injured in an automobile or pedestrian8 accident that is:
1. the first named insured on the policy (also known as the policy holder); or
2. any family member of the first- named insured (policy holder) who resides in the first-named insured’s household (also known as a resident relative); or
3. any other individual who is using the motor vehicle with the express or implied permission of the named insured.
If a person is injured in a Maryland
vehicle, unless the injured person has waived PIP, the carrier must pay PIP benefits regardless of where the accident occurred (i.e. outside the State of Mary- land). PIP covers all injured persons in
8
Maryland Insurance Article §19-505(a) (1). PIP covers individuals injured as a pedestrian by a motor vehicle or while in, on, or alighting from a vehicle that is operated by animal or muscular power.
the vehicle, even if the injured person resides outside the State of Maryland. If an injured person is not a resident of Maryland, PIP automatically covers the individual since they could not have waived PIP under the statute. The general rule is that, absent a valid
waiver, all privately owned automobiles carry PIP. There are some exceptions to this rule. Taxicabs and buses are excluded from the requirement to carry PIP as well. Buses and taxicabs are not defined as “motor vehicles;” therefore are not required to carry PIP.9
State-owned
or operated vehicles are not required to carry PIP.10 Another important note is that rental-
9
Maryland Insurance Article §19-501 (b) (2)(i) buses; and (ii) taxicabs. See also Maryland Automobile Insurance Fund v. SunCab, 506 A.2d 641 (MD 1986).
10
See Harden v. Mass Transit Administra- tion, 277 MD 399, 384 A.2d 817Finish cite. (1976) ; see also Nationwide Insur- ance Company v. United States Fidelity & Guaranty Company, et al., 550 A. 2d 69 (MD, 1988).
car companies do not write policies. Therefore, these exclusions do not ap- ply to vehicles rented in Maryland. For example, when a Maryland resident is injured as a pedestrian in Washington, DC, and the at-fault vehicle was rented in Maryland, the rental-car company will be primarily responsible for PIP payments. PIP benefits, and the waiver of PIP,
“follows” an insured and their resi- dent-relatives. When an insured or resident-relative of the insured is injured in a car accident in a vehicle that does not carry Maryland PIP (i.e. a govern- ment vehicle or bus), or in a vehicle that is insured in another state, or as a pedestrian in any State, the injured person can collect PIP benefits from their own policy.11
888 A.2d 284 (Md. 2005), the Court held that a cab driver was entitled to PIP on his own personal automobile policy when driving a cab that did not have PIP coverage. However, an insured that has waived PIP cannot collect PIP benefits from another vehicle, even if that policy had PIP coverages. If a vehicle owner waives PIP, that
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waiver only applies to the insured, listed drivers and resident relatives 16 years of age or older. Everyone else in that vehicle owner’s car is still eligible for PIP regard- less of the insured’s waiver. Remember, the default policy in Maryland is for there to be PIP coverage. Therefore, an insured can only make a limited waiver of PIP which binds only those three groups of people.12 Maryland Transportation Article §19-505 (a)(1) also provides for in- dividuals to be specifically excluded under Maryland Transportation Article §27-609. Therefore, when a specifi-
(Continued on page 42) 11
19-513 (d)(1)(I) & Bishop v. State Farm Mutual Auto Insurance, 360 Md. 225 (2000)
12
As a practical note, children under 16 always receive PIP benefits. Also, if the resident-relative is insured on another automobile policy (e.g. their own car in- surance policy), and has not waived PIP, then they are eligible for PIP regardless of the PIP waiver of the insured.
40 Trial Reporter Summer 2008
In Nasseri v. Geico,
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