Opinion ID: 2395601
Heading Depth: 1
Heading Rank: 6

Heading: Statutory Public Policy Financial Responsibility Laws Household Exclusions Invalid

Text: According to Nationwide, there is only one public policy consideration, i.e., that accident victims be assured of financial protection to the extent mandated by Delaware's Financial Responsibility Laws. If that were the only public policy consideration, this Court would have upheld State Farm's alternative position in Wagamon that a household exclusion is valid and enforceable as to insurance coverage beyond the minimum amount required by statute. [4] The public policy considerations identified by this Court in Wagamon and its progeny are much more expansive. The public policy of Delaware's Financial Responsibility Laws favors full compensation to all victims of automobile accidents. Harris v. Prudential Property & Cas. Ins. Co., Del.Supr., 632 A.2d 1380, 1382 (1993). The General Assembly intended for that public policy to be implemented by affording opportunities for acquiring more than the statutorily mandated minimum amount of automobile insurance coverage. See 21 Del.C. § 2118(d). Nationwide's modified household exclusion is inconsistent with the statutory purpose of encouraging the Delaware driving public to purchase more than the statutory minimum amount of automobile insurance coverage. The public policy of Delaware, as reflected in its Financial Responsibility Laws, also does not permit insurance companies to restrict liability coverage to certain claims based upon the relationship of the tort victim/plaintiff to the tortfeasor/defendant. State Farm Mut. Auto. Ins. Co. v. Wagamon, 541 A.2d at 560. See 21 Del.C. § 2118 and 21 Del.C. § 2902. Nationwide's modified household exclusion is an attempt to restrict the class of protected persons. As such, Nationwide's modified household exclusion is inconsistent with this Court's holding in Wagamon. This Court rejects Nationwide's analysis of Delaware's Financial Responsibility Laws for the same public policy reasons that we rejected State Farm's alternative argument in Wagamon. Accordingly, we hold that the modified household exclusion in Seeman's insurance contract with Nationwide is void.