William L. Cornell, 42, district manager of Peoples Life Insurance Co. in Annapolis, was fatally injured Saturday when the car he was driving was struck by another vehicle in Davidsonville, Md.

Anne Arundel County police said Mr. Cornell was pronounced dead at Anne Arundel General Hospital. His wife, Faye M. Cornell, was taken to the shock-trauma unit at University Hospital in Baltimore, where her condition was said to be serious but stable.

Police said Mr. Cornell's car was struck on the driver's side by a vehicle driven by Kathryn Hock, of Edgewater, Md. They said Miss Hock's car failed to stop at a stop sign at the intersection of Governor's Bridge Road and Rte 424 in Davidsonville.

The case was referred to the state attorney's office, police said.

Mr. Cornell was born in Hagerstown and graduated from Hagerstown High School. He served in the Marine Corps for two years and then worked for the A&P supermarket chain in Hagerstown. He joined Peoples Life Insurance Co. in Hagerstown in 1959.

In 1968, he was made district manager in Parkersburg, W.Va., and in 1976 district manager in Annapolis. He was a member of the Elks Club in Crofton, Md.

In addition to his wife, of the home in Crofton, his survivors include two children, Scott A. and Lisa M., also of the home; his parents, William J. and Virginia Cornell, and a sister, Donna Lou Adams, all of Hagerstown, and two brothers, Douglas C., of Hollywood, Fla., and Gregory R., of Hagerstown.