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HOUSE AMENDED
PRIOR PRINTER'S NO. 978
PRINTER'S NO. 1467
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
861
Session of
2015
INTRODUCED BY WHITE, SCARNATI, VOGEL, BARTOLOTTA, GORDNER,
ARGALL, YAW, McGARRIGLE, GREENLEAF, DINNIMAN, MENSCH,
RAFFERTY, WARD, HUTCHINSON, ALLOWAY AND BOSCOLA, MAY 29, 2015
AS AMENDED ON SECOND CONSIDERATION, HOUSE OF REPRESENTATIVES,
DECEMBER 10, 2015
AN ACT
Amending Title 75 (Vehicles) of the Pennsylvania Consolidated
Statutes, in miscellaneous provisions, providing for coverage
obligations of loaner vehicles.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Title 75 of the Pennsylvania Consolidated
Statutes is amended by adding a section to read:
ยง 1799.8. Coverage obligations of loaner vehicles.
(a) Private passenger automobile insurance obligations.--An
insurance company authorized to write private passenger
automobile insurance within this Commonwealth shall provide,
where purchased and within the limits of the insured's policy,
primary coverage of third-party financial liability obligations
and first-party physical damage obligations LIABILITY COVERAGE
FOR THIRD-PARTY BODILY INJURY AND PRIMARY FIRST-PARTY PHYSICAL
DAMAGE COVERAGE for a motor vehicle provided by a motor vehicle
dealer, when an insured has custody of or is operating that
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motor vehicle, while a motor vehicle specifically listed or
covered under the insured's motor vehicle insurance policy is
being transported, serviced, repaired or inspected by the motor
vehicle dealer.
(b) Motor vehicle dealer insurance obligations.--When a
motor vehicle dealer or an agent thereof has custody of or is
operating a customer's motor vehicle for the purpose of
transporting, servicing, repairing or inspecting the vehicle,
the motor vehicle dealer shall provide primary coverage of
third-party financial obligations and further provide primary
coverage of first-party physical damage obligations LIABILITY
COVERAGE FOR THIRD-PARTY BODILY INJURY AND PRIMARY FIRST-PARTY
PHYSICAL DAMAGE COVERAGE in the amounts set forth in the
customer's private passenger automobile insurance policy.
(c) Applicability.--This section shall apply only to the
loan of a motor vehicle by a motor vehicle dealer that occurs
without financial remuneration in the form of a fee, rental or
lease charge paid directly by the insured operating the motor
vehicle. Payments made by a third party to a motor vehicle
dealer or similar reimbursements shall not be considered
payments directly from the insured operating the motor vehicle.
(d) Implementation.--A change in the coverage of a private
passenger automobile insurance policy resulting from this
section shall not impact the validity of a waiver, selection of
benefits or amount of benefits in that policy, beyond the
coverage change as a result of this section. Any revised forms
or rates filed by an insurer with the Insurance Department as a
result of this section shall be deemed approved by the
department upon filing.
(e) Definitions.--As used in this section, the term "motor
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vehicle dealer" shall have the same meaning as "dealer" as
defined in section 2 of the act of December 22, 1983 (P.L.306,
No.84), known as the Board of Vehicles Act.
Section 2. This section shall apply to all policies issued
or renewed on or after 180 days after the effective date of this
act.
Section 3. This act shall take effect immediately.
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