PRIOR PRINTER'S NOS. 1424, 1684 PRINTER'S NO. 3523
No. 1285 Session of 1981
INTRODUCED BY DeVERTER, KOWALYSHYN, VROON, NAHILL, GRUPPO,
RASCO, PETERSON, ROCKS, MOWERY, SIEMINSKI, GEIST, MARMION,
SMITH AND PITTS, APRIL 22, 1981
AS RE-REPORTED FROM COMMITTEE ON JUDICIARY, HOUSE OF
REPRESENTATIVES, AS AMENDED, SEPTEMBER 13, 1982
AN ACT
1 Amending the act of July 19, 1974 (PL.489, No.176), entitled "An
2 act providing for a compensation system for persons injured
3 in motor vehicle accidents; requiring insurance for all motor
4 vehicles required to be registered in Pennsylvania; defining
5 compensable damage in motor vehicle accident cases;
6 establishing an assigned claims plan; providing for
7 arbitration; imposing powers and duties on courts, the
8 Department of Transportation and the Insurance Commissioner;
9 prohibiting certain discrimination; and providing penalties,"
10 redefining and adding terms, further providing for motor
11 vehicle insurance, proof of security at vehicle inspection
12 AND REGISTRATION, the financial responsibility of owners, <--
13 temporary suspension of coverage, availability of insurance;
14 providing for settlement agreements and payment of claims and
15 for assigned claims plans; further providing for rates, motor
16 vehicles in interstate travel, rights and duties of obligors,
17 basic loss and collateral benefits, work loss and net loss,
18 additional coverage options and ineligible claimants;
19 increasing the threshold; further providing for examinations; <--
20 providing for immunity from liability for release of
21 information, for operation of a vehicle without security, and <--
22 for surrender of registration on suspension, CREATING AN <--
23 ALLOWABLE EXPENSE CATASTROPHIC LOSS FUND, PROVIDING FOR
24 REASONABLE COMPENSATION FOR CERTAIN VICTIMS, LIMITING
25 EXCESSIVE PROFITS AND REQUIRING DISCLOSURE OF CERTAIN
26 INFORMATION.
27 The General Assembly of the Commonwealth of Pennsylvania
28 hereby enacts as follows:
29 SECTION 1. SECTIONS 101 AND 102, ACT OF JULY 19, 1974 <--
1 (P.L.489, NO.176), KNOWN AS THE "PENNSYLVANIA NO-FAULT MOTOR
2 VEHICLE INSURANCE ACT," IS AMENDED TO READ:
3 § 101. SHORT TITLE.
4 THIS ACT MAY BE CITED AS THE "[PENNSYLVANIA NO-FAULT] MOTOR
5 VEHICLE INSURANCE ACT."
6 § 102. FINDINGS AND PURPOSES.
7 (A) FINDINGS.--THE GENERAL ASSEMBLY HEREBY FINDS AND
8 DECLARES THAT:
9 (1) MOTOR VEHICLES ARE THE PRIMARY INSTRUMENTALITY FOR
10 THE TRANSPORTATION OF INDIVIDUALS;
11 [(2) THE TRANSPORTATION OF INDIVIDUALS BY MOTOR VEHICLE
12 OVER COMMONWEALTH HIGHWAYS AND OTHER HIGHWAYS SIGNIFICANTLY
13 AFFECTS INTRASTATE COMMERCE, PARTICULARLY IN METROPOLITAN
14 AREAS;]
15 (3) THE MAXIMUM FEASIBLE RESTORATION OF ALL INDIVIDUALS
16 INJURED AND COMPENSATION OF THE ECONOMIC LOSSES OF THE
17 SURVIVORS OF ALL INDIVIDUALS KILLED IN MOTOR VEHICLE
18 ACCIDENTS ON COMMONWEALTH HIGHWAYS[, IN INTRASTATE COMMERCE,
19 AND IN ACTIVITY AFFECTING INTRASTATE COMMERCE] IS ESSENTIAL
20 [TO THE HUMANE AND PURPOSEFUL FUNCTIONING OF COMMERCE];
21 (4) [TO AVOID ANY UNDUE BURDEN ON COMMERCE DURING THE
22 INTRASTATE TRANSPORTATION OF INDIVIDUALS,] IT IS NECESSARY
23 AND PROPER TO HAVE A STATEWIDE LOW-COST, COMPREHENSIVE, AND
24 FAIR SYSTEM OF COMPENSATING AND RESTORING MOTOR VEHICLE
25 ACCIDENT VICTIMS AND THE SURVIVORS OF DECEASED VICTIMS;
26 [(5) EXHAUSTIVE STUDIES BY THE UNITED STATES DEPARTMENT
27 OF TRANSPORTATION, THE CONGRESS OF THE UNITED STATES AND THE
28 GENERAL ASSEMBLY HAVE DETERMINED THAT THE PRESENT BASIC
29 SYSTEM OF MOTOR VEHICLE ACCIDENT AND INSURANCE LAW, WHICH
30 MAKES COMPENSATION AND RESTORATION CONTINGENT UPON:
19810H1285B3523 - 2 -
1 (A) EVERY VICTIM FIRST SHOWING THAT SOMEONE ELSE WAS
2 AT FAULT;
3 (B) EVERY VICTIM FIRST SHOWING THAT HE WAS WITHOUT
4 FAULT; AND
5 (C) THE PERSON AT FAULT HAVING SUFFICIENT LIABILITY
6 INSURANCE AND OTHER AVAILABLE FINANCIAL RESOURCES TO PAY
7 FOR ALL THE LOSSES,
8 IS NOT SUCH A LOW-COST, COMPREHENSIVE, AND FAIR SYSTEM;
9 (6) CAREFUL STUDIES, INTENSIVE HEARINGS, AND SOME STATE
10 EXPERIMENTS HAVE DEMONSTRATED THAT A BASIC SYSTEM OF MOTOR
11 VEHICLE ACCIDENT AND INSURANCE LAW WHICH:
12 (A) ASSURES EVERY VICTIM PAYMENT OF ALL HIS BASIC
13 MEDICAL AND REHABILITATION COSTS, AND RECOVERY OF A
14 REASONABLE AMOUNT OF WORK LOSS, REPLACEMENT SERVICES AND
15 SURVIVOR'S LOSS; AND
16 (B) ELIMINATES THE NEED TO DETERMINE FAULT EXCEPT
17 WHEN A VICTIM IS VERY SERIOUSLY INJURED,
18 IS SUCH A LOW-COST, COMPREHENSIVE, AND FAIR SYSTEM;
19 (7) ADOPTION OF THE SYSTEM DESCRIBED IN PARAGRAPH (6) IN
20 PLACE OF THE SYSTEM DESCRIBED IN PARAGRAPH (5) WOULD REMOVE
21 AN UNDUE BURDEN ON COMMERCE;
22 (8) THROUGHOUT THE COMMONWEALTH THERE SHOULD BE
23 UNIFORMITY AS TO THE ESSENTIAL ELEMENTS OF THE SYSTEM OF
24 MOTOR VEHICLE ACCIDENT AND INSURANCE LAW TO AVOID CONFUSION,
25 COMPLEXITY, UNCERTAINTY, AND CHAOS WHICH WOULD BE ENGENDERED
26 BY A MULTIPLICITY OF NONCOMPLEMENTARY SYSTEMS, BUT THE NEED
27 FOR A BASIC SYSTEM DOES NOT REQUIRE THAT THE COMMONWEALTH
28 ITSELF DIRECTLY ADMINISTER, OPERATE, OR DIRECT THE
29 ADMINISTRATION OR OPERATION OF SUCH SYSTEM; AND]
30 (9) A STATEWIDE LOW-COST, COMPREHENSIVE, AND FAIR SYSTEM
19810H1285B3523 - 3 -
1 OF COMPENSATING AND RESTORING MOTOR VEHICLE ACCIDENT VICTIMS
2 CAN SAVE AND RESTORE THE LIVES OF COUNTLESS VICTIMS BY
3 PROVIDING AND PAYING THE COST OF SERVICES SO THAT EVERY
4 VICTIM HAS THE OPPORTUNITY TO:
5 (A) RECEIVE PROMPT AND COMPREHENSIVE PROFESSIONAL
6 TREATMENT; AND
7 (B) BE REHABILITATED TO THE POINT WHERE HE CAN
8 RETURN AS A USEFUL MEMBER OF SOCIETY AND A SELF-
9 RESPECTING AND SELF-SUPPORTING CITIZEN;
10 (10) [IT] IT IS NECESSARY TO AFFORD REQUIRED COVERAGES
11 FOR MOTOR VEHICLES TO ECONOMICALLY DISADVANTAGED INDIVIDUALS
12 AT RATES NOT SO GREAT AS TO DENY SUCH INDIVIDUALS ACCESS TO
13 INSURANCE WHICH IT IS NECESSARY FOR THEM TO HAVE IN ORDER TO
14 EARN INCOME AND TO BE OR REMAIN GAINFULLY EMPLOYED[.];
15 (11) IT IS NECESSARY AND PROPER TO PROVIDE FAIR AND
16 PROMPT COMPENSATION TO ELIGIBLE CLAIMANTS FOR DAMAGES ARISING
17 OUT OF THE MAINTENANCE OR USE OF A MOTOR VEHICLE AT A
18 REASONABLE AND AFFORDABLE COST TO POLICYHOLDERS AND MOTOR
19 VEHICLE OPERATORS THROUGH A REASONABLY PROFITABLE PRIVATE
20 INSURANCE SYSTEM;
21 (12) IN ORDER TO PROVIDE ADEQUATE COVERAGE AT AFFORDABLE
22 RATES, IT IS NECESSARY AND PROPER TO REQUIRE INSURANCE
23 COMPANIES TO OFFER REASONABLE COVERAGES, WITH REASONABLE
24 OPTIONS INCLUDING DEDUCTIONS, ELECTIONS AND WAITING PERIODS
25 SO THAT EACH POLICYHOLDER IS REQUIRED TO PURCHASE ONLY
26 REASONABLE AND NECESSARY INSURANCE PROTECTION APPROPRIATE TO
27 THAT INDIVIDUAL'S NEEDS WITHOUT THE POLICYHOLDER BEING
28 REQUIRED TO PURCHASE PROTECTION WHICH DUPLICATES PROTECTION
29 WHICH THE POLICYHOLDER WOULD OTHERWISE PROVIDE;
30 (13) IT IS NECESSARY AND PROPER TO REQUIRE REASONABLE
19810H1285B3523 - 4 -
1 INSURANCE DISCLOSURE IN ORDER TO ASSURE THAT CONSUMERS KNOW
2 WHAT COVERAGE IS AVAILABLE, WHAT COVERAGE THEY ARE PURCHASING
3 AND THAT THEIR AUTOMOBILE INSURANCE RATES ARE REASONABLE,
4 AFFORDABLE AND NOT EXCESSIVE; AND
5 (14) IT IS NECESSARY AND PROPER TO ENCOURAGE FAIR AND
6 PROMPT PAYMENT OF MOTOR VEHICLE INSURANCE CLAIMS, AS WELL AS
7 REASONABLE COVERAGES, BENEFITS AND INSURANCE RATES, TO
8 ACHIEVE PUBLIC SATISFACTION WITH AND APPROVAL FOR ITS MOTOR
9 VEHICLE INSURANCE SYSTEM.
10 (B) PURPOSES.--THEREFORE, IT IS HEREBY DECLARED TO BE THE
11 POLICY OF THE GENERAL ASSEMBLY TO ESTABLISH AT REASONABLE COST
12 TO THE PURCHASER OF INSURANCE, A STATEWIDE SYSTEM OF MOTOR
13 VEHICLE INSURANCE INCLUDING PROMPT AND ADEQUATE BASIC LOSS
14 BENEFITS FOR MOTOR VEHICLE ACCIDENT VICTIMS AND THE SURVIVORS OF
15 DECEASED VICTIMS.
16 Section 1 2. The definitions of "added loss benefits," <--
17 "allowable expense," "BASIC LOSS BENEFITS," "injury," LOSS," <--
18 "medical and vocational rehabilitation services," "motor
19 vehicle," "obligor," "replacement services loss," "State,"
20 "survivor," "survivor's loss" and "work loss" in section 103, <--
21 act of July 19, 1974 (P.L.489, No.176), known as the
22 "Pennsylvania No-fault Motor Vehicle Insurance Act," are
23 amended, and a definition is DEFINITIONS ARE added to read: <--
24 § 103. Definitions.
25 As used in this act:
26 "Added loss benefits" means benefits provided by added loss
27 insurance in accordance with section 207 of this act. Added loss
28 benefits shall not include benefits for net loss sustained by an
29 operator or passenger of a motorcycle.
30 "Allowable expense" means reasonable charges incurred for, or
19810H1285B3523 - 5 -
1 the reasonable value of (where no charges are incurred),
2 reasonably needed and used products, services, and
3 accommodations for:
4 (A) professional medical treatment and care;
5 (B) emergency health services;
6 (C) medical and vocational rehabilitation services;
7 and <--
8 (D) expenses directly related to the funeral,
9 burial, cremation, or other form of disposition of the
10 remains of a deceased victim, not to exceed one thousand
11 five hundred dollars ($1,500); [and] <--
12 (E) THE COST OF ORDINARY AND NECESSARY SERVICES <--
13 WHICH THE VICTIM WOULD NORMALLY PERFORM FOR HIMSELF OR
14 HIS FAMILY BUT IS MEDICALLY DETERMINED TO BE UNABLE TO
15 PERFORM AS A RESULT OF INJURY, THE COST OF SAID SERVICES
16 SHALL BE COMPENSABLE ONLY IF PROVIDED BY A NON-RELATIVE
17 OR BY A PERSON IN THE BUSINESS OF PROVIDING THE TYPE OF
18 SERVICE RENDERED FOR COMPENSATION, NOT TO EXCEED TWENTY-
19 FIVE DOLLARS ($25) PER DAY FOR AN AGGREGATE PERIOD OF
20 THREE HUNDRED SIXTY-FIVE DAYS.
21 The term does not include that portion of a charge for a room
22 in a hospital, clinic, convalescent, or nursing home, or any
23 other institution engaged in providing nursing care and related
24 services, in excess of a reasonable and customary charge for
25 semiprivate accommodations, unless more intensive care is
26 medically required; or any amount includable in work loss,
27 replacement services loss, or survivor's loss.
28 "BASIC LOSS BENEFITS" MEANS BENEFITS PROVIDED IN ACCORDANCE <--
29 WITH THIS ACT FOR THE NET LOSS SUSTAINED BY A VICTIM, SUBJECT TO
30 ANY APPLICABLE LIMITATIONS, EXCLUSIONS, DEDUCTIBLES, WAITING
19810H1285B3523 - 6 -
1 PERIODS, DISQUALIFICATIONS, OR OTHER TERMS AND CONDITIONS
2 PROVIDED OR AUTHORIZED IN ACCORDANCE WITH THIS ACT. BASIC LOSS
3 BENEFITS SHALL INCLUDE ALL BENEFITS PROVIDED PURSUANT TO SECTION
4 112 FOR PURPOSES OF SECTION 301. BASIC LOSS BENEFITS DO NOT
5 INCLUDE BENEFITS FOR DAMAGE TO PROPERTY. NOR DO BASIC LOSS
6 BENEFITS INCLUDE BENEFITS FOR NET LOSS SUSTAINED BY AN OPERATOR
7 OR PASSENGER OF A MOTORCYCLE UNLESS THE MOTORCYCLE OWNER HAS
8 ELECTED TO PURCHASE OPTIONAL SECURITY PURSUANT TO SECTION 207.
9 * * *
10 "ECONOMIC DETRIMENT" MEANS ALL TYPES OF PECUNIARY LOSS WHICH <--
11 CAN BE CALCULATED, ESTIMATED, VALUED OR PREDICTED WITH
12 REASONABLE ACCURACY IN ACCORDANCE WITH GENERALLY ACCEPTED
13 ECONOMIC, ACTUARIAL OR ACCOUNTING PRINCIPLES. ECONOMIC DETRIMENT
14 SHALL INCLUDE LOSS OF PROFITS OF A BUSINESS, FUTURE DISABILITY
15 AND LOSS OF ECONOMIC OPPORTUNITY. FUTURE DISABILITY SHALL ALSO
16 INCLUDE THE LIMITATION OF AN INDIVIDUAL'S ECONOMIC HORIZONS OR
17 LOSS OF PRODUCTIVITY AS A RESULT OF INJURY.
18 * * *
19 "Injury" means accidentally sustained bodily harm to an
20 individual and that individual's illness, disease, or death
21 resulting therefrom which arises out of the maintenance or use
22 of a motor vehicle.
23 * * *
24 "LOSS" MEANS ACCRUED ECONOMIC DETRIMENT RESULTING FROM INJURY <--
25 ARISING OUT OF THE MAINTENANCE OR USE OF A MOTOR VEHICLE
26 CONSISTING OF[, AND LIMITED TO,] ALLOWABLE EXPENSE, WORK LOSS,
27 [REPLACEMENT SERVICES LOSS,] AND SURVIVOR'S LOSS.
28 * * *
29 "Medical and vocational rehabilitation services" means
30 services necessary to reduce disability and to restore the
19810H1285B3523 - 7 -
1 physical, psychological, social, and vocational functioning of a
2 victim. Such services may include, but are not limited to,
3 medical care, diagnostic and evaluation procedures, physical and
4 occupational therapy, other necessary therapies, including but
5 not limited to chiropractic care, speech pathology and
6 audiology, optometric services, nursing care under the
7 supervision of a registered nurse, medical social services,
8 vocational rehabilitation and training services, occupational
9 licenses and tools, and transportation where necessary to secure
10 medical and vocational rehabilitation services. A basic loss
11 obligor is not obligated to provide basic loss benefits for
12 allowable expense for medical and vocational rehabilitation
13 services unless the facility in which or through which such
14 services are provided has been accredited by the Department of
15 Health, the equivalent governmental agency responsible for
16 health programs, or the accrediting designee of such department
17 or agency of the state in which such services are provided, as
18 being in accordance with applicable requirements and
19 regulations.
20 "Motorcycle" means a motor vehicle with a two-wheel OR THREE- <--
21 WHEEL frame having a seat or saddle for the use of the rider and
22 designed to travel on not more than three wheels in contact with
23 the ground.
24 "Motor vehicle" means a vehicle of a kind required to be
25 registered under [the act of April 29, 1959 (P.L.58, No.32),
26 known as the "Vehicle Code,"] Title 75 of the Pennsylvania
27 Consolidated Statutes (relating to vehicles).
28 * * *
29 "Obligor" means an insurer, self-insurer, or obligated
30 government providing no-fault benefits in accordance with this
19810H1285B3523 - 8 -
1 act. The term does not include an insurer or provider of health
2 care benefits for medical or health care or work loss through a
3 program, group, contract or other arrangement WHO IS NOT IN THE <--
4 BUSINESS OF PROVIDING SECURITY COVERING MOTOR VEHICLES when such
5 insurer or other provider of such benefits or work loss is
6 elected by the insured to be the primary source of no-fault
7 benefits pursuant to the provisions of section 203 INSOFAR AS <--
8 THIS ACT WOULD REQUIRE SUCH OBLIGOR TO PROVIDE SECURITY COVERING
9 A MOTOR VEHICLE INCLUDING BENEFITS OR COVERAGE IT WOULD
10 OTHERWISE NOT BE REQUIRED TO PROVIDE.
11 * * *
12 ["Replacement services loss" means expenses reasonably <--
13 incurred in obtaining ordinary and necessary services in lieu of
14 those the victim would have performed, not for income, but for
15 the benefit of himself or his family, if he had not been
16 injured.] Replacement services loss does not include expenses <--
17 incurred for services performed following death of a victim.
