SENATE AMENDED
PRIOR PRINTER'S NOS. 416, 1571, 2829, PRINTER'S NO. 2938
2898
No. 376 Session of 1989
INTRODUCED BY MOWERY, HAYES, GEIST, PHILLIPS, HERMAN, NAILOR,
BROUJOS, LANGTRY, FARMER, G. SNYDER, WAMBACH, McCALL AND
MARSICO, FEBRUARY 13, 1989
SENATOR TILGHMAN, APPROPRIATIONS, IN SENATE, RE-REPORTED AS
AMENDED, DECEMBER 13, 1989
AN ACT
1 Amending Title 75 (Vehicles) of the Pennsylvania Consolidated <--
2 Statutes, further providing for prisoner of war plates AND <--
3 FOR SPECIAL PLATES FOR RECIPIENTS OF THE PURPLE HEART; and
4 providing for a special license plate for Pearl Harbor
5 survivors.
6 AMENDING TITLES 18 (CRIMES AND OFFENSES), 42 (JUDICIARY AND <--
7 JUDICIAL PROCEDURE) AND 75 (VEHICLES) OF THE PENNSYLVANIA
8 CONSOLIDATED STATUTES, FURTHER PROVIDING FOR CORRUPT
9 ORGANIZATIONS; PROVIDING FOR INSURANCE FRAUD; PROVIDING FOR
10 CERTIFICATION OF PLEADINGS, MOTIONS AND OTHER PAPERS;
11 PROVIDING FOR SPECIAL DAMAGES; FURTHER PROVIDING FOR VEHICLE
12 REGISTRATION; FURTHER PROVIDING FOR FINANCIAL RESPONSIBILITY
13 AND INSURANCE RELATED TO MOTOR VEHICLES; PROVIDING FOR PROOF
14 OF INSURANCE; FURTHER PROVIDING FOR REINSTATEMENT OF
15 OPERATING PRIVILEGES OR VEHICLE REGISTRATION; FURTHER
16 PROVIDING FOR DRIVING UNDER THE INFLUENCE OF ALCOHOL OR
17 CONTROLLED SUBSTANCES; FURTHER PROVIDING FOR INSPECTION OF
18 VEHICLES; PROVIDING FOR CERTAIN REDUCTIONS IN AUTOMOBILE
19 INSURANCE PREMIUMS; CONFERRING POWERS AND DUTIES ON THE
20 INSURANCE DEPARTMENT AND THE DEPARTMENT OF TRANSPORTATION;
21 AND MAKING REPEALS.
22 AMENDING TITLE 75 (VEHICLES) OF THE PENNSYLVANIA CONSOLIDATED <--
23 STATUTES, FURTHER PROVIDING FOR PRISONER OF WAR PLATES AND
24 FOR SPECIAL PLATES FOR RECIPIENTS OF THE PURPLE HEART;
25 PROVIDING FOR A SPECIAL LICENSE PLATE FOR PEARL HARBOR
26 SURVIVORS; FURTHER PROVIDING FOR FINANCIAL RESPONSIBILITY,
27 LIABILITY INSURANCE AVAILABILITY AND BENEFITS, UNINSURED AND
28 UNDERINSURED MOTORIST COVERAGE, THE ASSIGNED RISK PLAN,
29 STACKING OF LIMITS OF COVERAGE, DEDUCTIBLES, AND CHARGES FOR
30 TREATMENT FOR INJURIES; REQUIRING CLAIMANTS TO OBTAIN REPAIR
1 BIDS; AND PROVIDING FOR RATE REDUCTIONS AND FOR PROCESSING OF
2 DAMAGE CLAIMS.
3 The General Assembly of the Commonwealth of Pennsylvania
4 hereby enacts as follows:
5 Section 1. Section 1342(d) SECTIONS 1342(D) AND 1346 of <--
6 Title 75 of the Pennsylvania Consolidated Statutes is ARE <--
7 amended to read:
8 § 1342. Veteran plates and placard.
9 * * *
10 (d) Prisoner of war plate.--On the application of an ex-
11 prisoner of war whose imprisonment while in the service of the
12 armed forces of the United States is certified by the
13 appropriate branch of the armed forces, the department shall
14 issue a special registration plate designating the vehicle as
15 belonging to an ex-prisoner of war. The registration plate shall
16 contain the letters "POW" and such other numbers or letters as
17 the department may determine and shall have the words "prisoner
18 of war" in at least ten-point bold type inscribed at the bottom
19 of the plate. The surviving spouse of an ex-prisoner of war may
20 retain the "POW" special registration plate. The special
21 registration plate may be used only on one passenger vehicle or
22 one other vehicle with a registered gross weight of not more
23 than 9,000 pounds.
24 * * *
25 § 1346. SPECIAL PLATES FOR RECIPIENTS OF PURPLE HEART. <--
26 UPON APPLICATION OF ANY PERSON WHO IS A RECIPIENT OF THE
27 PURPLE HEART, THE DEPARTMENT SHALL ISSUE TO SUCH PERSON A
28 SPECIAL REGISTRATION PLATE DESIGNATING THE VEHICLE SO LICENSED
29 AS BELONGING TO A PERSON WHO IS A RECIPIENT OF THE PURPLE HEART.
30 THE PLATE SHALL HAVE A WHITE BACKGROUND WITH A PURPLE BORDER AND
19890H0376B2938 - 2 -
1 PURPLE LETTERS OR NUMBERS. THE WORDS "COMBAT WOUNDED VETERAN"
2 SHALL BE EMBOSSED IN RED ALONG THE TOP OF THE PLATE IN FULL
3 UPPER CASE LETTERS AND THE WORD "PENNSYLVANIA" SHALL BE EMBOSSED
4 IN RED ALONG THE BOTTOM OF THE PLATE. THE LETTER "P" OVER THE
5 LETTER "H" SHALL BE EMBOSSED IN PURPLE ON THE LEFT SIDE OF THE
6 PLATE. THE CENTER OF THE PLATE SHALL BEAR A DECAL OR APPLIQUE
7 REPLICA OF THE PURPLE HEART IN FULL CONFORMITY WITH THE
8 DESCRIPTION SET FORTH IN 32 CFR § 578.14(B), EXCEPT AS TO
9 MATERIAL AND SIZE. A SEVERELY DISABLED VETERAN, AS DESCRIBED IN
10 SECTION 1342(A) (RELATING TO VETERAN PLATES AND PLACARD), WHO IS
11 QUALIFIED TO RECEIVE A PLATE UNDER THIS SECTION MAY ALSO ELECT
12 TO RECEIVE A PLACARD UNDER SECTION 1342(B). THE SPECIAL
13 REGISTRATION PLATE MAY BE USED ONLY ON ONE PASSENGER VEHICLE OR
14 ONE OTHER VEHICLE WITH A REGISTERED GROSS WEIGHT OF NOT MORE
15 THAN 9,000 POUNDS.
16 Section 2. Title 75 is amended by adding a section to read:
17 § 1348. Special plates for Pearl Harbor survivors.
18 Upon application of any person who is a survivor of Pearl
19 Harbor, accompanied by a fee of $20 which shall be in addition
20 to the annual registration fee and by such documentation as the
21 department shall require by regulation, the department shall
22 issue to such person a special registration plate designating
23 the vehicle so licensed as belonging to a person who is a
24 survivor of Pearl Harbor. The special registration plate may be
25 used only on one passenger vehicle or one other vehicle with a
26 registered gross weight of not more than 9,000 pounds.
27 Section 3. This act shall take effect in 60 days.
28 SECTION 1. SECTION 911(H) OF TITLE 18 OF THE PENNSYLVANIA <--
29 CONSOLIDATED STATUTES IS AMENDED TO READ:
30 § 911. CORRUPT ORGANIZATIONS.
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1 * * *
2 (H) DEFINITIONS.--AS USED IN THIS SECTION:
3 (1) "RACKETEERING ACTIVITY" MEANS:
4 (I) ANY ACT WHICH IS INDICTABLE UNDER ANY OF THE
5 FOLLOWING PROVISIONS OF THIS TITLE:
6 CHAPTER 25 (RELATING TO CRIMINAL HOMICIDE)
7 SECTION 2706 (RELATING TO TERRORISTIC THREATS)
8 CHAPTER 29 (RELATING TO KIDNAPPING)
9 CHAPTER 33 (RELATING TO ARSON, ETC.)
10 CHAPTER 37 (RELATING TO ROBBERY)
11 CHAPTER 39 (RELATING TO THEFT AND RELATED
12 OFFENSES)
13 SECTION 4108 (RELATING TO COMMERCIAL BRIBERY AND
14 BREACH OF DUTY TO ACT DISINTERESTEDLY)
15 SECTION 4109 (RELATING TO RIGGING PUBLICLY
16 EXHIBITED CONTEST)
17 SECTION 4117 (RELATING TO AUTOMOBILE INSURANCE
18 FRAUD)
19 CHAPTER 47 (RELATING TO BRIBERY AND CORRUPT
20 INFLUENCE)
21 CHAPTER 49 (RELATING TO PERJURY AND OTHER
22 FALSIFICATION IN OFFICIAL MATTERS)
23 SECTION 5512 THROUGH 5514 (RELATING TO GAMBLING)
24 CHAPTER 59 (RELATING TO PUBLIC INDECENCY)
25 (II) ANY OFFENSE INDICTABLE UNDER SECTION 13 OF THE
26 ACT OF APRIL 14, 1972 (P.L.233, NO.64), KNOWN AS ["]THE
27 CONTROLLED SUBSTANCE, DRUG, DEVICE AND COSMETIC ACT["]
28 (RELATING TO THE SALE AND DISPENSING OF NARCOTIC DRUGS);
29 (III) ANY CONSPIRACY TO COMMIT ANY OF THE OFFENSES
30 SET FORTH IN SUBPARAGRAPHS (I) AND (II) OF THIS
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1 PARAGRAPH; OR
2 (IV) THE COLLECTION OF ANY MONEY OR OTHER PROPERTY
3 IN FULL OR PARTIAL SATISFACTION OF A DEBT WHICH AROSE AS
4 THE RESULT OF THE LENDING OF MONEY OR OTHER PROPERTY AT A
5 RATE OF INTEREST EXCEEDING 25% PER ANNUM OR THE
6 EQUIVALENT RATE FOR A LONGER OR SHORTER PERIOD, WHERE NOT
7 OTHERWISE AUTHORIZED BY LAW.
8 ANY ACT WHICH OTHERWISE WOULD BE CONSIDERED RACKETEERING
9 ACTIVITY BY REASON OF THE APPLICATION OF THIS PARAGRAPH,
10 SHALL NOT BE EXCLUDED FROM ITS APPLICATION SOLELY BECAUSE THE
11 OPERATIVE ACTS TOOK PLACE OUTSIDE THE JURISDICTION OF THIS
12 COMMONWEALTH, IF SUCH ACTS WOULD HAVE BEEN IN VIOLATION OF
13 THE LAW OF THE JURISDICTION IN WHICH THEY OCCURRED.
14 (2) "PERSON" MEANS ANY INDIVIDUAL OR ENTITY CAPABLE OF
15 HOLDING A LEGAL OR BENEFICIAL INTEREST IN PROPERTY.
16 (3) "ENTERPRISE" MEANS ANY INDIVIDUAL, PARTNERSHIP,
17 CORPORATION, ASSOCIATION OR OTHER LEGAL ENTITY, AND ANY UNION
18 OR GROUP OF INDIVIDUALS ASSOCIATED IN FACT ALTHOUGH NOT A
19 LEGAL ENTITY, ENGAGED IN COMMERCE.
20 (4) "PATTERN OF RACKETEERING ACTIVITY" REFERS TO A
21 COURSE OF CONDUCT REQUIRING TWO OR MORE ACTS OF RACKETEERING
22 ACTIVITY ONE OF WHICH OCCURRED AFTER THE EFFECTIVE DATE OF
23 THIS SECTION.
24 (5) "RACKETEERING INVESTIGATOR" MEANS AN ATTORNEY,
25 INVESTIGATOR OR INVESTIGATIVE BODY SO DESIGNATED IN WRITING
26 BY THE ATTORNEY GENERAL AND CHARGED WITH THE DUTY OF
27 ENFORCING OR CARRYING INTO EFFECT THE PROVISIONS OF THIS
28 SECTION.
29 (6) "RACKETEERING INVESTIGATION" MEANS ANY INQUIRY
30 CONDUCTED BY ANY RACKETEERING INVESTIGATOR FOR THE PURPOSE OF
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1 ASCERTAINING WHETHER ANY PERSON HAS BEEN INVOLVED IN ANY
2 VIOLATION OF THIS SECTION OR OF ANY ORDER, JUDGMENT, OR
3 DECREE OF ANY COURT DULY ENTERED IN ANY CASE OR PROCEEDING
4 ARISING UNDER THIS SECTION.
5 (7) "DOCUMENTARY MATERIAL" MEANS ANY BOOK, PAPER,
6 RECORD, RECORDING, TAPE, REPORT, MEMORANDUM, WRITTEN
7 COMMUNICATION, OR OTHER DOCUMENT RELATING TO THE BUSINESS
8 AFFAIRS OF ANY PERSON OR ENTERPRISE.
9 SECTION 2. TITLE 18 IS AMENDED BY ADDING A SECTION TO READ:
10 § 4117. AUTOMOBILE INSURANCE FRAUD.
