The Pennsylvania’s Supreme Court’s sweeping 2019 decision that insurance carriers cannot use the household exclusion as a “de facto waiver” of stacked coverage does not apply to disputes about whether the parties properly rejected uninsured motorist coverage, the Superior Court has ruled.

A unanimous three-judge panel ruled Feb. 5 that the Supreme Court’s ruling in Gallagher v. Geico, which attorneys have described as having a “seismic” impact on insurance litigation, should not apply in instances where insurance carriers are seeking to use the household exclusion to bar uninsured motorist coverage, also called UM coverage. The precedential ruling comes in the case Erie Insurance Exchange v. King.

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