Wade Clark Mulcahy LLP

<p style="text-align: justify;">In<em> <a href="https://www.wcmlaw.com/wp-content/uploads/2020/07/Jones-v-Amica-Mutual-Insurance.pdf">Jones v Amica Mutual Insurance</a></em>, the Court recently considered whether an insurer was required to pay UIM benefits under a Personal Umbrella Policy.</p>
<p style="text-align: justify;">In the underlying action, Jones filed suit for injuries she sustained in a motor vehicle accident. The adverse driver, Sean Murtha, was responsible for accident. Plaintiff received the $100,000 policy limit from Murtha's insurer Allstate.  However, Jones claimed that her injuries exceeded this amount, and she subsequently filed an underinsured motorist claim with her own insurance carrier, Amica.</p>
<p style="text-align: justify;">At the time of the accident, Jones’ Umbrella Policy specifically excluded underinsured motorist coverage. Jones conceded that the Umbrella Policy excluded UIM benefits, but she argued that under the Pennsylvania Motor Vehicle Financial Responsibility Law (“MVFRL”), Amica was required to offer her the opportunity to include UIM benefits in her Umbrella Policy, and because Amica failed to do so, the Umbrella Policy must be reformed to include UIM benefits up to the $1,000,000 policy limit. Under the MVFRL, every Pennsylvania motor vehicle liability insurance policy must provide UIM coverage unless the coverage has been explicitly waived by the named insured. <em>See</em> 75 Pa. Stat. and Cons. Stat. Ann. §1731.</p>
<p style="text-align: justify;">Amica argued that, because the Umbrella Policy is an excess policy and not a motor vehicle liability policy, the MVFRL does not apply, and the Umbrella Policy cannot be reformed to include UIM coverage.</p>
<p style="text-align: justify;">The Court ultimately granted Amica’s motion to dismiss Jones’s claim for UIM benefits under the Umbrella Policy, finding that the MVFRL did not apply to the Umbrella Policy at issue. This case demonstrates the importance of verifying whether an Umbrella Policy provides UM/UIM coverage.</p>
Thanks to Emily Finnegan for her contribution to this post. Please contact <a href="mailto:Haquino@wcmlaw.com">Heather Aquino</a> with any questions.