11 (A) OFFENSE DEFINED.--A PERSON COMMITS AN OFFENSE IF THE
12 PERSON DOES ANY OF THE FOLLOWING:
13 (1) KNOWINGLY AND WITH THE INTENT TO DEFRAUD A
14 GOVERNMENT OR LOCAL AGENCY FILES, PRESENTS OR CAUSES TO BE
15 FILED WITH OR PRESENTED TO THE GOVERNMENT OR LOCAL AGENCY A
16 DOCUMENT THAT CONTAINS FALSE, INCOMPLETE OR MISLEADING
17 INFORMATION CONCERNING ANY FACT OR THING MATERIAL TO THE
18 AGENCY'S DETERMINATION IN APPROVING OR DISAPPROVING AN
19 AUTOMOBILE INSURANCE RATE FILING, AN AUTOMOBILE INSURANCE
20 TRANSACTION OR OTHER AUTOMOBILE INSURANCE ACTION WHICH IS
21 REQUIRED OR FILED IN RESPONSE TO AN AGENCY'S REQUEST.
22 (2) KNOWINGLY AND WITH THE INTENT TO DEFRAUD ANY INSURER
23 PRESENTS OR CAUSES TO BE PRESENTED TO ANY INSURER ANY
24 STATEMENT FORMING A PART OF, OR IN SUPPORT OF, AN AUTOMOBILE
25 INSURANCE CLAIM THAT CONTAINS ANY FALSE, INCOMPLETE OR
26 MISLEADING INFORMATION CONCERNING ANY FACT OR THING MATERIAL
27 TO THE AUTOMOBILE INSURANCE CLAIM.
28 (3) KNOWINGLY AND WITH THE INTENT TO DEFRAUD ANY INSURER
29 ASSISTS, ABETS, SOLICITS OR CONSPIRES WITH ANOTHER TO PREPARE
30 OR MAKE ANY STATEMENT THAT IS INTENDED TO BE PRESENTED TO ANY
19890H0376B2938 - 6 -
1 INSURER IN CONNECTION WITH, OR IN SUPPORT OF, AN AUTOMOBILE
2 INSURANCE CLAIM THAT CONTAINS ANY FALSE, INCOMPLETE OR
3 MISLEADING INFORMATION CONCERNING ANY FACT OR THING MATERIAL
4 TO THE AUTOMOBILE INSURANCE CLAIM.
5 (4) ENGAGES IN UNLICENSED AGENT OR BROKER ACTIVITY AS
6 DEFINED BY THE ACT OF MAY 17, 1921 (P.L.789, NO.285), KNOWN
7 AS THE INSURANCE DEPARTMENT ACT OF ONE THOUSAND NINE HUNDRED
8 AND TWENTY-ONE, KNOWINGLY AND WITH THE INTENT TO DEFRAUD AN
9 AUTOMOBILE INSURER OR THE PUBLIC.
10 (5) KNOWINGLY BENEFITS, DIRECTLY OR INDIRECTLY, FROM THE
11 PROCEEDS DERIVED FROM A VIOLATION OF THIS SECTION DUE TO THE
12 ASSISTANCE, CONSPIRACY OR URGING OF ANY PERSON.
13 (6) IS THE OWNER, ADMINISTRATOR OR EMPLOYEE OF ANY
14 HEALTH CARE FACILITY, AND KNOWINGLY ALLOWS THE USE OF SUCH
15 FACILITY BY ANY PERSON IN FURTHERANCE OF A SCHEME OR
16 CONSPIRACY TO VIOLATE ANY OF THE PROVISIONS OF THIS SECTION.
17 (7) BORROWS OR USES ANOTHER PERSON'S FINANCIAL
18 RESPONSIBILITY IDENTIFICATION CARD OR PERMITS HIS FINANCIAL
19 RESPONSIBILITY IDENTIFICATION CARD TO BE USED BY ANOTHER,
20 KNOWINGLY AND WITH INTENT TO PRESENT A FRAUDULENT AUTOMOBILE
21 INSURANCE CLAIM FOR REIMBURSEMENT TO AN INSURER.
22 (8) KNOWINGLY, FOR PROFIT, GAIN, BENEFIT, FAVOR, OR
23 OTHERWISE, MAKES ANY FALSE ORAL STATEMENT, MISREPRESENTS,
24 SUBSTITUTES PERSONS OR REALTY OR GOODS, SUBSCRIBES TO OR
25 PREPARES, OR HELPS TO PREPARE, ANY FRAUDULENT LETTER,
26 DOCUMENT, APPLICATION, AFFIDAVIT, INVENTORY, FINANCIAL OR
27 OTHER STATEMENT, OR IN ANY METHOD OR MANNER ATTEMPTS TO
28 DECEIVE, FOR THE PURPOSE OF OBTAINING FOR HIMSELF, HERSELF,
29 OR OTHERS, AUTOMOBILE INSURANCE PROVIDED FOR BY THE ACT OF
30 MAY 17, 1921 (P.L.682, NO.284), KNOWN AS THE INSURANCE
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1 COMPANY LAW OF 1921; OR KNOWINGLY, FOR PROFIT, GAIN, BENEFIT,
2 FAVOR, OR OTHERWISE, PREPARES OR FORWARDS ANY FRAUDULENT
3 AUTOMOBILE INSURANCE APPLICATION.
4 (B) ADDITIONAL OFFENSES DEFINED.--
5 (1) IN A CLAIM ARISING OUT OF AN AUTOMOBILE ACCIDENT, A
6 LAWYER MAY NOT COMPENSATE OR GIVE ANYTHING OF VALUE TO A NON-
7 LAWYER TO RECOMMEND OR SECURE EMPLOYMENT BY A CLIENT OR AS A
8 REWARD FOR HAVING MADE A RECOMMENDATION RESULTING IN
9 EMPLOYMENT BY A CLIENT; EXCEPT THAT THE LAWYER MAY PAY:
10 (I) THE REASONABLE COST OF ADVERTISING OR WRITTEN
11 COMMUNICATION AS PERMITTED BY THE RULES OF PROFESSIONAL
12 CONDUCT; OR
13 (II) THE USUAL CHARGES OF A NOT-FOR-PROFIT LAWYER-
14 REFERRAL SERVICE OR OTHER LEGAL SERVICE ORGANIZATION.
15 (2) WITH RESPECT TO A MOTOR VEHICLE INSURANCE BENEFIT OR
16 CLAIM, A HEALTH CARE PROVIDER MAY NOT COMPENSATE OR GIVE
17 ANYTHING OF VALUE TO A PERSON TO RECOMMEND OR SECURE THE
18 PROVIDER'S SERVICE TO OR EMPLOYMENT BY A PATIENT OR AS A
19 REWARD FOR HAVING MADE A RECOMMENDATION RESULTING IN THE
20 PROVIDER'S SERVICE TO OR EMPLOYMENT BY A PATIENT; EXCEPT THAT
21 THE PROVIDER MAY PAY THE REASONABLE COST OF ADVERTISING OR
22 WRITTEN COMMUNICATION AS PERMITTED BY RULES OF PROFESSIONAL
23 CONDUCT.
24 (3) A PERSON MAY NOT RECEIVE COMPENSATION, A REWARD OR
25 ANYTHING OF VALUE IN RETURN FOR PROVIDING NAMES, ADDRESSES,
26 TELEPHONE NUMBERS OR OTHER IDENTIFYING INFORMATION OF VICTIMS
27 INVOLVED IN AUTOMOBILE ACCIDENTS TO A LAWYER OR HEALTH CARE
28 PROVIDER WHICH RESULTS IN EMPLOYMENT OF THE LAWYER OR HEALTH
29 CARE PROVIDER BY THE VICTIMS FOR PURPOSES OF A MOTOR VEHICLE
30 INSURANCE CLAIM OR SUIT. ATTEMPTS TO CIRCUMVENT THIS
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1 PARAGRAPH THROUGH USE OF ANY OTHER PERSON, INCLUDING, BUT NOT
2 LIMITED TO, EMPLOYEES, AGENTS OR SERVANTS, SHALL ALSO BE
3 PROHIBITED. THIS PROVISION SHALL NOT PROHIBIT A LAWYER OR
4 HEALTH CARE PROVIDER FROM MAKING A REFERRAL AS IS PERMITTED
5 UNDER APPLICABLE PROFESSIONAL RULES OF CONDUCT.
6 (C) ELECTRONIC CLAIMS SUBMISSION.--IF A CLAIM FOR A BENEFIT
7 IS MADE BY MEANS OF COMPUTER BILLING TAPES OR OTHER ELECTRONIC
8 MEANS, IT SHALL BE A REBUTTABLE PRESUMPTION THAT THE PERSON
9 KNOWINGLY MADE THE CLAIM IF THE PERSON HAS ADVISED THE INSURER
10 IN WRITING THAT CLAIMS FOR BENEFITS WILL BE SUBMITTED BY USE OF
11 COMPUTER BILLING TAPES OR OTHER ELECTRONIC MEANS.
12 (D) GRADING.--AN OFFENSE UNDER SUBSECTION (A)(1) THROUGH (7)
13 IS A FELONY OF THE THIRD DEGREE. AN OFFENSE UNDER SUBSECTION
14 (A)(8) OR (B) IS A MISDEMEANOR OF THE FIRST DEGREE.
15 (E) RESTITUTION.--THE COURT MAY, IN ADDITION TO ANY OTHER
16 SENTENCE AUTHORIZED BY LAW, SENTENCE A PERSON CONVICTED OF
17 VIOLATING THIS SECTION TO MAKE RESTITUTION UNDER SECTION 1106
18 (RELATING TO RESTITUTION FOR INJURIES TO PERSON OR PROPERTY).
