Q&A of the Week |
Injuries from Escaping Motor Vehicle
A Maryland subscriber recently asked the following question:
Insured has a standard personal auto policy. Insured is driving with his girlfriend (also named insured on the policy). The weather conditions were poor and very heavy rains flooded the road the couple was driving on. The vehicle was swept away down the road in the flood water. Both the driver and the passenger escaped the vehicle. The passenger escaped but the driver drown in the flood water. Is there BI coverage available to the insured driver or passenger? The cause of death was due to drowning not due to a motor vehicle accident, so it does not appear that coverage is triggered.
ANSWER: Generally a Personal Auto Policy will state that in order to trigger coverage the insured has to be legally liable for bodily injury that is caused by an auto accident. Here there is no obvious liability claim, unless the insured-passenger can claim that the insured-driver was negligent when he drove down the flooded road. Although some courts have considered water as an object within the meaning of collision, in this case we cannot definitively say that this would be considered an auto accident.
In Part B of the insuring agreement, Medical Payments Coverage, the standard policy says that the insurer "will pay reasonable expenses incurred for necessary medical and funeral services because of 'bodily injury' caused by accident and sustained by an 'insured.'" An accident in Part B is different from an accident in Part A and requires only that the insured is injured while occupying a motor vehicle designed for use on a public road. Because the insureds were escaping the vehicle at the time of the bodily injury and death, they were technically occupying the vehicle at the time of the injuries. Since the bodily injury and death in this case both occurred while the insureds were occupying a motor vehicle designed for use on a public road, this is considered an accident under Part B, Medical Payments Coverage. Since the survivor in this case was an insured, any reasonable medical expenses will be covered. Also, since the standard policy includes coverage for funeral expenses, and because the driver was also an insured, the deceased drivers funeral services will also be covered.
Read More |
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What's New This Week in FC&S |
Kidnap, Ransom, and Extortion Policy
Insurance Services Office (ISO) has updated and revised the coverage form for loss suffered by the insured due to kidnap, ransom, or extortion. Read More |
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Litigation Watch |
Exclusive Remedy Provision
Kershner appeals a trial court summary judgment on his premises liability claim against Samsung Austin Semiconductor. This case is Kershner v. Samsung Austin Semiconductor, 2016 WL 3974783.
Samsung was acting as the general contractor of the construction project on its premises. Kershner was employed by a subcontractor, Spur Electric. Spur signed the subcontract and agreed in the contract that workers compensation insurance coverage was provided to Spur and its employees pursuant to an owner/contractor controlled insurance program (OCIP). Read More
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Fraud of the Week |
Crop Fraud – Kentucky
AMOUNT: $1.1 million
Two farmers in Kentucky have confessed to crop insurance fraud. Read More
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