An unlicensed driver in Pennsylvania will now be assured medical expense coverage, thanks to a recent ruling by the state’s Superior Court. The court determined that an unlicensed driver exclusion in an auto insurance policy cannot be used as a basis for denying first-party medical expense benefits, as mandated by the Motor Vehicle Financial Responsibility Law (MVFRL). The court emphasized that the MVFRL treats medical expense coverage differently from other first-party benefits, making it mandatory for policyholders and requiring insurers to offer such coverage. The ruling overturns a trial court decision that relieved Nationwide Insurance of its obligation to pay for the medical expenses incurred by Elvia Castaneda’s daughter, Christina, while driving her mother’s car. Although Christina did not have a Pennsylvania driver’s license and did not regularly reside with her mother, the court found that she was eligible for first-party medical benefits as being an unlicensed driver is not listed as a permissible ground for denying these benefits under the MVFRL. By invalidating the unlicensed driver exclusion, the court maintains the broad coverage objectives set by the MVFRL and prevents dilution of the mandated coverage for injured claimants.
Pennsylvania Court Rules Unlicensed Drivers Must Be Covered for Medical Expenses, US
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