Melendez v. Pennsylvania Assigned Claims Plan

BECK, Judge:

This case presents the issue of whether, under the Financial Responsibility Law, an Assigned Claims Plan insurer may deny a claimant’s demand for recovery where the claimant has extinguished the insurer’s right to subrogation against a tortfeasor. We find that under these circumstances, the insurer may deny recovery to the claimant.

Appellant Nereida Melendez sustained injuries in an automobile accident on December 14, 1984. On December 12, 1986, she filed a complaint seeking first-party benefits from Travelers Insurance Company (Travelers) under the Penn sylvania Motor Vehicle…