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Geico sign in Miami, Florida.

Household vehicle exclusions cannot be used to bar injured claimants from recovering stacked coverage, the Pennsylvania Supreme Court has ruled in a decision that breaks with decades of precedent.

The Supreme Court ruled 5-2 on Wednesday that a household exclusion in a policy issued by Geico violated the Motor Vehicle Financial Responsibility Law because it acted as a “de facto waiver” of stacked coverage. The ruling in Gallagher v. Geico reversed a Superior Court decision, which had relied on two prior Supreme Court decisions that had both failed to achieve a majority.

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Max Mitchell

Max Mitchell is ALM's Pennsylvania Bureau Chief overseeing The Legal Intelligencer, Delaware Law Weekly and Delaware Business Court Insider. Follow him on Twitter @MMitchellTLI. His email is [email protected]

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