PRIOR PRINTER'S NOS. 80, 3452, 3465, PRINTER'S NO. 3557
3482, 3552
No. 69 Session of 1971
Report of the Committee of Conference
To the Members of the Senate and House of Representatives:
We, the undersigned, Committee of Conference on the part of
the Senate and House of Representatives for the purpose of
considering House Bill No. 69, entitled:
"An act amending the act of May 17, 1921 (P.L.789), entitled, as
amended, 'An act relating to insurance; establishing an
insurance department; and amending, revising, and consolidating
the law relating to the licensing, qualification, regulation,
examination, suspension * * * providing penalties, and repealing
existing laws,' providing for a reparation system for persons
injured in motor vehicle accidents; requiring insurance for all
motor vehicles required to be registered in the Commonwealth of
Pennsylvania; * * * modifying the collateral source rule as
applied to motor vehicle accident cases and establishing an
assigned claims plan AND FURTHER ADDING THE DOCTRINE OF <--
COMPARATIVE NEGLIGENCE IN CERTAIN CASES,"
respectfully submit the following bill as our report:
JOSEPH S. AMMERMAN
WILLIAM G. SESLER
EDWIN G. HOLL
(Committee on the part of the Senate.)
JAMES P. RITTER
WILLIAM H. YOHN
(Committee on the part of the House of Representatives.)
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AN ACT
1 Amending the act of May 17, 1921 (P.L.789), entitled, as
2 amended, "An act relating to insurance; establishing an
3 insurance department; and amending, revising, and
4 consolidating the law relating to the licensing,
5 qualification, regulation, examination, suspension, and
6 dissolution of insurance companies, Lloyds associations,
7 reciprocal and inter-insurance exchanges, and certain
8 societies and orders, the examination and regulation of fire
9 insurance rating bureaus, and the licensing and regulation of
10 insurance agents and brokers; the service of legal process
11 upon foreign insurance companies, associations or exchanges;
12 providing penalties, and repealing existing laws," providing
13 for a reparation system for persons injured in motor vehicle
14 accidents; requiring insurance for all motor vehicles
15 required to be registered in the Commonwealth of
16 Pennsylvania; defining the elements of compensable damage in
17 motor vehicle accident cases; prohibiting certain
18 cancellation and discrimination; modifying the collateral
19 source rule as applied to motor vehicle accident cases;
20 establishing an assigned claims plan and adding the doctrine
21 of comparative negligence in certain cases.
22 The General Assembly of the Commonwealth of Pennsylvania
23 hereby enacts as follows:
24 Section 1. The act of May 17, 1921 (P.L.789), known as "The
25 Insurance Department Act of one thousand nine hundred and
26 twenty-one," is amended by adding an article to read:
27 ARTICLE VIII
28 Pennsylvania Motorists Compensation Plan
29 Section 801. Legislative Purpose.--The purposes of this act
30 are:
31 (a) To provide prompt payment of benefits on account of
32 basic economic loss to victims of motor vehicle accidents within
33 the Commonwealth without regard to fault by requiring the owners
34 of all motor vehicles which are required to be registered or
35 permitted to be operated in the Commonwealth to procure first
36 party insurance or to provide its equivalent and by providing an
37 assigned claims plan for the benefit of persons injured in motor
38 vehicle accidents in Pennsylvania in the absence of insurance.
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1 (b) To require owners of motor vehicles which are required
2 to be registered or permitted to be operated within this
3 Commonwealth to maintain insurance against loss from liability
4 imposed by law for damage arising out of the ownership,
5 maintenance or use of motor vehicles.
6 (c) To redefine the rules respecting damages recoverable on
7 account of bodily injury arising out of the operation,
8 maintenance, or use of a motor vehicle so as to permit recovery
9 for pain, suffering and other nonpecuniary damages only in those
10 cases where, because of serious injury, their determination is
11 reasonable and appropriate and the societal costs engendered are
12 not disproportionate.
13 (d) To reduce court congestion and to relieve courts of the
14 present burden of handling motor vehicle accident litigation in
15 nonserious cases.
16 (e) To create an efficient and well regulated motor vehicle
17 insurance system and to foster the continued availability of
18 motor vehicle insurance at reasonable rates.
19 Section 802. Definitions.--As used in this article:
20 (1) "Earnings" means
21 (i) Salary, wages, tips, commissions, professional fees;
22 (ii) Net profit from tangible goods or products of economic
23 value produced in individually owned businesses or farms or the
24 reasonable value of the services necessary to produce the goods
25 or products; and
26 (iii) Other earnings derived from the performance of work.
27 (2) "Income producer" means a person who but for the motor
28 vehicle accident causing injury or death would be producing
29 earnings; or a person who at the time of the accident is
30 temporarily not producing earnings but who, nevertheless, proves
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1 through a history or a pattern of previous production of
2 earnings or by the existence of a bona fide offer of employment
3 or otherwise that a reasonable probability exists that, but for
4 the accident, he would be producing earnings.
