Amendment 5338 to Senate Bill 676 P.N. 0747, Regular Session 2021-2022

S0676B0747A05338 NAD:CDM 07/06/22 #90 A05338

AMENDMENTS TO SENATE BILL NO. 676

Sponsor: SENATOR LAUGHLIN

Printer's No. 747

Amend Bill, page 1, line 2, by inserting after "for"

definitions, for availability, scope and amount of coverage,

for

Amend Bill, page 1, line 4, by striking out ", AND"

Amend Bill, page 1, line 5, by striking out "PROVIDING FOR

EXCLUSION FROM COVERAGE AND FURTHER PROVIDING" and inserting

and

Amend Bill, page 1, lines 10 through 13, by striking out all

of said lines and inserting

Section 1. The definition of "financial responsibility" in

section 1702 of Title 75 of the Pennsylvania Consolidated

Statutes is amended to read:

§ 1702. Definitions.

The following words and phrases when used in this chapter

shall have the meanings given to them in this section unless the

context clearly indicates otherwise:

* * *

"Financial responsibility." The ability to respond in

damages for liability on account of accidents arising out of the

maintenance or use of a motor vehicle in the minimum amount of

[$15,000] $30,000 because of injury to one person in any one

accident, in the amount of [$30,000] $60,000 because of injury

to two or more persons in any one accident and in the minimum

amount of [$5,000] $10,000 because of damage to property of

others in any one accident. The financial responsibility shall

be in a form acceptable to the Department of Transportation.

* * *

Section 2. Sections 1731, 1734, 1736, 1738, 1791 and 1792(a)

of Title 75 are amended to read:

§ 1731. Availability, scope and amount of coverage.

(a) Mandatory [offering] coverage.--No motor vehicle

liability insurance policy shall be delivered or issued for

delivery in this Commonwealth, with respect to any motor vehicle

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registered or principally garaged in this Commonwealth, unless

uninsured motorist and underinsured motorist coverages are

[offered therein or supplemental thereto in amounts as provided

in section 1734 (relating to request for lower limits of

coverage). Purchase of uninsured motorist and underinsured

motorist coverages is optional.] provided therein or

supplemental thereto in at least the amounts set forth in

subsections (b) and (c), unless the coverage is otherwise

excluded.

(b) Uninsured motorist coverage.--Uninsured motorist

coverage shall provide protection for persons who suffer injury

arising out of the maintenance or use of a motor vehicle and are

legally entitled to recover damages therefor from owners or

operators of uninsured motor vehicles. [The named insured shall

be informed that he may reject uninsured motorist coverage by

signing the following written rejection form:

REJECTION OF UNINSURED MOTORIST PROTECTION

By signing this waiver I am rejecting uninsured motorist

coverage under this policy, for myself and all relatives

residing in my household. Uninsured coverage protects me and

relatives living in my household for losses and damages

suffered if injury is caused by the negligence of a driver

who does not have any insurance to pay for losses and

damages. I knowingly and voluntarily reject this coverage.

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

Signature of First Named Insured

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

Date

(b.1) Limitation of rejection.--Uninsured motorist

protection may be rejected for the driver and passengers for

rental or lease vehicles which are not otherwise common carriers

by motor vehicle, but such coverage may only be rejected if the

rental or lease agreement is signed by the person renting or

leasing the vehicle and contains the following rejection

language:

Rejection of Uninsured Motorist Protection

I am rejecting uninsured motorist coverage under this

rental or lease agreement, and any policy of insurance or

self-insurance issued under this agreement, for myself

and all other passengers of this vehicle. Uninsured

coverage protects me and other passengers in this vehicle

for losses and damages suffered if injury is caused by

the negligence of a driver who does not have any

insurance to pay for losses and damages.

(b.2) Rejection language change.--The rejection language of

subsection (b.1) may only be changed grammatically to reflect a

difference in tense in the rental agreement or lease agreement.

(b.3) Vehicle rental services.--The requirements of

subsection (b.1) may be met in connection with an expedited

vehicle rental service, which service by agreement of the renter

does not require the renter's signature for each rental, if a

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master enrollment or rental agreement contains the rejection

language of subsection (b.1) and such agreement is signed by the

renter.] Such coverage shall be in the minimum amount of $30,000

because of injury to one person in any one accident, and in the

minimum amount of $60,000 because of injury to two or more

persons in any one accident.

coverage shall provide protection for persons who suffer injury

arising out of the maintenance or use of a motor vehicle and are

legally entitled to recover damages therefor from owners or

operators of underinsured motor vehicles. [The named insured

shall be informed that he may reject underinsured motorist

coverage by signing the following written rejection form:

REJECTION OF UNDERINSURED MOTORIST PROTECTION

By signing this waiver I am rejecting underinsured

motorist coverage under this policy, for myself and all

relatives residing in my household. Underinsured coverage

protects me and relatives living in my household for losses

and damages suffered if injury is caused by the negligence of

a driver who does not have enough insurance to pay for all

losses and damages. I knowingly and voluntarily reject this

coverage.