18 * * *
19 "State" means a state of the United States, the District of
20 Columbia, Guam, [and] the Virgin Islands, and Puerto Rico.
21 * * *
22 "Survivor" means:
23 [(A) spouse; or <--
24 (B) child, adopted child, ward, child under <--
25 guardianship of the deceased, foster child, parent,
26 brother, sister or relative dependent upon the deceased
27 for [support] his or her support immediately prior to the <--
28 accident causing death..] <--
29 (A) A SPOUSE; <--
30 (B) A CHILD OF THE DECEASED VICTIM EIGHTEEN YEARS OF
19810H1285B3523 - 9 -
1 AGE OR YOUNGER;
2 (C) A CHILD OF A DECEASED VICTIM NINETEEN YEARS OF
3 AGE OR OLDER WHO IS MENTALLY OR PHYSICALLY INCAPACITATED
4 FROM GAINFUL EMPLOYMENT AND WHO:
5 (I) RESIDED WITH; OR
6 (II) REGULARLY RECEIVED SUPPORT FROM THE
7 DECEASED VICTIM;
8 (D) A CHILD OF THE DECEASED VICTIM NINETEEN YEARS OF
9 AGE OR OLDER WHO IS A FULL-TIME STUDENT AND WHO:
10 (I) RESIDED WITH; OR
11 (II) REGULARLY RECEIVED SUPPORT FROM THE
12 DECEASED VICTIM; OR
13 (E) ANY PERSON WHO REGULARLY RECEIVED SUPPORT FROM
14 THE DECEASED VICTIM AND WHO IS ENUMERATED IN TITLE 20
15 PA.C.S. §§ 2102 (RELATING TO SHARE OF SURVIVING SPOUSE)
16 AND 2103 (RELATING TO SHARES OF OTHERS THAN SURVIVING
17 SPOUSE). THE CHILD OF A DECEASED VICTIM SHALL INCLUDE AN
18 ADOPTED CHILD OR A CHILD UNDER THE GUARDIANSHIP OF THE
19 DECEASED VICTIM AT THE TIME OF DEATH.
20 "SURVIVOR'S BENEFIT" MEANS BENEFIT PROVIDED TO SURVIVORS OF
21 DECEASED VICTIMS PURSUANT TO SECTION 202(D).
22 * * * <--
23 ["Survivor's loss" means the <--
24 [(A) loss of income of a deceased victim which would <--
25 probably have been contributed to a survivor or
26 survivors, if such victim had not sustained the fatal
27 injury; and
28 (B)] expenses reasonably incurred by a survivor or <--
29 survivors, after a victim's death resulting from injury,
30 in obtaining ordinary and necessary services in lieu of
19810H1285B3523 - 10 -
1 those which the victim would have performed, not for
2 income, but for their benefit, if he had not sustained
3 the fatal injury, reduced by expenses which the survivor
4 or survivors would probably have incurred but avoided by
5 reason of the victim's death resulting from injury.] <--
6 * * *
7 "Work loss" means:
8 (A) loss of [gross] income of a victim DURING HIS <--
9 LIFETIME, as calculated pursuant to the provisions of
10 section 205 of this act; and
11 (B) reasonable expenses of a victim INCURRED DURING <--
12 HIS LIFETIME for hiring a substitute to perform self-
13 employment services, thereby mitigating loss of income
14 DURING HIS LIFETIME, or for hiring special help, thereby <--
15 enabling a victim to work and mitigate loss of income
16 DURING HIS LIFETIME. <--
17 Work loss does not include (i) loss of expected income for any <--
18 period following the death of a victim, or (ii) expenses
19 incurred for services performed following the death of a victim.
20 Section 2 3. Sections 104, 105 and 106 of the act are <--
21 amended to read:
22 § 104. Required motor vehicle insurance.
23 (a) Security covering a motor vehicle.--Every owner of a
24 motor vehicle which is registered or which is operated in this
25 Commonwealth by the owner or with his permission, shall
26 continuously provide security covering such motor vehicle while
27 such vehicle is either present or registered in the
28 Commonwealth. Security shall be provided for the payment of
29 basic loss benefits [, and for the payment of sums up to a total <--
30 limit of thirty thousand dollars ($30,000) which the owner or
19810H1285B3523 - 11 -
1 any person operating the vehicle with the express or implied
2 permission of the owner may become liable to pay as damages
3 because of bodily injury or death arising out of any one
4 accident (subject to a sublimit of fifteen thousand dollars
5 ($15,000) for damages arising out of the bodily injury or death
6 of any one person) and for the payment of damages for injury to
7 or destruction of property in any one accident of amounts up to
8 a total limit of five thousand dollars ($5,000)]. The owner or <--
9 any other person may provide security covering a motor vehicle
10 by a contract of insurance with an insurer or by qualifying as a
11 self-insurer or as an obligated government.
12 (A.1) PROOF OF SECURITY AT REGISTRATION OR RENEWAL OF <--
13 REGISTRATION.--THE OWNER OF A MOTOR VEHICLE SHALL PROVIDE PROOF
14 OF COMPLIANCE WITH THE SECURITY REQUIREMENTS OF THIS ACT AT THE
15 TIME OF REGISTRATION OR RENEWAL OF REGISTRATION TO ANY SUCH
16 MOTOR VEHICLE THROUGH THE USE OF A UNIFORM PROOF OF PURCHASE OF
17 INSURANCE IDENTIFICATION CARD SPECIFYING SUCH COVERAGE OR SUCH
18 OTHER METHOD OF FURNISHING PROOF OF PURCHASE OF INSURANCE OR
19 COMPLIANCE WITH SELF-INSURANCE REQUIREMENTS AS MAY BE REQUIRED
20 TO THE DEPARTMENT. THE DEPARTMENT SHALL REFUSE TO ISSUE
21 REGISTRATION OF ANY MOTOR VEHICLE FOR WHICH SATISFACTORY PROOF
22 OF COMPLIANCE IS NOT MADE.
23 (a.1) (A.2) Proof of security at vehicle inspection.--The <--
24 department shall promulgate and adopt such rules and regulations
25 as may be necessary to monitor and enforce compliance with the
26 provisions of this act with respect to the maintenance of
27 security. Such rules and regulations shall include, but not
28 necessarily be limited to, requiring the owner of a motor
29 vehicle to submit satisfactory proof of security to a motor
30 vehicle inspector at the time of motor vehicle inspection and
19810H1285B3523 - 12 -
1 provide further that failure to submit such proof of security
2 shall be cause for rejection of the vehicle by the motor vehicle
3 inspector in accordance with the department's regulations.
4 (b) Self-insurance.--Self-insurance, subject to approval of
5 the commissioner and department, is effected by filing with the
6 department in satisfactory form:
7 (1) a continuing undertaking by the owner or other
8 appropriate person to pay basic [restoration] loss benefits
9 and any tort liability required in amounts not less than
10 those required, by subsection [(a)] (c.1) of this section, to <--
11 perform all obligations imposed in accordance with this act,
12 and to elect to pay such added [restoration] loss benefits as
13 are specified in the undertaking;
14 (2) evidence that appropriate provision exists for
15 prompt and efficient administration of all claims, benefits,
16 and obligations provided in accordance with this act; and
17 (3) evidence that reliable financial arrangements,
18 deposits, resources, or commitments exist providing assurance
19 substantially equivalent to that afforded by a contract of
20 insurance complying with this act for payment of no-fault
21 benefits, any required tort liability, and performance of all
22 other obligations imposed in accordance with this act.
23 (c) Obligated government.--A government may provide security
24 with respect to any motor vehicle owned or operated by it by
25 lawfully obligating itself to pay basic [restoration] loss
26 benefits in accordance with this act, and such added
27 [restoration] loss benefits as are specified in the undertaking.
28 (c.1) Financial responsibility.--Whenever any person fails <--
29 within sixty days to satisfy any judgment arising from a motor
30 vehicle accident, the judgment creditor may forward to the
19810H1285B3523 - 13 -
1 department a certified copy of the judgment. The department,
2 upon receipt of a certified copy of the judgment, shall suspend
3 the operating privilege and registration of the person against
4 whom the judgment was rendered.
5 (1) Any registration or operating privilege which has
6 been suspended, shall remain suspended until the judgment is
7 paid or proof of financial responsibility is furnished by
8 evidence satisfactory to the department that the person has
9 maintained insurance for the payment of basic loss benefits
10 and for the payment of sums up to a total limit of thirty
11 thousand dollars ($30,000) which the owner or any person
12 operating the vehicle with the express or implied permission
13 of the owner may become liable to pay as damages because of
14 bodily injury or death arising out of any one accident
15 (subject to a sublimit of fifteen thousand dollars ($15,000)
16 for damages arising out the bodily injury or death of any one
17 person) and for the payment of damages for injury to or
18 destruction of property in any one accident of amounts up to
19 a total limit of five thousand dollars ($5,000).
20 (2) Judgments are deemed satisfied upon the occurrence
21 of one of the following:
22 (A) When fifteen thousand dollars ($15,000) has been
23 credited upon any judgments in excess of that amount
24 because of bodily injury or death of one person as a
25 result of any one accident.
26 (B) When thirty thousand dollars ($30,000) has been
27 credited upon any judgments in excess of that amount
28 because of bodily injury or death of two or more persons
29 in one accident.
30 (C) When five thousand dollars ($5,000) has been
19810H1285B3523 - 14 -
1 credited upon judgments in excess of that amount due to
2 property damage of others, as a result of one accident.
3 (3) Payments made in settlement of claims arising from a
4 motor vehicle accident shall be credited in reduction of the
5 amounts provided for in this section.
6 (4) A judgment debtor may apply to the court for the
7 privilege of paying the judgment in installments, which the
8 court, in its discretion may grant.
9 (5) If any insurance carrier not authorized to transact
10 business in the Commonwealth, which has qualified to furnish
11 proof of financial responsibility, defaults, the department
12 shall not thereafter accept any certificate of that carrier
13 as proof of financial responsibility.
14 (d) Obligations upon termination of security.--An owner of a
15 motor vehicle who ceases to maintain the security required in
16 accordance with this act shall immediately surrender the
17 registration certificate and license plates for the vehicle to
18 the department and may not operate or permit operation of the
19 vehicle in this Commonwealth until security has again been
20 furnished as required in accordance with this act. A person
21 other than the owner who ceases to maintain such security shall
22 immediately notify the owner and the department, who may not
23 operate or permit operation of the vehicle until security has
24 again been furnished. An insurer who has issued a contract of
25 insurance and knows or has reason to believe the contract is for
26 the purpose of providing security shall immediately give notice
27 to the department of the termination of the insurance. If the
28 commissioner or department withdraws approval of security
29 provided by a self-insurer or knows that the conditions for
30 self-insurance have ceased to exist, he shall immediately give
19810H1285B3523 - 15 -
1 notice thereof to the department. These requirements may be
2 modified or waived by the department.
3 (e) Temporary suspension of coverage.--An owner of a motor <--
4 (1) AN OWNER OF A MOTOR vehicle, who has provided <--
5 security in accordance with the provisions of subsection (a)
6 and who has one or more vehicles not in use for periods of
7 time in excess of forty-five consecutive calendar days, may
8 obtain from his insurer an agreement to the policy of
9 insurance suspending temporarily any coverages for the
10 duration of time such vehicle may not be in use: Provided,
11 however, That such owner shall maintain basic loss benefits
12 coverage for at least one of the vehicles during the period
13 of suspension. In all such cases, an owner of such a motor
14 vehicle shall not be required to surrender the registration
15 certificate and license plates to the department as provided
16 in subsection (d). The commissioner shall promulgate
17 reasonable and necessary rules and regulations governing such
18 agreements between an owner and his insurer including
19 provisions for an equitable reduction from the annual policy
20 premium of the insurer.
21 (2) AN OWNER OF A MOTOR VEHICLE, WHO HAS PROVIDED <--
22 SECURITY IN ACCORDANCE WITH THE PROVISIONS OF SUBSECTION (A)
23 AND WHO IS IN THE MILITARY SERVICE NOT USING HIS VEHICLE FOR
24 A PERIOD OF MORE THAN SIX MONTHS, MAY OBTAIN FROM HIS INSURER
25 AN AGREEMENT TO THE POLICY OF INSURANCE SUSPENDING
26 TEMPORARILY ANY COVERAGES FOR THE DURATION OF TIME SUCH
27 VEHICLE MAY NOT BE IN USE. SUCH OWNER NEED NOT MAINTAIN BASIC
28 LOSS BENEFITS COVERAGE FOR ANY VEHICLE DURING THE PERIOD OF
29 SUSPENSION. IN ALL SUCH CASES, AN OWNER OF SUCH MOTOR VEHICLE
30 SHALL NOT BE REQUIRED TO SURRENDER THE REGISTRATION
19810H1285B3523 - 16 -
1 CERTIFICATE AND LICENSE PLATES TO THE DEPARTMENT AS PROVIDED
2 IN SUBSECTION (D). THE COMMISSIONER SHALL PROMULGATE
3 REASONABLE AND NECESSARY RULES AND REGULATIONS GOVERNING SUCH
4 AGREEMENTS BETWEEN AN OWNER AND HIS INSURER INCLUDING
5 PROVISIONS FOR AN EQUITABLE REDUCTION FROM THE ANNUAL POLICY
6 PREMIUM OF THE INSURER.
7 § 105. Availability of insurance.
8 (a) Plan.--
9 (1) The commissioner shall establish and implement or
10 approve and supervise a plan assuring that any required no-
11 fault benefits [and] or tort liability coverages for motor <--
12 vehicles will be conveniently and expeditiously available,
13 subject only to payment or provisions for payment of the
14 premium, to each individual who cannot conveniently obtain
15 insurance through ordinary methods at rates not in excess of
16 those applicable to similarly situated individuals under the
17 plan. The plan may provide reasonable means for the transfer
18 of individuals insured thereunder into the ordinary market,
19 at the same or lower rates, pursuant to regulations
20 established by the commissioner. The plan may be implemented
21 by assignment of applicants among insurers, pooling, any
22 joint insuring or reinsuring arrangement, or any other
23 method, that results in all applicants being conveniently
24 afforded the insurance coverages on reasonable and not
25 unfairly discriminatory terms.
26 (2) The plan shall make available any added loss
27 benefits [and] or tort liability coverage together with other <--
28 contract provisions which the commissioner determines are
29 reasonably needed by applicants and are commonly afforded in
30 voluntary markets. The plan must also assure that there is
19810H1285B3523 - 17 -
1 available through the private sector or otherwise to all
2 applicants adequate premium financing or provision for the
3 installment payment of premiums subject to customary terms
4 and conditions.
5 (3) All insurers writing no-fault benefits [and] or tort <--
6 liability coverages in this Commonwealth shall participate in
7 the plan. The plan shall provide for equitable apportionment,
8 among all participating insurers writing any insurance
9 coverage required under the plan, of the financial burdens of
10 insurance provided to applicants under the plan and the costs
11 of operation of the plan.
12 (4) Subject to the supervision and approval of the
13 commissioner, insurers may consult and agree with each other
14 and with other appropriate persons as to the organization,
15 administration, and operation of the plan and as to rates and
16 rate modifications for insurance coverages provided under the
17 plan. Rates and rate modifications adopted or charged for
18 insurance coverages provided under the plan shall:
19 (A) be first adopted or approved by the
20 commissioner; and
21 (B) be reasonable and not unfairly discriminatory
22 among similarly situated applicants for insurance
23 pursuant to regulations established by the commissioner.
24 (5) To carry out the objectives of this subsection, the
25 commissioner may adopt rules, make orders, enter into
26 agreements with other governmental and private entities and
27 individuals, and form and operate or authorize the formation
28 and operation of bureaus and other legal entities.
29 (b) Cancellation, refusal to write and refusal to renew[, or
30 other termination of] insurance.--Cancellation, refusal to write
19810H1285B3523 - 18 -
1 and refusal to renew [and other termination of insurance]
2 security by an insurer shall be [provided for in accordance
3 with] governed by the provisions of the act of June 5, 1968
4 (P.L.140, No.78), entitled "An act regulating the writing,
5 cancellation of or refusal to renew policies of automobile
6 insurance; and imposing powers and duties on the Insurance
7 Commissioner therefor," and its amendments.
8 (C) NOTICE OF ASSIGNED RISK PLACEMENT.--ALL INSURERS SHALL <--
9 ADVISE CONSUMER-BUYERS AT THE TIME OF PURCHASE THAT THEY ARE
10 BEING PLACED IN THE ASSIGNED RISK POOL AND WHY THEY ARE BEING
11 PLACED THERE.
12 § 106. Payment of claims for no-fault benefits.
13 (a) In general.--
14 (1) No-fault benefits are payable monthly as loss
15 accrues. Loss accrues not when injury occurs, but as
16 allowable expense, work loss, replacement services loss, or
17 survivor's loss is sustained.
18 (2) No-fault benefits are overdue if not paid within
19 thirty days after the receipt by the obligor of each
20 submission of reasonable proof of the fact and amount of loss
21 sustained, unless the obligor designates, upon receipt of an
22 initial claim for no-fault benefits, periods not to exceed
23 thirty-one days each for accumulating all such claims
24 received within each such period, in which case such benefits
25 are overdue if not paid within fifteen days after the close
26 of each such period. If reasonable proof is supplied as to
27 only part of a claim, but the part amounts to one hundred
28 dollars ($100) or more, benefits for such part are overdue if
29 not paid within the time mandated by this paragraph. An
30 obligation for basic loss benefits for an item of allowable
19810H1285B3523 - 19 -
1 expense may be discharged by the obligor by reimbursing the
2 victim or his estate or by making direct payment to the
3 supplier or provider of products, services, or accommodations
4 within the time mandated by this paragraph. Overdue payments
5 bear interest at the rate of eighteen per cent (18%) per
6 annum. However, if the obligor withholds payments which are <--
7 later determined to be overdue and the obligor is found by a
8 court of competent jurisdiction to have had reasonable cause
9 for the withholding of such payments, said payments shall
10 bear interest at the rate of twelve per cent (12%) per annum.
11 (3) A claim for no-fault benefits shall be paid without
12 deduction for the benefits or advantages which are to be
13 subtracted from loss in calculating net loss if such benefits
14 or advantages have not been paid or provided to such claimant
15 prior to the date the no-fault benefits are overdue or the
16 no-fault benefits claim is paid whichever is later. The
17 obligor is thereupon entitled to recover reimbursement from
18 the person obligated to pay or provide such benefits or
19 advantages or from the claimant who actually receives them.
20 Benefits or advantages that are subtracted and which are <--
21 reasonably expected in the ordinary course of events shall be
22 deemed to have been provided until receipt by the obligor or
23 written notice that the amount or the payment thereof is in
24 dispute or that for any other reason the payment may not be
25 promptly made. Benefits subtracted by reason of this
26 provision shall not be overdue if paid within thirty days
27 following receipt of such notice.
28 (4) An obligor may bring an action to recover
29 reimbursement for no-fault benefits which are paid upon the
30 basis of an intentional misrepresentation of a material fact
19810H1285B3523 - 20 -
1 by a claimant or a supplier or provider of an item of
2 allowable expense, if such obligor reasonably relied upon
3 such misrepresentation. The action may be brought only
4 against such supplier or provider, unless the claimant has
5 intentionally misrepresented the facts or knew of the
6 misrepresentation. An obligor may offset amounts he is
7 entitled to recover from the claimant under this paragraph
8 against any no-fault benefits otherwise due.
9 (5) An obligor who rejects a claim for basic loss
10 benefits shall give to the claimant written notice of the
11 rejection promptly, but in no event more than thirty days
12 after the receipt of reasonable proof of the loss. Such
13 notice shall specify the reason for such rejection and inform
14 the claimant of the terms and conditions of his right to
15 obtain an attorney. If a claim is rejected for a reason other
16 than that the person is not entitled to basic loss benefits
17 claimed, the written notice shall inform the claimant that he
18 may file his claim with the assigned claims bureau and shall
19 give the name and address of the bureau.