5 (3) "Insurance" means the insurance required by this act to
6 be provided with respect to any motor vehicle:
7 (i) Under a policy issued by an insurer; or
8 (ii) Under any other method approved by the Department of
9 Transportation or the Public Utility Commission as affording
10 security equivalent to that afforded by a policy of insurance,
11 provided proof of security is filed and continuously maintained
12 with the Department of Transportation or the Public Utility
13 Commission throughout the registration period. The person filing
14 security shall have all of the obligations and rights of an
15 insurer under this act.
16 Any policy of liability insurance covering a motor vehicle
17 registered in this Commonwealth or any policy of insurance
18 purporting to satisfy the requirements of this act shall be
19 deemed to provide insurance at least as extensive as the minimum
20 coverages required by this act.
21 (4) "Insurer" means any insurance company, association or
22 exchange which is authorized to write and is engaged in writing
23 within this Commonwealth, on a direct basis, insurance coverages
24 required in clauses (a) and (b) of section 803 of this act.
25 (5) "Insured motor vehicle" means any motor vehicle with
26 respect to which the insurance set forth in clauses (a) and (b)
27 of section 803 hereof is in effect.
28 (6) "Motor vehicle" means any vehicle driven or drawn by
29 electrical or mechanical power manufactured primarily for use on
30 the public streets, roads and highways, except any vehicle
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1 operated exclusively on a rail or rails.
2 (7) "Motor vehicle accident" means an accident arising out
3 of the operation, maintenance or use of a motor vehicle as a
4 vehicle; the phrase does not include an accident occurring on
5 business premises in the course of the business of repairing,
6 servicing or otherwise maintaining motor vehicles.
7 (8) "Named insured" means a person, identified in a policy
8 by name as the insured under the policy.
9 (9) "Occupying" means to be in or upon or entering into or
10 alighting from a motor vehicle.
11 (10) "Owner" means the person in whose name the motor
12 vehicle is registered in this Commonwealth; and if no
13 registration is in effect at the time of the motor vehicle
14 accident, the term means a person, other than a lienholder or
15 secured party, having the property in or title to a motor
16 vehicle, including a person entitled to the use and possession
17 of a motor vehicle subject to a security interest in another
18 person, but excluding a lessee under a lease not intended as
19 security.
20 (11) "Person" means any individual, partnership,
21 corporation, association, trust, syndicate, or other entity.
22 (12) "Relative resident in the household" means with respect
23 to an insured one who is related to the insured by blood,
24 marriage or adoption who makes his home in the same family unit
25 even though temporarily living elsewhere.
26 Section 803. Owners of Motor Vehicles Required to Maintain
27 Insurance.--The owner of a motor vehicle required to be
28 registered in this Commonwealth shall maintain in effect
29 continuously throughout the registration period, and shall
30 provide evidence thereof in a form and for such length of time
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1 as shall be approved by the Secretary of Transportation and the
2 Insurance Commissioner upon initial registration and each change
3 of ownership of the motor vehicle and to an official
4 Pennsylvania motor vehicle inspection station upon each required
5 inspection of the motor vehicle, and the owner of a motor
6 vehicle who operates it within this Commonwealth or permits it
7 to be operated within this Commonwealth shall maintain in effect
8 continuously during the period of operation within this
9 Commonwealth, insurance providing:
10 (a) For the payment of sums which the owner and any person
11 operating the motor vehicle with the permission express or
12 implied of the owner shall become liable to pay as damages
13 because of bodily injury to or death of any person or
14 destruction of property of others arising out of the ownership,
15 maintenance or use of the motor vehicle within the territorial
16 limits of the United States or Canada in the amount required
17 under the financial responsibility laws of any jurisdiction
18 whose law is applicable to the occurrence and, with respect to
19 accidents occurring within the Commonwealth, in the amount of
20 fifteen thousand dollars ($15,000), because of bodily injury to
21 or death of any one person in any one accident and, subject to
22 said limit for any one person, up to an amount of thirty
23 thousand dollars ($30,000), because of bodily injury to or death
24 of two or more persons in any one accident, and in the amount of
25 five thousand dollars ($5,000), because of injury to or
26 destruction of property in any one accident: Provided, however,
27 That said limits shall not be less than the limits of liability
28 required for the same insurance under Article XIV of the act of
29 April 29, 1959 (P.L.58), known as "The Vehicle Code," or under
30 any amendments thereof.
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1 (b) For the payment of basic economic loss benefits as
2 required by section 804 of this act on account of:
3 (1) Bodily injury to or death of any person as the result of
4 a motor vehicle accident occurring within this Commonwealth
5 involving the motor vehicle other than bodily injury to or death
6 of the occupant of another motor vehicle: Provided, That a claim
7 by a person who is not an occupant of a motor vehicle involved
8 in the accident shall be made first against the insurer of the
9 vehicle with which he comes into direct physical contact or
10 which causes him to be injured and proof of loss filed against
11 any insurer liable to pay benefits with respect to the accident
12 shall constitute an election and a bar to any claim for basic
13 economic loss benefits against any other insurer with respect to
14 the same accident.