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

Signature of First Named Insured

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

Date

(c.1) Form of waiver.--Insurers shall print the rejection

forms required by subsections (b) and (c) on separate sheets in

prominent type and location. The forms must be signed by the

first named insured and dated to be valid. The signatures on the

forms may be witnessed by an insurance agent or broker. Any

rejection form that does not specifically comply with this

section is void. If the insurer fails to produce a valid

rejection form, uninsured or underinsured coverage, or both, as

the case may be, under that policy shall be equal to the bodily

injury liability limits. On policies in which either uninsured

or underinsured coverage has been rejected, the policy renewals

must contain notice in prominent type that the policy does not

provide protection against damages caused by uninsured or

underinsured motorists. Any person who executes a waiver under

subsection (b) or (c) shall be precluded from claiming liability

of any person based upon inadequate information.] Such coverage

shall be in the minimum amount of $30,000 because of injury to

one person in any one accident, and in the minimum amount of

$60,000 because of injury to two or more persons in any one

accident.

(d) Limitation on recovery.--

(1) A person who recovers damages under uninsured

motorist coverage or coverages cannot recover damages under

underinsured motorist coverage or coverages for the same

accident.

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(2) A person precluded from maintaining an action for

noneconomic damages under section 1705 (relating to election

of tort options) may not recover from uninsured motorist

coverage or underinsured motorist coverage for noneconomic

damages.

Amend Bill, page 1, line 14, by inserting a bracket before

"Request"

Amend Bill, page 1, line 14, by striking out the bracket

before "lower"

Amend Bill, page 1, line 14, by striking out "] different"

Amend Bill, page 1, line 17, by striking out the bracket

before "equal"

Amend Bill, page 1, lines 17 and 18, by striking out "] other

than"

Amend Bill, page 1, line 18, by inserting a bracket after

"injury."

Amend Bill, page 1, lines 18 through 21; page 2, ; by

striking out "A named insured" in line 18, all of lines 19

through 21 on page 1 on page 2 and inserting

Request for different limits.

(a) General rule.--A named insured may request in writing

the issuance of coverages under section 1731 (relating to

availability, scope and amount of coverage) in amounts other

than the limits of liability for bodily injury, subject to the

mandatory coverage set forth in section 1731. A named insured

shall be conclusively presumed to have uninsured and

underinsured motorist coverage in the same amount of bodily

injury liability in the policy, unless another amount is

selected or otherwise provided in accordance with this chapter.

(b) Notice of uninsured and underinsured motorist

coverage.--

(1) No later than the initial issuance or initial

renewal of all motor vehicle policies delivered or issued for

delivery in the first year following 180 days after the

effective date of this section, each insurer shall provide in

writing to the named insured under each policy the following

notice with respect to the purchase of uninsured and

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underinsured motorist coverage:

Uninsured and underinsured motorist coverage is

available to provide compensation for injuries caused

by persons who either have no automobile insurance or

do not have enough automobile insurance to compensate

you and your family for your loss. This coverage is

important to provide protection for you.

Previously, you were able to reject the purchase of

uninsured and underinsured coverage. You are now

required to purchase this coverage in the minimum

amount of $30,000 because of injury to one person in

any one accident, and in the minimum amount of

$60,000 because of injury to two or more persons in

any one accident.

Previously, you were also able to purchase stacking

of uninsured and underinsured motorist coverage.

Stacking increases your uninsured and underinsured

motorist coverage by adding the limits of this

coverage for each vehicle for which the injured

person is an insured.

While stacking has been eliminated by law, you still

have the right to purchase uninsured and underinsured

motorist coverage up to at least four times the

amount of your liability coverage. You also retain

the right to purchase uninsured and underinsured

motorist coverage less than the amount of your

liability coverage, provided that it at least equals

the $30,000 and $60,000 coverage protections noted

above.

(2) Each insurer shall certify to the Insurance

Department that it has complied with the notice requirement

in paragraph (1). An insurer's failure to establish

compliance with this notice requirement shall be subject to

the department's review and enforcement under the act of

December 17, 1968 (P.L.1224, No.387), known as the Unfair

Trade Practices and Consumer Protection Law.

[

Amend Bill, page 2, line 5, by striking out the bracket

before "but"

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Amend Bill, page 2, line 5, by striking out the bracket

before "not"

Amend Bill, page 2, line 5, by striking out the bracket after

"not"

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Amend Bill, page 2, line 7, by inserting a bracket after

"policy."

Amend Bill, page 4, lines 9 through 30; page 5, lines 1

through 7; by striking out all of said lines on said pages and

inserting

(a) General rule.--The limit of liability for uninsured and

underinsured motorist coverage applicable to two or more motor

vehicles covered under one or more policies delivered or issued

for delivery in this Commonwealth shall not be added together to

determine the limit of the coverage available to an insured for

injuries sustained in an accident.

