PRINTER'S NO. 2141
No. 1682 Session of 1985
INTRODUCED BY PERZEL, SEPTEMBER 30, 1985
REFERRED TO COMMITTEE ON TRANSPORTATION, SEPTEMBER 30, 1985
AN ACT
1 Amending Title 75 (Vehicles) of the Pennsylvania Consolidated
2 Statutes, abolishing the Catastrophic Loss Trust Fund.
3 The General Assembly of the Commonwealth of Pennsylvania
4 hereby enacts as follows:
5 Section 1. Sections 1306, 1309 and 1373 of Title 75 of the
6 Pennsylvania Consolidated Statutes are amended to read:
7 § 1306. Grounds for refusing registration.
8 The department shall refuse registration or renewal or
9 transfer of registration when any of the following circumstances
10 exists:
11 (1) The applicant is not entitled to registration under
12 the provisions of this chapter.
13 (2) The applicant has at registration or titling
14 neglected or refused to furnish the department with the
15 information required on the appropriate official form, or any
16 reasonable additional information required by the department.
17 (3) The department has reasonable grounds to believe
1 that the application contains false or fraudulent
2 information, or that the vehicle is stolen, which fact the
3 department shall ascertain by reference to the stolen vehicle
4 file required to be maintained under section 7114 (relating
5 to records of stolen vehicles), or that the granting of
6 registration would constitute a fraud against the rightful
7 owner or other person having a valid lien upon the vehicle.
8 (4) The fees required by law have not been paid.
9 (5) The vehicle is not constructed or equipped as
10 required by this title.
11 (6) The registration of the vehicle stands suspended for
12 any reason as provided for in this title.
13 [(7) The Catastrophic Loss Trust Fund charge has not
14 been paid.]
15 § 1309. Renewal of registration.
16 At least 60 days prior to the expiration of each
17 registration, the department shall send to the registrant an
18 application for renewal of registration. Upon return of the
19 application, accompanied by self-certification of financial
20 responsibility[,] and the applicable fee or fees [and proof that
21 the Catastrophic Loss Trust Fund charge has been paid], the
22 department shall send to the registrant a renewed registration
23 card. Failure to receive a renewal application shall not relieve
24 a registrant from the responsibility to renew the registration.
25 § 1373. Suspension of registration.
26 The department may suspend any registration after providing
27 opportunity for a hearing in any of the following cases when the
28 department finds upon sufficient evidence that:
29 (1) The vehicle is unsafe or unfit for operation or is
30 not equipped as required by this title.
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1 (2) The owner or registrant has made, or permitted to be
2 made, any unlawful use of the vehicle or registration plate
3 or plates, or registration card, or permitted the use by a
4 person not entitled thereto.
5 (3) The owner or registrant has knowingly made a false
6 statement or knowingly concealed a material fact or otherwise
7 committed a fraud in any application or form required to be
8 filed by this title.
9 (4) Upon the request or order of any court of record.
10 (5) The required fees have not been paid.
11 (6) The registrant or any agent or employee has
12 repeatedly violated any of the provisions of this chapter or
13 Chapter 11 (relating to certificate of title and security
14 interests).
15 [(7) The Catastrophic Loss Trust Fund charge has not
16 been paid.]
17 Section 2. Subchapter F of Chapter 17 and section 1787(d) of
18 Title 75 are repealed.
19 Section 3. Sections 1796(a), 1797 and 1798 of Title 75 are
20 amended to read:
21 § 1796. Mental or physical examination of person.
22 (a) General rule.--Whenever the mental or physical condition
23 of a person is material to any claim for medical[,] or income
24 loss [or catastrophic loss] benefits, a court of competent
25 jurisdiction [or the administrator of the Catastrophic Loss
26 Trust Fund for catastrophic loss claims] may order the person to
27 submit to a mental or physical examination by a physician. The
28 order may only be made upon motion for good cause shown. The
29 order shall give the person to be examined adequate notice of
30 the time and date of the examination and shall state the manner,
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1 conditions and scope of the examination and the physician by
2 whom it is to be performed. If a person fails to comply with an
3 order to be examined, the court or the administrator may order
4 that the person be denied benefits until compliance.
5 * * *
6 § 1797. Customary charges for treatment.
7 A person or institution providing treatment, accommodations,
8 products or services to an injured person for an injury covered
9 by medical [or catastrophic loss] benefits shall not make a
10 charge for the treatment, accommodations, products or services
11 in excess of the amount the person or institution customarily
12 charges for like treatment, accommodations, products and
13 services in cases involving no insurance.
14 § 1798. Attorney fees and costs.
15 (a) Basis for reasonable fee.--No attorney's fee for
16 representing a claimant in connection with a claim for first
17 party benefits provided under Subchapter B (relating to motor
18 vehicle liability insurance first party benefits) [or a claim
19 for catastrophic loss benefits under Subchapter F (relating to
20 Catastrophic Loss Trust Fund)] shall be calculated, determined
21 or paid on a contingent fee basis, nor shall any attorney's fees
22 be deducted from the benefits enumerated in this subsection
23 which are otherwise due such claimant. An attorney may charge a
24 claimant a reasonable fee based upon actual time expended.
25 (b) Unreasonable refusal to pay benefits.--In the event an
26 insurer is found to have acted with no reasonable foundation in
27 refusing to pay the benefits enumerated in subsection (a) when
28 due, the insurer shall pay, in addition to the benefits owed and
29 the interest thereon, a reasonable attorney fee based upon
30 actual time expended.
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1 [(c) Payment by fund.--The Catastrophic Loss Trust Fund may
2 award the claimant's attorney a reasonable fee based upon actual
3 time expended because a claimant is unable to otherwise pay the
4 fees and costs.
5 (d)] (c) Fraudulent or excessive claims.--If, in any action
6 by a claimant to recover benefits under this chapter, the court
7 determines that the claim, or a significant part thereof, is
8 fraudulent or so excessive as to have no reasonable foundation,
9 the court may award the insurer's attorney a reasonable fee
10 based upon actual time expended. The court, in such case, may
11 direct that the fee shall be paid by the claimant or that the
12 fee may be treated in whole or in part as an offset against any
13 benefits due or to become due the claimant.
14 Section 4. This act shall take effect in 60 days.
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