20 (6) FAILURE TO PROVIDE THE WRITTEN NOTICE REQUIRED BY <--
21 THIS SECTION WITHIN THIRTY DAYS OF RECEIPT BY THE OBLIGOR OF
22 REASONABLE PROOF OF LOSS SHALL CONSTITUTE A WAIVER BY THE
23 OBLIGOR OF ANY DEFENSE TO THE VICTIM'S OR SURVIVOR'S CLAIM
24 FOR BASIC LOSS BENEFITS. ANY REASON FOR REJECTION OF A CLAIM
25 WHICH IS NOT SPECIFIED IN WRITTEN NOTICE TO THE CLAIMANT
26 SHALL BE DEEMED TO BE WAIVED BY THE OBLIGOR AND SHALL NOT BE
27 ASSERTED AS A DEFENSE TO ANY ACTION BROUGHT BY THE CLAIMANT.
28 NOTWITHSTANDING THE PROVISIONS OF THIS SUBSECTION, THE
29 OBLIGOR MAY RAISE THE DEFENSE OF FRAUD AT ANY TIME.
30 (b) Release or settlement of claim.--
19810H1285B3523 - 21 -
1 (1) Except as otherwise provided in this subsection, no-
2 fault benefits shall not be denied or terminated because the
3 victim executed a release or other settlement agreement. A
4 claim for no-fault benefits may be discharged by a settlement
5 agreement for an agreed amount payable in installments or in
6 a lump sum, if the reasonably anticipated net loss does not
7 exceed [two thousand five hundred dollars ($2,500)] ten <--
8 thousand dollars ($10,000) FIVE THOUSAND DOLLARS ($5,000). A <--
9 claim for survivor's loss, up to the limit of liability
10 thereof, may be discharged by settlement in a lump sum. In
11 all other cases, a claim may be discharged by a settlement to
12 the extent authorized by law and upon a finding, by a court
13 of competent jurisdiction, that the settlement is in the best
14 interest of the claimant and any beneficiaries of the
15 settlement, and that the claimant understands and consents to
16 such settlement, and upon payment by the [restoration] <--
17 obligor of the costs of such proceeding including a
18 reasonable attorney's fee (based upon actual time expended)
19 to the attorney selected by or appointed for the claimant.
20 Such costs may not be charged to or deducted from the
21 proceeds of the settlement. Upon approval of the settlement,
22 the court may make appropriate orders concerning the
23 safeguarding and disposing of the proceeds of the settlement
24 and may direct as a condition of the settlement agreement,
25 that the restoration obligor pay the reasonable cost of
26 appropriate future medical and vocational rehabilitation
27 services.
28 (2) A settlement agreement for an amount payable in
29 installments shall be modified as to amounts to be paid in
30 the future, if it is shown that a material and substantial
19810H1285B3523 - 22 -
1 change of circumstances has occurred or that there is newly-
2 discovered evidence concerning the claimant's physical
3 condition, loss, or rehabilitation which could not have been
4 known previously or discovered in the exercise of reasonable
5 diligence.
6 (3) A settlement agreement may be set aside if it is
7 procured by fraud or if its terms are unconscionable.
8 (c) Time limitations on actions to recover benefits.--
9 [(1) If no-fault benefits have not been paid for loss <--
10 arising otherwise than from death, an action therefor may be
11 commenced not later than two years after the victim suffers
12 the loss and either knows, or in the exercise of reasonable
13 diligence should have known, that the loss was caused by the
14 accident, or not later than four years after the accident,
15 whichever is earlier. If no-fault benefits have been paid for
16 loss arising otherwise than from death, an action for further
17 benefits [other than survivor's benefits,] on account of such <--
18 loss, by either the same or another claimant, may be
19 commenced not later than two years after the last payment of
20 benefits. Except as this paragraph prescribes a longer <--
21 period, if the victim dies, an action for loss arising
22 otherwise than from death may be commenced not later than one
23 year after the victim's death.
24 (2) If no-fault benefits have not been paid [to the <--
25 deceased victim or his survivor or survivors], for loss <--
26 arising from death, either for survivor's loss or the funeral
27 expense benefit provided under allowable expense an action
28 for survivor's [benefits] loss or the said funeral expense <--
29 may be commenced not later than [one year] two years after <--
30 the death or four years after the accident from which death
19810H1285B3523 - 23 -
1 results, whichever is earlier. If survivor's [benefits have] <--
2 loss has been paid to any survivor, an action for further
3 survivor's [benefits] loss by either the same or another <--
4 claimant may be commenced not later than two years after the
5 last payment of benefits. If no-fault benefits have been paid
6 for loss suffered by a victim before his death resulting from
7 the injury, an action for survivor's [benefits] loss or the <--
8 said funeral expense may be commenced not later than one year
9 after the death or six years after the last payment of
10 benefits, whichever is earlier.] <--
11 (1) IF NO-FAULT BENEFITS HAVE NOT BEEN PAID, AN ACTION <--
12 THEREFORE MAY BE COMMENCED NOT LATER THAN TWO YEARS AFTER THE
13 VICTIM OR SURVIVOR SUFFERS THE LOSS AND EITHER KNOWS OR IN
14 THE EXERCISE OF REASONABLE DILIGENCE SHOULD HAVE KNOWN THAT
15 THE LOSS WAS CAUSED BY THE ACCIDENT OR NOT LATER THAN FOUR
16 YEARS AFTER THE ACCIDENT, WHICHEVER IS LATER.
17 (2) IF NO-FAULT BENEFITS HAVE BEEN PAID, AN ACTION FOR
18 FURTHER BENEFITS BY EITHER THE SAME OR ANOTHER CLAIMANT MAY
19 BE COMMENCED NOT LATER THAN TWO YEARS AFTER THE VICTIM OR
20 SURVIVOR KNOWS OR IN THE EXERCISE OF REASONABLE DILIGENCE
21 SHOULD HAVE KNOWN THAT THE ADDITIONAL LOSS WAS CAUSED BY THE
22 ACCIDENT, OR NOT LATER THAN FOUR YEARS AFTER THE LAST PAYMENT
23 BENEFITS.
24 (3) If timely action for basic restoration benefits is
25 commenced against an obligor and benefits are denied because
26 of a determination that the obligor's coverage is not
27 applicable to the claimant under the provisions of section
28 204 of this act, an action against the applicable obligor or
29 the obligor to whom a claim is assigned under an assigned
30 claims plan may be commenced not later than sixty days after
19810H1285B3523 - 24 -
1 the determination becomes final or the last date on which the
2 action could otherwise have been commenced, whichever is
3 later.
4 (4) Except as paragraph (1), (2), or (3) prescribes a
5 longer period, an action by a claimant on an assigned claim
6 which has been timely presented in accordance with the
7 provisions of section 108(c) or section 108.1(c) of this act,
8 whichever shall be applicable to the claim, may not be
9 commenced more than sixty days after the claimant receives
10 written notice of rejection of the claim by the [restoration
11 obligor] entity to which it was assigned.
12 (5) If a person entitled to no-fault benefits is under a
13 legal disability when the right to bring an action for the
14 benefits first accrues, the period of his disability is not a
15 part of the time limited for commencement of the action.
16 (d) Assignment of benefits.--An assignment of or an
17 agreement to assign any right in accordance with this act for
18 loss accruing in the future is unenforceable except as to
19 benefits for:
20 (1) work loss to secure payment of alimony, maintenance,
21 or child support; or
22 (2) allowable expense to the extent the benefits are for
23 the cost of products, services, or accommodations provided or
24 to be provided by the assignee.
25 (e) Deduction and setoff.--Except as otherwise provided in
26 this act, basic loss benefits shall be paid without deduction or
27 setoff.
28 (f) Exemption of benefits.--
29 (1) No-fault benefits for allowable expense are exempt
30 from garnishment, attachment, execution, and any other
19810H1285B3523 - 25 -
1 process or claim, except upon the claim of a creditor who has
2 provided products, services, or accommodations to the extent
3 benefits are for allowable expense for those products,
4 services, or accommodations.
5 (2) Basic loss benefits other than those for allowable
6 expense are exempt from garnishment, attachment, execution,
7 and any other process or claim for benefits attributable to
8 loss sustained within the first sixty days following the
9 accident resulting in injury. Other basic loss benefits
10 (except for items of allowable expense) are exempt to the
11 extent that wages or earnings are exempt under any applicable
12 law exempting wages or earnings from such process or claims.
13 SECTION 4. SECTION 107 OF THE ACT IS AMENDED TO READ: <--
14 § 107. ATTORNEY'S FEES AND COSTS.
15 FEES OF CLAIMANT'S ATTORNEY.--
16 (1) [IF ANY OVERDUE NO-FAULT BENEFITS ARE PAID BY THE
17 OBLIGOR AFTER RECEIPT BY THE OBLIGOR OF NOTICE OF
18 REPRESENTATION OF A CLAIMANT IN CONNECTION WITH A CLAIM OR
19 ACTION FOR THE PAYMENT OF NO-FAULT BENEFITS, A REASONABLE
20 ATTORNEY'S FEE (BASED ON ACTUAL TIME EXPENDED) SHALL BE PAID
21 BY THE OBLIGOR TO SUCH ATTORNEY.] IF ANY OVERDUE NO-FAULT
22 BENEFITS ARE PAID BY THE OBLIGOR, INCLUDING ANY PAYMENT
23 PURSUANT TO A SETTLEMENT, VERDICT OR JUDGMENT AND THE OBLIGOR
24 HAD RECEIVED NOTICE OF REPRESENTATION OF THE CLAIMANT IN
25 CONNECTION WITH A CLAIM OR ACTION FOR PAYMENT OF NO-FAULT
26 BENEFITS, THE OBLIGOR SHALL PAY A REASONABLE ATTORNEY'S FEE
27 (BASED ON ACTUAL TIME EXPENDED) TO CLAIMANT'S ATTORNEY. NO
28 PART OF THE ATTORNEY'S FEE FOR REPRESENTING THE CLAIMANT IN
29 CONNECTION WITH SUCH CLAIM OR ACTION FOR NO-FAULT BENEFITS
30 SHALL BE CHARGED OR DEDUCTED FROM BENEFITS OTHERWISE DUE TO
19810H1285B3523 - 26 -
1 SUCH CLAIMANT AND NO PART OF SUCH BENEFITS MAY BE APPLIED TO
2 SUCH FEE.
3 (2) IF, IN ANY ACTION BY A CLAIMANT TO RECOVER NO-FAULT
4 BENEFITS FROM AN OBLIGOR, THE COURT DETERMINES THAT THE CLAIM
5 OR ANY SIGNIFICANT PART THEREOF IS FRAUDULENT OR SO EXCESSIVE
6 AS TO HAVE NO REASONABLE FOUNDATION, THE COURT MAY AWARD THE
7 OBLIGOR'S ATTORNEY A REASONABLE FEE BASED UPON ACTUAL TIME
8 EXPENDED. THE COURT, IN SUCH CASE, MAY DIRECT THAT THE FEE
9 SHALL BE PAID BY THE CLAIMANT OR THAT THE FEE MAY BE TREATED
10 IN WHOLE OR IN PART AS AN OFFSET AGAINST ANY BENEFITS DUE OR
11 TO BECOME DUE TO THE CLAIMANT.
12 [(3) IF, IN ANY ACTION BY A CLAIMANT TO RECOVER NO-FAULT
13 BENEFITS FROM AN OBLIGOR, THE COURT DETERMINES THAT THE
14 OBLIGOR HAS DENIED THE CLAIM OR ANY SIGNIFICANT PART THEREOF
15 WITHOUT REASONABLE FOUNDATION, THE COURT MAY AWARD THE
16 CLAIMANT'S ATTORNEY A REASONABLE FEE BASED UPON ACTUAL TIME
17 EXPENDED.]
18 Section 3 5. Section 108 of the act is repealed. <--
19 Section 4 6. The act is amended by adding a section to read: <--
20 § 108.1. Assigned claims plan.
21 (a) Organization.--Obligors other than self-insurers and
22 governments providing basic loss insurance in this Commonwealth
23 shall organize and maintain, subject to approval and regulation
24 by the commissioner, an assigned claims bureau and an assigned
25 claims plan and adopt rules for their operation and for
26 assessment of costs on a fair and equitable basis consistent
27 with this act. If such bureau and plan are not organized and
28 maintained in a manner considered by the commissioner to be
29 consistent with this act, he shall organize and maintain an
30 assigned claims bureau and an assigned claims plan. Each obligor
19810H1285B3523 - 27 -
1 insurer providing basic loss insurance in the Commonwealth shall
2 participate in the assigned claims bureau and the assigned
3 claims plan. Costs incurred shall be allocated fairly and
4 equitably among the obligors.
5 (B) DEFINITION OF BASIC LOSS INSURANCE.--FOR PURPOSES OF <--
6 THIS SECTION, BASIC LOSS INSURANCE SHALL ONLY INCLUDE BENEFITS
7 FOR:
8 (1) ALLOWABLE EXPENSE.
9 (2) WORK LOSS.
10 (3) SURVIVOR'S LOSS.
11 BASIC LOSS INSURANCE SHALL NOT INCLUDE ANY BENEFITS PAYABLE
12 UNDER MOTOR VEHICLE INSURANCE REQUIRED BY ANY OTHER ACT, BUT NOT
13 SPECIFICALLY MANDATED BY THIS ACT, INCLUDING BUT NOT LIMITED TO
14 BENEFITS FOR GENERAL DAMAGES TO AN INSURED PARTY INJURED BY AN
15 UNINSURED MOTORIST.
16 (b) (C) Basic loss benefits.-- <--
17 (1) If this act is in effect on the date when the
18 accident resulting in injury occurs, a victim or the survivor
19 or survivors of a deceased victim may obtain basic benefits
20 through the assigned claims plan established pursuant to
21 subsection (a), if:
22 (A) basic loss insurance applicable to the injury
23 cannot be identified;
24 (B) basic loss insurance applicable to the injury is
25 inadequate to provide the contracted for benefits because
26 of financial inability of an obligor to fulfill its
27 obligations; or
28 (C) benefits are refused by an obligor for a reason
29 other than that the individual is not entitled in
30 accordance with this act to the basic loss benefits
19810H1285B3523 - 28 -
1 claimed.
2 (2) If a claim qualifies for assignment under subclause
3 (A), (B) or (C) of paragraph (1), the assigned claims bureau
4 or any entity to whom the claim is assigned is subrogated to
5 all rights of the claimant against the obligor legally
6 obligated to provide basic benefits to the claimant or
7 against any successor in interest to or substitute for such
8 obligor for such benefits as are provided by the assignee.
9 (3) If an individual receives basic loss benefits
10 through the assigned claims plan, all benefits or advantages
11 that such individual receives or is entitled to receive as a
12 result of such injury, other than life insurance benefits or
13 benefits by way of succession at death or in discharge of
14 familial obligations of support, shall be subtracted from
15 loss in calculating net loss.
16 (4) The assigned claims bureau shall promptly assign
17 each claim for no-fault benefits to an assignee so as to
18 minimize inconvenience to claimants and shall notify the
19 claimant of the identity and address of such assignee.
20 Subject to the terms and limitations of this section, the
21 assignee thereafter has rights and obligations as if it had
22 issued a policy of basic loss benefits insurance complying
23 with this act, but not in excess of the basic loss benefits
24 insurance or self-insurance contract, if any, in substitution
25 for which the claim is assigned.
26 (c) (D) Time limitations on filing claims.-- <--
27 (1) Except as provided in paragraph (2), an individual
28 authorized to obtain basic loss benefits through the assigned
29 claims plan shall notify the assigned claims bureau of his
30 claim within the time that would have been allowed pursuant
19810H1285B3523 - 29 -
1 to section 106(c) for commencing an action for basic loss
2 benefits against any obligor, other than an assigned claims
3 bureau.
4 (2) If timely action for basic loss benefits is
5 commenced against an obligor who is unable to fulfill its
6 obligations because of financial inability, an individual
7 authorized to obtain basic loss benefits through the assigned
8 claims plan shall notify the bureau of his claim within six
9 months after his discovery of such financial inability.
10 (d) (E) Ineligible claimants.--An individual OWNER, whether <--
11 resident of this Commonwealth or not, who does not comply with
12 the requirement of providing security for the payment of basic
13 loss benefits, if he is injured while occupying a motor vehicle
14 for which there is no security in force applicable to his injury
15 or loss, or an individual OWNER as to whom the security is <--
16 invalidated because of his fraud or willful misconduct, shall
17 not be entitled to receive benefits under the assigned claims
18 plan. An individual, whether resident of this Commonwealth or
19 not, who operates a motor vehicle with ACTUAL knowledge that <--
20 security required by this act is not in effect with respect to
21 such operation shall not be entitled to receive benefits under
22 the assigned claims plan if injured in the course of such
23 operation.
24 Section 5. Sections 109, 110 and 111, subsections (d) and <--
25 (e) of section 202, section 203, the heading of section 204,
26 subsection (c) of section 205, subsection (a) of section 206,
27 section 207, clause (1) of subsection (a) of section 208,
28 clauses (4) and (5) of subsection (a) of section 301 and section
29 401 of the act, are amended to read:
30 SECTION 7. SECTION 109 OF THE ACT IS AMENDED TO READ: <--
19810H1285B3523 - 30 -
1 § 109. Rates.
2 (a) Rates and rating.--
3 (1) The commissioner shall regulate obligors providing
4 security covering a motor vehicle in this Commonwealth. The
5 rates charged for security shall be established, determined,
6 and modified only in accordance with the provisions of the
7 applicable rating law of this Commonwealth.
8 (2) Within sixty days after January 1, 1982 THE <--
9 EFFECTIVE DATE OF THIS AMENDATORY ACT, the commissioner shall
10 commence a review of the rates of all insurers in effect at
11 that time. If, after the review, the commissioner finds on a
12 preliminary basis that rates may be excessive, inadequate or
13 unfairly discriminatory, the commissioner shall so notify
14 each insurer of his findings. Upon being so notified, the
15 insurer shall, within sixty days, file with the commissioner
16 all information which the insurer believes proves the
17 reasonableness, adequacy and fairness of the rate. In such
18 instances, the insurer shall carry the burden of proof. In
19 the event the commissioner finds that a rate is excessive,
20 inadequate or unfairly discriminatory, the commissioner may
21 order that a new rate schedule be thereafter filed by the
22 insurer and further specifying the manner in which
23 noncompliance shall be corrected.
24 (3) The commissioner shall establish and promulgate a
25 Statewide reporting system for the purpose of evaluating
26 rates, premiums and risk classification system and for the
27 purpose of evaluating competition and the availability of
28 motor vehicle insurance in the voluntary market. The
29 commissioner shall give due consideration to the provisions
30 of the act of June 11, 1947 (P.L.538, No.246), known as "The
19810H1285B3523 - 31 -
1 Casualty and Surety Rate Regulatory ACt," in the application
2 of this paragraph.
3 (4) The commissioner may promulgate rules to require
4 each insurer to report its loss and expense experience and
5 any other information the commissioner deems relevant, by
6 classification and in such detail as often as may be
7 reasonably necessary to aid the commissioner in determining
8 the reasonableness of rates, the credibility of loss
9 projections and the credibility of the risk classification
10 system. The commissioner shall give due consideration to the
11 provisions of "The Casualty and Surety Rate Regulatory Act,"
12 in the application of this paragraph.
13 (5) The commissioner shall, by regulation, establish a
14 method for determining the profitability and rates of return
15 on net worth, assets and earned premiums with respect to each
16 kind of insurance subject to the provisions of this act,
17 based upon reasonable and uniform assumptions. Such
18 regulation shall require insurers to report annually to the
19 commissioner, who shall make such reports available for
20 public inspection concerning such profitability and rates of
21 return.
22 (A.1) VEHICLE RATING SCHEDULE.--NO INSURER SHALL USE A <--
23 PRIVATE PASSENGER VEHICLE RATING SCHEDULE OR PROCEDURE WHICH
24 ASSESSES OR PROVIDES SURCHARGES, RATE PENALTIES OR INCREASES IN
25 RATE BASED UPON DETERMINATION OF FAULT UNDER THE DOCTRINE OF
26 COMPARATIVE NEGLIGENCE WHERE THE INSURED IS FOUND TO BE LESS
27 THAN FIFTY PER CENT (50%) AT FAULT.
28 (b) Public information.--The commissioner shall provide the
29 means to inform purchasers of insurance, in a manner adequate to
30 permit them to compare prices, about rates being charged by
19810H1285B3523 - 32 -
1 insurers for no-fault benefits and tort liability coverage.
2 (c) Accountability program.--
3 (1) The commissioner, through the State vocational
4 rehabilitation agency, shall establish and maintain a program
5 for the regular and periodic evaluation of medical and
6 vocational rehabilitation services for which reimbursement or
7 payment is sought from an obligor as an item of allowable
8 expense to assure that:
9 (A) the services are medical and vocational
10 rehabilitation services, as defined in section 103 of
11 this act;
12 (B) the recipient of the services is making progress
13 toward a greater level of independent functioning and the
14 services are necessary to such progress and continued
15 progress; and
16 (C) the charges for the services for which
17 reimbursement or payment is sought are fair and
18 reasonable.
