On April 17, the Supreme Court reversed the Superior Court by ruling in Sackett v. Nationwide that Section 1738 of the MVFRL requires an insurer to obtain a signed rejection of stacked uninsured/underinsured motorist coverage each time a new vehicle is added to an existing policy.
As a result of this decision, we must request that you obtain a signed rejection of stacked uninsured/underinsured motorist coverage (ACT 6 Form-only the Stacking Waiver portion of Acord forms 60 & 62 need to be completed) each time a new vehicle is added to a policy currently containing "unstacked" UM/UIM coverage. Absent any signed rejection, we are required to provide stacking of uninsured/underinsured motorist coverage in accordance with the applicable law.
The completed forms must be retained by you in your office subject to the document retention requirements as outlined in your Agency Agreement and Pennsylvania Department of Insurance Notice No. 2005-09.
I just write the same limits on UM as BI so I don't have to get the form signed. I don't give the customer the option. The price is not that big of a difference anyway.
<<a signed rejection of stacked uninsured/underinsured motorist coverage>> <<each time a new vehicle is added to a policy>>
So if a customer calls and tells you they bought a new car, it can't just be changing autos. A new form must be sent, completed and endorsed to the policy. Well isn't that some tree kill'in decision.
UM laws are all heavily influenced by the trial law lobby. They write in a lot of 'gotcha' technicalities. For example, if all the forms are not collected, they could go after the company for a UM loss. If the correct premiums are not filled in on the form, they can go after the company as well since the the insured "wasn't aware" of the terms.
Porter, so you force everyone to carry 'stacked' limits? I find it hard to believe the stacked vs non-stacked premium would be minimal but I'm not that familiar with PA.
I don't force my customers to do anything. I just quote the same limits for um as bi. If they ask about it I ask them why would you give somebody, that you don't know, more coverage than yourself. Only one time did someone still want the lower limits but once I broke out the UM form, for him to sign, he changed his mined.
