THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY WATERS, BROWN, YOUNGBLOOD, MYERS AND MELIO, JULY 20, 2009

REFERRED TO COMMITTEE ON INSURANCE, JULY 20, 2009  

AN ACT

Amending Title 75 (Vehicles) of the Pennsylvania Consolidated

Statutes, further providing for notice of election of tort

options and for definitions.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 1705(a) of Title 75 of the Pennsylvania

Consolidated Statutes is amended and subsection (f) is amended

by adding a definition to read:

§ 1705.  Election of tort options.

(a)  Financial responsibility requirements.--

(1)  Each insurer, not less than 45 days prior to the

first renewal of a private passenger motor vehicle liability

insurance policy on and after July 1, 1990, shall notify in

writing each named insured of the availability of two

alternatives of full tort insurance and limited tort

insurance described in subsections (c) and (d). The notice

shall be a standardized form adopted by the commissioner and

shall include the following language:

NOTICE TO NAMED INSUREDS

A.  "Limited Right to Sue Tort" Option--The laws of the

Commonwealth of Pennsylvania give you the right to choose

a form of insurance that limits your right and the right

of members of your household to seek financial

compensation for injuries caused by other drivers. Under

this form of insurance, you and other household members

covered under this policy may seek recovery for all

medical and other out-of-pocket expenses, but not for

pain and suffering or other nonmonetary damages unless

the injuries suffered fall within the definition of

"serious injury" as set forth in the policy or unless one

of several other exceptions noted in the policy applies.

The annual premium for basic coverage as required by law

under this "limited right to sue tort" option is $     .

Additional coverages under this option are available at

additional cost.

B.  "Full Right to Sue Tort" Option--The laws of the

Commonwealth of Pennsylvania also give you the right to

choose a form of insurance under which you maintain an

unrestricted right for you and the members of your

household to seek financial compensation for injuries

caused by other drivers. Under this form of insurance,

you and other household members covered under this policy

may seek recovery for all medical and other out-of-pocket

expenses and may also seek financial compensation for

pain and suffering and other nonmonetary damages as a

result of injuries caused by other drivers. The annual

premium for basic coverage as required by law under this

"full right to sue tort" option is $    .

Additional coverages under this option are available at

additional cost.

C.  You may contact your insurance agent, broker or

company to discuss the cost of other coverages.

D.  If you wish to choose the "limited right to sue tort"

option described in paragraph A, you must sign this

notice where indicated below and return it. If you do not

sign and return this notice, you will be considered to

have chosen the "full right to sue tort" coverage as

described in paragraph B and you will be charged the

"full right to sue tort" premium.

I wish to choose the "limited right to sue tort" option

described in paragraph A:

.........................    ...........

Named Insured                Date

E.  If you wish to choose the "full right to sue tort"

option described in paragraph B, you may sign this notice

where indicated below and return it. However, if you do

not sign and return this notice, you will be considered

to have chosen the "full right to sue tort" coverage as

described in paragraph B and you will be charged the

"full right to sue tort" premium.

I wish to choose the "full right to sue tort" option

described in paragraph B:

.........................    ...........

Named Insured                Date

(2)  Insurers shall print the above notice containing

both options on one sheet in prominent type and place in a

prominent location. Any person signing, or otherwise bound

by, a document containing such terms is bound by such

election and is precluded from claiming liability of any

person based upon being inadequately informed in making the

election between full tort or limited tort alternatives.

Where there are two or more named insureds on a policy, any

named insured may make the full or limited tort election

provided for in this section for all named insureds on the

policy.

(3)  If a named insured who receives a notice under

paragraph (1) does not indicate a choice within 20 days, the

insurer shall send a second notice. The second notice shall

be in a form identical to the first notice, except that it

shall be identified as a second and final notice. If a named

insured has not responded to either notice ten days prior to

the renewal date, the named insured and those he is empowered

by this section to bind by his choice are conclusively

presumed to have chosen the full tort alternative. All

notices required by this section shall advise that if no tort

election is made, the named insured and those he is empowered

to bind by his choice are conclusively presumed to have

chosen the full tort alternative. Any person subject to the

limited tort option by virtue of this section shall be

precluded from claiming liability of any person based upon

being inadequately informed.

(4)  Each insurer, prior to the first issuance of a

private passenger motor vehicle liability insurance policy on

and after July 1, 1990, shall provide each applicant with the

notice required by paragraph (1). A policy may not be issued

until the applicant has been provided an opportunity to elect

a tort option.

(5)  An owner of a currently registered private passenger

motor vehicle who does not have financial responsibility

shall be deemed to have chosen the limited tort alternative.

(6)  Nothing in this section changes or modifies the

existing requirement that owners of registered vehicles

maintain bodily injury and property damage liability

insurance arising out of the ownership, maintenance or use of

a motor vehicle.

* * *

(f)  Definitions.--As used in this section, the following

words and phrases when used in this section shall have the

meanings given to them in this subsection unless the context

clearly indicates otherwise:

* * *

"Tort."  The term shall have the same meaning and be

interpreted in the same manner as the term "right to sue."

Section 2.  The amendment of 75 Pa.C.S. § 1705(a)(1) shall

only apply to new private passenger motor vehicle liability

insurance policies applied for and issued after 90 days after

the effective date of this act.

Section 3.  This act shall take effect in 60 days.