19 Progress reports shall be made periodically in writing on each
20 case for which reimbursement or payment is sought under security
21 for the payment of basic loss benefits. Such reports shall be
22 prepared by the supervising physician or rehabilitation
23 counselor and submitted to the State vocational rehabilitation
24 agency. The State vocational rehabilitation agency shall file
25 reports with the applicable obligor or obligors. Pursuant to
26 this program, there shall be provision for determinations to be
27 made in writing of the rehabilitation goals and needs of the
28 victim and for the periodic assessment of progress at reasonable
29 time intervals by the supervising physician or rehabilitation
30 counselor. An obligor who shall operate, maintain or participate <--
19810H1285B3523 - 33 -
1 in a program to provide medical and vocational rehabilitation
2 services that conform to or exceed the standards of services
3 required by the State Vocational Rehabilitation Agency may,
4 subject to the approval of the commissioner, be exempt from the
5 notification and reporting requirements of this act with regard
6 to the providing of such rehabilitation services.
7 (2) The commissioner is authorized to establish and
8 maintain a program for the regular and periodic evaluation of
9 this Commonwealth's no-fault plan for motor vehicle
10 insurance.
11 (d) Availability of services.--The commissioner is
12 authorized to coordinate with appropriate government agencies in
13 the creation and maintenance of an emergency health services
14 system or systems, and to take all steps necessary to assure
15 that emergency health services are available for each victim
16 suffering injury in the Commonwealth. The commissioner is
17 authorized to take all steps necessary to assure that medical
18 and vocational rehabilitation services are available for each
19 victim resident of the Commonwealth. Such steps may include, but
20 are not limited to, guarantees of loans or other obligations of
21 suppliers or providers of such services, and support for
22 training programs for personnel in programs and facilities
23 offering such services.
24 SECTION 8. THE ACT IS AMENDED BY ADDING SECTIONS TO READ: <--
25 § 109.1. EXCESS PROFITS FOR MOTOR VEHICLE INSURANCE TO BE
26 REFUNDED.
27 (A) DEFINITION.--"PRIVATE PASSENGER AUTOMOBILE BUSINESS" AS
28 USED HEREIN SHALL MEAN INSURANCE BUSINESS THAT IS WRITTEN ON A
29 FAMILY AUTOMOBILE POLICY, STANDARD AUTOMOBILE POLICY, PERSONAL
30 AUTOMOBILE OR SIMILAR PRIVATE PASSENGER AUTOMOBILE POLICY
19810H1285B3523 - 34 -
1 COVERING AN AUTOMOBILE FOR PERSONAL USE, AS OPPOSED TO
2 COMMERCIAL AUTOMOBILE INSURANCE BUSINESS.
3 (B) CONSOLIDATED FILINGS.--EACH PENNSYLVANIA PRIVATE
4 PASSENGER AUTOMOBILE INSURER OR GROUP OF INSURERS UNDER THE SAME
5 MANAGEMENT SHALL FILE WITH THE DEPARTMENT, PRIOR TO JULY 1 OF
6 EACH YEAR ON FORMS PRESCRIBED BY THE DEPARTMENT, THE FOLLOWING
7 DATA FOR PENNSYLVANIA PRIVATE PASSENGER AUTOMOBILE BUSINESS. THE
8 DATA FILED FOR EACH INSURER GROUP SHALL BE A CONSOLIDATION OF
9 THE DATA OF THE INDIVIDUAL INSURERS OF THE GROUP. THE DATA SHALL
10 INCLUDE BOTH VOLUNTARY AND ASSIGNED RISK BUSINESS AS FOLLOWS:
11 (1) CALENDAR YEAR TOTAL LIMITS EARNED PREMIUM.
12 (2) CALENDAR-ACCIDENT YEAR INCURRED LOSSES AND LOSS
13 ADJUSTMENT EXPENSES FOR VOLUNTARY LIABILITY AND NO-FAULT
14 COVERAGE ON A TOTAL LIMITS BASIS.
15 (3) CALENDAR YEAR INCURRED LOSSES AND LOSS ADJUSTMENT
16 EXPENSES FOR VOLUNTARY PHYSICAL DAMAGE COVERAGES.
17 (4) CALENDAR-ACCIDENT YEAR INCURRED LOSSES AND LOSS
18 ADJUSTMENT EXPENSES FOR ASSIGNED RISK COVERAGE ON A TOTAL
19 LIMITS BASIS.
20 (5) CALENDAR YEAR INCURRED LOSSES AND LOSS ADJUSTMENT
21 EXPENSES FOR ASSIGNED RISK PHYSICAL DAMAGE COVERAGES.
22 (6) THE ADMINISTRATIVE AND SELLING EXPENSES INCURRED IN
23 PENNSYLVANIA OR ALLOCATED TO PENNSYLVANIA FOR THE CALENDAR
24 YEAR.
25 (7) POLICYHOLDER DIVIDENDS DECLARED DURING THE
26 APPLICABLE YEAR.
27 (C) SEPARATE FILING.--EACH INSURER OR INSURER GROUP ALSO
28 SHALL SEPARATELY FILE A SCHEDULE OF PENNSYLVANIA PRIVATE
29 PASSENGER AUTOMOBILE LIABILITY, NO-FAULT AND PHYSICAL DAMAGE
30 LOSS AND LOSS ADJUSTMENT EXPERIENCE FOR EACH OF THE THREE MOST
19810H1285B3523 - 35 -
1 RECENT CALENDAR-ACCIDENT OR CALENDAR YEARS AFTER THE EFFECTIVE
2 DATE OF THIS AMENDATORY ACT. THE INCURRED LOSSES AND LOSS
3 ADJUSTMENT EXPENSES SHALL BE VALUED AS OF MARCH 31 OF THE YEAR
4 FOLLOWING THE CLOSE OF THE CALENDAR-ACCIDENT YEAR, DEVELOPED TO
5 AN ULTIMATE BASIS AND AT TWO TWELVE-MONTH INTERVALS THEREAFTER,
6 EACH DEVELOPED TO AN ULTIMATE BASIS, SO THAT A TOTAL OF THREE
7 EVALUATIONS WILL BE PROVIDED FOR EACH CALENDAR-ACCIDENT YEAR.
8 THE FIRST YEAR TO BE REPORTED SHALL BE CALENDAR-ACCIDENT OR
9 CALENDAR YEAR 1983, SO THAT THE REPORTING OF THREE CALENDAR-
10 ACCIDENT OR CALENDAR YEARS WILL NOT TAKE PLACE UNTIL CALENDAR-
11 ACCIDENT OR CALENDAR YEARS 1984 AND 1985 HAVE BECOME AVAILABLE.
12 (D) UNDERWRITING COMPUTATION.--EACH INSURER'S OR INSURER
13 GROUP'S UNDERWRITING GAIN OR LOSS FOR EACH CALENDAR OR CALENDAR-
14 ACCIDENT YEAR SHALL BE COMPUTED AS FOLLOWS: THE SUM OF THE
15 INCURRED LOSSES AND LOSS ADJUSTMENT EXPENSES AS OF MARCH 31 OF
16 THE FOLLOWING YEAR FOR LIABILITY, NO-FAULT AND PHYSICAL DAMAGE
17 COVERAGES DEVELOPED TO AN ULTIMATE BASIS, IN ADDITION TO THE
18 ADMINISTRATIVE AND SELLING EXPENSES INCURRED IN THE CALENDAR
19 YEAR, TOGETHER WITH POLICYHOLDER DIVIDENDS AND REFUNDS, WILL BE
20 SUBTRACTED FROM THE CALENDAR YEAR EARNED PREMIUMS.
21 (E) INVESTMENT GAIN OR LOSS.--EACH INSURER'S OR INSURER
22 GROUP'S INVESTMENT GAIN OR LOSS SHALL BE THE SUM OF ALL
23 INVESTMENT INCOME, EXCLUDING UNREALIZED CAPITAL GAINS OR LOSSES,
24 GENERATED BY PRIVATE PASSENGER AUTOMOBILE UNEARNED PREMIUM
25 RESERVES, LOSS RESERVES AND A PORTION OF THE SURPLUS TO
26 POLICYHOLDERS WHICH THE PRIVATE PASSENGER PREMIUM BEARS TO THE
27 TOTAL PREMIUMS WRITTEN BY EACH INSURER OR INSURER GROUP.
28 (F) FORMULA.--ALL INSURERS OR INSURER GROUPS SHALL USE THE
29 SAME FORMULA FOR DETERMINING THE INVESTMENT INCOME GENERATED BY
30 PRIVATE PASSENGER AUTOMOBILE INSURANCE PREMIUMS. THE FORMULA
19810H1285B3523 - 36 -
1 SHALL BE PROMULGATED BY THE DEPARTMENT.
2 (G) EXCESS PROFIT.--AN EXCESS PROFIT HAS BEEN REALIZED IF
3 THE UNDERWRITING GAIN OR LOSS COMBINED WITH THE INVESTMENT GAIN
4 OR LOSS FOR THE INSURER OR INSURER GROUP EXCEEDS FIVE PER CENT
5 (5%) OF THE EARNED PREMIUMS FOR THE EVALUATION PERIOD. THE
6 EVALUATION PERIOD SHALL BE:
7 (1) THE THREE MOST RECENT YEARS OF EXPERIENCE AS SET
8 FORTH IN SUBSECTION (B).
9 (2) UNTIL THREE YEARS ARE AVAILABLE, THE NUMBER OF YEARS
10 AVAILABLE SHALL BE USED.
11 (H) HEARING.--THE DEPARTMENT SHALL AFFORD THE INSURER OR
12 INSURER GROUP AN OPPORTUNITY FOR HEARING AND FOR THE INSURER OR
13 INSURER GROUP TO DEMONSTRATE AFFIRMATIVELY TO THE DEPARTMENT
14 THAT THE PROFITS WERE NOT EXCESSIVE. THE COMMISSIONER SHALL
15 CONSIDER THE LOSS AND EXPENSE EXPERIENCE OF OTHER INSURERS, THE
16 RATES CHARGED BY OTHERS AND ANY OTHER RELEVANT FACTORS SUBMITTED
17 BY THE INSURER OR INSURER GROUP.
18 (I) ORDER.--IF THE COMMISSIONER DETERMINES THAT THE PROFITS
19 WERE EXCESSIVE, HE SHALL ORDER A REFUND OF THE AMOUNT OF THE
20 EXCESS UP TO THE AMOUNT OF THE EXCESS PROFIT.
21 (J) TIME OF REFUNDS.--THE AMOUNTS SO DETERMINED SHALL BE
22 REFUNDED ON A PRO RATA BASIS TO THE VOLUNTARY PRIVATE PASSENGER
23 AUTOMOBILE POLICYHOLDERS OF RECORD OF THE INSURER OR INSURER
24 GROUP ON DECEMBER 31 OF THE FINAL COMPILATION YEAR.
25 (K) TYPE OF REFUND.--ANY EXCESS PROFIT OF AN INSURER OR
26 INSURER GROUP OFFERING MOTOR VEHICLE INSURANCE SHALL BE RETURNED
27 TO POLICYHOLDERS IN THE FORM OF A CASH REFUND OR A CREDIT
28 TOWARDS THE FUTURE PURCHASE OF INSURANCE, AT THE OPTION OF THE
29 POLICYHOLDER. CASH REFUNDS TO POLICYHOLDERS AND DATA IN REQUIRED
30 REPORTS MAY BE ROUNDED TO THE NEAREST DOLLAR AND ROUNDING, IF
19810H1285B3523 - 37 -
1 ELECTED, SHALL BE APPLIED CONSISTENTLY.
2 (L) METHODS OF REFUNDS.--REFUNDS SHALL BE COMPLETED IN ONE
3 OF THE FOLLOWING WAYS: IF THE POLICYHOLDER ELECTS TO TAKE A CASH
4 REFUND, THE REFUND SHALL BE COMPLETED WITHIN SIXTY CALENDAR DAYS
5 OF A FINAL ORDER. IF THE POLICYHOLDER ELECTS TO TAKE REFUNDS IN
6 THE FORM OF A CREDIT TO RENEWAL POLICIES, SUCH CREDITS SHALL BE
7 APPLIED TO POLICY RENEWAL PREMIUM NOTICES WHICH ARE FORWARDED TO
8 INSUREDS BEGINNING NO MORE THAN SIXTY CALENDAR DAYS AFTER ENTRY
9 OF A FINAL ORDER.
10 (M) CERTIFICATION OF REFUNDS.--UPON COMPLETION OF THE
11 RENEWAL CREDITS OR REFUND PAYMENTS, THE INSURER OR INSURER GROUP
12 SHALL CERTIFY TO THE DEPARTMENT THAT THE REFUNDS HAVE BEEN MADE.
13 (N) REFUND TREATED AS DIVIDEND.--ANY REFUND OR RENEWAL
14 CREDIT MADE PURSUANT TO THIS SECTION SHALL BE TREATED AS A
15 POLICYHOLDER DIVIDEND APPLICABLE TO THE YEAR IN WHICH IT IS
16 INCURRED, FOR PURPOSES OF REPORTING UNDER THIS SECTION FOR
17 SUBSEQUENT YEARS.
18 § 109.2. DISCLOSURE OF FINANCIAL INFORMATION.
19 (A) RULES AND REGULATIONS.--THE COMMISSIONER SHALL
20 PROMULGATE RULES AND REGULATIONS WHICH SHALL REQUIRE EACH
21 INSURER LICENSED TO WRITE MOTOR VEHICLE INSURANCE IN THIS
22 COMMONWEALTH TO RECORD AND REPORT ITS LOSS AND EXPENSE
23 EXPERIENCE AND OTHER DATA AS MAY BE NECESSARY TO DETERMINE
24 WHETHER RATES ARE FAIR AND APPROPRIATE AND TO ESTIMATE
25 ACCURATELY THE CHANGE IN RATES FOR AUTOMOBILE BODILY INJURY
26 LIABILITY AND AUTOMOBILE BASIC LOSS BENEFITS THAT MAY RESULT
27 FROM AMENDMENTS TO THIS ACT. THE INSURANCE DEPARTMENT MAY
28 DESIGNATE ONE OR MORE RATE SERVICE ORGANIZATIONS OR ADVISORY
29 ORGANIZATIONS TO GATHER AND COMPILE SUCH EXPERIENCE AND DATA.
30 THE COMMISSIONER SHALL REQUIRE EACH INSURER LICENSED TO WRITE
19810H1285B3523 - 38 -
1 PROPERTY OR CASUALTY INSURANCE IN THIS COMMONWEALTH, AS A
2 SUPPLEMENT TO SCHEDULE T OF ITS ANNUAL STATEMENT, TO SUBMIT A
3 REPORT, ON A FORM FURNISHED BY THE COMMISSIONER SHOWING ITS
4 DIRECT WRITINGS AND DIRECT LOSSES IN THIS COMMONWEALTH AND IN
5 THE UNITED STATES.
6 (B) TYPES OF INSURANCE.--SUCH SUPPLEMENTAL REPORT REQUIRED
7 BY SUBSECTION (A) SHALL INCLUDE, BUT NOT BE LIMITED TO, THE
8 FOLLOWING TYPES OF INSURANCE WRITTEN BY SUCH INSURER:
9 (1) MOTOR VEHICLE BODILY INJURY LIABILITY INSURANCE.
10 (2) MOTOR VEHICLE BASIC LOSS BENEFITS INSURANCE.
11 (3) MOTOR VEHICLE PROPERTY DAMAGE LIABILITY INSURANCE.
12 (4) MOTOR VEHICLE ADDED LOSS BENEFITS INSURANCE.
13 (5) UNINSURED MOTORIST INSURANCE.
14 (6) UNDERINSURED MOTORIST INSURANCE.
15 (C) REQUIRED DATA.--SUCH SUPPLEMENTAL REPORT SHALL INCLUDE,
16 IN ACTUAL DOLLAR AMOUNTS, THE FOLLOWING DATA BY THE TYPE OF
17 INSURANCE FOR THE PREVIOUS YEAR ENDING ON DECEMBER 31:
18 (1) DIRECT PREMIUMS WRITTEN.
19 (2) DIRECT PREMIUMS EARNED.
20 (3) NET INVESTMENT INCOME, INCLUDING NET REALIZED
21 CAPITAL GAINS AND LOSSES BUT NOT INCLUDING UNREALIZED CAPITAL
22 GAINS AND LOSSES, USING APPROPRIATE ESTIMATES WHERE
23 NECESSARY.
24 (4) INCURRED CLAIMS, CALCULATED AS THE SUM OF THE
25 FOLLOWING (THE REPORT SHALL INCLUDE DATA FOR EACH OF THE
26 FOLLOWING CATEGORIES USED TO DEVELOP THE SUM OF INCURRED
27 CLAIMS):
28 (A) DOLLAR AMOUNT OF CLAIMS CLOSED WITH PAYMENT; PLUS
29 (B) RESERVES FOR REPORTED CLAIMS AT THE END OF THE
30 CURRENT YEAR; MINUS
19810H1285B3523 - 39 -
1 (C) RESERVES FOR REPORTED CLAIMS AT THE END OF THE
2 PREVIOUS YEAR; PLUS
3 (D) RESERVES FOR INCURRED BUT NOT REPORTED CLAIMS AT
4 THE END OF THE CURRENT YEAR; MINUS
5 (E) RESERVES FOR INCURRED BUT NOT REPORTED CLAIMS AT
6 THE END OF THE PREVIOUS YEAR.
7 (5) INCURRED LOSS ADJUSTMENT EXPENSE CALCULATED AS THE
8 SUM OF THE FOLLOWING:
9 (A) THE DOLLAR AMOUNT OF LOSS ADJUSTMENT EXPENSE
10 ACTUALLY PAID; PLUS
11 (B) RESERVES FOR LOSS ADJUSTMENT EXPENSE AT THE END
12 OF THE CURRENT YEAR; MINUS
13 (C) RESERVES FOR LOSS ADJUSTMENT EXPENSE AT THE END
14 OF THE PREVIOUS YEAR.
15 (6) ACTUAL INCURRED EXPENSES ALLOCATED SEPARATELY TO
16 COMMISSIONS, OTHER ACQUISITION COSTS, ADVERTISING, GENERAL
17 ADMINISTRATIVE EXPENSES, TAXES, LICENSES AND FEES AND ALL
18 OTHER EXPENSES.
19 (7) NET UNDERWRITING GAIN OR LOSS.
20 (8) NET OPERATION GAIN OR LOSS, INCLUDING NET INVESTMENT
21 INCOME BUT NOT INCLUDING UNREALIZED CAPITAL GAINS AND LOSSES.
22 (9) THE NUMBER AND DOLLAR AMOUNT OF CLAIMS CLOSED WITH
23 PAYMENT, BY YEAR INCURRED AND THE AMOUNT RESERVED FOR THEM
24 IMMEDIATELY BEFORE SETTLEMENT.
25 (10) THE NUMBER OF CLAIMS CLOSED WITHOUT PAYMENT AND THE
26 DOLLAR AMOUNT RESERVED FOR THOSE CLAIMS IMMEDIATELY BEFORE
27 CLOSING.
28 (11) ANY OTHER INFORMATION REQUESTED BY THE DEPARTMENT.