15 (2) Bodily injury to or death of
16 (i) the named insured or any relative resident in the
17 household of the named insured who is not himself the owner of a
18 motor vehicle with respect to which insurance is required under
19 this act as the result of a motor vehicle accident occurring
20 within the Commonwealth in the event there is no insurance as
21 required by section 804 applicable to the injury or no insurance
22 can be identified;
23 (ii) the named insured and any relative resident in the
24 household of the named insured who is not himself the owner of a
25 motor vehicle with respect to which insurance is required under
26 this act as the result of a motor vehicle accident occurring
27 outside the Commonwealth; or
28 (iii) any other person injured while occupying the insured
29 motor vehicle as the result of a motor vehicle accident
30 occurring outside the Commonwealth of Pennsylvania unless that
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1 person is himself the owner or a resident in the household of
2 the owner of a motor vehicle with respect to which insurance is
3 required under this act: Provided, however, That any benefits
4 payable under paragraphs (ii) and (iii) shall be reduced to the
5 extent of any similar benefits collectible with respect to the
6 injury under the laws of any other state; and no benefits shall
7 be payable under paragraphs (i) and (ii) with respect to bodily
8 injury of a named insured or of a relative in the household of
9 the named insured sustained while operating or occupying a motor
10 vehicle owned by the named insured unless such motor vehicle is
11 an insured motor vehicle in the policy under which benefits are
12 claimed.
13 Section 804. Policy Provisions.--(a) Insurance required by
14 clause (b) of section 803 of this act shall provide for the
15 payment of basic economic loss benefits, subject to an overall
16 limitation of ten thousand dollars ($10,000) per person, defined
17 as:
18 (1) Reasonable expenses for necessary medical, hospital,
19 ambulance, surgical, x-ray, dental and prosthetic services and
20 supplies including physical and occupational rehabilitation and
21 professional nursing care but not including that portion of any
22 charge for accommodations in any hospital, convalescent or
23 nursing home in excess of the reasonable and customary charge
24 for semi-private accommodations unless intensive care or other
25 accommodations are medically required.
26 (2) For each week of disability prior to death eighty-five
27 per cent of the net loss of earnings or the net loss of probable
28 earnings of an income producer and in the event of the death of
29 the income producer for each week following death one hundred
30 per cent of the net loss of support to dependent persons,
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1 subject to a weekly limit of one hundred seventy-five dollars
2 ($175) per week payable under this paragraph on account of
3 disability or death and subject to an overall combined limit
4 payable on account of disability and death of any one person of
5 nine thousand one hundred dollars ($9,100). Net loss of earnings
6 or the net loss of probable earnings shall be the weekly
7 earnings prior to disability or probable loss of earnings
8 reduced by any earnings obtained or obtainable from work or
9 substitute work during the period of disability and, in the case
10 of loss of unemployment compensation benefits due to disability
11 arising out of a motor vehicle accident, the net loss of
12 earnings shall be deemed to include an amount equivalent to any
13 such unemployment compensation benefits lost as a result of such
14 disability. In the case of a seasonal or irregular worker, the
15 weekly limit shall be equitably adjusted or apportioned on an
16 annual basis. "Dependent person" for the purposes of this
17 paragraph shall, in addition to a husband or wife, include only
18 a child or parent of the deceased who immediately prior to the
19 accident causing death was dependent for thirty-five per cent or
20 more of his support upon the earnings of the deceased.
21 (3) The expenses reasonably incurred in obtaining ordinary
22 and necessary services in lieu of those that the injured person
23 would have performed, not for income, but for the benefit of
24 himself or his family, had he not been injured subject, however,
25 to a daily maximum of twenty-five dollars ($25), for an
26 aggregate period of three hundred sixty-five days.
27 (4) Reasonable and necessary funeral and burial expenses not
28 exceeding one thousand five hundred dollars ($1,500).
29 (b) Basic economic loss benefits hereinabove provided are
30 payable to or for the benefit of the injured person or, to the
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1 person who incurs the loss or expense. If an insurer in good
2 faith pays benefits or expenses to a person it believes is
3 entitled to payment, the payment shall discharge the insurer's
4 liability to the extent of the payment unless the insurer has
5 been notified in writing of the claim of some other person. In
6 the event of the death of an injured person, in the absence of a
7 court order directing payments, benefits may be paid to
8 dependents of the deceased without the appointment of an
9 administrator or executor.
10 Benefits shall be overdue if not paid within thirty days
11 after the insurer receives reasonable proof of the fact and
12 amount of loss or expense realized, except that an insurer may
13 accumulate claims for periods not exceeding one month, and
14 benefits are not overdue if paid within fifteen days after the
15 period of accumulation. If reasonable proof is supplied as to
16 only part of a claim, and the part totals one hundred dollars
17 ($100), or more, the part is overdue if not paid within the time
18 provided by this section. Payments may not be anticipated or
19 assigned except that covered expenses may be paid by the insurer
20 directly to persons supplying products, services or
21 accommodations to the claimant. Overdue payments bear interest
22 at the rate of eighteen per cent per annum.