19 (F) IMMUNITY.--AN INSURER, AND ANY AGENT, SERVANT OR
20 EMPLOYEE ACTING IN THE COURSE AND SCOPE OF HIS EMPLOYMENT, SHALL
21 BE IMMUNE FROM CIVIL OR CRIMINAL LIABILITY ARISING FROM THE
22 SUPPLY OR RELEASE OF WRITTEN OR ORAL INFORMATION TO ANY ENTITY
23 DULY AUTHORIZED TO RECEIVE SUCH INFORMATION BY FEDERAL OR STATE
24 LAW, OR BY INSURANCE DEPARTMENT REGULATIONS, ONLY IF BOTH OF THE
25 FOLLOWING CONDITIONS EXIST:
26 (1) THE INFORMATION IS SUPPLIED TO THE AGENCY IN
27 CONNECTION WITH AN ALLEGATION OF FRAUDULENT CONDUCT ON THE
28 PART OF ANY PERSON RELATING TO THE FILING OR MAINTENANCE OF
29 AN INSURANCE CLAIM OR BODILY INJURY OR PROPERTY DAMAGE; AND
30 (2) THE INSURER, AGENT, SERVANT OR EMPLOYEE HAS PROBABLE
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1 CAUSE TO BELIEVE THAT THE INFORMATION SUPPLIED IS REASONABLY
2 RELATED TO THE ALLEGATION OF FRAUD.
3 (G) CIVIL ACTION.--AN INSURER DAMAGED AS A RESULT OF A
4 VIOLATION OF THIS SECTION MAY SUE THEREFOR IN ANY COURT OF
5 COMPETENT JURISDICTION TO RECOVER COMPENSATORY DAMAGES, WHICH
6 MAY INCLUDE REASONABLE INVESTIGATION EXPENSES, COSTS OF SUIT AND
7 ATTORNEY FEES. A SUCCESSFUL CLAIMANT MAY RECOVER TREBLE DAMAGES
8 IF THE COURT DETERMINES THAT THE DEFENDANT HAS ENGAGED IN A
9 PATTERN OF VIOLATING THIS SECTION.
10 (H) CRIMINAL ACTION.--THE ATTORNEY GENERAL AND THE DISTRICT
11 ATTORNEYS OF THE SEVERAL COUNTIES SHALL HAVE CONCURRENT
12 AUTHORITY TO INSTITUTE CRIMINAL PROCEEDINGS UNDER THE PROVISIONS
13 OF THIS SECTION.
14 (I) REGULATORY AND INVESTIGATIVE POWERS ADDITIONAL TO THOSE
15 NOW EXISTING.--NOTHING CONTAINED IN THIS SECTION SHALL BE
16 CONSTRUED TO LIMIT THE REGULATORY OR INVESTIGATIVE AUTHORITY OF
17 ANY DEPARTMENT OR AGENCY OF THE COMMONWEALTH WHOSE FUNCTIONS
18 MIGHT RELATE TO PERSONS, ENTERPRISES, OR MATTERS FALLING WITHIN
19 THE SCOPE OF THIS SECTION.
20 (J) DEFINITIONS.--AS USED IN THIS SECTION, THE FOLLOWING
21 WORDS AND PHRASES SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS
22 SUBSECTION:
23 "INSURANCE CLAIM." A CLAIM FOR PAYMENT OR OTHER BENEFIT
24 PURSUANT TO AN INSURANCE POLICY.
25 "INSURANCE POLICY." A DOCUMENT SETTING FORTH THE TERMS AND
26 CONDITIONS OF A CONTRACT OF INSURANCE.
27 "INSURER." A COMPANY, ASSOCIATION OR EXCHANGE DEFINED BY
28 SECTION 101 OF THE ACT OF MAY 17, 1921 (P.L.682, NO.284), KNOWN
29 AS THE INSURANCE COMPANY LAW OF 1921; AN UNINCORPORATED
30 ASSOCIATION OF UNDERWRITING MEMBERS; A HOSPITAL PLAN
19890H0376B2938 - 10 -
1 CORPORATION; A PROFESSIONAL HEALTH SERVICES PLAN CORPORATION; A
2 HEALTH MAINTENANCE ORGANIZATION; A FRATERNAL BENEFIT SOCIETY;
3 AND A HEALTH INSURED HEALTH CARE ENTITY UNDER THE ACT OF OCTOBER
4 15, 1975 (P.L.390, NO.111), KNOWN AS THE HEALTH CARE SERVICES
5 MALPRACTICE ACT.
6 "PERSON." ANY INDIVIDUAL, CORPORATION, ASSOCIATION,
7 PARTNERSHIP, RECIPROCAL EXCHANGE, INTER-INSURER, LLOYD'S
8 INSURER, FRATERNAL BENEFIT SOCIETY, BENEFICIAL ASSOCIATION AND
9 ANY OTHER LEGAL ENTITY ENGAGED OR PROPOSING TO BECOME ENGAGED,
10 EITHER DIRECTLY OR INDIRECTLY, IN THE BUSINESS OF INSURANCE,
11 INCLUDING AGENTS, BROKERS, ADJUSTERS AND HEALTH CARE PLANS AS
12 DEFINED IN 40 PA.C.S. CHS. 61 (RELATING TO HOSPITAL PLAN
13 CORPORATIONS), 63 (RELATING TO PROFESSIONAL HEALTH SERVICES PLAN
14 CORPORATIONS), 65 (RELATING TO FRATERNAL BENEFIT SOCIETIES) AND
15 67 (RELATING TO BENEFICIAL SOCIETIES) AND THE ACT OF DECEMBER
16 29, 1972 (P.L.1701, NO.364), KNOWN AS THE HEALTH MAINTENANCE
17 ORGANIZATION ACT. FOR PURPOSES OF THIS SECTION, HEALTH CARE
18 PLANS, FRATERNAL BENEFIT SOCIETIES AND BENEFICIAL SOCIETIES
19 SHALL BE DEEMED TO BE ENGAGED IN THE BUSINESS OF INSURANCE.
20 "STATEMENT." ANY ORAL OR WRITTEN PRESENTATION OR OTHER
21 EVIDENCE OF LOSS, INJURY OR EXPENSE, INCLUDING, BUT NOT LIMITED
22 TO, ANY NOTICE, STATEMENT, PROOF OF LOSS, BILL OF LADING,
23 RECEIPT FOR PAYMENT, INVOICE, ACCOUNT, ESTIMATE OF PROPERTY
24 DAMAGES, BILL FOR SERVICES, DIAGNOSIS, PRESCRIPTION, HOSPITAL OR
25 DOCTOR RECORDS, X-RAY, TEST RESULT OR COMPUTER-GENERATED
26 DOCUMENTS.
27 SECTION 3. CHAPTER 83 OF TITLE 42 IS AMENDED BY ADDING A
28 SECTION AND A SUBCHAPTER TO READ:
29 § 8355. CERTIFICATION OF PLEADINGS, MOTIONS AND OTHER PAPERS.
30 EVERY PLEADING, MOTION AND OTHER PAPER OF A PARTY REPRESENTED
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1 BY AN ATTORNEY SHALL BE SIGNED BY AT LEAST ONE ATTORNEY OF
2 RECORD IN HIS INDIVIDUAL NAME AND HIS ADDRESS SHALL BE STATED. A
3 PARTY WHO IS NOT REPRESENTED BY AN ATTORNEY SHALL SIGN HIS
4 PLEADING, MOTION OR OTHER PAPER AND STATE HIS ADDRESS. EXCEPT
5 WHEN OTHERWISE SPECIFICALLY PROVIDED BY RULE OR STATUTE,
6 PLEADINGS NEED NOT BE VERIFIED OR ACCOMPANIED BY AFFIDAVIT. THE
7 SIGNATURE OF AN ATTORNEY OR PARTY CONSTITUTES A CERTIFICATION BY
8 HIM THAT HE HAS READ THE PLEADING, MOTION OR OTHER PAPER; THAT,
9 TO THE BEST OF HIS KNOWLEDGE, INFORMATION AND BELIEF, IT IS WELL
10 GROUNDED IN FACT AND IS WARRANTED BY EXISTING LAW OR A GOOD-
11 FAITH ARGUMENT FOR THE EXTENSION, MODIFICATION OR REVERSAL OF
12 EXISTING LAW; AND THAT IT IS NOT INTERPOSED IN BAD FAITH OR FOR
13 ANY IMPROPER PURPOSE, SUCH AS TO HARASS ANOTHER, TO MALICIOUSLY
14 INJURE ANOTHER OR TO CAUSE UNNECESSARY DELAY OR INCREASE IN THE
15 COST OF LITIGATION. IF A PLEADING, MOTION OR OTHER PAPER IS NOT
16 SIGNED, IT SHALL BE STRICKEN UNLESS IT IS SIGNED PROMPTLY AFTER
17 THE OMISSION IS CALLED TO THE ATTENTION OF THE PLEADER OR
18 MOVANT. IF A PLEADING, MOTION OR OTHER PAPER IS SIGNED IN
19 VIOLATION OF THIS SECTION, THE COURT SHALL AWARD TO THE
20 SUCCESSFUL PARTY COSTS AND REASONABLE ATTORNEY FEES IN ADDITION
21 TO A FINE; THE FINE SHALL NOT EXCEED $10,000. SUCH COSTS, FEES
22 AND FINES SHALL BE IN ADDITION TO ANY OTHER JUDGMENT AWARDED TO
23 THE SUCCESSFUL PARTY AND SHALL BE IMPOSED UPON THE PERSON WHO
24 SIGNED THE PLEADING, MOTION OR OTHER PAPER, OR A REPRESENTED
25 PARTY, OR BOTH. THIS SECTION IS IN ADDITION TO AND SHALL NOT BE
26 CONSTRUED TO LIMIT ANY OTHER REMEDIES OR SANCTIONS PROVIDED BY
27 LAW.
28 SUBCHAPTER G
29 SPECIAL DAMAGES
30 SEC.
19890H0376B2938 - 12 -
1 8371. ACTIONS ON INSURANCE POLICIES.
2 § 8371. ACTIONS ON INSURANCE POLICIES.
3 IN AN ACTION ARISING UNDER AN INSURANCE POLICY, IF THE COURT
4 FINDS THAT THE INSURER HAS ACTED IN BAD FAITH TOWARD THE
5 INSURED, THE COURT MAY TAKE ALL OF THE FOLLOWING ACTIONS:
6 (1) AWARD INTEREST ON THE AMOUNT OF THE CLAIM FROM THE
7 DATE THE CLAIM WAS MADE BY THE INSURED IN AN AMOUNT EQUAL TO
8 THE PRIME RATE OF INTEREST PLUS 3%.
9 (2) AWARD PUNITIVE DAMAGES AGAINST THE INSURER.
10 (3) ASSESS COURT COSTS AND ATTORNEY FEES AGAINST THE
11 INSURER.
12 SECTION 4. SECTIONS 1305 AND 1306 OF TITLE 75 ARE AMENDED TO
13 READ:
14 § 1305. APPLICATION FOR REGISTRATION.
