Understanding Maryland Personal


Injury Protection Coverage by Sharon Lewis Tompkins


Maryland Personal Injury Protection


(PIP) is a payment to persons injured in motor- vehicle accidents. PIP payments are covered medical expenses and lost wages.1


PIP benefits are at least $2,500


per person, per occurrence; and higher limits can be purchased. It also pays medical bills and lost wages within 30 days of the submission of a claim.2 PIP is no-fault insurance, meaning


that all injured persons are eligible for payment regardless of who is at fault in an accident. The primary purpose for PIP coverage is to assure financial com- pensation to victims of motor-vehicle accidents without regard to the fault.3


PIP is Default – But Waivable – Coverage in Automobile Policies in Maryland


The “default” policy provision in


Maryland is that automobile insur- ance policies must contain a minimum ($2,500) PIP benefits.4


Any evaluation


of whether there is PIP coverage on a policy should begin with an assumption that there is coverage.


1


Maryland Insurance Article §19-507(a) “The benefits described in 19-505 of this subtitle shall be payable without regard to...any collateral source of medical, hos- pital or wage continuation benefits.” See Bishop v. State Farm, 360 Md. 225, 238, 757 A.2d 783, 790 (Md. 2000); except for worker’s compensation benefits, discussed infra. (Maryland Transportation Article §19-513).


2


Maryland Insurance Article §19-508(a). Please note that some Insurance Com- panies offer Medical Payment Coverages (Med-Pay) in addition to PIP coverage on the insurance policy. Generally, PIP payments are primary and the Med-Pay is secondary.


3 See, e.g. Pennsylvania Nat’s Mut. Casualty


Ins. Co. V. Gartelman, 288 Md. 151, 154, 416 A.2d 734,736 (1980)


Summer 2008 5 If a person has signed a valid waiver of


PIP on their own automobile-insurance policy, they waive PIP on all Maryland insured vehicles. For example, if a person has validly waived PIP on their automobile-insurance policy, and is hurt while a passenger in his or her’s friend’s car (that is insured in Maryland), the passenger cannot make a PIP claim on the friend’s policy or their own.


The Code, however, does contemplate


a potential waiver by a policyholder of PIP benefits. In order to be valid, a policyholder must sign an affirmative waiver of the required PIP benefits.5 valid signed waiver binds:


A Signed PIP waiver forms should be


compared to Maryland Transportation Article §19-506 (c), which details the notice requirements that the insured must give as well as §19-506 (d), which details the specific form of the waiver


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.


1. each named insured (the person listed as an insured on the policy);


2. each listed driver (anyone listed on the policy as covered drivers); and


3. each member of the first named insured’s family residing in the first named insured’s household who is at least 16 years old (also known as a “resident-relative”).


from 10-point boldface type to exactly what the waiver must state. A validly signed waiver is not only


applicable to the initial insurance, but continues to stay in effect on all fu- ture renewals of the policy, and on all replacement policies until the policy- holder notifies the insurance company in writing to the contrary.6


A written


revocation is effective on the date it is received by the insurance company. Waiver of PIP is a commonly disputed


issue between attorneys and insurers. Often, insurance carriers will advise attorneys: “Your client waived PIP.” Un- less the carrier can produce the validly executed waiver form that applies to your client, your client will be entitled to at least PIP benefits of $2,500, even if no premium has been paid for the coverage.7


4


Maryland Insurance Article §19-505(a) Coverage required – Unless waived in accordance with 19-506 of this subtitle, each insurer that issues, sells, or delivers a motor vehicle liability policy in this State shall provide coverage for the medical, hospital, and disability benefits described in this section...”


Maryland Insurance Article §19-0506(a) (1).


Trial Reporter


Who is Covered by PIP? PIP coverage extends to someone


6 Maryland Insurance Article §19-506(e). 7


Maryland Insurance Article §19-506(a) (2).


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