29 (D) ADDITIONAL DATA.--
30 (1) FOR AUTOMOBILE BODILY INJURY LIABILITY AND
19810H1285B3523 - 40 -
1 AUTOMOBILE BASIC LOSS BENEFITS INSURANCE, THE SUPPLEMENTAL
2 REPORT REQUIRED BY SUBSECTION (A) SHALL INCLUDE THE
3 ADDITIONAL DATA SPECIFIED BELOW. ALL TERMS USED IN THIS
4 SUBSECTION SHALL BE CONSTRUED IN ACCORDANCE WITH THE
5 DEFINITIONS IN SECTION 103. THE FORMS FURNISHED BY THE
6 COMMISSIONER SHALL REQUIRE, BUT NOT BE LIMITED TO, THE
7 FOLLOWING INFORMATION FOR CLAIMS CLOSED DURING THE SPECIFIED
8 CALENDAR YEAR:
9 (A) THE AMOUNT OF TOTAL BASIC LOSS BENEFITS CLAIMS,
10 ALL BENEFITS COMBINED, CLASSIFIED BY SIZE OF CLAIM AND
11 SHOWING THE NUMBER AND TOTAL AMOUNT OF CLAIMS IN EACH
12 SIZE CATEGORY.
13 (B) THE AMOUNT OF ALLOWABLE EXPENSES PAID UNDER
14 BASIC LOSS BENEFITS INSURANCE, CLASSIFIED BY SIZE OF
15 MEDICAL EXPENSE CLAIM AND SHOWING THE NUMBER AND TOTAL
16 AMOUNT OF MEDICAL EXPENSE CLAIMS IN EACH SIZE CATEGORY.
17 (C) THE AMOUNT OF INCOME LOSS BENEFIT PAYMENTS UNDER
18 BASIC LOSS BENEFITS INSURANCE, CLASSIFIED BY SIZE OF
19 INCOME LOSS PAYMENT AND SHOWING THE NUMBER AND TOTAL
20 AMOUNT OF INCOME LOSS CLAIMS IN EACH SIZE CATEGORY.
21 (D) SURVIVOR'S LOSS BENEFIT PAYMENTS UNDER BASIC
22 LOSS BENEFITS INSURANCE, CLASSIFIED BY SIZE OF SURVIVOR'S
23 LOSS PAYMENT AND SHOWING THE NUMBER AND TOTAL AMOUNT OF
24 CLAIMS IN EACH CATEGORY.
25 (E) REPLACEMENT SERVICES BENEFIT PAYMENTS UNDER
26 BASIC LOSS BENEFITS INSURANCE, CLASSIFIED BY SIZE OF
27 REPLACEMENT SERVICES BENEFIT PAYMENT AND SHOWING THE
28 NUMBER AND TOTAL AMOUNT OF CLAIMS IN EACH SIZE CATEGORY.
29 (F) DAYS OF DISABILITY INCURRED BY PERSONS RECEIVING
30 BENEFITS UNDER BASIC LOSS BENEFITS INSURANCE, CLASSIFIED
19810H1285B3523 - 41 -
1 BY LENGTH OF THE DISABILITY PERIOD AND SHOWING THE TOTAL
2 DAYS OF DISABILITY AND THE NUMBER AND TOTAL AMOUNT OF
3 BASIC LOSS BENEFITS PAYMENTS, ALL BENEFITS COMBINED, IN
4 EACH DISABILITY PERIOD CATEGORY.
5 (G) DAYS OF DISABILITY INCURRED BY PERSONS RECEIVING
6 INCOME LOSS BENEFITS UNDER BASIC LOSS BENEFITS INSURANCE,
7 CLASSIFIED BY LENGTH OF THE DISABILITY PERIOD AND SHOWING
8 THE TOTAL DAYS OF DISABILITY AND THE NUMBER AND TOTAL
9 AMOUNT OF INCOME LOSS CLAIMS IN EACH DISABILITY PERIOD
10 CATEGORY.
11 (H) BASIC LOSS BENEFITS PAYMENTS, ALL BENEFITS
12 COMBINED, PAID BY REASON OF DEATH OR SERIOUS AND
13 PERMANENT INJURY, CLASSIFIED BY SIZE OF BENEFIT PAYMENT
14 AND SHOWING THE NUMBER AND TOTAL AMOUNT OF CLAIMS IN EACH
15 SIZE CATEGORY.
16 (I) BASIC LOSS BENEFITS PAYMENTS BY REASON OF
17 COSMETIC DISFIGUREMENT CLASSIFIED BY SIZE OF PAYMENT AND
18 SHOWING THE NUMBER AND TOTAL AMOUNT OF CLAIMS IN EACH
19 SIZE CATEGORY.
20 (J) CLAIMS PAYMENTS UNDER AUTOMOBILE BODILY INJURY
21 LIABILITY INSURANCE, CLASSIFIED BY THE AMOUNT OF ECONOMIC
22 LOSS INCURRED BY THE CLAIMANT AND SHOWING THE NUMBER AND
23 TOTAL AMOUNT OF CLAIMS IN EACH ECONOMIC LOSS CATEGORY.
24 (K) CLAIMS PAYMENTS UNDER AUTOMOBILE BODILY INJURY
25 LIABILITY INSURANCE, CLASSIFIED BY THE SIZE OF CLAIM
26 PAYMENT SHOWING THE NUMBER AND TOTAL AMOUNT OF CLAIMS IN
27 EACH SIZE CATEGORY.
28 (L) THE NUMBER OF CAR-YEARS INSURED FOR AUTOMOBILE
29 BODILY INJURY LIABILITY AND BASIC LOSS BENEFITS
30 INSURANCE. A CAR-YEAR INSURED IS HEREBY DEFINED AS THE
19810H1285B3523 - 42 -
1 EQUIVALENT OF ONE CAR INSURED FOR ONE YEAR.
2 (2) THE LIMITS OF THE SIZE CATEGORIES AND DISABILITY
3 PERIOD CATEGORIES FOR THE DATA REQUIRED BY THIS SECTION SHALL
4 BE ESTABLISHED BY THE COMMISSIONER TO FACILITATE ACCURATE
5 ESTIMATION OF PROBABLE CHANGES IN PREMIUM COSTS FOR BASIC
6 LOSS BENEFITS AND AUTOMOBILE BODILY INJURY LIABILITY
7 INSURANCE RESULTING FROM CHANGES OF THE BENEFITS OR TORT
8 EXEMPTION PROVISIONS OF THIS ACT.
9 (E) INITIAL REPORTING REQUIREMENTS.--FOR THE FIRST YEAR IN
10 WHICH THE INSURER IS REQUIRED TO FILE A SUPPLEMENTAL REPORT, THE
11 DATA REQUIRED BY CLAUSES (1) THROUGH (7) OF SUBSECTION (C) AND
12 ALL OF SUBSECTION (D) SHALL ALSO BE REPORTED FOR EACH OF THE
13 FIVE PRECEDING CALENDAR YEARS.
14 (F) DUTIES OF INSURANCE DEPARTMENT.--IT SHALL BE THE DUTY OF
15 THE INSURANCE DEPARTMENT TO ANNUALLY COMPILE AND REVIEW ALL SUCH
16 REPORTS SUBMITTED BY INSURERS PURSUANT TO THIS SECTION TO
17 DETERMINE THE APPROPRIATENESS OF PREMIUM RATES FOR PROPERTY AND
18 CASUALTY INSURANCE IN THIS COMMONWEALTH. THE INSURANCE
19 DEPARTMENT'S FINDINGS AND THE FILINGS SHALL BE PUBLISHED,
20 PROVIDED TO THE APPROPRIATE COMMITTEES OF THE HOUSE AND SENATE
21 AND MADE AVAILABLE TO ANY INTERESTED INSURED OR CITIZEN. IF THE
22 INSURANCE DEPARTMENT FINDS AT ANY TIME THAT ANY RATE IS NO
23 LONGER FAIR OR APPROPRIATE, IT SHALL ISSUE AN ORDER WITHDRAWING
24 ITS APPROVAL. THE ORDER SHALL BE FURNISHED TO EACH AFFECTED
25 INSURER AND RATING ORGANIZATION AND SHALL BE EFFECTIVE IN NOT
26 LESS THAN THIRTY DAYS FROM ITS ISSUANCE UNLESS AN AFFECTED
27 INSURER MEETS THE BURDEN OF SHOWING THAT SUCH RATE IS IN FACT
28 FAIR AND APPROPRIATE.
29 (G) FILING REQUIREMENT.--EACH INSURANCE COMPANY SHALL FILE
30 ALL OF THE INFORMATION REQUIRED UNDER THIS ACT WITH THE
19810H1285B3523 - 43 -
1 INSURANCE DEPARTMENT AS A PREREQUISITE TO OBTAINING PERMISSION
2 TO WRITE COVERAGE, TO CONTINUE TO DO BUSINESS OR TO FILE FOR
3 RATE INCREASES.
4 (H) CIVIL PENALTY.--EACH INSURER WHO FAILS TO COMPLY WITH
5 THE TERMS OF THIS SECTION SHALL PAY A CIVIL PENALTY OF TEN
6 THOUSAND DOLLARS ($10,000) AND THEREAFTER TWO HUNDRED DOLLARS
7 ($200) DAILY UNTIL THE REQUIREMENTS OF THIS SECTION ARE COMPLIED
8 WITH.
9 SECTION 9. SECTIONS 110 AND 111 OF THE ACT ARE AMENDED TO
10 READ:
11 § 110. Motor vehicles in interstate travel.
12 (a) General.--An owner of a motor vehicle who has complied
13 with the requirements of security covering a motor vehicle in
14 this Commonwealth shall be deemed to have complied with the
15 requirements for such security in any state in which such
16 vehicle is operating.
17 (b) Conforming coverage.--
18 (1) An obligor providing security for the payment of
19 basic loss benefits shall be obligated to provide, and each
20 contract of insurance for the payment of basic loss benefits
21 shall be construed to contain, coverage sufficient to satisfy
22 the requirements for security covering a motor vehicle in any
23 state in which any victim who is a claimant or whose
24 survivors are claimants is domiciled or is injured.
25 (2) An obligor providing security for the payment of
26 basic loss benefits shall include in each contract of
27 insurance for the payment of basic loss benefits, coverage to
28 protect the owner or operator of a motor vehicle from tort
29 liability to which he is exposed through application of the
30 law of any state in which the motor vehicle may be operated
19810H1285B3523 - 44 -
1 and arising out of the ownership, maintenance or use of a
2 motor vehicle.
3 [(c) Applicable law.--
4 (1) The basic loss benefits available to any victim or
5 to any survivor of a deceased victim shall be determined
6 pursuant to the provisions of the state no-fault plan for
7 motor vehicle insurance in effect in the state of domicile of
8 the victim on the date when the motor vehicle accident
9 resulting in injury occurs. If there is no such state no-
10 fault plan in effect or if the victim is not domiciled in any
11 state, then basic loss benefits available to any victim shall
12 be determined pursuant to the provisions of the state no-
13 fault plan for motor vehicle insurance, if any, in effect in
14 the state in which the accident resulting in injury occurs.
15 (2) The right of a victim or of a survivor of a deceased
16 victim to sue in tort shall be determined by the law of the
17 state of domicile of such victim. If a victim is not
18 domiciled in a state, such right to sue shall be determined
19 by the law of the state in which the accident resulting in
20 injury or damage to property occurs.]
21 (c) Nonduplication of economic detriment benefits.-- <--
22 (1) The basic loss benefits available to a victim or to
23 the survivor of a deceased victim who is domiciled in this
24 Commonwealth and who shall be injured in a motor vehicle
25 accident in any other state shall be determined pursuant to
26 the provisions of this act. Obligors providing security to
27 the owner or operator of a motor vehicle who is domiciled in
28 another state for the payment of basic loss benefits and
29 coverage to protect the owner or operator of a motor vehicle
30 from tort liability to which he is exposed through the
19810H1285B3523 - 45 -
1 application of the law of any state in which the motor
2 vehicle may be operated shall, provide in the contract of
3 insurance issued by said obligor for payment of basic loss
4 benefits determined pursuant to the provisions of this act
5 while such vehicle is being operated in this Commonwealth.
6 (2) When a victim or a survivor of a deceased victim
7 domiciled in this Commonwealth and injured in another state
8 as the result of a motor vehicle accident has a cause of
9 action in such other state for recovery of economic detriment
10 suffered as a consequence of such injury, an obligor
11 providing basic loss benefits has and may contract for a
12 right of subrogation or reimbursement for basic loss benefits
13 paid, but only to the nature and extent of basic loss
14 benefits paid to or on behalf of the victim or the survivor
15 of a deceased victim which the victim or survivor may recover
16 in any such action. An obligor's right of subrogation shall
17 be subordinated to the victim's or survivor's right of action
18 to recover economic detriment suffered in excess of any
19 economic detriment not recoverable by the victim or survivor
20 from the obligor because of any limitation in the payment of
21 basic loss benefits in accordance with section 202(a), (b),
22 (c) or (d) and the victim's or survivor's right of action to
23 recover damages for non-economic detriment.
24 (C) APPLICABLE LAW FOR BASIC LOSS BENEFITS.-- <--
25 (1) THE BASIC LOSS BENEFITS AVAILABLE TO ANY VICTIM OR
26 SURVIVOR OF DECEASED VICTIM WHO IS OR WAS A DOMICILIARY OF
27 PENNSYLVANIA SHALL BE DETERMINED BY THE LAW OF PENNSYLVANIA
28 REGARDLESS OF WHETHER THE VICTIM IS INJURED IN PENNSYLVANIA
29 OR IN ANOTHER JURISDICTION SUBJECT TO THE PROVISIONS OF
30 SECTION 104.
19810H1285B3523 - 46 -
1 (2) THE BASIC LOSS BENEFITS AVAILABLE TO ANY VICTIM OR
2 SURVIVOR OF A DECEASED VICTIM DOMICILED IN A JURISDICTION
3 OTHER THAN PENNSYLVANIA AND INJURED IN AN ACCIDENT OCCURRING
4 IN PENNSYLVANIA SHALL BE DETERMINED BY THE LAW OF
5 PENNSYLVANIA.
6 § 111. Rights and duties of obligors.
7 (a) Reimbursement and subrogation.--
8 (1) Except as provided in paragraphs (2) and (3) of this
9 subsection and section 110, an obligor: <--
10 (A) does not have and may not contract, directly or
11 indirectly, in whole or in part, for a right of
12 reimbursement from or subrogation to the proceeds of a
13 victim's claim for relief or to a victim's cause of
14 action for non-economic detriment; and
15 (B) may not directly or indirectly contract for any
16 right of reimbursement based upon a determination of
17 fault from any other obligor not acting as a reinsurer
18 for no-fault benefits which it has paid or is obligated
19 to pay as a result of injury to a victim.
20 [(2) Whenever an individual who receives or is entitled <--
21 to receive no-fault benefits for an injury has a claim or
22 cause of action against any other person causing the injury
23 as based upon a determination of fault, the obligor is
24 subrogated to the rights of the claimant only for:
25 (A) elements of damage compensated for by security
26 for the payment of no-fault benefits in excess of the
27 minimum basic loss benefits required under this act are
28 recoverable; and
29 (B) the obligor has paid or become obligated to pay
30 accrued or future no-fault benefits in excess of the
19810H1285B3523 - 47 -
1 minimum basic loss benefits required under this act.] <--
2 (2) Whenever an individual who receives or is entitled <--
3 to receive no-fault benefits for an injury has a claim or
4 cause of action for the same elements of economic detriment
5 against any other person causing the injury based upon a
6 determination of fault, the obligor is subrogated to the
7 rights of the claimant only for the same elements of economic
8 detriment compensated for by security for the payment of no-
9 fault benefits the obligor has paid or has become obligated
10 to pay for accrued or future benefits in excess of basic loss
11 benefits required under this act except that said obligor
12 does not have nor may not contract for a right of subrogation
13 to recover any economic detriment recovered by the victim or
14 survivor not compensated for because of any limitation in
15 applicable security in accordance with section 202(a), (b),
16 (c) or (d).
17 (3) Nothing in this subsection shall preclude any person
18 supplying or providing products, services, or accommodations
19 from contracting or otherwise providing for a right of
20 reimbursement to any basic [restoration] loss benefits for
21 allowable expense.
22 [(4) In no event shall any entity providing benefits <--
23 other than no-fault benefits to an individual as described in
24 section 203 of this act, have any right of subrogation with
25 respect to said benefits.] <--
26 (b) Duty to pay basic loss benefits.--An obligor providing
27 security for the payment of basic loss benefits shall pay or
28 otherwise provide such benefits without regard to fault to each
29 individual entitled thereto, pursuant to the terms and
30 conditions of this act.
19810H1285B3523 - 48 -
1 (c) Indemnity.--An obligor has a right of indemnity against
2 an individual who has converted a motor vehicle involved in an
3 accident, or against an individual who has intentionally injured
4 himself or another individual, for no-fault benefits paid for:
5 (1) the loss caused by the conduct of that individual;
6 (2) the cost of processing the claims for such benefits;
7 [and] <--
8 (3) payments under the assigned claims plan to an <--
9 individual who does not comply with the requirement of
10 providing security for the payment of basic loss benefits or
11 whose security has been invalidated because of fraud or
12 willful misconduct; and
13 [(3)] (4) the cost of enforcing this right of indemnity, <--
14 including reasonable attorney's fees.
15 (d) Referral for rehabilitation services.--The obligor shall
16 promptly refer each victim to whom basic loss benefits are
17 expected to be payable for more than two months to the State
18 vocational rehabilitation agency.
19 (e) Nonduplication of benefits under uninsured motorist
20 coverage.--Every victim or survivor of a deceased victim making
21 claim under the uninsured motorist coverage prescribed by the
22 act of August 14, 1963 (P.L.909, No.433), entitled "An act
23 requiring, with limitations, that insurance policies insuring
24 against loss occurring in connection with motor vehicles provide
25 protection against certain uninsured motorists," or under any
26 other form of uninsured or underinsured motorist coverage that
27 may be hereafter provided or required to be offered or provided
28 shall be entitled to make claim for non-economic detriment and
29 economic detriment only to the extent that said claim for
30 economic detriment is for elements of economic detriment not
19810H1285B3523 - 49 -
1 compensated for by security for the payment of no-fault benefits
2 or because of limitations in applicable security in accordance
3 with section 202(a), (b), (c) or (d). No obligor shall make any
4 payment under any uninsured motorist coverage for any element of
5 economic detriment for which the victim or survivor of a
6 deceased victim has been compensated for or for which the
7 obligor has paid or has become obligated to pay for accrued or
8 future benefits by security for the payment of no-fault
9 benefits.
10 (f) Tort payment without regard for rights of obligor having <--
11 reimbursement interest.--An obligor with a right of subrogation
12 or reimbursement interest who shall suffer loss from inability
13 to collect such reimbursement out of a payment received by a
14 claimant upon a tort claim is entitled to indemnity from one
15 who, having notice of the obligor's interest, made such a
16 payment to the claimant without making the claimant and the
17 insurer joint payees as their respective interests may appear,
18 or without obtaining the obligor's consent to a different method
19 of payment.
20 SECTION 10. THE ACT IS AMENDED BY ADDING A SECTION TO READ: <--
21 § 112. ALLOWABLE EXPENSE CATASTROPHIC LOSS FUND.