23 (c) Insurance required by clause (b) of section 803 shall
24 not apply to bodily injury suffered by a person while
25 intentionally causing or attempting to cause injury to himself
26 or another unless the act causing injury is for the purpose of
27 averting harm to himself or another person. Insurance may be
28 made subject to additional limitations excluding benefits with
29 respect to bodily injury arising out of the injured person's
30 operation or use of the motor vehicle:
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1 (1) In the course of the commission of a felony or in an
2 attempt to elude lawful apprehension or arrest;
3 (2) While under the influence of any intoxicating liquor or
4 drug when the condition was a proximate cause of the injury;
5 (3) Without a valid driver's license or while his driver's
6 license or driving privilege has been suspended or revoked
7 unless the violation is due to delay or mistake in the
8 administration of any governmental authority;
9 (4) While engaging in any prearranged motor vehicle race,
10 speed exhibition or any other speed contest including those
11 commonly known as "drag races"; or
12 (5) With knowledge that it is being operated without
13 permission, express or implied, of the owner.
14 (d) Insurance required by clause (b) of section 803 may be
15 made subject to conditions:
16 (1) Providing that no action for the recovery of benefits
17 may be commenced more than two years from the date of the motor
18 vehicle accident causing the injury unless written notice of
19 injury has been given to the insurer, within such period, by or
20 on behalf of the person claiming benefits or unless the insurer
21 has previously made payment of benefits for the injury; and
22 providing that if notice has been given or payment made, the
23 action may be commenced at any time within a period of two years
24 after the most recent allowable expense or loss for which
25 benefits are payable have been incurred and providing that the
26 claimant may not recover benefits for any portion of the loss
27 incurred more than two years prior to the date action is
28 commenced.
29 (2) Providing that benefits, either with respect to a claim
30 for a limited period of time or with respect to all future loss
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1 arising from an accidental bodily injury, may be discharged by
2 (i) lump-sum settlement if the reasonably anticipated loss
3 which is the subject of the settlement does not exceed one
4 thousand dollars ($1,000); or (ii) settlement, in case of
5 reasonably anticipated loss of larger sums, with judicial
6 approval upon a finding that the settlement will contribute
7 substantially to the welfare or rehabilitation of the injured
8 person or his dependent.
9 (3) Requiring as a condition to the payment of benefits
10 reasonable proof of claim which may include a requirement of
11 physical or mental examination by a physician of the person
12 suffering bodily injury.
13 (4) Providing, if requested by the insured, for a deductible
14 up to two hundred fifty dollars ($250) per person applicable to
15 benefits under subclause (1) of clause (a) of section 804 which
16 may be payable on account of injury to the named insured or his
17 or her spouse resident in his household such deductible to be
18 provided by insurers pursuant to a plan filed with and approved
19 by the Insurance Commissioner.
20 (5) Providing, if requested by the named insured, with
21 respect to benefits payable under subclause (2) of clause (a) of
22 section 804 on account of injury to the named insured or his
23 spouse resident in his or her household for any one or more of
24 the following limitations approved by the Insurance
25 Commissioner: (i) a waiting period following the accident which
26 causes injury before commencement of any entitlement to weekly
27 benefits, (ii) a reduction in the weekly benefit for loss of
28 earnings to sixty-five per cent of such loss accrued after the
29 waiting period up to a maximum of one hundred thirty dollars
30 ($130) per week and a reduction in the weekly benefit for loss
19710H0069B3557 - 12 -
1 of support to sixty-five per cent of such loss accrued after the
2 waiting period up to a maximum of one hundred thirty dollars
3 ($130) per week, and (iii) a reduction in the overall combined
4 limit on all benefits payable on account of disability and death
5 of any one person to not less than six thousand seven hundred
6 sixty dollars ($6,760) such limitations to be provided by
7 insurers pursuant to a plan filed with and approved by the
8 Insurance Commissioner.
9 Section 805. Duplicate Benefits.--(a) In calculating the
10 amount of the benefits payable under clause (b) of section 803
11 of this act, all benefits a person receives, or is entitled to
12 receive, because of injury from: (i) workmen's compensation,
13 (ii) unemployment compensation, (iii) disability benefits under
14 the Federal Old-Age Survivors and Disability Benefits Insurance
15 Law, or (iv) hospital insurance benefits for the aged or
16 supplementary medical insurance benefits for the aged under the
17 Federal Health Insurance For The Aged Act of 1965 are hereby
18 subtracted: Provided, That no subtraction shall be made for
19 benefits described in subsection (iv) of this clause to the
20 extent that a person's entitlement to such benefits is based
21 upon use of his so-called "life-time reserve" of benefits days.
22 (b) Every insurance company or other organization (including
23 any organization formed under the Nonprofit Hospital Plan Act of
24 June 21, 1937, (P.L. 1948), the Nonprofit Medical, Osteopathic,
25 Dental and Podiatry Service Corporation Act of June 27, 1939
26 (P.L.1125) or the Nonprofit Dental Service Corporation Act of
27 December 9, 1955 (P.L.819) or formed under any reenactment of
28 any of the foregoing acts) authorized to transact or transacting
29 an insurance or prepaid health care business in this
30 Commonwealth which issues or renews after the expiration of one
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1 year from the effective date of this act an individual or group
2 policy of insurance or contract providing insurance benefits or
3 prepaid health care as a result of injury, except life insurance
4 policies and motor vehicle insurance policies issued pursuant to
5 this act, shall exclude in any such policy or contract benefits
6 and services to the extent basic economic loss benefits payable
7 under this act. This clause does not preclude the issuance of a
8 group motor vehicle insurance policy providing basic economic
9 loss benefits in accordance with this act combined with
10 additional coverages.