15 (A) GENERAL RULE.--APPLICATION FOR THE REGISTRATION OF A
16 VEHICLE SHALL BE MADE TO THE DEPARTMENT UPON THE APPROPRIATE
17 FORM OR FORMS FURNISHED BY THE DEPARTMENT. THE APPLICATION SHALL
18 CONTAIN THE FULL NAME AND ADDRESS OF THE OWNER OR OWNERS; THE
19 MAKE, MODEL, YEAR AND VEHICLE IDENTIFICATION NUMBER OF THE
20 VEHICLE; AND SUCH OTHER INFORMATION AS THE DEPARTMENT MAY
21 REQUIRE. APPLICANTS FOR REGISTRATION OF A TRUCK, TRUCK TRACTOR,
22 TRAILER OR BUS SHALL PROVIDE THE VEHICLE'S GROSS VEHICLE WEIGHT
23 RATING (GVWR), OR THE GROSS COMBINATION WEIGHT RATING (GCWR), AS
24 APPLICABLE. IF THE MANUFACTURER'S RATINGS ARE NOT AVAILABLE, THE
25 APPLICANT SHALL PROVIDE SUFFICIENT INFORMATION AS TO THE
26 HORSEPOWER, BRAKING CAPACITY AND SUCH OTHER DATA AS NECESSARY
27 FOR THE DEPARTMENT TO DETERMINE AN EQUIVALENT MEASURE OF THE
28 VEHICLE'S HAULING AND STOPPING CAPABILITY. IF THE APPLICANT
29 WISHES TO REGISTER A VEHICLE AT A REGISTERED GROSS WEIGHT LESS
30 THAN THE GROSS VEHICLE WEIGHT RATING, THE APPLICATION SHALL
19890H0376B2938 - 13 -
1 INCLUDE INFORMATION AS TO WEIGHT, LOAD AND ANY OTHER SUCH
2 INFORMATION AS THE DEPARTMENT MAY REQUIRE. THE APPLICATION SHALL
3 BE ACCOMPANIED BY SELF-CERTIFICATION OF FINANCIAL RESPONSIBILITY
4 AND THE APPLICABLE FEE.
5 (B) EVIDENCE OF P.U.C. APPROVAL FOR BUSES AND TAXIS.--BEFORE
6 REGISTERING ANY BUS OR TAXI WHICH IS REQUIRED UNDER THE LAWS OF
7 THIS COMMONWEALTH TO OBTAIN A CERTIFICATE OF PUBLIC CONVENIENCE
8 FROM THE PENNSYLVANIA PUBLIC UTILITY COMMISSION, THE DEPARTMENT
9 SHALL REQUIRE EVIDENCE THAT THE CERTIFICATE HAS BEEN ISSUED AND
10 HAS NOT BEEN REVOKED OR HAS NOT EXPIRED.
11 (C) DESIGNATION OF LESSEE AS REGISTRANT.--THE OWNER AS
12 LESSOR MAY DESIGNATE THE LESSEE AS THE REGISTRANT OF THE VEHICLE
13 AND THE NAME AND ADDRESS OF THE LESSEE MAY BE SUBSTITUTED ON THE
14 REGISTRATION CARD FOR THE ADDRESS OF THE LESSOR. THE DEPARTMENT
15 SHALL DESIGNATE THE RELATIONSHIP UPON THE CARD IN A MANNER IT
16 DEEMS APPROPRIATE. THIS SUBSECTION IS APPLICABLE ONLY FOR THE
17 PERIOD DURING WHICH THE LEASE REMAINS IN EFFECT.
18 (D) SELF-CERTIFICATION OF FINANCIAL RESPONSIBILITY.--IN
19 ADDITION TO THE OTHER REQUIREMENTS TO REGISTRATION, THE
20 APPLICANT SHALL FILE A SELF-CERTIFICATION OF FINANCIAL
21 RESPONSIBILITY WHICH SHALL INCLUDE:
22 (1) THE COMPLETE NAME, ADDRESS AND TELEPHONE NUMBER OF
23 THE APPLICANT.
24 (2) THE NAME OF THE INSURANCE COMPANY WHICH IS INSURING
25 THE SUBJECT VEHICLE.
26 (3) THE POLICY NUMBER, EFFECTIVE DATE AND EXPIRATION
27 DATE OF THE POLICY OF INSURANCE INSURING THE VEHICLE.
28 § 1306. GROUNDS FOR REFUSING REGISTRATION.
29 THE DEPARTMENT SHALL REFUSE REGISTRATION OR RENEWAL OR
30 TRANSFER OF REGISTRATION WHEN ANY OF THE FOLLOWING CIRCUMSTANCES
19890H0376B2938 - 14 -
1 EXISTS:
2 (1) THE APPLICANT IS NOT ENTITLED TO REGISTRATION UNDER
3 THE PROVISIONS OF THIS CHAPTER.
4 (2) THE APPLICANT HAS AT REGISTRATION OR TITLING
5 NEGLECTED OR REFUSED TO FURNISH THE DEPARTMENT WITH THE
6 INFORMATION REQUIRED ON THE APPROPRIATE OFFICIAL FORM, OR ANY
7 REASONABLE ADDITIONAL INFORMATION REQUIRED BY THE DEPARTMENT.
8 (3) THE DEPARTMENT HAS REASONABLE GROUNDS TO BELIEVE
9 THAT THE APPLICATION CONTAINS FALSE OR FRAUDULENT
10 INFORMATION, OR THAT THE VEHICLE IS STOLEN, WHICH FACT THE
11 DEPARTMENT SHALL ASCERTAIN BY REFERENCE TO THE STOLEN VEHICLE
12 FILE REQUIRED TO BE MAINTAINED UNDER SECTION 7114 (RELATING
13 TO RECORDS OF STOLEN VEHICLES), OR THAT THE GRANTING OF
14 REGISTRATION WOULD CONSTITUTE A FRAUD AGAINST THE RIGHTFUL
15 OWNER OR OTHER PERSON HAVING A VALID LIEN UPON THE VEHICLE.
16 (4) THE FEES REQUIRED BY LAW HAVE NOT BEEN PAID.
17 (5) THE VEHICLE IS NOT CONSTRUCTED OR EQUIPPED AS
18 REQUIRED BY THIS TITLE.
19 (6) THE REGISTRATION OF THE VEHICLE STANDS SUSPENDED FOR
20 ANY REASON AS PROVIDED FOR IN THIS TITLE.
21 (7) SELF-CERTIFICATION OF FINANCIAL RESPONSIBILITY, AS
22 REQUIRED UNDER SECTION 1305(D) (RELATING TO APPLICATION FOR
23 REGISTRATION) IS NOT FILED WITH THE REGISTRATION APPLICATION.
24 SECTION 5. TITLE 75 IS AMENDED BY ADDING A SECTION TO READ:
25 § 1318. DUTIES OF AGENTS.
26 (A) VERIFICATION OF FINANCIAL RESPONSIBILITY.--AN AGENT WHO
27 IS AUTHORIZED TO ISSUE ON BEHALF OF THE DEPARTMENT A VEHICLE
28 REGISTRATION RENEWAL OR TEMPORARY REGISTRATION SHALL BE REQUIRED
29 TO VERIFY FINANCIAL RESPONSIBILITY PRIOR TO ISSUANCE.
30 (B) PROOF.--PROOF OF FINANCIAL RESPONSIBILITY SHALL BE
19890H0376B2938 - 15 -
1 VERIFIED BY EXAMINING ONE OF THE FOLLOWING DOCUMENTS:
2 (1) AN IDENTIFICATION CARD AS REQUIRED BY REGULATIONS
3 PROMULGATED BY THE INSURANCE DEPARTMENT.
4 (2) THE DECLARATION PAGE OF AN INSURANCE POLICY.
5 (3) A CERTIFICATE OF FINANCIAL RESPONSIBILITY.
6 (4) A VALID BINDER OF INSURANCE ISSUED BY AN INSURANCE
7 COMPANY LICENSED TO SELL AUTOMOBILE LIABILITY INSURANCE IN
8 PENNSYLVANIA.
9 SECTION 6. SECTIONS 1376 AND 1540(C) OF TITLE 75 ARE AMENDED
10 TO READ:
11 § 1376. SURRENDER OF REGISTRATION PLATES AND CARDS UPON
12 SUSPENSION OR REVOCATION.
13 (A) GENERAL RULE.--THE DEPARTMENT, UPON SUSPENDING OR
14 REVOKING ANY REGISTRATION, SHALL REQUIRE THE REGISTRATION PLATE
15 OR PLATES AND REGISTRATION CARD OR CARDS TO BE SURRENDERED
16 IMMEDIATELY TO THE DEPARTMENT [AND].
17 (B) DELEGATION OF AUTHORITY.--IF WITHIN 35 DAYS THE
18 REGISTRATION PLATES AND CARDS ARE NOT SURRENDERED UNDER
19 SUBSECTION (A), THE DEPARTMENT MAY DELEGATE AUTHORITY TO [ANY
20 AUTHORIZED DEPARTMENT EMPLOYEE, MEMBER OF THE PENNSYLVANIA STATE
21 POLICE OR LOCAL POLICE OFFICER TO SEIZE THE REGISTRATION PLATE
22 OR PLATES AND REGISTRATION CARD OR CARDS.] THE FOLLOWING PERSONS
23 TO SEIZE A REGISTRATION PLATE AND REGISTRATION CARD WHICH ARE
24 REQUIRED TO BE SURRENDERED UNDER SUBSECTION (A):
25 (1) A DESIGNATED DEPARTMENT EMPLOYEE.
26 (2) MEMBERS OF THE PENNSYLVANIA STATE POLICE.
27 (3) LOCAL POLICE OFFICERS.
28 (4) SHERIFFS OR DEPUTY SHERIFFS.
29 (5) CONSTABLES OR DEPUTY CONSTABLES. IF CONSTABLES AND
30 DEPUTY CONSTABLES ARE DELEGATED AUTHORITY TO SEIZE
19890H0376B2938 - 16 -
1 REGISTRATION PLATES AND REGISTRATION CARDS UNDER THIS
2 SECTION, THEY SHALL BE COMPENSATED BY THE DEPARTMENT AT THE
3 RATE OF $15 FOR EACH REGISTRATION PLATE AND CARD JOINTLY
4 SEIZED, PLUS MILEAGE. THE DEPARTMENT SHALL PAY A CONSTABLE OR
5 DEPUTY CONSTABLE WITHIN 30 DAYS AFTER A DOCUMENTED REQUEST
6 FOR PAYMENT IS SUBMITTED TO IT.
7 (C) REGULATIONS.--THE DEPARTMENT SHALL, BY REGULATION,
8 PRESCRIBE THE MANNER OF SELECTING [THE EMPLOYEES AND STATE AND
9 LOCAL POLICE OFFICERS] THOSE OFFICIALS WHO ARE DELEGATED
10 AUTHORITY UNDER THIS SECTION TO SEIZE THE REGISTRATION PLATES
11 AND REGISTRATION CARDS.
12 [(B)] (D) PENALTY.--ANY PERSON FAILING OR REFUSING TO
13 SURRENDER TO THE DEPARTMENT OR ITS AUTHORIZED DELEGATE, UPON
14 DEMAND, ANY REGISTRATION PLATE OR CARD WHICH HAS BEEN SUSPENDED
15 OR REVOKED IS GUILTY OF A SUMMARY OFFENSE AND SHALL, UPON
16 CONVICTION, BE SENTENCED TO PAY A FINE OF [$100] $300, PLUS
17 COSTS. COST SHALL INCLUDE A REASONABLE FEE FOR OFFICIAL SEIZURE
18 OF THE UNSURRENDERED ITEMS.
19 § 1540. SURRENDER OF LICENSE.
20 * * *
21 (C) SEIZURE OF REVOKED AND SUSPENDED LICENSES.--
22 (1) THE DEPARTMENT MAY DELEGATE AUTHORITY TO [ANY
23 AUTHORIZED DEPARTMENT EMPLOYEE, MEMBER OF THE PENNSYLVANIA
24 STATE POLICE OR LOCAL POLICE OFFICER] THE FOLLOWING PERSONS
25 TO SEIZE THE DRIVER'S LICENSE OF ANY PERSON [WHEN THE
26 OPERATING PRIVILEGE OF THAT PERSON HAS BEEN REVOKED OR
27 SUSPENDED AND HIS] WHOSE DRIVER'S LICENSE HAS BEEN ORDERED TO
28 BE SURRENDERED BY A COURT OR DISTRICT ATTORNEY OR BY THE
29 DEPARTMENT[.]:
30 (I) A DESIGNATED DEPARTMENT EMPLOYEE.
19890H0376B2938 - 17 -
1 (II) MEMBERS OF THE PENNSYLVANIA STATE POLICE.
2 (III) LOCAL POLICE OFFICERS.
3 (IV) SHERIFFS OR DEPUTY SHERIFFS.
4 (V) CONSTABLES OR DEPUTY CONSTABLES. IF CONSTABLES
5 AND DEPUTY CONSTABLES ARE DELEGATED AUTHORITY TO SEIZE
6 DRIVERS' LICENSES UNDER THIS SUBSECTION, THEY SHALL BE
7 COMPENSATED BY THE DEPARTMENT AT THE RATE OF $15 FOR EACH
8 DRIVER'S LICENSE SEIZED, PLUS MILEAGE. THE DEPARTMENT
9 SHALL PAY A CONSTABLE OR DEPUTY CONSTABLE WITHIN 30 DAYS
10 AFTER A DOCUMENTED REQUEST IS SUBMITTED TO IT.
11 (2) THE DEPARTMENT SHALL, BY REGULATION, PRESCRIBE THE
12 MANNER OF SELECTING [THE EMPLOYEES AND STATE AND LOCAL POLICE
13 OFFICERS] THOSE OFFICIALS WHO ARE DELEGATED AUTHORITY UNDER
14 THIS SUBSECTION TO SEIZE THE DRIVERS' LICENSES.
15 SECTION 7. SECTION 1702 OF TITLE 75 IS AMENDED BY ADDING
16 DEFINITIONS TO READ:
17 § 1702. DEFINITIONS.
18 THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS CHAPTER
19 SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE
20 CONTEXT CLEARLY INDICATES OTHERWISE:
21 * * *
22 "COMMISSIONER." THE INSURANCE COMMISSIONER OF THE
23 COMMONWEALTH.
24 * * *
25 "NECESSARY MEDICAL TREATMENT AND REHABILITATIVE SERVICES."