22 (A) FUND CREATED.--THERE IS HEREBY CREATED A CONTINGENCY
23 FUND FOR THE PURPOSE OF PAYING ALL LOSS ARISING FROM ALLOWABLE
24 EXPENSE TO THE EXTENT SUCH LOSS ARISING FROM ALLOWABLE EXPENSE
25 EXCEEDS SEVENTY-FIVE THOUSAND DOLLARS ($75,000) AS SET FORTH IN
26 SECTION 202. SUCH FUND SHALL BE KNOWN AS THE "ALLOWABLE EXPENSE
27 CATASTROPHIC LOSS FUND" OR "FUND."
28 (B) FUNDING.--THE FUND SHALL BE FUNDED BY LEVYING A CHARGE
29 TO BE DETERMINED BY THE INSURANCE COMMISSIONER, EQUIVALENT TO
30 NOT MORE THAN FIVE DOLLARS ($5) PER YEAR, PAYABLE BY EACH PERSON
19810H1285B3523 - 50 -
1 WHO HAS RECEIVED A DRIVER'S LICENSE OR LEARNER'S PERMIT AS
2 DEFINED IN 75 PA.C.S. § 102 (RELATING TO DEFINITIONS). THE
3 CHARGE SHALL BE PAID WITHIN THIRTY DAYS FROM THE DATE OF
4 BILLING.
5 (C) ELIGIBLE PERSONS.--ALL VICTIMS OR DECEASED VICTIMS SHALL
6 BE ENTITLED TO RECEIVE ALLOWABLE EXPENSE EXCEEDING SEVENTY-FIVE
7 THOUSAND DOLLARS ($75,000) FROM THE FUND EXCEPT:
8 (1) AN INDIVIDUAL RESIDENT OF THIS COMMONWEALTH WHO DOES
9 NOT COMPLY WITH THE REQUIREMENT OF PAYING THE CHARGE REFERRED
10 TO IN SUBSECTION (B); AND
11 (2) AN INDIVIDUAL WHO IS NOT A RESIDENT OF THIS
12 COMMONWEALTH IF HE HAS NOT PURCHASED THE REQUIRED MOTOR
13 VEHICLE INSURANCE IN THE STATE IN WHICH HE RESIDES.
14 (D) COLLECTION.--THE CHARGE SET FORTH IN SUBSECTION (B)
15 SHALL BE COLLECTED BY THE ADMINISTRATOR OF THE FUND AS DIRECTED
16 BY THE INSURANCE COMMISSIONER EITHER BY DIRECT BILLING TO EACH
17 PERSON WHO HAS A DRIVER'S LICENSE OR A LEARNER'S PERMIT OR BY
18 APPOINTING THE PENNSYLVANIA DEPARTMENT OF TRANSPORTATION AS THE
19 AGENT FOR THE COLLECTION OF SUCH CHARGES. ALL EXPENSES INCURRED
20 IN THE COLLECTION OF THE CHARGE SHALL BE PAID BY THE FUND.
21 (E) ENFORCEMENT OF PAYMENT OF CHARGE.--ANY PERSON VIOLATING
22 SUBSECTION (B) IS GUILTY OF A SUMMARY OFFENSE AND SHALL, UPON
23 CONVICTION, BE SENTENCED TO PAY A FINE OF ONE HUNDRED DOLLARS
24 ($100) AND TO A MANDATORY SUSPENSION OF OPERATING PRIVILEGES
25 UNTIL THE CHARGE IS PAID.
26 (F) ADMINISTRATION OF THE FUND.--THE FUND SHALL BE
27 ADMINISTERED AT THE DISCRETION OF THE INSURANCE COMMISSIONER BY
28 AN INSURANCE CARRIER OR AN INSURANCE SERVICE AGENCY DEEMED
29 QUALIFIED BY THE INSURANCE COMMISSIONER FOR A MANAGEMENT FEE ON
30 A SEALED LOW BID BASIS PURSUANT TO NORMAL BIDDING PROCEDURES OR
19810H1285B3523 - 51 -
1 BY THE ASSIGNED CLAIMS PLAN. THE ADMINISTRATOR SHALL INVEST
2 MONEYS IN THE FUND IN TYPES OF INVESTMENTS AND IN A MANNER AS
3 DETERMINED BY THE INSURANCE COMMISSIONER BASED ON INVESTMENTS
4 ALLOWED BY LAW AND INVESTMENT POLICIES FOR OTHER SIMILAR
5 FIDUCIARIES. ALL INVESTMENT INCOME SHALL BE THE PROPERTY OF THE
6 FUND. THE INVESTMENT PERFORMANCE OF THE ADMINISTRATOR OF THE
7 FUND SHALL BE A CONSIDERATION IN DETERMINING A REASONABLE
8 MANAGEMENT FEE.
9 (G) RATES.--THE COMMISSIONER SHALL INSURE THAT THE RATE
10 CHARGED BY AN OBLIGOR FOR BASIC LOSS BENEFITS FULLY REFLECTS THE
11 SEVENTY-FIVE THOUSAND DOLLAR ($75,000) LIMITATION ON AN
12 OBLIGOR'S LIABILITY FOR ALLOWABLE EXPENSE AND THAT ALL LIABILITY
13 FOR ALLOWABLE EXPENSE IN EXCESS OF SEVENTY-FIVE THOUSAND DOLLARS
14 ($75,000) SHALL BE ASSUMED BY THE FUND.
15 (H) SURPLUS.--IF THE COMMISSIONER DETERMINES THAT A SURPLUS
16 EXISTS IN THE FUND, HE SHALL ORDER THE ADMINISTRATOR OF THE FUND
17 TO TRANSFER THE SURPLUS TO THE MOTOR LICENSE FUND TO BE UTILIZED
18 FOR PURPOSES INCLUDING MOTOR VEHICLE CODE ENFORCEMENT, DRIVER
19 TRAINING, SAFETY AND DRUNK DRIVING PROGRAMS AND HIGHWAY
20 MAINTENANCE AND IMPROVEMENT RELATED TO SAFETY.
21 (I) OFFICES AND RECORDS OF THE ADMINISTRATOR.--THE
22 ADMINISTRATOR OF THE FUND SHALL MAINTAIN ADEQUATE OFFICES IN
23 WHICH THE RECORDS SHALL BE KEPT AND BUSINESS TRANSACTED.
24 (J) NOTIFICATION.--AN OBLIGOR PROVIDING BASIC LOSS BENEFITS
25 SHALL PROMPTLY NOTIFY THE ADMINISTRATOR OF THE FUND OF ANY CASE
26 WHERE IT REASONABLY BELIEVES THAT THE VALUE OF THE ALLOWABLE
27 EXPENSE CLAIM EXCEEDS SEVENTY-FIVE THOUSAND DOLLARS ($75,000).
28 FAILURE TO NOTIFY THE ADMINISTRATOR SHALL MAKE THE OBLIGOR
29 RESPONSIBLE FOR THE PAYMENT OF THE ENTIRE AWARD, VERDICT OR
30 SETTLEMENT, PROVIDED THAT THE FUND HAS BEEN PREJUDICED BY THE
19810H1285B3523 - 52 -
1 FAILURE OF NOTICE.
2 (K) PROCESSING OF CLAIMS.--AN OBLIGOR PROVIDING BASIC LOSS
3 BENEFITS SHALL CONTINUE TO BE RESPONSIBLE FOR THE PROCESSING OF
4 ALL CLAIMS TO THE FUND.
5 (L) DEFENSE BY OBLIGOR.--AN OBLIGOR PROVIDING BASIC LOSS
6 BENEFITS SHALL BE RESPONSIBLE TO PROVIDE A DEFENSE TO ANY CLAIM,
7 INCLUDING DEFENSE OF THE FUND. IN SUCH INSTANCES WHERE THE
8 ADMINISTRATOR HAS BEEN NOTIFIED IN ACCORDANCE WITH SUBSECTION
9 (J), THE ADMINISTRATOR MAY, AT HIS OPTION, JOIN IN THE DEFENSE
10 AND BE REPRESENTED BY COUNSEL.
11 (M) RELEASE.--IN THE EVENT THAT THE OBLIGOR PROVIDING BASIC
12 LOSS BENEFITS ENTERS INTO A SETTLEMENT WITH THE CLAIMANT TO THE
13 FULL EXTENT OF ITS LIABILITY, IT MAY OBTAIN A RELEASE FROM THE
14 CLAIMANT TO THE EXTENT OF ITS PAYMENT, WHICH RELEASE SHALL HAVE
15 NO EFFECT UPON ANY EXCESS CLAIM AGAINST THE FUND, ITS DUTY TO
16 CONTINUE THE DEFENSE OF THE CLAIM OR ITS DUTY TO PROCESS CLAIMS
17 TO THE FUND.
18 (N) ADDITIONAL AUTHORITY OF ADMINISTRATOR.--THE
19 ADMINISTRATOR IS AUTHORIZED TO DEFEND, LITIGATE, SETTLE OR
20 COMPROMISE ANY CLAIM PAYABLE BY THE FUND.
21 (O) FEES AND COSTS.--ALL REASONABLE FEES AND COSTS INCURRED
22 BY CLAIMANTS IN DEFENDING, LITIGATING, SETTLING OR COMPROMISING
23 ANY REASONABLE CLAIM SHALL BE PAID BY THE FUND IN ADDITION TO
24 THE AMOUNT OF AWARD, VERDICT OR SETTLEMENT.
25 (P) INSURANCE.--THE ADMINISTRATOR IS EMPOWERED TO PURCHASE
26 ON BEHALF OF THE FUND AS MUCH INSURANCE OR REINSURANCE AS IS
27 NECESSARY TO PRESERVE THE FUND.
28 SECTION 11. SECTIONS 201, 202, 203, 204, SUBSECTIONS (C) AND
29 (D) OF SECTION 205, SUBSECTION (A) OF SECTION 206, SECTION 207
30 AND CLAUSE (1) OF SUBSECTION (A) OF SECTION 208 OF THE ACT ARE
19810H1285B3523 - 53 -
1 AMENDED AND A SUBSECTION IS ADDED TO SECTION 205 TO READ:
2 § 201. RIGHT TO BASIC LOSS BENEFITS; LIMITATION ON BENEFITS.
3 [(A) ACCIDENT WITHIN THIS STATE.--IF THE ACCIDENT RESULTING
4 IN INJURY OCCURS IN THIS COMMONWEALTH, ANY VICTIM OR ANY
5 SURVIVOR OF A DECEASED VICTIM IS ENTITLED TO RECEIVE BASIC LOSS
6 BENEFITS IN ACCORDANCE WITH THE PROVISIONS OF THIS ACT.
7 (B) ACCIDENT OUTSIDE THIS STATE.--IF THE ACCIDENT RESULTING
8 IN INJURY OCCURS OUTSIDE OF THIS COMMONWEALTH, A VICTIM OR A
9 SURVIVOR OF A DECEASED VICTIM IS ENTITLED TO RECEIVE BASIC LOSS
10 BENEFITS IF SUCH VICTIM WAS OR IS:
11 (1) AN INSURED; OR
12 (2) THE DRIVER OR OTHER OCCUPANT OF A SECURED VEHICLE.]
13 (A) ACCIDENT WITHIN THIS STATE.--THE RIGHT OF A VICTIM OR
14 THE SURVIVOR OF A DECEASED VICTIM DOMICILED IN PENNSYLVANIA TO
15 SUE IN TORT SHALL BE DETERMINED BY THE LAW OF PENNSYLVANIA
16 REGARDLESS OF WHETHER THE VICTIM IS INJURED IN PENNSYLVANIA OR
17 IN ANOTHER JURISDICTION.
18 (B) ACCIDENT OUTSIDE THIS STATE.--THE RIGHT OF A VICTIM OR
19 THE SURVIVOR OF A DECEASED VICTIM DOMICILED IN A JURISDICTION
20 OTHER THAN PENNSYLVANIA WHO IS OR WAS INJURED IN PENNSYLVANIA TO
21 SUE IN TORT SHALL BE DETERMINED BY THE LAW OF PENNSYLVANIA.
22 § 202. Basic loss benefits.
23 * * * <--
24 (A) ALLOWABLE EXPENSE [LIMITS].--ALLOWABLE EXPENSE, AS <--
25 DEFINED IN SECTION 103 OF THIS ACT SHALL BE PROVIDED OR THE
26 EQUIVALENT IN THE FORM OF A CONTRACT TO PROVIDE FOR SERVICES
27 REQUIRED TO AN AGGREGATE MAXIMUM OF SEVENTY-FIVE THOUSAND
28 DOLLARS ($75,000) OR THE EQUIVALENT. A CLAIM FOR ALLOWABLE
29 EXPENSE BENEFITS IN EXCESS OF SEVENTY-FIVE THOUSAND DOLLARS
30 ($75,000) SHALL BE PAID BY THE ALLOWABLE EXPENSE CATASTROPHIC
19810H1285B3523 - 54 -
1 LOSS FUND AS DEFINED IN SECTION 112.
2 (B) WORK LOSS LIMITS.--WORK LOSS, AS DEFINED IN SECTION 103
3 SHALL BE PROVIDED:
4 (1) UP TO A MONTHLY MAXIMUM OF:
5 (A) ONE THOUSAND DOLLARS ($1,000) MULTIPLIED BY A
6 FRACTION WHOSE NUMERATOR IS THE AVERAGE PER CAPITA INCOME
7 IN THIS COMMONWEALTH AND WHOSE DENOMINATOR IS THE AVERAGE
8 PER CAPITA INCOME IN THE UNITED STATES, ACCORDING TO THE
9 LATEST AVAILABLE UNITED STATES DEPARTMENT OF COMMERCE
10 FIGURES; OR
11 (B) THE DISCLOSED AMOUNT, IN THE CASE OF A NAMED
12 INSURED WHO, PRIOR TO THE ACCIDENT RESULTING IN INJURY,
13 VOLUNTARILY DISCLOSES HIS ACTUAL MONTHLY EARNINGS TO HIS
14 OBLIGOR AND AGREES IN WRITING WITH SUCH OBLIGOR THAT SUCH
15 SUM SHALL MEASURE WORK LOSS; AND
16 (2) UP TO A TOTAL AMOUNT OF FIFTEEN THOUSAND DOLLARS
17 ($15,000) OBLIGORS SHALL, SUBJECT TO TERMS AND CONDITIONS
18 APPROVED BY THE COMMISSIONER, OFFER TO INSURED'S WORK LOSS
19 BENEFITS FOR AMOUNTS IN EXCESS OF FIFTEEN THOUSAND DOLLARS
20 ($15,000).
21 (3) NO CLAIM SHALL BE MADE AGAINST THE BASIC LOSS
22 OBLIGOR FOR WORK LOSS BENEFITS FOR LOSS OF INCOME AFTER
23 DEATH.
24 [(C) REPLACEMENT SERVICES LOSSES.--REPLACEMENT SERVICES
25 LOSS, AS DEFINED IN SECTION 103 SHALL BE PROVIDED UP TO A DAILY
26 MAXIMUM OF TWENTY-FIVE DOLLARS ($25) FOR AN AGGREGATE PERIOD OF
27 ONE YEAR.]
28 (d) Survivors [losses] BENEFIT.--Survivors [loss] BENEFIT, <--
29 as defined in section 103 shall be provided in [an amount not to <--
30 exceed five thousand dollars ($5,000)] THE AMOUNT OF FIFTEEN <--
19810H1285B3523 - 55 -
1 THOUSAND DOLLARS ($15,000). Obligors shall, subject to terms and
2 conditions approved by the commissioner, offer to insured's
3 survivors loss benefits for amounts in excess of five thousand <--
4 dollars ($5,000). FIFTEEN THOUSAND DOLLARS ($15,000). <--
5 (e) Deductibles; waiting period.--Allowable expense AND work <--
6 loss [and replacement services loss] may include provisions <--
7 WHICH SHALL BE OFFERED to provide: <--
8 (1) WITH RESPECT TO ALLOWABLE EXPENSE, AN OBLIGOR SHALL <--
9 OFFER a deductible [not to exceed [one hundred dollars <--
10 ($100)] five hundred dollars ($500) for each individual and <--
11 one thousand five hundred dollars ($1,500) in the aggregate
12 for three or more individuals arising out of any one
13 accident; or] OF TWO THOUSAND DOLLARS ($2,000) IN THE <--
14 AGGREGATE FOR ONE OR MORE INDIVIDUALS ARISING OUT OF ANY ONE
15 ACCIDENT OR SUCH LESSER AMOUNTS AS THE OBLIGOR MAY CHOOSE TO
16 OFFER. IN THE ABSENCE OF AN ELECTION OF A DEDUCTIBLE THERE
17 SHALL BE NO DEDUCTIBLE; OR
18 (2) with respect to work loss [or replacement services <--
19 only, a waiting period not to exceed [one week] four weeks. , <--
20 AN OBLIGOR SHALL OFFER A WAITING PERIOD OF THE FIRST TWENTY
21 DAYS OF ABSENCE FROM USUAL EMPLOYMENT AS A RESULT OF INJURY
22 AND OTHER WAITING PERIODS OF LESSER DAYS OF ABSENCE FROM
23 USUAL EMPLOYMENT AS THE OBLIGOR MAY CHOOSE TO OFFER.
24 Such deductible or waiting period shall be elected in writing
25 upon a form approved by the Insurance Commissioner and, if
26 elected, shall be effective only as against the named insured
27 and his or her immediate family.
28 (F) CLAIM AGAINST TORT-FEASOR.--THIS SECTION SHALL NOT <--
29 PRECLUDE A CLAIM AGAINST A TORT-FEASOR FOR RECOVERY OF ANY
30 ECONOMIC OR NONECONOMIC DETRIMENT.
19810H1285B3523 - 56 -
1 § 203. Collateral benefits.
2 [(a) If benefits other than no-fault benefits are provided
3 to an individual through a program, group, contract or other
4 arrangement for which some other person pays in whole or in part
5 that would inure to the benefit of a victim or the survivor of a
6 deceased victim injured as a result of an accident in the
7 absence of no-fault benefits, then any reduction or savings in
8 the direct or indirect cost to such person of such benefits
9 resulting from the existence of no-fault benefits shall be
10 returned to such individual or utilized for his benefit.
11 (b) The owner or operator of a motor vehicle may elect to
12 provide for security in whole or in part for the payment of
13 basic loss benefits through a program, group, contract or other
14 arrangement that would pay to or on behalf of the victim or
15 members of his family residing with him or the survivor of a
16 deceased victim, allowable expense, loss of income, work loss,
17 replacement services loss and survivors loss. In all such
18 instances, each contract of insurance issued by an insurer shall
19 be construed to contain a provision that all basic loss benefits
20 provided therein shall be in excess of any valid and collectible
21 benefits otherwise provided through such program, group,
22 contract or other arrangement as designated at the election of
23 the owner or operator which shall be primary.
24 (c) An insurer providing basic loss benefits and tort
25 liability in accordance with the provisions of subsection (b)
26 above shall reduce the cost of such contract of insurance to
27 reflect the anticipated reduction in basic loss benefits payable
28 by the insurer by reason of the election of the owner or
29 operator to provide substitute security.]
30 (a) Election by named insured.--Every obligor providing
19810H1285B3523 - 57 -
1 security covering a motor vehicle shall offer options to the
2 named insured to elect to provide security, in whole or in part,
3 for the payment of basic loss benefits through a program, group,
4 contract or other arrangement that would pay to, or on behalf
5 of, the victim or members of his family residing with him or to
6 or on behalf of the survivor of a deceased victim, allowable
7 expense, loss of income, work loss, replacement services loss,
8 or survivors loss. In all such instances in which the named
9 insured exercises such an election, each contract of insurance
10 issued by an insurer shall be construed to contain a provision
11 that all basic loss benefits provided therein shall be in excess
12 of any valid and collectible benefits otherwise provided through
13 such program, group, contract or other arrangement which as
14 designated at the election of the owner or operator shall be
15 primary. If no such election is made, then any group program,
16 group contract or similar group arrangement shall be construed,
17 with respect to any claim arising from any accident occurring
18 fourteen months of more after the effective date of this
19 amendatory act, to contain a provision that the coverage
20 thereunder shall be in excess of, and not in duplication of, any
21 valid and collectible allowable expense contained in any
22 security covering a motor vehicle which, because of the absence
23 of such election, shall be primary. Notwithstanding the
24 foregoing, if any group program, group contract or similar group
25 arrangement is provided pursuant to a collectible bargaining
26 agreement in effect on the effective date of this amendatory act
27 and the then current term of which does not expire within
28 fourteen months thereafter, then the foregoing automatic
29 elimination of duplicate allowable expense shall not apply until
30 the current term of said collective bargaining agreement has
19810H1285B3523 - 58 -
1 expired or until thirty-six months after the effective date of
2 this amendatory act, whichever is shorter.
3 (b) Return of savings.--If benefits other than no-fault
4 benefits are provided to an individual through a program, group,
5 contract or other arrangement for which the individual's
6 employer or some other person pays in whole or in part that
7 would inure to the benefit of a victim or the survivor of a
8 deceased victim injured as the result of an accident in the
9 absence of no-fault benefits, then any reduction or savings in
10 the direct or indirect cost to such employer or other person of
11 such benefits resulting from the existence of no-fault benefits
12 shall be returned to such individual or utilized for his benefit
13 by the employer or other person providing such other benefits.
14 The requirements of these provisions shall be satisfied by a
15 reduction in premium or an increase in benefits in any program,
16 group, contract or other arrangement that is attributable to
17 good experience resulting from the existence of no-fault
18 benefits.
19 (c) Reduction of cost.--An insurer providing basic loss
20 benefits and tort liability in accordance with the provisions of
21 subsection (a) shall reduce the cost of such contract of
22 insurance to reflect the anticipated reduction in basic loss
23 benefits payable by the insurer by reason of the election of the
24 owner or operator to provide substitute security.
25 (d) Information program.--The commissioner shall formulate a
26 program and promulgate rules and regulations to provide for
27 dissemination of information to the public of the options
28 available pursuant to subsection (a) which reduce the cost of
29 maintaining security covering a motor vehicle. Every insurer or
30 agent of an insurer offering security under the provisions of
19810H1285B3523 - 59 -
1 this act shall affirmatively inform the insured of the options
2 and savings in accordance with the rules and regulations
3 promulgated.
4 (e) Certification by insured of other security.--Basic loss
5 insurers may require policyholders to certify as to the
6 existence of other security and such other reasonable
7 information as to such security as may be required.
8 (f) Construction of section.--This section shall not be
9 construed to effect, limit or impair section 106(d).
