In a landmark case that may have far reaching implications for insurance companies and insured parties alike, the Superior Court of Pennsylvania, on August 7, 2023, held a decisive stance on the execution of underinsured or uninsured motorist (UM/UIM) stacking waivers under the Pennsylvania Motor Vehicle Financial Responsibility Law (MVFRL).
According to the ruling, it was established that under the MVFRL, UM/UIM stacking waivers for an auto policy only have to be signed by the first named insured. This ruling came about during the case of Golik v. Erie Insurance Exchange, where a unanimous, precedential opinion was made on the subject by the Superior Court.
This interpretation of the MVFRL by the Pennsylvania Superior Court could potentially redefine the way insurance policies, specifically those concerning auto coverage, are handled across the region. Under this definition, the burden of executing UM/UIM stacking waivers is significantly reduced for insurance providers, as only the first named insured is required to sign-off on them.
As observed in previous cases, disputes over these waivers have led to a multitude of legal battles, with the matter of “who needs to sign these waivers” often being the sticking point. With the Superior Court’s ruling, it is possible that such disputes may diminish, with the law now providing clear-cut guidelines on who is required to execute these waivers.
However, this may also lead to a potential increase in disputes between insurance providers and other named insured parties in a policy who are not required to sign these waivers under the ruling, questioning their liability in case of an accident.
Yet, as it stands, the impact this ruling will have on the insurance industry, named insured parties, and legal disputes concerning UM/UIM waivers, while significant, remains to be fully seen.
For a more detailed account of the case, please follow this link.