11 Section 806. Subrogation; Arbitration.--(a) Any insurer
12 which has paid benefits pursuant to clause (b) of section 803
13 shall to the extent of its payments and its liability for future
14 payments, up to a maximum of ten thousand dollars ($10,000) in
15 benefits for injury to or death of any one person and thirty
16 thousand dollars ($30,000) in benefits for injury to or death of
17 two or more persons as the result of any one accident, be
18 subrogated to the rights of the injured or deceased or dependent
19 person to or for whom benefits are paid against any other
20 person, including that person's liability insurer, for breach of
21 duty or obligation causing the injury or death. The injured
22 person and persons receiving benefits shall execute and deliver
23 instruments and papers and do whatever else is necessary to
24 secure such rights. The injured person shall do nothing after
25 loss to prejudice such rights.
26 (b) Whenever an insurer has a right of subrogation pursuant
27 to clause (a) of this section, any recovery in tort attributable
28 to benefits which have been paid shall be paid to the insurer
29 and any recovery attributable to the insurer's liability for
30 future benefits will be paid to the insurer's subrogee and will
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1 be credited against any benefits then payable or thereafter
2 accruing.
3 (c) Whenever a subrogation claim is made pursuant to this
4 section against a person insured under a policy of motor vehicle
5 liability insurance issued pursuant to clause (a) of section 803
6 of this act, all issues arising between insurers including the
7 issue of the person's legal liability to pay damages and all
8 issues arising under the insurance contracts shall be determined
9 between such insurers by arbitration in accordance with a plan
10 to be established among all insurers subject to this act
11 approved by the Insurance Commissioner.
12 Section 807. Insurer's Arbitrary Denial of Claims.--In any
13 suit before a court of record to enforce a claim for economic
14 loss benefits as defined in this act a person may be allowed an
15 award of a reasonable sum for attorneys' fees and all reasonable
16 costs of suit to enforce any claim which has been denied by an
17 insurer without reasonable foundation.
18 Section 808. Fraudulent or Excessive Claims.--In any suit
19 before a court of record to enforce a claim for economic loss
20 benefits as defined in this act a defendant may be allowed an
21 award of a reasonable sum for attorneys' fees and all reasonable
22 costs of suit for its defense where the claim was fraudulent or
23 so excessive as to have no reasonable foundation, and the
24 attorneys' fees and all reasonable costs of suit so awarded may
25 be treated as an offset against any benefits due, or to become
26 due, to the claimant or may be entered as a judgment against
27 him.
28 Section 809. Discovery.--(a) Upon request of an insurer or
29 claimant, information relevant to a claim for benefits against
30 the insurer under clause (a) of section 803 or section 812 of
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1 this act shall be disclosed as follows:
2 (1) An employer shall furnish a statement of the work record
3 and earnings of an employe upon whose injury the claim is based.
4 The statement shall cover the period specified by the claimant
5 or insurer making the request and may include a reasonable
6 period before and the entire period after the injury.
7 (2) A person upon whose injury claim is based shall deliver
8 to the insurer every written report available to him concerning
9 any medical treatment, previously or thereafter made, connected
10 to the injury, the names and addresses of physicians and medical
11 care facilities rendering diagnoses or treatment in regard to
12 the injury or to a relevant past injury, and shall authorize the
13 insurer to inspect and copy records of physicians, hospitals,
14 clinics or other medical institutions connected with the injury.
15 (3) A physician, hospital, clinic or other medical
16 institution furnishing services or accommodations to an injured
17 person in connection with a condition alleged to be connected
18 with an injury upon which a claim is based, upon authorization
19 of the injured person, shall furnish a written report of the
20 history, condition, diagnoses, medical tests, treatment, and
21 dates and costs of treatment of the injured person, and permit
22 inspection and copying of records as to the history, condition,
23 treatment, and dates and cost of treatment.
24 (b) Any person other than the claimant providing information
25 under this section may charge the person requesting the
26 information a reasonable amount for the cost of providing it.
27 (c) In case of dispute as to the right of a claimant or
28 insurer to discover information required to be disclosed, the
29 claimant or insurer may petition the court for an order for
30 discovery including the right to take written or oral
19710H0069B3557 - 16 -
1 depositions. The order may be made only for good cause shown and
2 upon notice to all persons having an interest and it shall
3 specify the time, place, manner, conditions and scope of the
4 discovery. The court, in order to protect against annoyance,
5 embarrassment, or oppression, may enter an order refusing
6 discovery or specifying conditions of discovery and order
7 payment of costs and expenses of the proceeding, including
8 reasonable attorneys' fees.