10 (g) Definitions.--As used in this section "program, group,
11 contract or other arrangement" shall include, but not be limited
12 to, benefits payable by a hospital plan corporation subject to
13 40 Pa.C.S. § 6101 (relating to definitions) or a professional
14 health service corporation subject to 40 Pa.C.S. § 6301
15 (relating to application of chapter).
16 § 204. Source of basic [restoration] loss benefits.
17 * * * <--
18 (A) APPLICABLE SECURITY.--THE SECURITY FOR THE PAYMENT OF <--
19 BASIC LOSS BENEFITS APPLICABLE TO AN INJURY TO:
20 (1) AN EMPLOYEE, OR TO THE SPOUSE OR OTHER RELATIVE OF
21 ANY EMPLOYEE RESIDING IN THE SAME HOUSEHOLD AS THE EMPLOYEE,
22 IF THE ACCIDENT RESULTING IN INJURY OCCURS WHILE THE VICTIM
23 OR DECEASED VICTIM IS DRIVING OR OCCUPYING A MOTOR VEHICLE
24 FURNISHED BY SUCH EMPLOYEE'S EMPLOYER, IS THE SECURITY FOR
25 THE PAYMENT OF BASIC LOSS BENEFITS COVERING SUCH MOTOR
26 VEHICLE OR, IF NONE, ANY OTHER SECURITY APPLICABLE TO SUCH
27 VICTIM;
28 (2) AN INSURED IS THE SECURITY UNDER WHICH THE VICTIM OR
29 DECEASED VICTIM IS INSURED;
30 (3) THE DRIVER OR OTHER OCCUPANT OF A MOTOR VEHICLE
19810H1285B3523 - 60 -
1 INVOLVED IN AN ACCIDENT RESULTING IN INJURY WHO IS NOT AN
2 INSURED IS THE SECURITY COVERING SUCH VEHICLE;
3 (4) AN INDIVIDUAL WHO IS NOT AN INSURED OR THE DRIVER OR
4 OTHER OCCUPANT OF A MOTOR VEHICLE INVOLVED IN AN ACCIDENT
5 RESULTING IN INJURY IS THE SECURITY COVERING ANY MOTOR
6 VEHICLE INVOLVED IN SUCH ACCIDENT. FOR PURPOSES OF THIS
7 PARAGRAPH, A PARKED AND UNOCCUPIED MOTOR VEHICLE IS NOT A
8 MOTOR VEHICLE INVOLVED IN AN ACCIDENT, UNLESS IT WAS PARKED
9 SO AS TO CAUSE UNREASONABLE RISK OF INJURY; AND
10 (5) ANY OTHER INDIVIDUAL, [IS THE APPLICABLE ASSIGNED
11 CLAIMS PLAN.] EXCEPT THOSE DEFINED AS INELIGIBLE CLAIMANTS
12 UNDER SECTION 108(D), IS THE APPLICABLE ASSIGNED CLAIMS PLAN.
13 (B) MULTIPLE SOURCES OF EQUAL [PROPERTY] PRIORITY.--IF TWO
14 OR MORE OBLIGATIONS TO PAY BASIC LOSS BENEFITS APPLY EQUALLY TO
15 AN INJURY UNDER THE PRIORITIES SET FORTH IN SUBSECTION (A) OF
16 THIS SECTION, THE OBLIGOR AGAINST WHOM A CLAIM IS ASSERTED FIRST
17 SHALL PROCESS AND PAY THE CLAIM AS IF WHOLLY RESPONSIBLE. SUCH
18 OBLIGOR IS THEREAFTER ENTITLED TO RECOVER CONTRIBUTION PRO RATA
19 FROM ANY OTHER SUCH OBLIGOR FOR THE BASIC LOSS BENEFITS PAID AND
20 FOR THE COSTS OF PROCESSING THE CLAIM. IF CONTRIBUTION IS SOUGHT
21 AMONG OBLIGORS RESPONSIBLE UNDER PARAGRAPH (4) OF SUBSECTION (A)
22 OF THIS SECTION PRORATION SHALL BE BASED ON THE NUMBER OF
23 INVOLVED MOTOR VEHICLES.
24 § 205. Work loss.
25 * * *
26 (A.1) SELF-EMPLOYED.--THE WORK LOSS OF A VICTIM WHO IS SELF- <--
27 EMPLOYED SHALL BE CALCULATED BY:
28 (1) DETERMINING HIS PROBABLE WEEKLY INCOME BY DIVIDING
29 HIS PROBABLE ANNUAL INCOME BY 52;
30 (2) MULTIPLYING THAT QUANTITY BY THE NUMBER OF WORK
19810H1285B3523 - 61 -
1 WEEKS OR FRACTION THEREOF, THE VICTIM SUSTAINS LOSS DURING
2 THE ACCRUAL PERIOD; AND
3 (3) ADDING TO THAT SUM THE REASONABLE EXPENSE OF A
4 VICTIM FOR SUBSTITUTE HIRED TO PERFORM SELF-EMPLOYMENT
5 SERVICES AS SET FORTH IN THE "WORK LOSS" DEFINITION IN
6 SECTION 103.
7 * * *
8 (c) Not employed.--The work loss of a victim who is
9 currently employable but not employed when the accident
10 resulting in injury occurs shall be calculated by:
11 (1) determining his probable weekly income by dividing
12 his probable annual income by fifty-two; and
13 (2) multiplying that quantity by the number of work
14 weeks, or fraction thereof, if any, the victim would
15 reasonably have been expected to realize income during the
16 accrual period. For purposes of this subsection, a currently
17 employable victim is one who could reasonably expect to find
18 employment, for which he is fitted by training or experience,
19 within a period of one year and, if employment opportunity
20 were available, could reasonably be expected to accept it.
21 * * * <--
22 (D) DEFINITIONS.--AS USED IN THIS SECTION: <--
23 "PROBABLE ANNUAL INCOME" MEANS, ABSENT A SHOWING THAT IT IS
24 OR WOULD BE SOME OTHER AMOUNT, THE FOLLOWING:
25 (A) TWELVE TIMES THE MONTHLY GROSS INCOME EARNED BY
26 THE VICTIM FROM WORK IN THE MONTH PRECEDING THE MONTH IN
27 WHICH THE ACCIDENT RESULTING IN INJURY OCCURS, OR THE
28 AVERAGE ANNUAL INCOME EARNED BY THE VICTIM FROM WORK
29 DURING THE YEARS, NOT TO EXCEED THREE, PRECEDING THE YEAR
30 IN WHICH THE ACCIDENT RESULTING IN INJURY OCCURS,
19810H1285B3523 - 62 -
1 WHICHEVER IS GREATER, FOR A VICTIM REGULARLY EMPLOYED OR
2 SELF EMPLOYED AT THE TIME OF THE ACCIDENT;
3 (B) THE AVERAGE ANNUAL GROSS INCOME EARNED BY THE
4 VICTIM FROM WORK DURING THE YEARS IN WHICH HE WAS
5 EMPLOYED, NOT TO EXCEED THREE, PRECEDING THE YEAR IN
6 WHICH THE ACCIDENT RESULTING IN INJURY OCCURS, FOR A
7 VICTIM SEASONALLY EMPLOYED OR NOT EMPLOYED AT THE TIME OF
8 THE ACCIDENT; OR
9 (C) THE AVERAGE ANNUAL GROSS INCOME OF A PRODUCTION
10 OR NONSUPERVISORY WORKER IN THE PRIVATE NONFARM ECONOMY
11 IN THE STATE IN WHICH THE VICTIM IS DOMICILED FOR THE
12 YEAR IN WHICH THE ACCIDENT RESULTING IN INJURY OCCURS,
13 FOR A VICTIM WHO HAS NOT PREVIOUSLY EARNED INCOME FROM
14 WORK.
15 "WORK WEEK" MEANS THE NUMBER OF DAYS AN INDIVIDUAL NORMALLY
16 WORKS IN A SEVEN-DAY PERIOD; "WEEKLY INCOME" MEANS INCOME EARNED
17 DURING A WORK WEEK.
18 § 206. Net loss.
19 (a) General.--Except as provided in section [108(a)(3)]
20 108.1(b)(3) of this act, all benefits or advantages (less
21 reasonably incurred collection costs) that an individual
22 receives or is entitled to receive from social security (except
23 those benefits provided under Title XIX of the Social Security
24 Act and except those medicare benefits to which a person's
25 entitlement depends upon use of his so-called "life-time
26 reserve" of benefit days) workmen's compensation, any State-
27 required temporary, nonoccupational disability insurance, and
28 all other benefits (except the proceeds of life insurance)
29 received by or available to an individual because of the injury
30 from any government EXCEPT WHERE SUCH GOVERNMENT IS THE <--
19810H1285B3523 - 63 -
1 EMPLOYER, unless the law authorizing or providing for such
2 benefits or advantages makes them excess or secondary to the
3 benefits in accordance with this act, shall be subtracted from
4 loss in calculating net loss. WHEN CALCULATING WORK LOSS, THE <--
5 BENEFITS OR ADVANTAGES REFERRED TO IN THIS SUBSECTION SHALL BE
6 SUBTRACTED FROM LOSS OF INCOME FIRST AND THE LIMITS PROVIDED IN
7 SECTION 202(B) SHALL BE APPLIED TO THE LOSS OF INCOME ONLY AFTER
8 SUCH SUBTRACTION.
9 * * *
10 § 207. [Added loss benefits] Additional AND ADDITIONAL <--
11 coverage options.
12 (a) Mandatory offering.--Obligors providing security for the
13 payment of basic loss benefits shall offer or obligate
14 themselves to provide [added loss benefits] AND OTHER insurance <--
15 for injury or damage arising out of the ownership, maintenance,
16 or use of a motor vehicle, including:
17 (1) loss excluded from basic loss benefits by limits on
18 allowable expense, work loss[, replacement services loss,] <--
19 and survivor's loss;
20 (2) [benefits] insurance for damage to property;
21 (3) [benefits] insurance for loss of use of a motor
22 vehicle;
23 (4) benefits for expense for remedial religious
24 treatment and care;
25 (5) insurance [for physical damage to a motor vehicle, a <--
26 coverage for all collision and upset damage, subject to an
27 optional deductible and comprehensive material damage <--
28 coverage, subject to an optional deductible; and] INSURANCE <--
29 FOR PHYSICAL DAMAGE TO A MOTOR VEHICLE, COVERAGE FOR ALL
30 COLLISION AND UPSET DAMAGE AND COMPREHENSIVE MATERIAL DAMAGE
19810H1285B3523 - 64 -
1 COVERAGE, SUBJECT TO OPTIONAL DEDUCTIBLES INCLUDING A TWO
2 HUNDRED FIFTY DOLLAR ($250) DEDUCTIBLE WHICH SHALL BE
3 DESCRIBED IN THE OFFER AS "THE MINIMUM RECOMMENDED DEDUCTIBLE
4 OF TWO HUNDRED FIFTY DOLLARS ($250)" AND OTHER HIGHER
5 OPTIONAL DEDUCTIBLES UP TO AT LEAST ONE THOUSAND DOLLARS
6 ($1,000) AND IN THE ABSENCE OF AN AGREEMENT TO THE CONTRARY
7 THERE SHALL BE A TWO HUNDRED FIFTY DOLLAR ($250) DEDUCTIBLE.
8 ON ANY CLAIM MADE UNDER THE COVERAGES PROVIDED IN THIS
9 SUBSECTION, THE OBLIGOR MUST MAKE PAYMENT WITHIN TEN DAYS OF
10 RECEIPT OF WRITTEN PROOF OF LOSS. PROOF OF LOSS SHALL BE MADE
11 IN THE FORM AND MANNER AS PRESCRIBED BY THE INSURANCE
12 DEPARTMENT BY REGULATION. AN OBLIGOR WHO REJECTS A CLAIM
13 UNDER THE COVERAGE DEFINED IN THIS SUBSECTION MUST SEND A
14 WRITTEN NOTICE OF REJECTION STATING THE REASONS THEREFOR
15 WITHIN TEN DAYS OF PROOF OF LOSS. CLAIMS REJECTED BY THE
16 OBLIGOR AND LATER PAID, AFTER THE TEN-DAY PERIOD, SHALL BE
17 SUBJECT TO AN EIGHTEEN PER CENT (18%) PER ANNUM INTEREST
18 PENALTY CALCULATED FROM THE DATE THE TEN-DAY PERIOD EXPIRED;
19 (6) for economic detriment, a coverage for work loss
20 sustained by a victim in excess of limitations on basic loss
21 benefits for work loss ; AND <--
22 (7) UNDERINSURED MOTORIST COVERAGE WHICH SHALL INDEMNIFY
23 THE INSURED PERSON FOR DAMAGES SUSTAINED AS A RESULT OF
24 INJURY CAUSED BY THE NEGLIGENT OR INTENTIONAL CONDUCT OF
25 ANOTHER TO THE EXTENT THAT THE DAMAGES EXCEED THE LIABILITY
26 INSURANCE AVAILABLE TO THE AT-FAULT VEHICLE OWNER OR OPERATOR
27 OR, IF THE AT-FAULT PERSON IS AN UNINSURED MOTORIST FOR THE
28 AMOUNT IN EXCESS OF THE UNINSURED MOTORIST COVERAGE AVAILABLE
29 TO THE INJURED PERSON, BUT THE COVERAGE OFFERED SHALL NOT
30 EXCEED THE AMOUNT OF LIABILITY INSURANCE CARRIED OR ONE
19810H1285B3523 - 65 -
1 MILLION DOLLARS ($1,000,000), WHICHEVER IS LESS.
2 (b) Additional loss coverage.--Subject to the approval of
3 terms and forms by the commissioner, obligors may offer or
4 obligate themselves to provide other [added loss [coverages] <--
5 BENEFITS AND ADDITIONAL coverage options. <--
6 The commissioner may adopt rules requiring that insurers
7 providing basic loss insurance offer, in accordance with this
8 act, any other specified added loss coverages and promulgate
9 regulations with respect thereto.
10 (c) MANDATORY ELECTION OF INSURED.--The coverage which is <--
11 offered pursuant to this section shall not be provided, or
12 deemed provided under any provision of this act, except upon the
13 election of a named insured under a policy of motor vehicle
14 insurance issued by an insurer.
15 (D) MANDATORY OFFERING; OPTIONAL MOTORCYCLE COVERAGE.-- <--
16 OBLIGORS SHALL OFFER OR OBLIGATE THEMSELVES TO PROVIDE TO OWNERS
17 OF MOTORCYCLES, SECURITY FOR BASIC LOSS BENEFITS AS DEFINED IN
18 THIS ACT. IF SUCH OPTIONAL SECURITY IS ELECTED BY A MOTORCYCLE
19 OWNER, THEN A MOTORCYCLE SHALL BE CONSIDERED A MOTOR VEHICLE
20 UNDER SECTION 103 AND SHALL BE SUBJECT TO ALL OF THE PROVISIONS
21 OF THIS ACT.
22 (E) NOTICE OF OPTIONS.--EVERY INSURER OR AGENT OF AN INSURER
23 PROVIDING SECURITY COVERING MOTOR VEHICLES UNDER THE PROVISIONS
24 OF THIS ACT SHALL AFFIRMATIVELY INFORM THE POLICYHOLDER BEFORE
25 THE PURCHASE OR RENEWAL OF MOTOR VEHICLE INSURANCE OR AT LEAST
26 ANNUALLY OF ALL THE COVERAGES AND OPTIONS, INCLUDING
27 DEDUCTIBLES, ELECTIONS AND WAITING PERIODS AVAILABLE INCLUDING
28 THOSE OFFERED IN ACCORDANCE WITH THIS SECTION AND SECTION 202
29 AND THE COSTS AND SAVINGS OF EACH COVERAGE AND OPTION IN
30 ACCORDANCE WITH RULES AND REGULATIONS WHICH SHALL BE PROMULGATED
19810H1285B3523 - 66 -
1 BY THE INSURANCE COMMISSIONER.
2 § 208. Ineligible claimants.
3 (a) Converter.--
4 (1) [Except as provided for assigned claims, a] A
5 converter of a motor vehicle is ineligible to receive no-
6 fault benefits, including benefits otherwise due him as a
7 survivor, from any source other than a contract of insurance
8 under which he is an insured, for any injury arising out of
9 the maintenance or use of the converted vehicle. If a
10 converter dies from such injuries, his survivor or survivors
11 are not entitled to no-fault benefits for survivor's loss
12 from any source other than a contract of insurance under
13 which the converter is an insured.
14 * * *
15 § 301. Tort liability. <--
16 (a) Partial abolition.--Tort liability is abolished with
17 respect to any injury that takes place in this State in
18 accordance with the provisions of this act if such injury arises
19 out of the maintenance or use of a motor vehicle, except that:
20 * * *
21 (4) A person remains liable for loss which is not
22 compensated because of any limitation in accordance with
23 section 202 (a), (b), (c) or (d) of this act and nothing in
24 this act shall be construed to have limited or impaired the
25 right to recover at law as heretofore for an element of
26 economic detriment for which there is no applicable security
27 under the provisions of this act. A person is not liable,
28 however, for loss which is not compensated because of
29 limitations in accordance with subsection (e) of section 202
30 of this act.
19810H1285B3523 - 67 -
1 (5) A person remains liable for damages for non-economic
2 detriment in excess of two thousand five hundred dollars <--
3 ($2,500) if the injury sustained in the accident results in:
4 (A) death [or serious and permanent injury]; or
5 (B) [the reasonable value of reasonable and
6 necessary medical and dental services, including
7 prosthetic devices and necessary ambulance, hospital and
8 professional nursing expenses incurred in the diagnosis,
9 care and recovery of the victim, exclusive of diagnostic
10 x-ray costs and rehabilitation costs in excess of one
11 hundred dollars ($100) is in excess of seven hundred
12 fifty dollars ($750). For purposes of this subclause, the
13 reasonable value of hospital room and board shall be the
14 amount determined by the Department of Health to be the
15 average daily rate charged for a semi-private hospital
16 room and board computed from such charges by all
17 hospitals in the Commonwealth] significant and permanent
18 loss of an important body function; or
19 (C) [medically determinable physical or mental
20 impairment which prevents the victim from performing all
21 or substantially all of the material acts and duties
22 which constitute his usual and customary daily activities
23 and which continues for more than sixty consecutive days]
24 injury that is permanent within a reasonable degree of
25 medical probability and which is serious, other than
26 scarring or disfigurement; or
27 (D) [injury which in whole or in part consists of
28 cosmetic disfigurement which is permanent, irreparable
29 and severe] significant and permanent scarring or
30 disfigurement.
19810H1285B3523 - 68 -
1 * * *
2 SECTION 12. SECTION 301 OF THE ACT IS REPEALED. <--
3 SECTION 13. THE ACT IS AMENDED BY ADDING A SECTION TO READ:
4 § 301.1. RESTRICTION ON TORT RECOVERY.
5 ANY VICTIM OR SURVIVOR OF A DECEASED VICTIM ELIGIBLE FOR
6 BASIC LOSS BENEFITS IS PRECLUDED FROM PLEADING OR INTRODUCING
7 INTO EVIDENCE IN AN ACTION FOR DAMAGES AGAINST A TORT-FEASOR TO
8 RECOVER ECONOMIC OR NONECONOMIC DETRIMENT THOSE LOSSES FOR WHICH
9 BASIC LOSS BENEFITS HAVE BEEN RECEIVED OR WHICH THE VICTIM OR
10 SURVIVOR IS ELIGIBLE TO RECEIVE WITHOUT REGARD TO ANY DEDUCTIBLE
11 OR WAITING PERIOD AND WHETHER OR NOT SUCH BENEFITS ARE ACTUALLY
12 RECOVERABLE. NOTWITHSTANDING THE PROVISIONS OF LAW TO THE
13 CONTRARY, ANY RESIDUAL TORT ACTION FOR INJURIES DESCRIBED IN
14 THIS SECTION SHALL BE COMMENCED NOT LATER THAN TWO YEARS FROM
15 THE DATE OF THE ACCIDENT IN WHICH SUCH INJURY WAS SUFFERED.
16 THEREAFTER,ALL RIGHTS FOR RESIDUAL TORT ACTION UNDER THIS ACT
17 SHALL EXPIRE.
18 SECTION 14. SECTION 401 OF THE ACT IS AMENDED TO READ:
19 § 401. Examination.
