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Attached is a copy of the Pennsylvania Superior Court decision today in Toth v. Donegal Companies. This case deals with a rejection of underinsured motorist coverage where the rejection form was signed by the spouse of the first named insured. The trial court held that the form must be signed by the first named insured and, since it was not, the form was void. The Superior Court relies upon Jackson v. Allstate Insurance Co., 441 F.Supp.2d 728 (E.D. Pa. 2006) where the District Court found that the insured failed to prove her signature on a rejection form was a forgery.
The trial court is reversed and the Superior Court holds "where a signature appears on the UIM rejection form purporting to be that of the first named insured, the insurer has complied with the statute resulting in a facially valid rejection form.
The burden would then shift to the insured to prove that his or her signature was affixed to the rejection form without knowledge or authorization." Toth now needs to show that her signature was a forgery, placed there without her knowledge or consent, and that she did not willingly waive UIM coverage or the rejection form remains valid.
"More drivers are letting their car insurance lapse because of the sour economy, putting themselves and others at risk. Several hundred thousand drivers dropped their insurance in the past year as the jobless rate climbed, estimates a study to be released next month by the Insurance Research Council, an industry-funded group. Online agency Insurance.com says it also is seeing evidence recently of more uninsured motorists. It says that as many as 40% of callers following up on online applications had let their previous policies lapse, up from less than 10% a couple years ago."
"The trend is bad news for everybody on the road. If you're hit by an uninsured motorist, you may have to sue to recover costs, and many uninsured motorists have few assets. You can protect yourself by carrying uninsured-motorist coverage -- almost half of states require the added coverage -- but this may boost your premium."
This article points out the importance of buying the best coverage for your vehicle that's possible. This means that you should purchase underinsurance and uninsurance. Because so many drivers have no or limited insurance, buying extra coverage only protects you and your family.
To learn more about Underinsurance and Uninsurance, click here and here and here.
The Pennsylvania Supreme Court recently decided the case of Nationwide v. Schneider where the Court affirms the en banc decision of the Superior Court and holds that you are not required to fully exhaust the first level of UIM before you pursue the second level UIM. This is a big win for plaintiffs.