26 TREATMENT, ACCOMMODATIONS, PRODUCTS OR SERVICES WHICH ARE
27 DETERMINED TO BE NECESSARY BY A LICENSED HEALTH CARE PROVIDER
28 UNLESS THEY SHALL HAVE BEEN FOUND OR DETERMINED TO BE
29 UNNECESSARY BY A STATE-APPROVED PEER REVIEW ORGANIZATION (PRO).
30 "PEER REVIEW ORGANIZATION" OR "PRO." ANY PEER REVIEW
19890H0376B2938 - 18 -
1 ORGANIZATION WITH WHICH THE FEDERAL HEALTH CARE FINANCING
2 ADMINISTRATION OR THE COMMONWEALTH CONTRACTS FOR MEDICAL REVIEW
3 OF MEDICARE OR MEDICAL ASSISTANCE SERVICES, OR ANY HEALTH CARE
4 REVIEW COMPANY, APPROVED BY THE COMMISSIONER, THAT ENGAGES IN
5 PEER REVIEW FOR THE PURPOSE OF DETERMINING THAT MEDICAL AND
6 REHABILITATION SERVICES ARE MEDICALLY NECESSARY AND ECONOMICALLY
7 PROVIDED. THE MEMBERSHIP OF ANY PRO UTILIZED IN CONNECTION WITH
8 THE ACT SHALL INCLUDE REPRESENTATION FROM THE PROFESSION WHOSE
9 SERVICES ARE SUBJECT TO THE REVIEW.
10 * * *
11 SECTION 8. SECTIONS 1711, 1712, 1715(A), 1718(C), 1722 AND
12 1731 OF TITLE 75 ARE AMENDED TO READ:
13 § 1711. REQUIRED BENEFITS.
14 (A) MEDICAL BENEFIT.--AN INSURER ISSUING OR DELIVERING
15 LIABILITY INSURANCE POLICIES COVERING ANY MOTOR VEHICLE OF THE
16 TYPE REQUIRED TO BE REGISTERED UNDER THIS TITLE, EXCEPT
17 RECREATIONAL VEHICLES NOT INTENDED FOR HIGHWAY USE, MOTORCYCLES,
18 MOTOR-DRIVEN CYCLES OR MOTORIZED PEDALCYCLES OR LIKE TYPE
19 VEHICLES, REGISTERED AND OPERATED IN THIS COMMONWEALTH, SHALL
20 INCLUDE COVERAGE PROVIDING A MEDICAL BENEFIT IN THE AMOUNT OF
21 [$10,000, AN INCOME LOSS BENEFIT UP TO A MONTHLY MAXIMUM OF
22 $1,000 UP TO A MAXIMUM BENEFIT OF $5,000 AND A FUNERAL BENEFIT
23 IN THE AMOUNT OF $1,500, AS DEFINED IN SECTION 1712 (RELATING TO
24 AVAILABILITY OF BENEFITS), WITH RESPECT TO INJURY ARISING OUT OF
25 THE MAINTENANCE OR USE OF A MOTOR VEHICLE. THE INCOME LOSS
26 BENEFIT PROVIDED UNDER THIS SECTION MAY BE EXPRESSLY WAIVED BY
27 THE NAMED INSURED PROVIDED THE NAMED INSURED HAS NO EXPECTATION
28 OF ACTUAL INCOME LOSS DUE TO AGE, DISABILITY OR LACK OF
29 EMPLOYMENT HISTORY. AT THE ELECTION OF THE NAMED INSURED, SUCH
30 POLICY SHALL ALSO INCLUDE AN EXTRAORDINARY MEDICAL BENEFIT AS
19890H0376B2938 - 19 -
1 DESCRIBED IN SECTION 1715(A)(1.1) AND (D) (RELATING TO
2 AVAILABILITY OF ADEQUATE LIMITS).] $5,000.
3 (B) MINIMUM POLICY.--ALL INSURERS SUBJECT TO THIS CHAPTER
4 SHALL MAKE AVAILABLE FOR PURCHASE AN AUTOMOBILE INSURANCE POLICY
5 WHICH CONTAINS ONLY THE MINIMUM REQUIREMENTS OF FINANCIAL
6 RESPONSIBILITY AND MEDICAL BENEFITS AS PROVIDED FOR IN THIS
7 CHAPTER.
8 § 1712. AVAILABILITY OF BENEFITS.
9 AN INSURER ISSUING OR DELIVERING LIABILITY INSURANCE POLICIES
10 COVERING ANY MOTOR VEHICLE OF THE TYPE REQUIRED TO BE REGISTERED
11 UNDER THIS TITLE, EXCEPT RECREATIONAL VEHICLES NOT INTENDED FOR
12 HIGHWAY USE, MOTORCYCLES, MOTOR-DRIVEN CYCLES OR MOTORIZED
13 PEDALCYCLES OR LIKE TYPE VEHICLES, REGISTERED AND OPERATED IN
14 THIS COMMONWEALTH, SHALL MAKE AVAILABLE FOR PURCHASE FIRST PARTY
15 BENEFITS AND UNINSURED AND UNDERINSURED MOTORIST COVERAGE WITH
16 RESPECT TO INJURY ARISING OUT OF THE MAINTENANCE OR USE OF A
17 MOTOR VEHICLE AS FOLLOWS:
18 (1) MEDICAL BENEFIT.--[COVERAGE] SUBJECT TO THE
19 LIMITATIONS OF SECTION 1797 (RELATING TO CUSTOMARY CHARGES
20 FOR TREATMENT), COVERAGE TO PROVIDE FOR REASONABLE AND
21 NECESSARY MEDICAL TREATMENT AND REHABILITATIVE SERVICES,
22 INCLUDING, BUT NOT LIMITED TO, HOSPITAL, DENTAL, SURGICAL,
23 PSYCHIATRIC, PSYCHOLOGICAL, OSTEOPATHIC, AMBULANCE,
24 CHIROPRACTIC, LICENSED PHYSICAL THERAPY, NURSING SERVICES,
25 VOCATIONAL REHABILITATION AND OCCUPATIONAL THERAPY, SPEECH
26 PATHOLOGY AND AUDIOLOGY, OPTOMETRIC SERVICES, MEDICATIONS,
27 MEDICAL SUPPLIES AND PROSTHETIC DEVICES, ALL WITHOUT
28 LIMITATION AS TO TIME, PROVIDED THAT, WITHIN 18 MONTHS FROM
29 THE DATE OF THE ACCIDENT CAUSING INJURY, IT IS ASCERTAINABLE
30 WITH REASONABLE MEDICAL PROBABILITY THAT FURTHER EXPENSES MAY
19890H0376B2938 - 20 -
1 BE INCURRED AS A RESULT OF THE INJURY. BENEFITS UNDER THIS
2 PARAGRAPH MAY INCLUDE ANY NONMEDICAL REMEDIAL CARE AND
3 TREATMENT RENDERED IN ACCORDANCE WITH A RECOGNIZED RELIGIOUS
4 METHOD OF HEALING.
5 (2) INCOME LOSS BENEFIT.--INCLUDES THE FOLLOWING:
6 (I) EIGHTY PERCENT OF ACTUAL LOSS OF GROSS INCOME.
7 (II) REASONABLE EXPENSES ACTUALLY INCURRED FOR
8 HIRING A SUBSTITUTE TO PERFORM SELF-EMPLOYMENT SERVICES
9 THEREBY MITIGATING LOSS OF GROSS INCOME OR FOR HIRING
10 SPECIAL HELP THEREBY ENABLING A PERSON TO WORK AND
11 MITIGATE LOSS OF GROSS INCOME.
12 INCOME LOSS DOES NOT INCLUDE LOSS OF EXPECTED INCOME FOR ANY
13 PERIOD FOLLOWING THE DEATH OF AN INDIVIDUAL OR EXPENSES
14 INCURRED FOR SERVICES PERFORMED FOLLOWING THE DEATH OF AN
15 INDIVIDUAL. INCOME LOSS SHALL NOT COMMENCE UNTIL FIVE WORKING
16 DAYS HAVE BEEN LOST AFTER THE DATE OF THE ACCIDENT. THE TOTAL
17 PREMIUM FOR ALL FIRST PARTY COVERAGES FOR AN INSURED WHO
18 ELECTS NOT TO PURCHASE AN INCOME LOSS BENEFIT SHALL BE
19 REDUCED BY AT LEAST 15%.
20 (3) ACCIDENTAL DEATH BENEFIT.--A DEATH BENEFIT PAID TO
21 THE PERSONAL REPRESENTATIVE OF THE INSURED, SHOULD INJURY
22 RESULTING FROM A MOTOR VEHICLE ACCIDENT CAUSE DEATH WITHIN 24
23 MONTHS FROM THE DATE OF THE ACCIDENT.
24 (4) FUNERAL BENEFIT.--EXPENSES DIRECTLY RELATED TO THE
25 FUNERAL, BURIAL, CREMATION OR OTHER FORM OF DISPOSITION OF
26 THE REMAINS OF A DECEASED INDIVIDUAL, INCURRED AS A RESULT
27 OF THE DEATH OF THE INDIVIDUAL AS A RESULT OF THE ACCIDENT
28 AND WITHIN 24 MONTHS FROM THE DATE OF THE ACCIDENT. THE TOTAL
29 PREMIUM FOR ALL FIRST PARTY COVERAGES FOR AN INSURED WHO
30 ELECTS NOT TO PURCHASE A FUNERAL BENEFIT SHALL BE REDUCED BY
19890H0376B2938 - 21 -
1 AT LEAST 1%.
2 (5) COMBINATION BENEFIT.--A COMBINATION OF BENEFITS
3 DESCRIBED IN PARAGRAPHS (1) THROUGH (4) AS AN ALTERNATIVE TO
4 THE SEPARATE PURCHASE OF THOSE BENEFITS.
5 (6) UNINSURED AND UNDERINSURED MOTORIST COVERAGE.
6 (7) EXTRAORDINARY MEDICAL BENEFITS.--MEDICAL BENEFITS,
7 AS DEFINED IN PARAGRAPH (1), WHICH EXCEED $100,000.
8 § 1715. AVAILABILITY OF ADEQUATE LIMITS.
9 (A) GENERAL RULE.--AN INSURER SHALL MAKE AVAILABLE FOR
10 PURCHASE FIRST PARTY BENEFITS AND UNINSURED AND UNDERINSURED
11 MOTORIST COVERAGE AS FOLLOWS:
12 (1) FOR MEDICAL BENEFITS, UP TO AT LEAST $100,000.
13 (1.1) FOR EXTRAORDINARY MEDICAL BENEFITS, FROM $100,000
14 TO $1,100,000, WHICH MAY BE OFFERED IN INCREMENTS OF
15 $100,000, AS LIMITED BY SUBSECTION (D).
16 (2) FOR INCOME LOSS BENEFITS, UP TO AT LEAST $2,500 PER
17 MONTH UP TO A MAXIMUM BENEFIT OF AT LEAST $50,000.
18 (3) FOR ACCIDENTAL DEATH BENEFITS, UP TO AT LEAST
19 $25,000.
20 (4) FOR FUNERAL BENEFITS, $2,500.
21 (5) FOR COMBINATION OF BENEFITS ENUMERATED IN PARAGRAPHS
22 (1) THROUGH (4) AND SUBJECT TO A LIMIT ON THE ACCIDENTAL
23 DEATH BENEFIT OF UP TO $25,000 AND A LIMIT ON THE FUNERAL
24 BENEFIT OF $2,500, UP TO AT LEAST [$277,500] $177,500 OF
25 BENEFITS IN THE AGGREGATE OR BENEFITS PAYABLE UP TO THREE
26 YEARS FROM THE DATE OF THE ACCIDENT, WHICHEVER OCCURS FIRST,
27 PROVIDED THAT NOTHING CONTAINED IN THIS SUBSECTION SHALL BE
28 CONSTRUED TO LIMIT, REDUCE, MODIFY OR CHANGE THE PROVISIONS
29 OF SUBSECTION (D).
30 (6) UNINSURED AND UNDERINSURED MOTORIST COVERAGE IN
19890H0376B2938 - 22 -
1 AMOUNTS EQUAL TO OR LESS THAN THE MOTOR VEHICLE LIABILITY
2 INSURANCE REQUIRED UNDER THIS CHAPTER.
3 * * *
4 § 1718. EXCLUSION FROM BENEFITS.
