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                                                      PRINTER'S NO. 3147

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 2356 Session of 2000


        INTRODUCED BY CLARK, LEDERER, NAILOR, DeWEESE, BAKER, EGOLF,
           FICHTER, MARKOSEK, SOLOBAY, TIGUE, SHANER, SAYLOR, STABACK,
           FAIRCHILD, RUBLEY, SATHER, CAWLEY, BARRAR, HARHART, FLICK,
           FEESE, GEIST, CURRY, S. H. SMITH, HERSHEY, WALKO, SEYFERT,
           SURRA, WOJNAROSKI, E. Z. TAYLOR, READSHAW, HALUSKA, MAYERNIK,
           M. COHEN, LYNCH, HARHAI, STERN, TRELLO, MANDERINO, HERMAN,
           WILT, KENNEY, BELFANTI, MAITLAND, MUNDY, RAYMOND, COLAFELLA,
           DALLY, WILLIAMS, SCRIMENTI, R. MILLER, B. SMITH, McCALL,
           FORCIER, HENNESSEY, CORRIGAN, HUTCHINSON, CIVERA, MELIO,
           MAJOR AND LAUGHLIN, MARCH 15, 2000

        REFERRED TO COMMITTEE ON TRANSPORTATION, MARCH 15, 2000

                                     AN ACT

     1  Amending Title 75 (Vehicles) of the Pennsylvania Consolidated
     2     Statutes, further providing for required financial
     3     responsibility.

     4     The General Assembly of the Commonwealth of Pennsylvania
     5  hereby enacts as follows:
     6     Section 1.  Section 1786(e) of Title 75 of the Pennsylvania
     7  Consolidated Statutes is amended and the section is amended by
     8  adding a subsection to read:
     9  § 1786.  Required financial responsibility.
    10     * * *
    11     (e)  Obligations upon termination of financial
    12  responsibility.--
    13         (1)  An owner of a motor vehicle who ceases to maintain
    14     financial responsibility on a registered vehicle shall not


     1     operate or permit operation of the vehicle in this
     2     Commonwealth until proof of the required financial
     3     responsibility has been provided to the Department of
     4     Transportation.
     5         [(2)  An insurer who has issued a contract of motor
     6     vehicle liability insurance, or any approved self-insurance
     7     entity, shall notify the department in a timely manner and in
     8     a method prescribed by the department's regulations.]
     9         (3)  An insurer who has issued a contract of motor
    10     vehicle liability insurance and knows or has reason to
    11     believe that the contract is only for the purpose of
    12     providing proof of financial responsibility shall notify the
    13     department if the insurance has been canceled or terminated
    14     by the insured or by the insurer. The insurer shall notify
    15     the department not later than ten days following the
    16     effective date of the cancellation or termination.
    17         (4)  A person who, after maintaining financial
    18     responsibility on the vehicle of another person, ceases to
    19     maintain such financial responsibility shall immediately
    20     notify the vehicle's owner who shall not operate, or permit
    21     operation of, the vehicle in this Commonwealth.
    22         (5)  In the case of a person who leases any motor vehicle
    23     from a person engaged in the business of leasing motor
    24     vehicles, the lessee shall sign a statement indicating that
    25     the required financial responsibility has been provided
    26     through the lessor or through the lessee's motor vehicle
    27     liability insurance policy coverage. The lessee shall submit
    28     the statement to the lessor.
    29     (e.1)  Insurer's obligation on issuance of new contract.--An
    30  insurer who issues a contract of motor vehicle liability
    20000H2356B3147                  - 2 -

     1  insurance, or any approved self-insurance entity, shall notify
     2  the department within ten days of the date of the contract. The
     3  department may prescribe the manner of notification by
     4  regulation.
     5     * * *
     6     Section 2.  This act shall take effect in 60 days.
















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