Did You Know That Auto Insurance Protects You From Anything Bad That Happens To You In Your Car? No? Neither Did Geico….

What would it take to make you feel that an insurance company has been treated unfairly? For me the bar is pretty high, but this crazy story may clear it.

The Kansas City Star reports that a woman contracted the sexually transmitted disease while makin’ whoopee in her lover/ infecter’s car. The cur knew he has the STD but didn’t tell her, so she filed a claim against Geico in February 2021, claiming that her  liability insurance had to pay her damages. Geico’s lawyers thought the theory was bats, so the case went to arbitration.

The creep was found liable—good—but the arbitrator approved an award of $5.2 million in damages to be paid by the insurance company. The insurance company appealed  on several grounds, and was denied on all points.

Now THAT’S a bad precedent. File this one under “law vs ethics.” And thanks to the now presumably kaput couple’s careless sexual proclivities and an anti-insurance company arbitrator, we can all expect our auto insurance premiums to go up, at least until an overly generous loophole is written out of the policies.

4 thoughts on “Did You Know That Auto Insurance Protects You From Anything Bad That Happens To You In Your Car? No? Neither Did Geico….

  1. I think you need to check the his and her pronouns in this paragraph, something doesn’t seem right to me about the way it’s written.

    “The Kansas City Star reports that a woman contracted the sexually transmitted disease while makin’ whoopee in her lover/ infecter’s car. The cur knew he has the STD but didn’t tell her, so she filed a claim against Geico in February 2021, claiming that her liability insurance had to pay her damages. Geico’s lawyers thought the theory was bats, so the case went to arbitration.”

  2. I think GEICO may need to sue the insured for recovery of costs. But reading the decision, I can’t see how how it can logically still be GEICO’s liability after they denied coverage. I’m not seeing a discussion of how the arbitrator decided they were still liable. The claim that they weren’t a party but were the nominal payers of the judgement seems iffy. However, it looks like they still have an oustanding declaratory judgement action against coverage pending in federal court.

    But I am not a lawyer, so I could be misreading the decision.

    • It seems that the couple entered into an arbitration agreement, where both parties agreed in advance that the only assets at stake were the insurance policy. So the man was found liable, but the women could only collect from the insurance company.

      The state supreme court’s ruling stated that GEICO’s right to intervene in the trial court’s acceptance of the arbitration settlement was not improperly denied. The state court also explicitly stated that it was the jurisdiction of the lawsuit in federal court to determine whether GEICO’s policy actually had to pay the settlement amount.

      If the federal court sides with GEICO, then the women is out of luck, because her arbitration agreement only allowed her to collect from GEICO, as the agreement shielded the man’s other assets. Even if the federal court ruled against GEICO, I would image she could only recover up to the policy limit, typically $100K-500K per incident.

  3. Well, SUVs can apparently drive themselves through crowds and cause havoc, and, with evil imbued in them by their makers, firearms tempt their owners to murder. So sure, cars facilitate transmission of STDs.

    But seriously, looks to me (not a lawyer) like this one hinges first on the ruling of an idiot arbitrator, and the rest not on merits, but the technicalities of what paths the insurer has available to have that ruling set aside.

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