Mesmer v. Maryland Automobile Insurance Fund

ELDRIDGE, Judge.

This is an action against a liability insurer based upon the insurer’s allegedly erroneous denial of coverage. The issues are whether the action sounds in contract, in tort, or both, and what is the appropriate measure of damages.

I

In January 1989 the Maryland Automobile Insurance Fund (“MAIF”), a state agency, issued an automobile liability policy on a 1981 Buick Skylark to Gladys Mesmer with personal injury liability coverage limits of $20,000.00 per person and $40,000.00 per accident. Krist Leo Salmi of Wheaton, Maryland, was the insurance agent or broker who produced the…