9 Section 810. Rules Respecting Damages Recoverable in Motor
10 Vehicle Cases.--(a) In an action for damages against an owner,
11 operator, occupant or other person legally responsible for the
12 operation, maintenance, or use of a motor vehicle, including an
13 action for damages for wrongful death and including any action
14 which survives death, no person may plead or introduce into
15 evidence and no damages shall be recoverable on account of any
16 loss or expense for which benefits are paid or payable under
17 clause (b) of section 803 or under section 812 of this act or
18 which would have been payable thereunder but for (i) the failure
19 of the injured person to claim such benefits, or (ii) the
20 application of any deductible or reduced coverage option
21 purchased by the insured, or (iii) an exclusion of coverage
22 under either clause (c) of section 804 or clause (c) of section
23 812. Nothing in this section shall be construed to preclude
24 recovery of such damages in either of the following cases:
25 (1) An action based on the right to reimbursement of an
26 insurer instituted or maintained pursuant to section 806 of this
27 act; or
28 (2) An action in cases where the injured party establishes
29 that the defendant failed to provide the coverage for the
30 benefit of the injured party as required by the provisions of
19710H0069B3557 - 17 -
1 section 803 of this act.
2 (b) No damages for pain, suffering, inconvenience, physical
3 impairment, loss of consortium or other nonpecuniary loss shall
4 be recoverable in any action against an owner, operator,
5 occupant, or other person legally responsible for the operation,
6 maintenance or use of a motor vehicle for injury sustained in a
7 motor vehicle accident occurring within the Commonwealth of
8 Pennsylvania or as to which the law of Pennsylvania as to
9 damages is applicable, unless:
10 (1) Medical treatment expenses, whether or not covered by
11 insurance required by clause (b) of section 803, exceed one
12 thousand dollars ($1,000). For the purposes of this section
13 "medical treatment expenses" are defined as the reasonable value
14 of services rendered for necessary medical, hospital, dental,
15 surgical, ambulance and professional nursing services, but
16 excluding diagnostic x-ray services and rehabilitation expenses
17 in excess of two hundred fifty dollars ($250). Such medical
18 treatment expenses may be proved in pre-trial proceedings
19 conducted solely for the purpose of establishing the right to
20 claim under this clause; or
21 (2) Bodily injury results in a permanent significant loss of
22 an important body function: Provided, however, That the loss
23 need not affect earnings or earning power: And provided further,
24 That any injury which continues to be a significant loss of an
25 important body function for a period of two years or longer
26 shall be conclusively presumed to be permanent; or
27 (3) Bodily injury results in cosmetic disfigurement which is
28 permanent and severe; or
29 (4) Bodily injury results in death.
30 Section 811. Minimum Insurance; Conditions; Exclusions;
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1 Additions.--The coverage described in clauses (a) and (b) of
2 section 803 of this act may be made subject to conditions and
3 exclusions customary to the field of casualty insurance and not
4 inconsistent with the requirements of this act. Nothing in this
5 act shall be construed to prohibit the issuance of insurance
6 coverages more extensive than the minimum coverages required by
7 clauses (a) and (b) of section 803 of this act nor to require
8 the segregation of such minimum coverages from other coverages
9 in the same policy.
10 Section 812. Assigned Claims Plan.--(a) Insurers authorized
11 in this Commonwealth to write insurance required by clause (b)
12 of section 803 of this act and self-insurers providing security
13 in lieu of insurance shall, subject to approval and regulation
14 by the Insurance Commissioner, organize and maintain and shall
15 participate in an assigned claims bureau and an assigned claims
16 plan and formulate and from time to time amend rules and
17 regulations for their operation and assessment of costs on a
18 fair and equitable basis consistent with the provisions of this
19 act. In default of the organization and continued maintenance of
20 an assigned claims bureau and assigned claims plan, the
21 Insurance Commissioner shall organize and maintain a bureau and
22 plan.
23 (b) A claim for the benefits described in clause (b) of
24 section 803 of this act may be made to the assigned claims plan
25 established pursuant to this act on account of bodily injury to
26 any person arising out of a motor vehicle accident occurring in
27 the Commonwealth if:
28 (1) No insurance is applicable to the injury; or
29 (2) No insurance applicable to the injury can be identified;
30 or
19710H0069B3557 - 19 -
1 (3) The only identifiable insurance applicable to the injury
2 is, because of the financial inability of a self-insurer to
3 fulfill its obligations, inadequate to provide benefits up to
4 the maximum prescribed. In the latter case the insurer or self-
5 insurer to which the claim is assigned, or the bureau of
6 assigned claims if the claim is assigned to it, is entitled to
7 reimbursement from the defaulting self-insurer.
8 (c) No payment under this assigned claims plan may be made
9 with respect to a bodily injury to a person if the bodily injury
10 arises out of the injured person's operation or use of a motor
11 vehicle under any of the circumstances described in clause (c)
12 of section 804 of this act. No payment under this assigned claim
13 plan shall be made to any person or his or her spouse resident
14 in his household if at the time of the accident he is the owner
15 or registrant of a motor vehicle required by this act to be an
16 insured motor vehicle.
17 (d) A person claiming through the assigned claims plan shall
18 notify the bureau of his claim within the time that would have
19 been allowed for filing an action for insurance benefits had
20 there been in effect identifiable coverage applicable to the
21 claim. If timely action for benefits is commenced against a
22 self-insurer which, because of financial inability, is unable to
23 fulfill its obligation, a claim through the assigned claims plan
24 may be made within a reasonable time after discovery of
25 financial inability. The bureau shall promptly assign the claim
26 in accordance with the plan and notify the claimant of the
27 identity and address of the insurer or self-insurer to which the
28 claim is assigned (or of the bureau if the claim is assigned to
29 it). No action by the claimant shall be commenced later than
30 ninety days after receipt of notice of the assignment or the
19710H0069B3557 - 20 -
1 last date on which the action could otherwise have been
2 commenced, whichever is later.
