Rhode Island Supreme Court Affirms GEICO Coverage Limits for Auto Insurance

The Rhode Island Supreme Court has affirmed a lower court's decision in an auto insurance coverage dispute involving GEICO General Insurance Company. The court determined the coverage limits relevant to a wrongful death claim brought by Fama Diop, the widow of Papa Ndoye, who died in a car accident. GEICO sought a declaratory judgment to clarify that its liability is capped at $50,000 per person, as specified in the policy terms, rather than the $100,000 per accident maximum.

The legal proceedings followed a collision on January 24, 2023, leading to Mr. Ndoye's death. The car was insured under a policy held by Marie Gill, the driver's mother, and issued by GEICO. Ms. Diop filed a lawsuit against Ms. Gill and her son, while GEICO moved for a declaratory judgment to solidify its understanding of the policy's terms. The court's decision underscores GEICO’s legal stance, referencing Allstate Insurance Company v. Pogorilich, affirming the $50,000 per-person coverage limit is unambiguous even for wrongful death claims.

This ruling highlights the importance of adhering to clear policy language and existing case law for auto insurance providers. The $50,000 per-person limit, as validated by both the Superior and Supreme Courts, serves as a significant precedent for interpreting similar policy provisions. Insurers must note this development as it reinforces the enforceability of per-person liability limits in wrongful death and personal injury claims.