PRINTER'S NO. 3365
No. 2473 Session of 2000
INTRODUCED BY ZUG, FRANKEL, NICKOL, BELFANTI, HALUSKA, HARHAI,
HENNESSEY, LUCYK, MAITLAND, MASLAND, SCHRODER, SCRIMENTI,
SHANER, J. TAYLOR AND THOMAS, APRIL 17, 2000
REFERRED TO COMMITTEE ON INSURANCE, APRIL 17, 2000
AN ACT
1 Amending Title 75 (Vehicles) of the Pennsylvania Consolidated
2 Statutes, further defining "financial responsibility"; and
3 further providing for payments sufficient to satisfy
4 judgments, for notice of available benefits and limits and
5 for availability of uninsured, underinsured, bodily injury
6 liability and property damage coverages and mandatory
7 deductibles.
8 The General Assembly of the Commonwealth of Pennsylvania
9 hereby enacts as follows:
10 Section 1. The definition of "financial responsibility" in
11 section 1702 of Title 75 of the Pennsylvania Consolidated
12 Statutes is amended to read:
13 § 1702. Definitions.
14 The following words and phrases when used in this chapter
15 shall have the meanings given to them in this section unless the
16 context clearly indicates otherwise:
17 * * *
18 "Financial responsibility." The ability to respond in
19 damages for liability on account of accidents arising out of the
20 maintenance or use of a motor vehicle in the amount of $15,000
1 because of injury to one person in any one accident, in the
2 amount of $30,000 because of injury to two or more persons in
3 any one accident and in the amount of [$5,000] $10,000 because
4 of damage to property of others in any one accident. The
5 financial responsibility shall be in a form acceptable to the
6 Department of Transportation.
7 * * *
8 Section 2. Sections 1774(a), 1791 and 1792(a) of Title 75
9 are amended to read:
10 § 1774. Payments sufficient to satisfy judgments.
11 (a) General rule.--For the purpose of this chapter only,
12 judgments shall be deemed satisfied upon the occurrence of one
13 of the following:
14 (1) When $15,000 has been credited upon any judgment or
15 judgments rendered in excess of that amount because of injury
16 to one person as the result of any one accident.
17 (2) When $30,000 has been credited upon any judgment or
18 judgments rendered in excess of that amount because of injury
19 to two or more persons as the result of any one accident.
20 (3) When [$5,000] $10,000 has been credited upon any
21 judgment or judgments rendered in excess of that amount
22 because of damage to property of others as the result of any
23 one accident.
24 * * *
25 § 1791. Notice of available benefits and limits.
26 It shall be presumed that the insured has been advised of the
27 benefits and limits available under this chapter provided the
28 following notice in bold print of at least ten-point type is
29 given to the applicant at the time of application for original
30 coverage, and no other notice or rejection shall be required:
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1 IMPORTANT NOTICE
2 Insurance companies operating in the Commonwealth of
3 Pennsylvania are required by law to make available for
4 purchase the following benefits for you, your spouse or
5 other relatives or minors in your custody or in the
6 custody of your relatives, residing in your household,
7 occupants of your motor vehicle or persons struck by your
8 motor vehicle:
9 (1) Medical benefits, up to at least $100,000.
10 (1.1) Extraordinary medical benefits, from $100,000
11 to $1,100,000 which may be offered in increments of
12 $100,000.
13 (2) Income loss benefits, up to at least $2,500 per
14 month up to a maximum benefit of at least $50,000.
15 (3) Accidental death benefits, up to at least
16 $25,000.
17 (4) Funeral benefits, $2,500.
18 (5) As an alternative to paragraphs (1), (2), (3)
19 and (4), a combination benefit, up to at least $177,500
20 of benefits in the aggregate or benefits payable up to
21 three years from the date of the accident, whichever
22 occurs first, subject to a limit on accidental death
23 benefit of up to $25,000 and a limit on funeral benefit
24 of $2,500, provided that nothing contained in this
25 subsection shall be construed to limit, reduce, modify or
26 change the provisions of section 1715(d) (relating to
27 availability of adequate limits).
28 (6) Uninsured, underinsured and bodily injury
29 liability coverage up to at least $100,000 because of
30 injury to one person in any one accident and up to at
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1 least $300,000 because of injury to two or more persons
2 in any one accident or, at the option of the insurer, up
3 to at least $300,000 in a single limit for these
4 coverages, except for policies issued under the Assigned
5 Risk Plan. Also, at least [$5,000] $10,000 for damage to
6 property of others in any one accident.
7 Additionally, insurers may offer higher benefit levels
8 than those enumerated above as well as additional
9 benefits. However, an insured may elect to purchase lower
10 benefit levels than those enumerated above.
11 Your signature on this notice or your payment of any
12 renewal premium evidences your actual knowledge and
13 understanding of the availability of these benefits and
14 limits as well as the benefits and limits you have
15 selected.
16 If you have any questions or you do not understand all of
17 the various options available to you, contact your agent
18 or company.
19 If you do not understand any of the provisions contained
20 in this notice, contact your agent or company before you
21 sign.
22 § 1792. Availability of uninsured, underinsured, bodily injury
23 liability and property damage coverages and mandatory
24 deductibles.
25 (a) Availability of coverages.--Except for policies issued
26 under Subchapter D (relating to Assigned Risk Plan), an insurer
27 issuing a policy of bodily injury liability coverage pursuant to
28 this chapter shall make available for purchase higher limits of
29 uninsured, underinsured and bodily injury liability coverages up
30 to at least $100,000 because of injury to one person in any one
20000H2473B3365 - 4 -
1 accident and up to at least $300,000 because of injury to two or
2 more persons in any one accident or, at the option of the
3 insurer, up to at least $300,000 in a single limit for these
4 coverages. Additionally, an insurer shall make available for
5 purchase at least [$5,000] $10,000 because of damage to property
6 of others in any one accident. However, the exclusion of
7 availability relating to the Assigned Risk Plan shall not apply
8 to damage to property of others in any one accident.
9 * * *
10 Section 3. This act shall take effect in 60 days.
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