Opinion ID: 2794540
Heading Depth: 2
Heading Rank: 1

Heading: Relevant Statutory Scheme

Text: Maryland law requires every motor vehicle insurance policy issued in Maryland to contain minimum uninsured motorist coverage.4 Maryland Code (1997, 2011 Repl. Vol.), Insurance Article, § 19-509; see Waters v. U.S. Fidelity & Guaranty Co., 328 Md. 700, 710, 616 A.2d 884, 888 (1992). In 1981, the UIM statutory scheme was amended to allow insureds to contract for more than the statutory minimum amount of coverage, should they desire to do so. 1981 Md. Laws, Chap. 510; see Hoffman v. United Services. 4 The terms “uninsured motorist” and “underinsured motorist” are used often interchangeably. “Uninsured motorist” coverage describes when an insured is involved in an accident with a motorist who does not carry any liability insurance coverage whatsoever. “Underinsured motorist” coverage describes when an insured is involved in an accident with a motorist who carries liability insurance, but whose insurance coverage is less than the insured’s underinsured motorist coverage. 5 Auto. Ass’n, 309 Md. 167, 178, 522 A.2d 1320, 1325 (1987). At the time of the Connors’ accident,5 each Maryland motor vehicle liability policy had to contain a minimum of $20,000 coverage for injury or death of any one person in an accident, a minimum of $40,000 in coverage for injury or death of two or more people in an accident, and a minimum of $15,000 in coverage for property damage resulting from any one accident. Maryland Code (1977, 2009 Repl. Vol.), Transportation Article II, § 17-103. The general purpose of Maryland’s UIM statutory scheme is to “provide minimum protection for individuals injured by uninsured motorists and should be liberally construed to ensure that innocent victims of motor vehicle collisions are compensated for their injuries.” Brethern Mut. Ins. Co. v. Buckley, 437 Md. 332, 347, 86 A.3d 665, 673 (2014) (citing Erie Ins. Exch. v. Heffernan, 399 Md. 598, 612, 925 A.2d 636, 644 (2007)). Specifically, Maryland’s UIM scheme is designed to “provide an injured insured with resources equal to those which would have been available had the tortfeasor carried liability coverage equal to the amount of uninsured motorist coverage which the injured insured purchased from his own insurance company.” Waters, 328 Md. at 714, 616 A.2d at 890. Maryland is, accordingly, a “gap theory” state—the injured insureds may recover the difference between their UIM coverage and money received from the 5 The statute has been amended since to require that each motor vehicle liability policy contain a minimum of $30,000 in coverage for injury or death of any one person in an accident and $60,000 in coverage for injury or death of two or more people in an accident. 2010 Md. Laws, Chap. 441, at 2686–87. 6 tortfeasor.6 The uninsured motorist statutory scheme and the policy in effect between the parties in this case is consistent with Maryland’s identity as a gap theory state.7