5 * * *
6 (C) NAMED DRIVER EXCLUSION.--AN INSURER OR THE FIRST NAMED
7 INSURED MAY EXCLUDE ANY [INSURED] PERSON OR HIS PERSONAL
8 REPRESENTATIVE FROM BENEFITS UNDER A POLICY ENUMERATED IN
9 SECTION 1711 OR 1712 WHEN [THE INSURED] ANY OF THE FOLLOWING
10 APPLY:
11 (1) THE PERSON IS EXCLUDED FROM COVERAGE WHILE OPERATING
12 A MOTOR VEHICLE IN ACCORDANCE WITH THE ACT OF JUNE 5, 1968
13 (P.L.140, NO.78), RELATING TO THE WRITING, CANCELLATION OF OR
14 REFUSAL TO RENEW POLICIES OF AUTOMOBILE INSURANCE.
15 (2) THE FIRST NAMED INSURED HAS REQUESTED THAT THE
16 PERSON BE EXCLUDED FROM COVERAGE WHILE OPERATING A MOTOR
17 VEHICLE. THIS PARAGRAPH SHALL ONLY APPLY IF THE EXCLUDED
18 PERSON IS INSURED ON ANOTHER POLICY OF MOTOR VEHICLE
19 LIABILITY INSURANCE.
20 § 1722. PRECLUSION OF PLEADING, PROVING AND RECOVERING REQUIRED
21 BENEFITS.
22 IN ANY ACTION FOR DAMAGES AGAINST A TORTFEASOR ARISING OUT OF
23 THE MAINTENANCE OR USE OF A MOTOR VEHICLE, A PERSON WHO IS
24 ELIGIBLE TO RECEIVE BENEFITS UNDER THE COVERAGES SET FORTH IN
25 [SECTION 1711 (RELATING TO REQUIRED BENEFITS) OR THE COVERAGE
26 SET FORTH IN SECTION 1715(A)(1.1) (RELATING TO AVAILABILITY OF
27 ADEQUATE LIMITS)] THIS SUBCHAPTER SHALL BE PRECLUDED FROM
28 PLEADING, INTRODUCING INTO EVIDENCE OR RECOVERING THE AMOUNT OF
29 BENEFITS PAID OR PAYABLE UNDER [SECTION 1711 OR 1715(A)(1.1).
30 THIS PRECLUSION APPLIES ONLY TO THE AMOUNT OF BENEFITS SET FORTH
19890H0376B2938 - 23 -
1 IN SECTIONS 1711 AND 1715(A)(1.1)] THIS SUBCHAPTER.
2 § 1731. [SCOPE] AVAILABILITY, SCOPE AND AMOUNT OF COVERAGE.
3 (A) [GENERAL RULE] MANDATORY AVAILABILITY.--NO MOTOR VEHICLE
4 LIABILITY INSURANCE POLICY SHALL BE DELIVERED OR ISSUED FOR
5 DELIVERY IN THIS COMMONWEALTH, WITH RESPECT TO ANY MOTOR VEHICLE
6 REGISTERED OR PRINCIPALLY GARAGED IN THIS COMMONWEALTH, UNLESS
7 UNINSURED MOTORIST AND UNDERINSURED MOTORIST COVERAGES ARE
8 [PROVIDED] MADE AVAILABLE THEREIN OR SUPPLEMENTAL THERETO IN
9 AMOUNTS EQUAL TO THE BODILY INJURY LIABILITY COVERAGE EXCEPT AS
10 PROVIDED IN SECTION 1734 (RELATING TO REQUEST FOR LOWER [OR
11 HIGHER] LIMITS OF COVERAGE). PURCHASE OF UNINSURED MOTORIST AND
12 UNDERINSURED MOTORIST COVERAGES IS OPTIONAL, PROVIDED THAT THE
13 TOTAL PREMIUM FOR ALL FIRST PARTY COVERAGES FOR AN INSURED WHO
14 ELECTS NOT TO PURCHASE UNINSURED AND UNDERINSURED MOTORIST
15 COVERAGE BENEFIT SHALL BE REDUCED BY AT LEAST 35%.
16 (B) UNINSURED MOTORIST COVERAGE.--UNINSURED MOTORIST
17 COVERAGE SHALL PROVIDE PROTECTION FOR PERSONS WHO SUFFER INJURY
18 ARISING OUT OF THE MAINTENANCE OR USE OF A MOTOR VEHICLE AND ARE
19 LEGALLY ENTITLED TO RECOVER DAMAGES THEREFOR FROM OWNERS OR
20 OPERATORS OF UNINSURED MOTOR VEHICLES. THE INSURED MAY REJECT
21 UNINSURED MOTORIST COVERAGE BY SIGNING THE FOLLOWING WRITTEN
22 REJECTION FORM.
23 REJECTION OF UNINSURED MOTORIST PROTECTION
24 BY SIGNING THIS WAIVER I AM REJECTING UNINSURED MOTORIST
25 COVERAGE UNDER THIS POLICY, FOR MYSELF AND ALL RELATIVES
26 RESIDING IN MY HOUSEHOLD. UNINSURED COVERAGE PROTECTS ME AND
27 RELATIVES LIVING IN MY HOUSEHOLD FOR LOSSES AND DAMAGES SUFFERED
28 IF INJURY IS CAUSED BY THE NEGLIGENCE OF A DRIVER WHO DOES NOT
29 HAVE ANY INSURANCE TO PAY FOR LOSSES AND DAMAGES. I KNOWINGLY
30 AND VOLUNTARILY REJECT THIS COVERAGE.
19890H0376B2938 - 24 -
1 ................................
2 SIGNATURE OF FIRST NAMED INSURED
3 ................................
4 DATE
5 (C) UNDERINSURED MOTORIST COVERAGE.--UNDERINSURED MOTORIST
6 COVERAGE SHALL PROVIDE PROTECTION FOR PERSONS WHO SUFFER INJURY
7 ARISING OUT OF THE MAINTENANCE OR USE OF A MOTOR VEHICLE AND ARE
8 LEGALLY ENTITLED TO RECOVER DAMAGES THEREFOR FROM OWNERS OR
9 OPERATORS OF UNDERINSURED MOTOR VEHICLES. THE INSURED MAY REJECT
10 UNDERINSURED MOTORIST COVERAGE BY SIGNING THE FOLLOWING WRITTEN
11 REJECTION FORM.
12 REJECTION OF UNDERINSURED MOTORIST PROTECTION
13 BY SIGNING THIS WAIVER I AM REJECTING UNDERINSURED MOTORIST
14 COVERAGE UNDER THIS POLICY, FOR MYSELF AND ALL RELATIVES
15 RESIDING IN MY HOUSEHOLD. UNDERINSURED COVERAGE PROTECTS ME AND
16 RELATIVES LIVING IN MY HOUSEHOLD FOR LOSSES AND DAMAGES SUFFERED
17 IF INJURY IS CAUSED BY THE NEGLIGENCE OF A DRIVER WHO DOES NOT
18 HAVE ENOUGH INSURANCE TO PAY FOR ALL LOSSES AND DAMAGES. I
19 KNOWINGLY AND VOLUNTARILY REJECT THIS COVERAGE.
20 ................................
21 SIGNATURE OF FIRST NAMED INSURED
22 ................................
23 DATE
24 (C.1) FORM OF WAIVER.--INSURERS SHALL PRINT THE REJECTION
25 FORMS REQUIRED BY SUBSECTIONS (B) AND (C) ON SEPARATE SHEETS IN
26 PROMINENT TYPE AND LOCATION. THE FORMS MUST BE SIGNED BY THE
27 FIRST NAMED INSURED AND DATED TO BE VALID. THE SIGNATURES ON THE
28 FORMS MAY BE WITNESSED BY AN INSURANCE AGENT OR BROKER. ANY
29 REJECTION FORM THAT DOES NOT SPECIFICALLY COMPLY WITH THIS
30 SECTION IS VOID. IF THE INSURER FAILS TO PRODUCE A VALID
19890H0376B2938 - 25 -
1 REJECTION FORM, UNINSURED OR UNDERINSURED COVERAGE, OR BOTH, AS
2 THE CASE MAY BE, UNDER THAT POLICY SHALL BE EQUAL TO THE BODILY
3 INJURY LIABILITY LIMITS. ON POLICIES IN WHICH EITHER UNINSURED
4 OR UNDERINSURED COVERAGE HAS BEEN REJECTED, THE POLICY RENEWALS
5 MUST CONTAIN NOTICE IN PROMINENT TYPE THAT THE POLICY DOES NOT
6 PROVIDE PROTECTION AGAINST DAMAGES CAUSED BY UNINSURED OR
7 UNDERINSURED MOTORISTS.
8 (D) LIMITATION ON RECOVERY.--A PERSON WHO RECOVERS DAMAGES
9 UNDER UNINSURED MOTORIST COVERAGE OR COVERAGES CANNOT RECOVER
10 DAMAGES UNDER UNDERINSURED MOTORIST COVERAGE OR COVERAGES FOR
11 THE SAME ACCIDENT.
12 SECTION 9. SECTION 1732 OF TITLE 75 IS REPEALED.
13 SECTION 10. SECTIONS 1733 AND 1734 OF TITLE 75 ARE AMENDED
14 TO READ:
15 § 1733. PRIORITY OF RECOVERY.
16 (A) GENERAL RULE.--WHERE MULTIPLE POLICIES APPLY, PAYMENT
17 SHALL BE MADE IN THE FOLLOWING ORDER OF PRIORITY:
18 (1) A POLICY COVERING A MOTOR VEHICLE OCCUPIED BY THE
19 INJURED PERSON AT THE TIME OF THE ACCIDENT.
20 (2) A POLICY COVERING A MOTOR VEHICLE NOT INVOLVED IN
21 THE ACCIDENT WITH RESPECT TO WHICH THE INJURED PERSON IS AN
22 INSURED.
23 (B) MULTIPLE SOURCES OF EQUAL PRIORITY.--THE INSURER AGAINST
24 WHOM A CLAIM IS ASSERTED FIRST UNDER THE PRIORITIES SET FORTH IN
25 SUBSECTION (A) SHALL PROCESS AND PAY THE CLAIM AS IF WHOLLY
26 RESPONSIBLE. THE INSURER IS THEREAFTER ENTITLED TO RECOVER
27 CONTRIBUTION PRO RATA FROM ANY OTHER INSURER FOR THE BENEFITS
28 PAID AND THE COSTS OF PROCESSING THE CLAIM.
29 § 1734. REQUEST FOR LOWER [OR HIGHER] LIMITS OF COVERAGE.
30 A NAMED INSURED MAY REQUEST IN WRITING THE ISSUANCE OF
19890H0376B2938 - 26 -
1 COVERAGES UNDER SECTION 1731 (RELATING TO AVAILABILITY, SCOPE
2 AND AMOUNT OF COVERAGE) IN AMOUNTS EQUAL TO OR LESS THAN THE
3 LIMITS OF LIABILITY FOR BODILY INJURY. [BUT IN NO EVENT LESS
4 THAN THE AMOUNTS REQUIRED BY THIS CHAPTER FOR BODILY INJURY. IF
5 THE NAMED INSURED HAS SELECTED UNINSURED AND UNDERINSURED
6 MOTORIST COVERAGE IN CONNECTION WITH A POLICY PREVIOUSLY ISSUED
7 TO HIM BY THE SAME INSURER UNDER SECTION 1731, THE COVERAGES
8 OFFERED NEED NOT BE PROVIDED IN EXCESS OF THE LIMITS OF
9 LIABILITY PREVIOUSLY ISSUED FOR UNINSURED AND UNDERINSURED
10 MOTORIST COVERAGE UNLESS THE NAMED INSURED REQUESTS IN WRITING
11 HIGHER LIMITS OF LIABILITY FOR THOSE COVERAGES.]
12 SECTION 11. TITLE 75 IS AMENDED BY ADDING SECTIONS TO READ:
13 § 1737. RIGHTS TO PAYMENT.