(b) Persons in noncovered vehicles.--If an insured is

injured as an occupant of a vehicle not covered by the policy

under which the person is an insured, the insured may recover,

unless the coverage is otherwise excluded:

(1) Benefits in accordance with section 1733(a)(1)

(relating to priority of recovery).

(2) Benefits under section 1733(a)(2), provided the

maximum total recovery under all policies providing benefits

in accordance with section 1733(a)(2) shall be the single-

highest limit on any one vehicle under any one policy for

which the person is an insured.

(3) Notwithstanding any exclusion in a motor vehicle

policy subject to this chapter, an insurer may not exclude

uninsured and underinsured motorist coverage solely because

an insured is injured in a vehicle operated by the insured

but not covered by the insured ' s policy, provided the

insured ' s use of the vehicle is with the permission of the

owner of the vehicle and the vehicle is furnished for the

regular use of the insured.

as an occupant of a vehicle covered by the policy under which

the person is an insured, unless the coverage is otherwise

excluded, the insured may recover only the uninsured or

underinsured motorist coverage afforded by the policy covering

the vehicle occupied by the insured at the time of the accident.

The limitation under this subsection does not apply to guest

passengers who may still recover in accordance with the sources

of payment provided under section 1733.

(d) Pedestrians.--If an insured is injured as a pedestrian,

the maximum total recovery under all policies providing benefits

in accordance with section 1733(a)(2) shall be the single-

highest limit on any one vehicle for which the person is an

insured.

Amend Bill, page 5, line 9, by inserting a bracket before

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"It"

Amend Bill, page 5, line 9, by inserting after "It"

] Except as otherwise specified by statute, it

Amend Bill, page 6, line 18, by inserting a bracket before

"$5,000"

Amend Bill, page 6, line 18, by inserting after "$5,000"

] $10,000

Amend Bill, page 6, lines 20 through 27, by striking out "(7)

Uninsured and" in line 20 and all of lines 21 through 27 and

inserting

(7) Uninsured and underinsured motorist coverage up

to at least four times the amount of bodily injury

liability coverage that is purchased, except for policies

issued under the Assigned Risk Plan.

Amend Bill, page 6, line 30, by inserting a bracket before

"However,"

Amend Bill, page 7, line 6, by inserting after "selected."

] Your signature on this notice evidences your actual

knowledge and understanding of the benefits available.

Amend Bill, page 7, line 16, by inserting a bracket before

"coverages.--"

Amend Bill, page 7, line 16, by inserting after

"coverages.--"

] uninsured, underinsured, bodily injury liability and

property damage coverages and mandatory deductibles.--

Amend Bill, page 7, line 19, by inserting after "insurer"

delivering or

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"a"

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] for delivery an automobile policy

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Amend Bill, page 7, line 21, by inserting a bracket before

"higher"

Amend Bill, page 7, line 21, by inserting a bracket after

"higher"

Amend Bill, page 7, lines 28 through 30; page 8, lines 1

through 5; by striking out "An insurer issuing a policy of

bodily injury" in line 28, all of lines 29 and 30 on page 7 and

all of lines 1 through 5 on page 8 and inserting

An insurer delivering or issuing for delivery an

automobile policy of insurance in this Commonwealth

pursuant to this chapter shall make available for

purchase limits of uninsured and underinsured motorist

coverage up to at least four times the amount of bodily

injury coverage that is purchased.

Amend Bill, page 8, line 7, by inserting a bracket before

"$5,000"

Amend Bill, page 8, line 7, by inserting after "$5,000"

] $10,000

Amend Bill, page 8, line 12, by striking out "2" and

inserting

Amend Bill, page 8, line 12, by inserting after "amendment"

or addition

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1702, 1731,

Amend Bill, page 8, line 13, by inserting after "policies"

delivered or

Amend Bill, page 8, line 13, by inserting after "issued"

for delivery

Amend Bill, page 8, line 14, by inserting after "section."

Nothing in this act shall be construed to alter the election

of tort options in a policy issued or renewed on or after one

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year after the effective date of this section.

Amend Bill, page 8, line 15, by striking out all of said line

and inserting

Section 4. The following shall apply:

(1) Any change in coverage of an automobile insurance

policy delivered, or issued for delivery, in this

Commonwealth resulting from the amendments of 75 Pa.C.S. §§

1702, 1731 and 1734 shall not impact the validity of any

waiver, rejection, selection of benefits or amount of

benefits in that policy beyond the coverage amounts as a

result of those amendments, nor require that new forms be

signed by the named insured in the policy.

(2) Any filing approved by the Insurance Department

under 75 Pa.C.S. that contains an exclusion for uninsured or

underinsured motorist coverage that has not been previously

approved by the Insurance Department shall be posted on the

Insurance Department's publicly accessible Internet website

no later than seven days after approval and shall remain

available on that website for one year after the renewal

effective date of the filing.

Section 5. This act shall take effect in 180 days.

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