PRINTER'S NO. 2032
No. 1597 Session of 1985
INTRODUCED BY PRATT, JUNE 28, 1985
REFERRED TO COMMITTEE ON INSURANCE, JUNE 28, 1985
AN ACT
1 Amending Title 75 (Vehicles) of the Pennsylvania Consolidated
2 Statutes, eliminating the Catastrophic Loss Trust Fund; and
3 requiring insurers to make additional medical benefits
4 available.
5 The General Assembly of the Commonwealth of Pennsylvania
6 hereby enacts as follows:
7 Section 1. Sections 1306, 1309, 1373 and 1712 of Title 75 of
8 the Pennsylvania Consolidated Statutes are amended to read:
9 § 1306. Grounds for refusing registration.
10 The department shall refuse registration or renewal or
11 transfer of registration when any of the following circumstances
12 exists:
13 (1) The applicant is not entitled to registration under
14 the provisions of this chapter.
15 (2) The applicant has at registration or titling
16 neglected or refused to furnish the department with the
17 information required on the appropriate official form, or any
18 reasonable additional information required by the department.
1 (3) The department has reasonable grounds to believe
2 that the application contains false or fraudulent
3 information, or that the vehicle is stolen, which fact the
4 department shall ascertain by reference to the stolen vehicle
5 file required to be maintained under section 7114 (relating
6 to records of stolen vehicles), or that the granting of
7 registration would constitute a fraud against the rightful
8 owner or other person having a valid lien upon the vehicle.
9 (4) The fees required by law have not been paid.
10 (5) The vehicle is not constructed or equipped as
11 required by this title.
12 (6) The registration of the vehicle stands suspended for
13 any reason as provided for in this title.
14 [(7) The Catastrophic Loss Trust Fund charge has not
15 been paid.]
16 § 1309. Renewal of registration.
17 At least 60 days prior to the expiration of each
18 registration, the department shall send to the registrant an
19 application for renewal of registration. Upon return of the
20 application, accompanied by self-certification of financial
21 responsibility[,] and the applicable fee or fees [and proof that
22 the Catastrophic Loss Trust Fund charge has been paid], the
23 department shall send to the registrant a renewed registration
24 card. Failure to receive a renewal application shall not relieve
25 a registrant from the responsibility to renew the registration.
26 § 1373. Suspension of registration.
27 The department may suspend any registration after providing
28 opportunity for a hearing in any of the following cases when the
29 department finds upon sufficient evidence that:
30 (1) The vehicle is unsafe or unfit for operation or is
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1 not equipped as required by this title.
2 (2) The owner or registrant has made, or permitted to be
3 made, any unlawful use of the vehicle or registration plate
4 or plates, or registration card, or permitted the use by a
5 person not entitled thereto.
6 (3) The owner or registrant has knowingly made a false
7 statement or knowingly concealed a material fact or otherwise
8 committed a fraud in any application or form required to be
9 filed by this title.
10 (4) Upon the request or order of any court of record.
11 (5) The required fees have not been paid.
12 (6) The registrant or any agent or employee has
13 repeatedly violated any of the provisions of this chapter or
14 Chapter 11 (relating to certificate of title and security
15 interests).
16 [(7) The Catastrophic Loss Trust Fund charge has not
17 been paid.]
18 § 1712. Availability of benefits.
19 An insurer issuing or delivering liability insurance policies
20 covering any motor vehicle of the type required to be registered
21 under this title, except recreational vehicles not intended for
22 highway use, motorcycles, motor-driven cycles or motorized
23 pedalcycles or like type vehicles, registered and operated in
24 this Commonwealth, shall make available for purchase first party
25 benefits with respect to injury arising out of the maintenance
26 or use of a motor vehicle as follows:
27 (1) Medical benefit.--Coverage of not less than $10,000
28 nor for more than $1,000,000 to provide for reasonable and
29 necessary medical treatment and rehabilitative services,
30 including, but not limited to, hospital, dental, surgical,
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1 psychiatric, psychological, osteopathic, ambulance,
2 chiropractic, licensed physical therapy, nursing services,
3 vocational rehabilitation and occupational therapy, speech
4 pathology and audiology, optometric services, medications,
5 medical supplies and prosthetic devices, all without
6 limitation as to time, provided that, within 18 months from
7 the date of the accident causing injury, it is ascertainable
8 with reasonable medical probability that further expenses may
9 be incurred as a result of the injury. Benefits under this
10 paragraph may include any nonmedical remedial care and
11 treatment rendered in accordance with a recognized religious
12 method of healing.
13 (2) Income loss benefit.--Includes the following:
14 (i) Eighty percent of actual loss of gross income.
15 (ii) Reasonable expenses actually incurred for
16 hiring a substitute to perform self-employment services
17 thereby mitigating loss of gross income or for hiring
18 special help thereby enabling a person to work and
19 mitigate loss of gross income.
20 Income loss does not include loss of expected income for any
21 period following the death of an individual or expenses
22 incurred for services performed following the death of an
23 individual. Income loss shall not commence until five working
24 days have been lost after the date of the accident.
25 (3) Accidental death benefit.--A death benefit paid to
26 the personal representative of the insured, should injury
27 resulting from a motor vehicle accident cause death within 24
28 months from the date of the accident.
29 (4) Funeral benefit.--Expenses directly related to the
30 funeral, burial, cremation or other form of disposition of
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1 the remains of a deceased individual, incurred as a result of
2 the death of the individual as a result of the accident and
3 within 24 months from the date of the accident.