3 (e) The assignment of claims shall be made according to
4 rules and regulations that assure fair allocation of the burden
5 of assigned claims among insurers and self-insurers doing
6 business in the Commonwealth. Insurers and self-insurers to whom
7 claims have been assigned or the bureau if a claim is assigned
8 to it shall have all rights and obligations as if it had issued
9 a policy of insurance in compliance with clause (b) of section
10 803 of this act and shall thereupon be entitled to reimbursement
11 by the bureau for its payments and established loss adjustment
12 costs. The insurer or self-insurer to whom a claim is assigned
13 or the bureau shall preserve and enforce all rights to indemnity
14 or reimbursement against any insurer, self-insurer or third
15 party legally obligated to pay the claim.
16 (f) Losses paid, the cost of adjusting losses and costs
17 incurred in the operation of the bureau shall be assessed
18 against insurers or self-insurers according to rules and
19 regulations that assure fair allocation among insurers or self-
20 insurers.
21 (g) All reasonable costs incurred in the handling and
22 disposition of assigned claims (including amounts paid pursuant
23 to assessments under clause (f) hereof) shall be taken into
24 account in making and regulating rates for insurance under
25 clause (b) of section 803 of this act.
26 (h) The insurer or self-insurer to whom a claim is assigned
27 and who pays benefits for bodily injury resulting from a motor
28 vehicle accident involving a motor vehicle which is not an
29 insured motor vehicle to a person occupying or being struck by
30 an uninsured motor vehicle shall be entitled to recover all
19710H0069B3557 - 21 -
1 benefits paid and appropriate loss adjustment costs incurred
2 from the owner or registrant of the motor vehicle or from his
3 estate if the failure to provide insurance constituted a
4 violation of this act. The failure of such person to make
5 payment within thirty days after demand shall be grounds for
6 suspension or revocation of his motor vehicle registration and
7 operator's license which suspension shall continue until such
8 time as the insurer or self-insurer receives payment in full.
9 An uninsured motor vehicle for the purposes of this clause is
10 a motor vehicle with respect to which security as required by
11 clause (b) of section 805 of this act is not in effect at the
12 time of the accident.
13 Section 812.1. Discrimination Prohibited.--There shall be no
14 discrimination by insurers in eligibility rules and underwriting
15 practices by reason of race, religion, nationality or ethnic
16 group, age, sex or occupational ground by insurance companies.
17 Section 813. Penalty.--Any owner of a motor vehicle who
18 operates his motor vehicle or permits it to be operated upon a
19 public highway in this Commonwealth without having in full force
20 and effect the minimum insurance coverage required by this act
21 is guilty of a misdemeanor. Any other person who operates a
22 motor vehicle upon a public highway in this Commonwealth with
23 the knowledge that the owner does not have minimum insurance in
24 full force and effect is guilty of a misdemeanor. Any person
25 convicted of a misdemeanor under the terms of this section shall
26 have his license and, if an owner, his registration revoked and
27 may be fined not less than one hundred dollars ($100) nor more
28 than one thousand five hundred dollars ($1,500) or may be
29 imprisoned for not more than one year or both. The revocation of
30 license or motor vehicle registration pursuant to this section
19710H0069B3557 - 22 -
1 shall continue for a period of six months and until evidence of
2 the insurance required by this act is supplied, and, if
3 applicable, the provisions of Article XIV of The Vehicle Code
4 have been fully satisfied.
5 Section 814. Severability.--If any provision of this act or
6 the application thereof to any person or circumstance is held
7 invalid, such invalidity does not affect other provisions or
8 applications of this act which can be given effect without the
9 invalid application or provision, and to this end the provisions
10 of this act are declared to be severable. However, clause (b) of
11 section 810 of this act is expressly made inseverable.
12 Section 815. Filing of Rates and Forms.--All insurers
13 licensed in this Commonwealth and desiring to qualify to write
14 insurance applicable to motor vehicle accidents subsequent to
15 the effective date of this act, shall, as a condition of
16 qualifications, prepare and file policy forms and insurance
17 rates for coverages effected by this act. Such policy forms and
18 rates shall be filed with the office of the Insurance
19 Commissioner of this Commonwealth on or before March 1, 1973.
20 Section 816. Agreements for Apportionment of Automobile
21 Insurance; Mandatory Participation.--Each company authorized to
22 write any kind or kinds of automobile insurance with respect to
23 which there has been an agreement submitted to and approved by
24 the commissioner for the apportionment among insurers
25 transacting such insurance of applicants who are in good faith
26 entitled to but are unable to procure such insurance through
27 ordinary methods shall, as a condition of obtaining and
28 continuing its authority to transact any such kind or kinds of
29 automobile insurance, subscribe to such agreements and shall
30 participate in such agreements in accordance with and to the
19710H0069B3557 - 23 -
1 extent required by its provisions.
