Legal Question in Insurance Law in Maryland

Re: Personal Liability

The other part(ies) can sue your daughter and possibly may sue her parents.

This suit could be brought outside of insurance. You could then invoke your

insurance coverage and your insurer would then have an obligation to defend

you and possibly your daughter. Their defense would be up to the amount of your policy

coverage.

Whether they would defend your daughter depends on various factors, one

being whether she was listed as a driver on the policy. Please take note that they insurance

company is legally required to defend ONLY UP TO POLICY LIMITS. If your daughter is legally found to be an "agent" of the

insured (in this case one or both parents) and damages exceed policy limits, then any judgment may

become the responsibility of one or both parents.

If your daughter has a policy then the claim could go through her policy. This, in and of itself, does not

eliminate the potential for an agency relationship which could result in an excess judgment becoming a legal responsibility

of one or both parents. Again, the insurance company would be required to defend up to the limits of her policy. If no agency

relationship legally exists, then your daughter could be legally responsible for any excess judgment.

An excess judgment is one where the amount exceeds the amount of insurance coverage available.

Instead of insurance, you can settle the case privately. This has an advantage of not adversely impacting

your insurance premium(s). This course of action is not advised unless you have an attorney.

Property damage is the obvious claim. Medical claims may or may not follow. Just because no person

went to the hospital do not conclude that no personal injury occurred.

There are other important aspects of this matter which you should speak to an attorney about.

Joe Holthaus

(410) 799-9002