Household vehicle exclusions cannot be used to bar injured claimants from recovering stacked coverage, the Pennsylvania Supreme Court has ruled in a decision that breaks with decades of precedent.

The Supreme Court ruled 5-2 on Wednesday that a household exclusion in a policy issued by Geico violated the Motor Vehicle Financial Responsibility Law because it acted as a “de facto waiver” of stacked coverage. The ruling in Gallagher v. Geico reversed a Superior Court decision, which had relied on two prior Supreme Court decisions that had both failed to achieve a majority.

This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.

To view this content, please continue to their sites.

Not a Lexis Subscriber?
Subscribe Now

Not a Bloomberg Law Subscriber?
Subscribe Now

Why am I seeing this?

LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.

For questions call 1-877-256-2472 or contact us at [email protected]