2 Section 817. Insurer's Certification Respecting Out-of-state
3 Insureds.--Every insurer authorized to write motor vehicle
4 insurance in this Commonwealth shall file with the commissioner
5 and maintain a written certification and shall be conclusively
6 presumed to have agreed as a condition of receiving such
7 authorization that its insureds with respect to motor vehicle
8 insurance, wherever such insurance was issued, who are involved
9 in a motor vehicle accident occurring within this Commonwealth
10 shall be accorded benefits and coverage equivalent to that
11 required in clause (b) of section 803 of this act for such
12 accidents. Absent a specific agreement to the contrary between
13 the insured and the insurer, the insured shall be presumed to
14 have chosen none of the deductibles or options set forth in
15 subsection (d) of section 804 of this article. All policies of
16 insurance which are made subject to such certifications shall be
17 considered policies of insurance meeting the requirements of
18 clause (b) of section 803 of this article, even though such
19 policies need not provide comparable benefits or coverages with
20 respect to motor vehicle accidents occurring outside the
21 Commonwealth of Pennsylvania. Insurers not authorized to write
22 motor vehicle insurance in this Commonwealth may voluntarily
23 file certificates with the commissioner in the same form as
24 those provided for authorized insurers and with like effect.
25 Insurers writing motor vehicle liability insurance with respect
26 to accidents occurring within this Commonwealth shall be deemed
27 to have provided at least the minimum coverage required in
28 clause (b) of section 803 of this article, and absent any
29 specific agreement to the contrary, the insured shall be
30 presumed to have chosen none of the options set forth in
19710H0069B3557 - 24 -
1 subsection (d) of section 804.
2 Section 818. Reduction in Rates.--The rates filed by any
3 company pursuant to the provisions of section 815 of this act
4 for insurance against bodily injury liability to the limits
5 required in subsection (a) of section 803 of this act, together
6 with insurance for the payment of basic economic loss benefits
7 required in subsection (b) of section 803 shall not exceed
8 eighty-five per cent of the rates for bodily injury liability
9 insurance for the same limits approved for the company and in
10 effect on the date of approval of this act. These rates shall be
11 in conformity with the act of June 11, 1947 (P.L.538), known as
12 "The Casualty and Surety Rate Regulatory Act."
13 Section 819. Construction in Action Involving Defective
14 Product.--Nothing in this act shall be construed as limiting the
15 right to recover damages for pain and suffering, inconvenience,
16 physical impairment, loss of consortium, or other nonpecuniary
17 loss against a manufacturer or person in the business of
18 supplying, servicing, repairing, inspecting or selling motor
19 vehicles or motor vehicle products for such loss which arises
20 out of the design, manufacture, equipment, servicing, repairing,
21 inspecting, selling or supply of such motor vehicles or motor
22 vehicle products.
23 Section 820. Collision Insurance.--The insurer shall offer
24 to the owner of a motor vehicle who shall have the option of
25 maintaining, in addition to the insurance required by section
26 803, insurance for payment of damage to the insured motor
27 vehicle subject to any deductible sum in multiples of one
28 hundred dollars ($100) requested by the insured: Provided,
29 however, That in all cases the deductible shall be at least one
30 hundred dollars ($100).
19710H0069B3557 - 25 -
1 In the event of damage to the insured motor vehicle in excess
2 of the deductible sum provided in the insurance, the insurer
3 shall pay to the insured the entire amount of damage without
4 deduction for the deductible sum provided in the insurance where
5 a person other than the operator of the insured motor vehicle
6 negligently caused the damage and has valid insurance required
7 by this act, and the owner and operator, if any, of the insured
8 motor vehicle are free of negligence. Upon making such payment,
9 the insurer shall have the same rights as other insurers under
10 the provisions of this act for the recovery of such payment.
11 Section 821. Comparative Negligence Rule.--(a) Contributory
12 negligence shall not bar recovery in any action by any person or
13 his legal representative to recover damages for negligence
14 resulting in death or in injury to person or property arising
15 out of a motor vehicle accident, if such negligence was not as
16 great as the negligence of the person against whom recovery is
17 sought, but any damages allowed shall be diminished in
18 proportion to the amount of negligence attributable to the
19 person for whose injury, damage or death recovery is made.
20 (b) In any action to which subsection (a) of this section
21 applies, the court, in a nonjury trial, shall make findings of
22 fact or, in a jury trial, the jury shall return a special
23 verdict which shall state:
24 (1) The amount of the damages which would have been
25 recoverable if there had been no negligence on the part of the
26 party bringing the action; and
27 (2) The degree of negligence of each party, expressed as a
28 percentage.
29 (c) Upon the making of the findings of fact or the return of
30 a special verdict, as is contemplated by subsection (b) above,
19710H0069B3557 - 26 -
1 the court shall reduce the amount of the verdict in proportion
2 to the amount of negligence attributable to the person for whose
3 injury, damage or death recovery is made, provided, however,
4 that if the said proportion is equal to or greater than the
5 negligence of the person against whom recovery is sought, then,
6 in such event, the court will enter a judgment for the
7 defendant.
8 (d) This section shall only apply to causes of action
9 arising on or after July 1, 1973.
10 Section 2. Section 1 of this act shall take effect July 1,
11 1973: Provided, however, That that part of section 1 designated
12 "section 815" entitled "Filing of Rates and Forms" shall take
13 effect immediately.
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