle.

The Plaintiff then sought UIM benefits on his other household policy with National General Insurance Company, which covered another vehicle in the household. The carrier denied that claim under the household exclusion.

According to the Opinion, National General attempted to argue that the case of Gallagher v. Geico was limited to cases involving the same insurance company and where the carrier covering the other vehicle in the household was unaware of the insured’s ownership of a motorcycle.

The Third Circuit Court of Appeals affirmed the district court’s decision that the household exclusion was invalid under the case of Gallagher v. Geico. The Third Circuit noted in its Opinion that the result was dictated by the Pennsylvania Supreme Court’s decision in Gallagher v. Geico.

Anyone wishing to review a copy of this decision may click this LINK.


I send thanks to Attorney Scott B. Cooper of the Harrisburg, PA law firm of Schmidt Kramer P.C. for bringing this case to my attention.