The state’s top court has upheld an insurer’s refusal to pay out on a claim under an umbrella policy made by a Maryland woman after her husband was killed in an auto accident. The Court of Appeals held that an umbrella policy does not fit within the definition of “private passenger motor vehicle liability insurance” contained in Section 19-504.1 of the state’s laws on insurance.
Joan Stickley was a passenger in a motor vehicle accident in 2008 in which the driver, her husband, was killed and in which she suffered serious injuries. According to the court’s opinion, Stickley’s husband “negligently” drove into an intersection.
The Stickleys had motor vehicle insurance and umbrella policies with State Farm. The motor vehicle liability policy had coverage of $100,000 per person and $300,000 per accident with State Farm Auto. The “Personal Liability Umbrella Policy” had uninsured motorist coverage of $2,000,000.