PRINTER'S NO. 1364
No. 1200 Session of 1987
INTRODUCED BY PETRONE, KOSINSKI, DeLUCA, MARKOSEK, TRELLO,
SALOOM, J. L. WRIGHT, FOSTER, KUKOVICH, LaGROTTA, DIETTERICK,
CARLSON, MAIALE, HOWLETT, STUBAN, MRKONIC, BELFANTI, TIGUE,
WASS, DISTLER, HALUSKA, LLOYD, JOHNSON, STABACK, FOX, HASAY,
WILSON, GRUPPO, GEIST, DALEY, ANGSTADT, NOYE, KASUNIC, LUCYK,
GANNON, GODSHALL, PERZEL, ARGALL, FISCHER, LEH, SHOWERS,
GEORGE, MILLER, VEON, WOZNIAK, KENNEY, BUNT, DONATUCCI,
HERMAN, MORRIS, STAIRS, MELIO, RAYMOND, TELEK, PETRARCA AND
PRESTON, APRIL 28, 1987
REFERRED TO COMMITTEE ON INSURANCE, APRIL 28, 1987
AN ACT
1 Amending Title 75 (Vehicles) of the Pennsylvania Consolidated
2 Statutes, eliminating the Catastrophic Loss Trust Fund.
3 The General Assembly of the Commonwealth of Pennsylvania
4 hereby enacts as follows:
5 Section 1. Subchapter F of Chapter 17 and section 1787(d) of
6 Title 75 of the Pennsylvania Consolidated Statutes are repealed.
7 Section 2. Sections 1796(a) and 1798 of Title 75 are amended
8 to read:
9 § 1796. Mental or physical examination of person.
10 (a) General rule.--Whenever the mental or physical condition
11 of a person is material to any claim for medical[,] or income
12 loss [or catastrophic loss] benefits, a court of competent
13 jurisdiction [or the administrator of the Catastrophic Loss
14 Trust Fund for catastrophic loss claims] may order the person to
1 submit to a mental or physical examination by a physician. The
2 order may only be made upon motion for good cause shown. The
3 order shall give the person to be examined adequate notice of
4 the time and date of the examination and shall state the manner,
5 conditions and scope of the examination and the physician by
6 whom it is to be performed. If a person fails to comply with an
7 order to be examined, the court or the administrator may order
8 that the person be denied benefits until compliance.
9 * * *
10 § 1798. Attorney fees and costs.
11 (a) Basis for reasonable fee.--No attorney's fee for
12 representing a claimant in connection with a claim for first
13 party benefits provided under Subchapter B (relating to motor
14 vehicle liability insurance first party benefits) [or a claim
15 for catastrophic loss benefits under Subchapter F (relating to
16 Catastrophic Loss Trust Fund)] shall be calculated, determined
17 or paid on a contingent fee basis, nor shall any attorney's fees
18 be deducted from the benefits enumerated in this subsection
19 which are otherwise due such claimant. An attorney may charge a
20 claimant a reasonable fee based upon actual time expended.
21 (b) Unreasonable refusal to pay benefits.--In the event an
22 insurer is found to have acted with no reasonable foundation in
23 refusing to pay the benefits enumerated in subsection (a) when
24 due, the insurer shall pay, in addition to the benefits owed and
25 the interest thereon, a reasonable attorney fee based upon
26 actual time expended.
27 [(c) Payment by fund.--The Catastrophic Loss Trust Fund may
28 award the claimant's attorney a reasonable fee based upon actual
29 time expended because a claimant is unable to otherwise pay the
30 fees and costs.]
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1 (d) Fraudulent or excessive claims.--If, in any action by a
2 claimant to recover benefits under this chapter, the court
3 determines that the claim, or a significant part thereof, is
4 fraudulent or so excessive as to have no reasonable foundation,
5 the court may award the insurer's attorney a reasonable fee
6 based upon actual time expended. The court, in such case, may
7 direct that the fee shall be paid by the claimant or that the
8 fee may be treated in whole or in part as an offset against any
9 benefits due or to become due the claimant.
10 Section 3. This act shall take effect in 60 days.
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