14 (A) SUBROGATION.--IN CLAIMS ARISING OUT OF THE MAINTENANCE
15 OR USE OF AN UNDERINSURED MOTOR VEHICLE, THERE SHALL BE NO RIGHT
16 OF SUBROGATION BY AN INSURER WITH RESPECT TO THE PAYMENT OF
17 UNDERINSURED MOTORIST BENEFITS.
18 (B) CONDITION TO PAYMENT.--NO POLICY OF INSURANCE SHALL
19 REQUIRE, AS A CONDITION TO THE PAYMENT OF UNDERINSURED MOTORIST
20 BENEFITS, THE PRIOR CONSENT OF THE INSURER TO THE SETTLEMENT OF
21 A BODILY INJURY CLAIM WITH ANY PERSON.
22 § 1738. STACKING OF UNINSURED AND UNDERINSURED BENEFITS.
23 WHEN MULTIPLE VEHICLES ARE INSURED UNDER ONE OR MORE POLICIES
24 OF INSURANCE, THE STATED LIMIT SHALL APPLY SEPARATELY TO EACH
25 VEHICLE. THE LIMITS OF COVERAGE AVAILABLE UNDER THIS SUBCHAPTER
26 FOR AN INSURED SHALL BE THE SUM OF THE LIMITS FOR EACH MOTOR
27 VEHICLE AS TO WHICH THE INJURED PERSON IS AN INSURED.
28 SECTION 12. SECTION 1753 OF TITLE 75 IS AMENDED TO READ:
29 § 1753. BENEFITS AVAILABLE.
30 AN ELIGIBLE CLAIMANT MAY RECOVER MEDICAL BENEFITS, AS
19890H0376B2938 - 27 -
1 DESCRIBED IN SECTION 1712(1) (RELATING TO AVAILABILITY OF
2 BENEFITS), UP TO A MAXIMUM OF $5,000. NO INCOME LOSS BENEFIT OR
3 ACCIDENTAL DEATH BENEFIT SHALL BE PAYABLE UNDER THIS SUBCHAPTER.
4 [FUNERAL EXPENSES, AS DESCRIBED IN SECTION 1712(4), IN THE
5 AMOUNT OF $1,500 SHALL BE RECOVERABLE AS AN OFFSET TO THE
6 MAXIMUM AMOUNT OF MEDICAL BENEFITS AVAILABLE UNDER THIS
7 SECTION.]
8 SECTION 13. SECTION 1782 OF TITLE 75 IS AMENDED BY ADDING A
9 SUBSECTION TO READ:
10 § 1782. MANNER OF PROVIDING PROOF OF FINANCIAL RESPONSIBILITY.
