In the case of Goodville Mut. Cas. Co. v. McNear, No. 861 MDA 2023 (Pa. Super. Feb. 26, 2025 Nichols, J., King, J., and Sullivan, J.), the court affirmed a trial court decision that an insurance company was not obligated to obtain new UIM coverage selection forms whenever an insured added vehicles to their policy.
According to the Opinion, back in 2012, the insured initially signed an election form for less than full UIM coverage. More specifically, the insured selected benefits of $50,000.00 per person, $100,000.00 per accident stacked across three (3) vehicles covered by the policy.
The insured then renewed their policy ever six (6) months and, between 2012 and 2018, the added and removed vehicles, with policy covering as many as four (4) and as few as two (2) vehicles.
The carrier did not obtain new limited UIM election forms whenever the insureds added vehicles to the policy. The court also noted that the insureds never affirmatively requested any changes to their benefits.
By the year 2018, the insured’s policy again covered three (3) vehicles. In 2018, one of the insureds was involved in an accident.
The insureds covered the policy limits from the tortfeasor’s vehicle. The insured then filed a UIM claim. The carrier paid the UIM benefits of $50,000.00 stacked on the three (3) vehicles covered on the policy.
The insured disputed the amount paid and asserted that the addition of vehicles to their policy constituted “new purchases” coverage which required the carrier to obtain new UIM elections each time. The Plaintiffs attempted to assert that, because the carrier failed to obtain new UIM election forms, the carrier should be forced to pay full UIM benefits up to the bodily injury limits of their policy, i.e., $250,000.00 stacked across three (3) vehicles, or $750,000.00.
The carrier rejected that claim and commenced this declaratory judgment action.
As noted, the Superior Court affirmed the trial court’s decision rejecting the Plaintiff’s arguments. The Pennsylvania Superior Court noted that 75 Pa. C.S.A. §1734 requires only that the carrier “issue” UIM coverage in the amount selected by a named insured in writing signed by a named insured.
The court also noted that 75 Pa. C.S.A. §1791 permits the carrier to rely upon the elections and notices regarding the availability of UIM benefits at the time of the application for original coverage.
Here, because it was undisputed that the insured had completed a “sign-down” form selecting limited UIM coverage, and given that neither named insured on the policy affirmatively reflected any change, in writing, to the UIM coverage, and given that the insureds did not object to any alleged defects in the §1791 notices they received at the time the insured applied for the coverage, the appellate court ruled that the original “sign-down” form remained effective at the time the Plaintiff was involved in the subject accident.
The court additionally noted that, pursuant to §1791, the insurance company was under no obligation to provide additional notices regarding the limited UIM benefits the insured had originally selected. In the end, the court ruled that, once the insured elected limited UIM benefits when applying for the original policy, the insurance company was entitled to presume that the insured selection remained effective until affirmatively changed by a named insured.
Accordingly, the Superior Court affirmed the entry of a declaratory judgment in favor of the carrier.
Anyone wishing to review a copy of this decision may click this LINK.
Source: The Legal Intelligencer State Appellate Case Alert, www.Law.com (March 18, 2025).
The court also noted that 75 Pa. C.S.A. §1791 permits the carrier to rely upon the elections and notices regarding the availability of UIM benefits at the time of the application for original coverage.
Here, because it was undisputed that the insured had completed a “sign-down” form selecting limited UIM coverage, and given that neither named insured on the policy affirmatively reflected any change, in writing, to the UIM coverage, and given that the insureds did not object to any alleged defects in the §1791 notices they received at the time the insured applied for the coverage, the appellate court ruled that the original “sign-down” form remained effective at the time the Plaintiff was involved in the subject accident.
The court additionally noted that, pursuant to §1791, the insurance company was under no obligation to provide additional notices regarding the limited UIM benefits the insured had originally selected. In the end, the court ruled that, once the insured elected limited UIM benefits when applying for the original policy, the insurance company was entitled to presume that the insured selection remained effective until affirmatively changed by a named insured.
Accordingly, the Superior Court affirmed the entry of a declaratory judgment in favor of the carrier.
Anyone wishing to review a copy of this decision may click this LINK.
Source: The Legal Intelligencer State Appellate Case Alert, www.Law.com (March 18, 2025).