20 Whenever the mental or physical condition of a [person]
21 victim is material to any claim that has been or may be made for
22 past or future basic loss benefits [a court of competent <--
23 jurisdiction may order the person to submit to mental or
24 physical examination by a physician or physicians. The order may
25 be made only on the motion for good cause shown and upon notice
26 to the person to be examined and to all other persons having an
27 interest and shall specify the time, place, manner, conditions,
28 and scope of the examination and the person or persons by whom
29 it is to be made.] Such victim, upon request of an obligor, <--
30 shall submit to mental or physical examination by a physician or
19810H1285B3523 - 69 -
1 physicians. The cost of any such examination requested by an
2 obligor shall be borne entirely by the obligor. Any such
3 examination shall be conducted within the city or county of
4 residence of the victim, but if there is no qualified physician
5 to conduct the examination within such city or county of
6 residence of the victim, then such examination shall be
7 conducted in an area of closest proximity to the victim's
8 residence. If the victim shall refuse to submit to any such
9 examination, a court of competent jurisdiction may, upon the
10 motion or petition of the obligor, require the victim to be
11 examined by such physicians selected and paid by the obligor or
12 by a physician or physicians designated by the court and paid by
13 the obligor. The victim shall have at all times the right to
14 have a physician, selected and paid by the victim, participate
15 in any such examination.
16 Section 6. The act is amended by adding a section to read:
17 § 409. Release of information; immunity from liability.
18 Any person who releases information, whether oral or written,
19 acting in good faith, pursuant to the requirements of sections
20 106 (a)(5), 109(d), 401, 402, 408(a), (b) or (d) or pursuant to
21 any proceeding for the release, discovery or production of
22 information under this act is immune from liability, whether
23 civil or criminal, that might otherwise be incurred or imposed.
24 SECTION 15. THE ACT IS AMENDED BY ADDING A SECTION TO READ: <--
25 § 409. PRESENTATION OF DAMAGES IN TORT ACTIONS.
26 (A) GENERAL RULE.--IN ANY CIVIL ACTION UNDER SECTION 301.1
27 IN WHICH THE SUM OF DAMAGES RECOVERABLE IS NOT LIQUIDATED OR
28 OTHERWISE AGREED TO, IT SHALL BE PERMISSIBLE FOR ANY PARTY TO
29 PRESENT TO THE COURT, JURY, ARBITRATORS OR OTHER TRIER OF FACT
30 THE DOLLAR AMOUNT OF THE DAMAGES WHICH SHOULD BE AWARDED.
19810H1285B3523 - 70 -
1 (B) EXPLANATION REQUIRED.--WHEN A PARTY PRESENTS THE DOLLAR
2 AMOUNT OF DAMAGES AS AUTHORIZED IN SUBSECTION (A), THAT PARTY
3 MUST ALSO INCLUDE, AS PART OF THEIR PRESENTATION, AN EXPLANATION
4 THAT THE AMOUNT OF DAMAGES SOUGHT OR SUGGESTED IS NOT
5 CONTROLLING AND THAT THE AMOUNT OF RECOVERY MAY BE IN A HIGHER
6 OR LESSER SUM THAN THE FIGURE SUGGESTED.
7 SECTION 16. SECTION 504 OF THE ACT IS AMENDED TO READ:
8 § 504. POLICY REQUIREMENTS AND PREMIUM CHANGES.
9 (A) REQUIREMENTS FOR WRITING INSURANCE.--ALL INSURERS
10 LICENSED IN THIS COMMONWEALTH AND DESIRING TO QUALIFY TO WRITE
11 INSURANCE APPLICABLE TO MOTOR VEHICLE ACCIDENTS SUBSEQUENT TO
12 THE EFFECTIVE DATE OF THIS ACT, SHALL, AS A CONDITION OF
13 QUALIFICATIONS, PREPARE AND FILE POLICY FORMS AND INSURANCE
14 RATES, FOR COVERAGES EFFECTED BY THIS ACT. SUCH POLICY FORMS AND
15 RATES SHALL BE FILED WITH THE OFFICE OF THE INSURANCE
16 COMMISSIONER OF THIS COMMONWEALTH WITHIN THREE MONTHS FROM
17 ENACTMENT HEREOF.
18 (B) INITIAL PREMIUM CHARGES.--THE PREMIUMS CHARGED BY ANY
19 INSURER DURING THE FIRST TWELVE-MONTH PERIOD FOLLOWING THE
20 EFFECTIVE DATE OF THIS ACT FOR BASIC LOSS INSURANCE BENEFITS
21 TOGETHER WITH SECURITY REQUIRED FOR THE PAYMENT OF TORT
22 JUDGMENTS SHALL NOT EXCEED EIGHTY-FIVE PER CENT (85%) OF THE
23 COMBINED PREMIUMS FOR:
24 (1) BODILY INJURY LIABILITY INSURANCE FOR THE SAME
25 LIMITS REQUIRED IN THIS ACT; AND
26 (2) MEDICAL PAYMENTS INSURANCE IN THE AMOUNT OF ONE
27 THOUSAND DOLLARS ($1,000) APPROVED BY THE COMMISSIONER FOR
28 ANY INSURER AND IN EFFECT ON THE DATE THIS ACT BECOMES
29 EFFECTIVE.
30 (C) LIMITATION ON PREMIUM INCREASES.--
19810H1285B3523 - 71 -
1 (1) NO INSURER SHALL INCREASE THE PREMIUM RATE OF AN
2 OWNER OF A POLICY SOLELY BECAUSE ONE OR MORE OF THE NAMED
3 INSUREDS UNDER THE POLICY MADE A CLAIM UNDER THE POLICY AND
4 WAS PAID THEREON [UNLESS IT IS DETERMINED THAT THE NAMED
5 INSURED WAS AT FAULT IN CONTRIBUTING TO THE ACCIDENT GIVING
6 RISE TO THE CLAIM. THE INSURANCE COMMISSIONER SHALL
7 PROMULGATE RULES AND REGULATIONS ESTABLISHING GUIDELINES AND
8 PROCEDURES FOR DETERMINING FAULT OF AN INSURED FOR THE
9 PURPOSES OF THIS SUBSECTION.] FOR ANY ACCIDENT WHICH OCCURRED
10 UNDER ANY OF THE FOLLOWING CIRCUMSTANCES:
11 (A) VEHICLE LAWFULLY PARKED (IF THE PARKED VEHICLE
12 ROLLS FROM THE PARKED POSITION THEN ANY SUCH ACCIDENT IS
13 CHARGED TO THE PERSON WHO PARKED THE VEHICLE).
14 (B) THE OWNER OR OTHER RESIDENT OPERATOR IS
15 REIMBURSED BY, OR ON BEHALF OF, A PERSON WHO IS
16 RESPONSIBLE FOR THE ACCIDENT OR HAS A JUDGMENT AGAINST
17 SUCH PERSON.
18 (C) VEHICLE IS STRUCK IN THE REAR BY ANOTHER VEHICLE
19 AND THE OWNER OR OTHER RESIDENT OPERATOR HAS NOT BEEN
20 CONVICTED OF A MOVING TRAFFIC VIOLATION IN CONNECTION
21 WITH THE ACCIDENT.
22 (D) OPERATOR OF THE OTHER VEHICLE INVOLVED IN THE
23 ACCIDENT WAS CONVICTED AND THE OWNER OR OTHER RESIDENT
24 OPERATOR WAS NOT CONVICTED OF A MOVING TRAFFIC VIOLATION
25 IN CONNECTION WITH THE ACCIDENT.
26 (E) VEHICLE OPERATED BY THE OWNER OR OTHER RESIDENT
27 OPERATOR IS STRUCK BY A "HIT AND RUN" VEHICLE, IF THE
28 ACCIDENT IS REPORTED TO THE PROPER AUTHORITY WITHIN
29 TWENTY-FOUR HOURS BY THE OWNER OR RESIDENT OPERATOR.
30 (F) ACCIDENT INVOLVING DAMAGE BY CONTACT WITH
19810H1285B3523 - 72 -
1 ANIMALS OR FOWL.
2 (G) ACCIDENT INVOLVING PHYSICAL DAMAGE, LIMITED TO
3 AND CAUSED BY FLYING GRAVEL, MISSILES OR FALLING OBJECTS.
4 (H) ACCIDENT OCCURRING WHEN USING VEHICLE IN
5 RESPONSE TO ANY EMERGENCY IF THE OPERATOR OF THE VEHICLE
6 AT THE TIME OF THE ACCIDENT WAS A PAID OR VOLUNTEER
7 MEMBER OF ANY POLICE OR FIRE DEPARTMENT, AMBULANCE OR
8 RESCUE SQUAD OR ANY LAW ENFORCEMENT AGENCY. THIS
9 EXCEPTION DOES NOT INCLUDE AN ACCIDENT OCCURRING AFTER
10 THE VEHICLE CEASES TO BE USED IN RESPONSE TO SUCH
11 EMERGENCY.
12 (I) ACCIDENTS WHICH OCCURRED MORE THAN THIRTY-SIX
13 MONTHS PRIOR TO THE LATER OF THE INCEPTION OF THE
14 INSURANCE POLICY OR THE UPCOMING ANNIVERSARY DATE OF THE
15 POLICY.
16 (2) WHEN ANY INSURED MAKES A CLAIM UNDER THE COLLISION
17 COVERAGE OF HIS OWN POLICY FOR LOSS WHICH OCCURRED UNDER ANY
18 OF THE CIRCUMSTANCES LISTED IN SUBPARAGRAPHS (A), (B), (C),
19 (D), (E) AND (H) OF PARAGRAPH (1) AND THE OPERATOR OF THE
20 OTHER VEHICLE INVOLVED WAS NOT INSURED WITH LIABILITY
21 COVERAGE, ANY APPLICABLE COLLISION COVERAGE DEDUCTIBLE SHALL
22 BE WAIVED BY THE CLAIMANT'S INSURER. THE INSURANCE
23 COMMISSIONER SHALL PROMULGATE RULES AND REGULATIONS
24 ESTABLISHING GUIDELINES AND PROCEDURES FOR DETERMINING FAULT
25 OF AN INSURED FOR THE PURPOSES OF THIS SUBSECTION.
26 (3) AN APPLICABLE SURCHARGE FOR AN ACCIDENT SHALL BE
27 APPLIED ONLY ON A PAID CLAIM BASIS.
28 (D) SURCHARGE DISCLOSURE INFORMATION.--
29 (1) ALL INSURERS LICENSED IN THIS COMMONWEALTH AND
30 DESIRING TO QUALIFY TO WRITE INSURANCE APPLICABLE TO MOTOR
19810H1285B3523 - 73 -
1 VEHICLE ACCIDENTS SUBSEQUENT TO THE EFFECTIVE DATE OF THIS
2 SUBSECTION SHALL, AS A CONDITION OF QUALIFICATIONS, PREPARE
3 AND FILE SURCHARGE DISCLOSURE FORMS WITH THE COMMISSIONER.
4 SUCH SURCHARGE DISCLOSURE FORM OF EACH INSURER SHALL DETAIL
5 THE PROVISIONS OF THE PREMIUM SURCHARGE RATING PLAN OF SUCH
6 INSURER INCLUDING BUT NOT LIMITED TO:
7 (A) THE ANNUAL AMOUNT OF ANY SURCHARGE OR EXPLICIT
8 INSTRUCTIONS FOR CALCULATING SUCH AMOUNT.
9 (B) THE NUMBER OF YEARS ANY SURCHARGE WILL BE IN
10 EFFECT.
11 (C) INSTRUCTIONS FOR DECIDING WHETHER OR NOT TO
12 REQUEST PAYMENT OF A CLAIM IF SUCH CLAIM MIGHT LEAD TO A
13 SURCHARGE.
14 (D) A WARNING THAT ALL ACCIDENTS MUST BE REPORTED TO
15 THE INSURER WHETHER OR NOT A CLAIM WILL BE FILED.
16 (2) THE SURCHARGE DISCLOSURE INFORMATION SHALL BE
17 DELIVERED TO EACH NAMED INSURED BY HIS INSURER AT LEAST ONCE
18 ANNUALLY. ADDITIONALLY, SUCH SURCHARGE DISCLOSURE INFORMATION
19 SHALL BE GIVEN TO EACH PROSPECTIVE INSURED AT THE TIME
20 APPLICATION IS MADE FOR AUTOMOBILE INSURANCE COVERAGE. THE
21 COMMISSIONER SHALL PROMULGATE RULES AND REGULATIONS
22 ESTABLISHING GUIDELINES FOR THE CONTENT AND FORMAT OF THE
23 SURCHARGE INFORMATION DISCLOSURE FORM. NO SUCH DISCLOSURE
24 FORM SHALL BE USED PRIOR TO BEING APPROVED BY THE
25 COMMISSIONER.
26 (E) RESTRICTIONS ON PREMIUM SURCHARGES AND ASSESSMENT OF
27 PENALTY POINTS.--NO INSURER SHALL ADOPT NOR SHALL THE
28 COMMISSIONER APPROVE ANY RATING PLAN WHICH SHALL PROVIDE FOR ANY
29 PREMIUM SURCHARGE NOR FOR THE ASSESSMENT OF ANY PENALTY POINTS
30 IF UNDER THE PROVISIONS OF 42 PA.C.S. § 7102 (RELATING TO
19810H1285B3523 - 74 -
1 COMPARATIVE NEGLIGENCE), AN INSURED IS NOMINALLY AT FAULT. FOR
2 THE PURPOSE OF THIS SECTION, THE TERM "NOMINALLY AT FAULT" SHALL
3 MEAN THAT THE NAMED INSURED UNDER A POLICY PROVIDING SECURITY IN
4 ACCORDANCE WITH THE PROVISIONS OF THIS ACT IS DETERMINED TO BE
5 LESS THAN FIFTY PER CENT (50%) AT FAULT. FURTHER, ANY APPLICABLE
6 SURCHARGE FOR AN ACCIDENT SHALL BE APPLIED ONLY ON A PAID CLAIM
7 BASIS.
8 Section 7 17. Section 601 of the act is repealed. <--
9 Section 8 18. The act is amended by adding sections to read: <--
10 § 601.1. Operation of a vehicle without security.
11 (a) General rule.--No person who owns a passenger vehicle,
12 for which the existence of security for basic loss benefits and
13 tort liability insurance is a requirement for its legal
14 operation upon the public highways of this State, under either
15 section 104 or 110 of this act or 75 Pa.C.S. § 1747 (relating to
16 providing financial responsibility), shall operate such motor
17 vehicle or permit it to be operated upon a public highway in
18 this State without having in full force and effect security
19 complying with the terms of section 104. Further, no other
20 person shall operate such a motor vehicle upon a public highway
21 in this State with the knowledge that the owner does not have
22 such security in full force and effect.
23 (b) Carrying and exhibiting Pennsylvania No-fault Insurance
24 Identification Card on demand.--Every person who operates a
25 vehicle for which the existence of security for basic loss
26 benefits and tort liability insurance is a requirement for its
27 legal operation upon the public highways of this State pursuant
28 to the above-mentioned sections, shall possess a valid
29 Pennsylvania No-fault Insurance Identification Card at all times
30 when driving such motor vehicle and shall exhibit the card upon
19810H1285B3523 - 75 -
1 demand to a police officer who investigates an accident or
2 otherwise stops the vehicle for probable cause.
3 (c) Exhibition of invalid insurance identification cards.--
4 No person who is required to possess and exhibit a Pennsylvania
5 No-fault Insurance Identification Card pursuant to subsection
6 (b) shall exhibit an invalid identification card to any police
7 officer. For the purposes of this section, an invalid card
8 includes, but is not limited to, one expired, fraudulently
9 obtained or forged.
10 (d) Inferences from failure to possess and exhibit the
11 insurance identification card.--In any summary proceeding or
12 criminal proceeding in which the defendant is charged with
13 violating subsection (a) or (c), if it is shown that the
14 defendant failed to possess and exhibit the identification card
15 as required by subsection (b), or failed to furnish satisfactory
16 proof within five days at the office of the issuing authority or
17 arresting officer, it may be inferred that the defendant was in
18 violation of subsection (a) or (c) at the time of the demand.
19 (e) Penalty.--Any person violating subsection (a) is guilty
20 of a summary offense and shall, upon conviction, be sentenced to
21 pay a fine of two hundred dollars ($200). Any person violating
22 subsection (b) is guilty of a summary offense and shall, upon
23 conviction, be sentenced to pay a fine of two hundred dollars
24 ($200) and to a mandatory thirty-day suspension of the
25 individual's operating privileges. Any person violating
26 subsection (c) is guilty of a misdemeanor of the third degree
27 and shall, upon conviction, be sentenced to pay a fine of not
28 less than three hundred dollars ($300), nor more than one
29 thousand dollars ($1,000), or to imprisonment for not more than
30 six months or both. No person charged with violating subsection
19810H1285B3523 - 76 -
1 (a) or (b) shall be convicted if the person furnishes at the
2 office of the issuing authority or the arresting officer, within
3 five days, satisfactory proof of having held security at the
4 time of the demand.
5 (f) Subsequent convictions.--Every person convicted of a
6 second or subsequent violation of subsection (a) within three
7 years of an initial conviction under subsection (a) shall be
8 sentenced to pay a fine or not less than three hundred dollars
9 ($300), nor more than one thousand dollars ($1,000) or to
10 imprisonment of not more than six months or both. Every person
11 convicted of a second or subsequent violation of subsection (b)
12 within three years of an initial conviction under subsection (b)
13 shall be sentenced to pay a fine of not less than one hundred
14 dollars ($100) nor more than three hundred dollars ($300) and to
15 a mandatory sixty-day suspension of the individual's operating
16 privileges for the second violation, and to a mandatory six-
17 month suspension of operating privileges for the third and all
18 subsequent violations. Every person convicted of a second or
19 subsequent violation of subsection (c) within three years of an
20 initial conviction under subsection (c) shall be sentenced to
21 pay a fine of not less than one thousand dollars ($1,000) nor
22 more than two thousand five hundred dollars ($2,500) or to
23 imprisonment for not more than one year or both.
24 (g) Issuance of insurance identification cards.--No obligor
25 who provides security for basic loss benefits coverage and tort
26 liability insurance pursuant to this act shall issue an
27 insurance identification card for a period in excess of the
28 policy period or, if the named insured has elected to pay the
29 policy premium in installments, a period in excess of that
30 covered by each installment period.
19810H1285B3523 - 77 -
1 § 601.2. Surrender of registration plates and cards upon
2 suspension.
3 (a) General rule.--The department, upon suspending any
4 registration, shall require the registration plate or plates and
5 registration card to be surrendered immediately to the
6 department and may delegate authority to any authorized
7 department employee, issuing authority, police officer,
8 constable or writ server to seize the registration plate or
9 plates and registration card or cards.
10 (b) Issuing authorities, constables and writ servers.--
11 Whenever the surrender of registration plates and cards is
12 accomplished through the use of issuing authorities, constables
13 or writ servers, the procedures for such surrender shall be
14 prescribed by general rule by the Supreme Court. For each card
15 and plate set recovered by a constable or writ server, such
16 officer shall be paid a fee of fifteen dollars ($15) by the
17 department which shall include mileage.
18 (c) Reimbursement of department.--As a condition for the
19 return of a registration plate and card surrendered to a
20 constable or a writ server, a person shall reimburse the
21 department a service fee of thirty dollars ($30).
22 (d) Penalty.--Any person failing or refusing to surrender to
23 the department or to its authorized employee, issuing authority,
24 police officer, constable or writ server, upon demand, any
25 registration plate or card which has been suspended is guilty of
26 a summary offense and shall, upon conviction, be sentenced to
27 pay a fine of one hundred dollars ($100).
28 (e) Reports and records of issuing authorities.--Every
29 issuing authority shall maintain records of all proceedings
30 brought under this act in accordance with 75 Pa.C.S. § 6321
19810H1285B3523 - 78 -
1 (relating to records of issuing authorities). In addition, every
2 issuing authority shall report all proceedings brought under
3 this act in accordance with 75 Pa.C.S. § 6322 (relating to
4 reports by issuing authorities).
5 (f) Reports of courts of records.--The clerk of any court of
6 record within this Commonwealth shall report the final
7 determination of any proceeding brought under this act in
8 accordance with 75 Pa.C.S. § 6323 (relating to reports by
9 courts).
10 Section 9 19. This act shall take effect in six months. <--
D21L40JJR/19810H1285B3523 - 79 -