Opinion ID: 2299657
Heading Depth: 1
Heading Rank: 4

Heading: Waivers of PIP and UM Coverage

Text: With respect to both PIP and UM coverage, State law allows for waivers of the coverage that the law otherwise specifies. In particular, PIP coverage may be waived altogether with respect to named insured individuals and drivers listed in a policy, as well as family members over the age of 16 residing in the household. IN § 19-506(b)(2). The waiver must be in writing on a form devised by the Maryland Insurance Administration (MIA) that complies with certain statutory standards concerning format and content. IN § 19-506(d). The waiver is to be executed by the first named insured. IN § 19-506(a). Such a waiver would presumably reduce the cost of the insurance policy. See MAIF v. Perry, 356 Md. 668, 675-76, 741 A.2d 1114 (1999) (waiver provision added to statute in light of escalating cost of PIP coverage); IN § 19-506(d)(3)(i) (waiver form to explain cost of coverage). Under the State insurance code, UM coverage under a motor vehicle insurance policy is by default equal to the liability coverage under the policy. IN §§ 19-509(e)(2), 19-510(b)(2). This level of coverage may be waived, however, in favor of a lesser amount at least equal to the minimum coverage required by the motor vehicle law. IN § 19-510. As with the waiver of PIP coverage, this waiver must be in writing on a form devised by the MIA that complies with certain statutory standards concerning format and content. IN § 19-510(d). The waiver is to be executed by the first named insured. IN § 19-510(b). Again, the waiver of higher limits of coverage will reduce the premium owed for the policy. The effectiveness of a waiver of enhanced UM benefits in favor of the minimum amounts required by law is at issue in this case.