Dinora Dominquez v. Government Employees Insurance Company, No. 811, September Term 2020. Opinion by Beachley, J.
Maryland law requires that you purchase uninsured/underinsured motorist bodily injury liability insurance that covers at least $30,000 in damages per person injured, with a cap of $60,000 per accident. The Maryland Insurance Article only refers to “uninsured” motorists and motor vehicles, “an uninsured motorist or motor vehicle is, for all intents and purposes, the same as an underinsured motorist or motor vehicle.” Nationwide Mut. Ins. Co. v. Shilling, 468 Md. 239, 248-49 (2020) (citing Connors v. Gov’t Emps. Ins. Co., 442 Md. 466, 474 n.4 (2015)).
In March 2016, Dinora Dominquez was a passenger in a vehicle being operated by her daughter at the time that was rear ended by a vehicle that fled the scene before Ms. Dominquez or her daughter could identify the driver. Ms. Dominguez sustained serious injuries as a result of the collision and filed an uninsured motorist claim through her daughter’s GEICO Insurance policy which provided uninsured motorist bodily injury coverage limits of $30,000 per individual and $60,000 per occurrence. Ms. Dominguez was also insured under a separate GEICO insurance policy, which she purchased with her husband to cover their vehicle. Ms. Dominguez’s GEICO insurance policy provided uninsured/underinsured motorist bodily injury coverage limits of $300,000 per individual and occurrence. Ms. Dominguez filed an uninsured motorist claim with this policy as well.
At the time of the collision, Ms. Dominguez and her daughter resided in the same household. GEICO accepted Ms. Dominguez’s claim filed under her daughter’s policy but denied the claim under her own GEICO policy, citing an exclusion within Ms. Dominguez’s GEICO Policy that allowed the Insurer to deny the claim. The applicable exclusion stated that GEICO’s uninsured motorist coverage did not apply: “[t]o bodily injury sustained by an insured while occupying a motor vehicle owned by an insured and not described in the Declarations and not covered by the Bodily Injury and Property Damage liability coverages of this policy.” For purposes of this case, the GEICO policy defines the word “Insured” to mean: “(a) You and your spouse if a resident of the same household; (b) Your relative if a resident of your household[.]” The GEICO policy defined “You” and “Your” to mean “the policyholder named in the Declarations or his or her spouse if a resident of the same household.” The GEICO Policy defined “Relative” as “a person related to you who resides in your household.”
After the denial of the uninsured motorist claim under her own GEICO policy, Ms. Dominquez filed a breach of contract complaint against GEICO in the Circuit Court for Montgomery County. GEICO moved for summary judgment, asserting that as a matter of law, the exclusion contained within Ms. Dominquez’s policy permitted the denial of the claim. At the conclusion of a hearing on September 24, 2020, the Circuit Court rejected Ms. Dominguez’s argument that the exclusion in her GEICO policy was impermissibly broad and inconsistent with Maryland law contained in Md. Code, Ins. § 19-509(f)(1). The Court granted summary judgment in favor of GEICO.
In examining the Circuit Court’s ruling on appeal, the Court of Special Appeals reviewed the legislative history surrounding Ins. § 19-509(f)(1), which permits an insurer to exclude coverage when the insured occupies an uninsured vehicle owned by an “immediate family member” who resides in the insured’s household. The public policy in support of Ins. § 19-509(f)(1) is “to prevent a family, owning several motor vehicles, from insuring only one or two of them with an insurer, leaving the other vehicles uninsured, or underinsured under a different policy, and being able to claim uninsured or underinsured motorist benefits from the first insurer even though no premium was paid to the first insurer for coverage of the other vehicles.” Gov't Emps. Ins. Co. v. Comer, 419 Md. 89, 98, 18 A.3d 830 (2011).
Based upon that examination, the Court of Special Appeals ruled that Ms. Dominquez would not be able to recover under her own insurance policy for an injury she sustained in an underinsured vehicle owned by an immediate family member. In affirming the Circuit Court’s decision, the Court of Special Appeals noted the prevailing Maryland law provides that when the contractual provision of an insurance policy conflicts with a stated public policy, the policy provision is invalid, but “only to the extent of the conflict between the stated public policy and the contractual provision.” State Farm Mut. Auto. Ins. Co. v. Nationwide Mut. Ins. Co., 307 Md. 631, 643 (1986) (citing Ins. Comm’r v. Metro. Life Ins. Co., 296 Md. 334, 340 n.6 (1983)).
-Towanda Luckett, Associate Attorney