Panichelli v. Liberty Mutual Insurance Group

OPINION

CAPPY, Justice.

This appeal presents us with an issue of first impression: whether sick pay and social security benefits received by an insured should be deducted by an insurer in calculating the insured’s “actual loss of gross income” under section 1712(2) of the Pennsylvania Motor Vehicle Financial Responsibility Law (MVFRL).1 We conclude, for the reasons which follow, that the insurer may not make such deductions in calculating the insured’s actual loss of gross income. Accordingly, we affirm the decision of the Superior Court.

The facts giving rise to this appeal are that Anthony J.…