4 (5) Combination benefit.--A combination of benefits
5 described in paragraphs (1) through (4) as an alternative to
6 the separate purchase of those benefits.
7 Section 2. Subchapter F of Title 75 is repealed.
8 Section 3. Sections 1787, 1796, 1797 and 1798 of Title 75
9 are amended to read:
10 § 1787. Self-insurance.
11 (a) General rule.--Self-insurance is effected by filing with
12 the Department of Transportation, in satisfactory form, evidence
13 that reliable financial arrangements, deposits, resources or
14 commitments exist such as will satisfy the department that the
15 self-insurer will:
16 (1) Provide the benefits required by section 1711
17 (relating to required benefits), subject to the provisions of
18 Subchapter B (relating to motor vehicle liability insurance
19 first party benefits), except the additional benefits and
20 limits provided in sections 1712 (relating to availability of
21 benefits) and 1715 (relating to availability of adequate
22 limits).
23 (2) Make payments sufficient to satisfy judgments as
24 required by section 1774 (relating to payments sufficient to
25 satisfy judgments).
26 (3) Provide uninsured motorist coverage up to the limits
27 set forth in section 1774.
28 (b) Stacking limits prohibited.--Any recovery of uninsured
29 motorist benefits under this section only shall not be increased
30 by stacking the limits provided in section 1774, in
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1 consideration of the ownership or operation of multiple vehicles
2 or otherwise.
3 (c) Assigned Risk and Assigned Claims Plans.--Self-insurers
4 shall not be required to accept assigned risks pursuant to
5 Subchapter D (relating to Assigned Risk Plan) or contribute to
6 the Assigned Claims Plan pursuant to Subchapter E (relating to
7 Assigned Claims Plan).
8 [(d) Catastrophic Loss Trust Fund.--Self-insurers shall
9 contribute to the Catastrophic Loss Trust Fund in the manner
10 provided in Subchapter F (relating to Catastrophic Loss Trust
11 Fund).]
12 (e) Promulgation of regulations, etc.--The Department of
13 Transportation may, jointly with the Insurance Department,
14 promulgate rules, regulations, guidelines, procedures or
15 standards for reviewing and establishing the financial
16 eligibility of self-insurers.
17 § 1796. Mental or physical examination of person.
18 (a) General rule.--Whenever the mental or physical condition
19 of a person is material to any claim for medical[,] or income
20 loss [or catastrophic loss benefits], a court of competent
21 jurisdiction [or the administrator of the Catastrophic Loss
22 Trust Fund for catastrophic loss claims] may order the person to
23 submit to a mental or physical examination by a physician. The
24 order may only be made upon motion for good cause shown. The
25 order shall give the person to be examined adequate notice of
26 the time and date of the examination and shall state the manner,
27 conditions and scope of the examination and the physician by
28 whom it is to be performed. If a person fails to comply with an
29 order to be examined, the court [or the administrator] may order
30 that the person be denied benefits until compliance.
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1 (b) Report of examination.--If requested by the person
2 examined, a party causing an examination to be made shall
3 promptly deliver to the person examined a copy of every written
4 report concerning the examination at least one of which must set
5 forth the physician's findings and conclusions in detail. Upon
6 failure to promptly provide copies of these reports, the court
7 [or the administrator] shall prohibit the testimony of the
8 examining physician in any proceeding to recover benefits.
9 § 1797. Customary charges for treatment.
10 A person or institution providing treatment, accommodations,
11 products or services to an injured person for an injury covered
12 by medical [or catastrophic loss] benefits shall not make a
13 charge for the treatment, accommodations, products or services
14 in excess of the amount the person or institution customarily
15 charges for like treatment, accommodations, products and
16 services in cases involving no insurance.
17 § 1798. Attorney fees and costs.
18 (a) Basis for reasonable fee.--No attorney's fee for
19 representing a claimant in connection with a claim for first
20 party benefits provided under Subchapter B (relating to motor
21 vehicle liability insurance first party benefits) [or a claim
22 for catastrophic loss benefits under Subchapter F (relating to
23 Catastrophic Loss Trust Fund)] shall be calculated, determined
24 or paid on a contingent fee basis, nor shall any attorney's fees
25 be deducted from the benefits enumerated in this subsection
26 which are otherwise due such claimant. An attorney may charge a
27 claimant a reasonable fee based upon actual time expended.
28 (b) Unreasonable refusal to pay benefits.--In the event an
29 insurer is found to have acted with no reasonable foundation in
30 refusing to pay the benefits enumerated in subsection (a) when
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1 due, the insurer shall pay, in addition to the benefits owed and
2 the interest thereon, a reasonable attorney fee based upon
3 actual time expended.
4 [(c) Payment by fund.--The Catastrophic Loss Trust Fund may
5 award the claimant's attorney a reasonable fee based upon actual
6 time expended because a claimant is unable to otherwise pay the
7 fees and costs.]
8 (d) Fraudulent or excessive claims.--If, in any action by a
9 claimant to recover benefits under this chapter, the court
10 determines that the claim, or a significant part thereof, is
11 fraudulent or so excessive as to have no reasonable foundation,
12 the court may award the insurer's attorney a reasonable fee
13 based upon actual time expended. The court, in such case, may
14 direct that the fee shall be paid by the claimant or that the
15 fee may be treated in whole or in part as an offset against any
16 benefits due or to become due the claimant.
17 Section 4. This act shall take effect immediately.
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