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.
(c) Underinsured motorist coverage.--Underinsured 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 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"
Amend Bill, page 2, line 5, by striking out "] and"
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.
(c) Persons in covered vehicles.--If an insured is injured
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
Amend Bill, page 7, line 19, by inserting a bracket before
"a"
Amend Bill, page 7, line 20, by inserting after "coverage"
] 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
3
Amend Bill, page 8, line 12, by inserting after "amendment"
or addition
Amend Bill, page 8, line 12, by inserting after "§§"
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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See A05338 in
the context
of SB0676