Maryland: “First Named Insured” Under Insurance Article Section 19-510 Is To Be Defined By Each Policy

Maryland’s Court of Special Appeals recently issued its opinion in  Swartzbaugh v.Encompass Insurance, addressing the statutory definition of “first named insured” as used in Insurance Article Section 19-510, and addressing its applications to waivers of uninsured motorist coverage.

When an insurer in Maryland issues a policy of automobile liability insurance, the insurer must also offer the named insured uninsured motorist coverage.  The insured may elect to waive uninsured motorist coverage in any amount above the minimum statutory insurance coverage of $30,000 stated in Transportation Article Section 17-103.  However, this waiver must be made in writing, and must be elected by the “first named insured.”  Unfortunately for anybody trying to understand these matters, “first name insured” is not defined by the statute.

In Swartzbaugh, the insured argued that a UM waiver is not valid unless the person identified first on the policy declaration sheet signs the waiver.  The Court reviewed the legislative history and held that since the statute does not contain a definition, and the legislative history does not provide a specific definition, the term “first named insured” is to be defined by the policy itself.   The Court of Special Appeals stated that the “first named insured” is the person identified by the policy as the first named insured.  In those instances where the policy fails to identify the first named insured, the Court will look to other documents related to the coverage to identify the individual.  In Swartzbaugh, the Court relied heavily on the waiver form’s language which stated that the signer was “the first named insured.” By incorporating this language into the otherwise silent policy, whoever signed the waiver form was, by default, the “first name insured” for the policy involved in the Swartzbaugh case.