11 * * *
12 (D) FINANCIAL RESPONSIBILITY IDENTIFICATION CARDS.--INSURERS
13 SHALL PROVIDE FINANCIAL RESPONSIBILITY IDENTIFICATION CARDS TO
14 INSUREDS WHICH SHALL BE VALID ONLY FOR THE PERIOD FOR WHICH
15 COVERAGE HAS BEEN PAID BY THE INSURED. FINANCIAL RESPONSIBILITY
16 IDENTIFICATION CARDS SHALL DISCLOSE THE PERIOD FOR WHICH
17 COVERAGE HAS BEEN PAID BY THE INSURED AND SHALL CONTAIN SUCH
18 OTHER INFORMATION AS REQUIRED BY THE INSURANCE DEPARTMENT. IN
19 SUCH INSTANCE WHERE THE INSURED HAS FINANCED PREMIUMS THROUGH A
20 PREMIUM FINANCE COMPANY OR WHERE THE INSURED IS ON AN INSURER-
21 SPONSORED OR AGENCY-SPONSORED PAYMENT PLAN, FINANCIAL
22 RESPONSIBILITY IDENTIFICATION CARDS MAY BE ISSUED FOR PERIODS OF
23 SIX MONTHS EVEN THOUGH SUCH PAYMENT BY THE INSURED MAY BE FOR A
24 PERIOD OF LESS THAN SIX MONTHS. NOTHING IN THIS PARAGRAPH SHALL
25 BE CONSTRUED TO REQUIRE THE IMMEDIATE ISSUANCE OF FINANCIAL
26 RESPONSIBILITY IDENTIFICATION CARDS WHERE AN INSURED REPLACES AN
27 INSURED VEHICLE, ADDS A VEHICLE, OR INCREASES COVERAGES UNDER AN
28 EXISTING POLICY FOR WHICH A PREMIUM ADJUSTMENT IS REQUIRED.
29 SECTION 14. SECTIONS 1786 AND 1791 OF TITLE 75 ARE AMENDED
30 TO READ:
19890H0376B2938 - 28 -
1 § 1786. [SELF-CERTIFICATION OF] REQUIRED FINANCIAL
2 RESPONSIBILITY.
3 (A) SELF-CERTIFICATION.--THE DEPARTMENT OF TRANSPORTATION
4 SHALL REQUIRE THAT EACH MOTOR VEHICLE REGISTRANT CERTIFY THAT
5 THE REGISTRANT IS FINANCIALLY RESPONSIBLE AT THE TIME OF
6 REGISTRATION OR RENEWAL THEREOF. THE DEPARTMENT SHALL REFUSE TO
7 REGISTER OR RENEW THE REGISTRATION OF A VEHICLE FOR FAILURE TO
8 COMPLY WITH THIS REQUIREMENT OR FALSIFICATION OF SELF-
9 CERTIFICATION.
10 (B) CONSENT TO PRODUCE PROOF OF FINANCIAL RESPONSIBILITY.--
11 UPON REGISTERING A MOTOR VEHICLE OR RENEWING A MOTOR VEHICLE
12 REGISTRATION, THE OWNER OF THE MOTOR VEHICLE SHALL BE DEEMED TO
13 HAVE GIVEN CONSENT TO PRODUCE PROOF TO THE DEPARTMENT OF
14 TRANSPORTATION OR A POLICE OFFICER THAT THE VEHICLE REGISTRANT
15 HAS THE FINANCIAL RESPONSIBILITY REQUIRED BY THIS CHAPTER.
16 (C) SUSPENSION OF REGISTRATION AND OPERATING PRIVILEGE.--THE
17 DEPARTMENT OF TRANSPORTATION SHALL SUSPEND OR REVOKE THE
18 REGISTRATION OF A VEHICLE IF IT DETERMINES THE REQUIRED
19 FINANCIAL RESPONSIBILITY HAS NOT BEEN SECURED AS REQUIRED BY
20 THIS CHAPTER AND MAY SUSPEND THE OPERATING PRIVILEGE OF THE
21 REGISTRANT. THE OPERATING PRIVILEGE SHALL NOT BE RESTORED UNTIL
22 PROOF OF FINANCIAL RESPONSIBILITY IS SUBMITTED, TOGETHER WITH
23 THE RESTORATION FEE FOR OPERATING PRIVILEGE PROVIDED BY SECTION
24 1960 (RELATING TO REINSTATEMENT OF OPERATING PRIVILEGE OR
25 VEHICLE REGISTRATION). WHENEVER THE DEPARTMENT REVOKES OR
26 SUSPENDS THE REGISTRATION OF ANY VEHICLE UNDER THIS CHAPTER, THE
27 DEPARTMENT SHALL NOT RESTORE THE REGISTRATION UNTIL THE VEHICLE
28 OWNER FURNISHES PROOF OF FINANCIAL RESPONSIBILITY IN A MANNER
29 DETERMINED BY THE DEPARTMENT AND SUBMITS AN APPLICATION FOR
30 REGISTRATION TO THE DEPARTMENT, ACCOMPANIED BY THE FEE FOR
19890H0376B2938 - 29 -
1 RESTORATION OF REGISTRATION PROVIDED BY SECTION 1960.
2 (D) OBLIGATIONS UPON TERMINATION OF FINANCIAL
3 RESPONSIBILITY.--
4 (1) AN OWNER OF A MOTOR VEHICLE WHO CEASES TO MAINTAIN
5 FINANCIAL RESPONSIBILITY ON A REGISTERED VEHICLE SHALL NOT
6 OPERATE OR PERMIT OPERATION OF THE VEHICLE IN THIS
7 COMMONWEALTH UNTIL PROOF OF THE REQUIRED FINANCIAL
8 RESPONSIBILITY HAS BEEN PROVIDED TO THE DEPARTMENT OF
9 TRANSPORTATION.
10 (2) AN INSURER WHO HAS ISSUED A CONTRACT OF MOTOR
11 VEHICLE LIABILITY INSURANCE, OR ANY APPROVED SELF-INSURANCE
12 ENTITY, SHALL NOTIFY THE DEPARTMENT IN A TIMELY MANNER AND IN
13 A METHOD PRESCRIBED BY THE DEPARTMENT'S REGULATIONS.
14 (3) AN INSURER WHO HAS ISSUED A CONTRACT OF MOTOR
15 VEHICLE LIABILITY INSURANCE AND KNOWS OR HAS REASON TO
16 BELIEVE THAT THE CONTRACT IS FOR THE PURPOSE OF PROVIDING
17 PROOF OF FINANCIAL RESPONSIBILITY SHALL NOTIFY THE DEPARTMENT
18 IF THE INSURANCE HAS BEEN CANCELED OR TERMINATED BY THE
19 INSURED OR BY THE INSURER. THE INSURER SHALL NOTIFY THE
20 DEPARTMENT NOT LATER THAN TEN DAYS FOLLOWING THE EFFECTIVE
21 DATE OF THE CANCELLATION OR TERMINATION.
22 (4) A PERSON WHO, AFTER MAINTAINING FINANCIAL
23 RESPONSIBILITY ON THE VEHICLE OF ANOTHER PERSON, CEASES TO
24 MAINTAIN SUCH FINANCIAL RESPONSIBILITY SHALL IMMEDIATELY
25 NOTIFY THE VEHICLE'S OWNER, WHO SHALL NOT OPERATE, OR PERMIT
26 OPERATION OF, THE VEHICLE IN THIS COMMONWEALTH.
27 (5) IN THE CASE OF A PERSON WHO LEASES ANY MOTOR VEHICLE
28 FROM A PERSON ENGAGED IN THE BUSINESS OF LEASING MOTOR
29 VEHICLES, THE LESSEE SHALL SIGN A STATEMENT INDICATING THAT
30 THE REQUIRED FINANCIAL RESPONSIBILITY HAS BEEN PROVIDED
19890H0376B2938 - 30 -
1 THROUGH THE LESSOR OR THROUGH THE LESSEE'S MOTOR VEHICLE
2 LIABILITY INSURANCE POLICY COVERAGE. THE LESSEE SHALL SUBMIT
3 THE STATEMENT TO THE LESSOR.
4 (E) OPERATION OF A MOTOR VEHICLE WITHOUT REQUIRED FINANCIAL
5 RESPONSIBILITY.--ANY OWNER OF A MOTOR VEHICLE FOR WHICH THE
6 EXISTENCE OF FINANCIAL RESPONSIBILITY IS A REQUIREMENT FOR ITS
7 LEGAL OPERATION SHALL NOT OPERATE THE MOTOR VEHICLE OR PERMIT IT
8 TO BE OPERATED UPON A HIGHWAY OF THIS COMMONWEALTH WITHOUT THE
9 FINANCIAL RESPONSIBILITY REQUIRED BY THIS CHAPTER AND SHALL,
10 UPON REQUEST OF A POLICE OFFICER OR THE DEPARTMENT, PRODUCE
11 PROOF OF FINANCIAL RESPONSIBILITY ON A FORM PROVIDED BY THE
12 DEPARTMENT. ANY PERSON WHO FAILS TO COMPLY WITH THIS SUBSECTION
13 COMMITS A SUMMARY OFFENSE AND SHALL, UPON CONVICTION, BE
14 SENTENCED TO PAY A FINE OF $300; AND THE DEPARTMENT SHALL
15 SUSPEND THE OPERATING PRIVILEGE OF THE PERSON FOR 30 DAYS.
16 (F) TIME LIMIT TO PRODUCE PROOF.--FAILURE OF A REGISTERED
17 VEHICLE OWNER TO PROVIDE PROOF OF FINANCIAL RESPONSIBILITY IN A
18 FORM AUTHORIZED BY INSURANCE DEPARTMENT REGULATION WITHIN 15
19 DAYS OF A REQUEST BY THE DEPARTMENT FOR THE PROOF PROVIDED FOR
20 IN SUBSECTION (E) SHALL SUBJECT THE OWNER TO AN ADDITIONAL CIVIL
21 PENALTY OF $200 AND TO A THREE-MONTH REVOCATION OF VEHICLE
22 REGISTRATION.
23 (G) DEFENSES.--
24 (1) NO PERSON SHALL BE CONVICTED OF FAILING TO PRODUCE
25 PROOF OF FINANCIAL RESPONSIBILITY UNDER SECTION 3743
26 (RELATING TO ACCIDENTS INVOLVING DAMAGE TO ATTENDED VEHICLE
27 OR PROPERTY) OR 6308 (RELATING TO INVESTIGATION BY POLICE
28 OFFICERS), IF THE PERSON PRODUCES, AT THE OFFICE OF THE
29 ISSUING AUTHORITY WITHIN FIVE DAYS OF THE DATE OF THE
30 VIOLATION, PROOF THAT HE POSSESSED THE REQUIRED FINANCIAL
19890H0376B2938 - 31 -
1 RESPONSIBILITY AT THE TIME OF THE VIOLATION.
2 (2) NO PERSON SHALL BE PENALIZED FOR MAINTAINING A
3 REGISTERED MOTOR VEHICLE WITHOUT FINANCIAL RESPONSIBILITY
4 UNDER SUBSECTION (C) IF THE REGISTRATION AND LICENSE PLATES
5 WERE SURRENDERED TO THE DEPARTMENT OF TRANSPORTATION AT THE
6 TIME INSURANCE COVERAGE TERMINATED OR FINANCIAL
7 RESPONSIBILITY LAPSED.
8 (H) LACK OF KNOWLEDGE.--NO PERSON, OTHER THAN A REGISTRANT,
9 WHO PROVES THAT HE WAS AUTHORIZED TO DRIVE THE VEHICLE AND THAT
10 HE DID NOT KNOW AND HAD NO REASON TO BELIEVE THAT THE REQUIRED
11 FINANCIAL RESPONSIBILITY HAD NOT BEEN PROVIDED SHALL BE
12 CONVICTED OF FAILING TO PRODUCE PROOF OF FINANCIAL
13 RESPONSIBILITY AS REQUIRED UNDER THIS SECTION. IN SUCH CASE,
14 HOWEVER, THE REGISTRANT MAY BE CHARGED WITH A VIOLATION.
15 § 1791. NOTICE OF AVAILABLE BENEFITS AND LIMITS.
16 IT SHALL BE PRESUMED THAT THE INSURED HAS BEEN ADVISED OF THE
17 BENEFITS AND LIMITS AVAILABLE UNDER THIS CHAPTER PROVIDED THE
18 FOLLOWING NOTICE IN BOLD PRINT OF AT LEAST TEN-POINT TYPE IS
19 GIVEN TO THE APPLICANT AT THE TIME OF APPLICATION FOR ORIGINAL
20 COVERAGE [OR AT THE TIME OF THE FIRST RENEWAL AFTER OCTOBER 1,
21 1984], AND NO OTHER NOTICE OR REJECTION SHALL BE REQUIRED:
22 IMPORTANT NOTICE
23 INSURANCE COMPANIES OPERATING IN THE COMMONWEALTH OF
24 PENNSYLVANIA ARE REQUIRED BY LAW TO MAKE AVAILABLE FOR
25 PURCHASE THE FOLLOWING BENEFITS FOR YOU, YOUR SPOUSE OR
26 OTHER RELATIVES OR MINORS IN YOUR CUSTODY OR IN THE
27 CUSTODY OF YOUR RELATIVES, RESIDING IN YOUR HOUSEHOLD,
28 OCCUPANTS OF YOUR MOTOR VEHICLE OR PERSONS STRUCK BY YOUR
29 MOTOR VEHICLE:
30 (1) MEDICAL BENEFITS, UP TO AT LEAST $100,000.
19890H0376B2938 - 32 -
1 (1.1) EXTRAORDINARY MEDICAL BENEFITS, FROM $100,000
2 TO $1,100,000 WHICH MAY BE OFFERED IN INCREMENTS OF
3 $100,000.
4 (2) INCOME LOSS BENEFITS, UP TO AT LEAST $2,500 PER
5 MONTH UP TO A MAXIMUM BENEFIT OF AT LEAST $50,000.
6 (3) ACCIDENTAL DEATH BENEFITS, UP TO AT LEAST
7 $25,000.
8 (4) FUNERAL BENEFITS, $2,500.
9 (5) AS AN ALTERNATIVE TO PARAGRAPHS (1) THROUGH (4),
10 A COMBINATION BENEFIT, UP TO AT LEAST [$277,500] $177,500
11 OF BENEFITS IN THE AGGREGATE OR BENEFITS PAYABLE UP TO
12 THREE YEARS FROM THE DATE OF THE ACCIDENT, WHICHEVER
13 OCCURS FIRST, SUBJECT TO A LIMIT ON ACCIDENTAL DEATH
14 BENEFIT OF UP TO $25,000 AND A LIMIT ON FUNERAL BENEFIT
15 OF $2,500, PROVIDED THAT NOTHING CONTAINED IN THIS
16 SUBSECTION SHALL BE CONSTRUED TO LIMIT, REDUCE, MODIFY OR
17 CHANGE THE PROVISIONS OF SECTION 1715(D) (RELATING TO
18 AVAILABILITY OF ADEQUATE LIMITS).
19 (6) UNINSURED, UNDERINSURED AND BODILY INJURY
20 LIABILITY COVERAGE UP TO AT LEAST $100,000 BECAUSE OF
21 INJURY TO ONE PERSON IN ANY ONE ACCIDENT AND UP TO AT
22 LEAST $300,000 BECAUSE OF INJURY TO TWO OR MORE PERSONS
23 IN ANY ONE ACCIDENT OR, AT THE OPTION OF THE INSURER, UP
24 TO AT LEAST $300,000 IN A SINGLE LIMIT FOR THESE
25 COVERAGES, EXCEPT FOR POLICIES ISSUED UNDER THE ASSIGNED
26 RISK PLAN. ALSO, AT LEAST $5,000 FOR DAMAGE TO PROPERTY
27 OF OTHERS IN ANY ONE ACCIDENT.
28 ADDITIONALLY, INSURERS MAY OFFER HIGHER BENEFIT LEVELS
29 THAN THOSE ENUMERATED ABOVE AS WELL AS ADDITIONAL
30 BENEFITS. HOWEVER, AN INSURED MAY ELECT TO PURCHASE LOWER
19890H0376B2938 - 33 -
1 BENEFIT LEVELS THAN THOSE ENUMERATED ABOVE.
2 YOUR SIGNATURE ON THIS NOTICE OR YOUR PAYMENT OF ANY
3 RENEWAL PREMIUM EVIDENCES YOUR ACTUAL KNOWLEDGE AND
4 UNDERSTANDING OF THE AVAILABILITY OF THESE BENEFITS AND
5 LIMITS AS WELL AS THE BENEFITS AND LIMITS YOU HAVE
6 SELECTED.
7 IF YOU HAVE ANY QUESTIONS OR YOU DO NOT UNDERSTAND ALL OF
8 THE VARIOUS OPTIONS AVAILABLE TO YOU, CONTACT YOUR AGENT
9 OR COMPANY.
10 IF YOU DO NOT UNDERSTAND ANY OF THE PROVISIONS CONTAINED
11 IN THIS NOTICE, CONTACT YOUR AGENT OR COMPANY BEFORE YOU
12 SIGN.
13 SECTION 15. TITLE 75 IS AMENDED BY ADDING A SECTION TO READ:
14 § 1791.1. DISCLOSURE OF PREMIUM CHARGES.
15 (A) INVOICE.--AT THE TIME OF APPLICATION FOR ORIGINAL
16 COVERAGE AND EVERY RENEWAL THEREAFTER, AN INSURER MUST PROVIDE
17 TO AN INSURED AN ITEMIZED INVOICE LISTING THE MINIMUM AUTOMOBILE
18 INSURANCE COVERAGE LEVELS MANDATED BY THE COMMONWEALTH AND THE
19 PREMIUM CHARGE FOR THE INSURED TO PURCHASE THE MINIMUM MANDATED
20 COVERAGES. THE INVOICE MUST CONTAIN THE FOLLOWING NOTICE IN
21 PRINT OF NO LESS THAN TEN-POINT TYPE:
22 THE LAWS OF THE COMMONWEALTH OF PENNSYLVANIA, AS ENACTED
23 BY THE GENERAL ASSEMBLY, REQUIRE THAT YOU PURCHASE ONLY
24 LIABILITY AND MEDICAL BENEFIT COVERAGES TO COMPLY WITH
25 PENNSYLVANIA LAW. ANY ADDITIONAL COVERAGES OR COVERAGES
26 IN EXCESS OF THE LIMITS REQUIRED BY LAW ARE PROVIDED ONLY
27 AT YOUR REQUEST AS ENHANCEMENTS TO BASIC COVERAGES.
28 THE INSURER SHALL PROVIDE THE ITEMIZED INVOICE TO THE INSURED IN
29 CONJUNCTION WITH THE DECLARATION OF COVERAGE LIMITS AND PREMIUMS
30 FOR THE INSURED'S EXISTING COVERAGES.
19890H0376B2938 - 34 -
1 (B) COST INFORMATION.--UPON AN ORAL OR WRITTEN REQUEST, AN
2 INSURER SUBJECT TO THIS CHAPTER SHALL PROVIDE TO THE REQUESTOR
3 INFORMATION ON THE REQUESTOR'S COST TO PURCHASE FROM THE INSURER
4 THE MINIMUM AUTOMOBILE INSURANCE COVERAGES REQUIRED UNDER THIS
5 CHAPTER. THIS REQUIREMENT SHALL INCLUDE THE REQUEST FOR AND
6 PROVISION OF INFORMATION BY TELEPHONE.
7 SECTION 16. SECTIONS 1792 AND 1797 OF TITLE 75 ARE AMENDED
8 TO READ:
9 § 1792. AVAILABILITY OF UNINSURED, UNDERINSURED, BODILY INJURY
10 LIABILITY AND PROPERTY DAMAGE COVERAGES AND MANDATORY
11 DEDUCTIBLES.
12 (A) AVAILABILITY OF COVERAGES.--EXCEPT FOR POLICIES ISSUED
13 UNDER SUBCHAPTER D (RELATING TO ASSIGNED RISK PLAN), AN INSURER
14 ISSUING A POLICY OF BODILY INJURY LIABILITY COVERAGE PURSUANT TO
15 THIS CHAPTER SHALL MAKE AVAILABLE FOR PURCHASE HIGHER LIMITS OF
16 UNINSURED, UNDERINSURED AND BODILY INJURY LIABILITY COVERAGES UP
17 TO AT LEAST $100,000 BECAUSE OF INJURY TO ONE PERSON IN ANY ONE
18 ACCIDENT AND UP TO AT LEAST $300,000 BECAUSE OF INJURY TO TWO OR
19 MORE PERSONS IN ANY ONE ACCIDENT OR, AT THE OPTION OF THE
20 INSURER, UP TO AT LEAST $300,000 IN A SINGLE LIMIT FOR THESE
21 COVERAGES. ADDITIONALLY, AN INSURER SHALL MAKE AVAILABLE FOR
22 PURCHASE AT LEAST $5,000 BECAUSE OF DAMAGE TO PROPERTY OF OTHERS
23 IN ANY ONE ACCIDENT. HOWEVER, THE EXCLUSION OF AVAILABILITY
24 RELATING TO THE ASSIGNED RISK PLAN SHALL NOT APPLY TO DAMAGE TO
25 PROPERTY OF OTHERS IN ANY ONE ACCIDENT.
26 (B) MANDATORY DEDUCTIBLES.--
27 (1) EVERY PRIVATE PASSENGER AUTOMOBILE INSURANCE POLICY
28 PROVIDING COLLISION COVERAGE ISSUED OR RENEWED ON OR AFTER
29 THE EFFECTIVE DATE OF THIS SUBSECTION, SHALL PROVIDE A
30 DEDUCTIBLE IN AN AMOUNT OF $500 FOR COLLISION COVERAGE,
19890H0376B2938 - 35 -
1 UNLESS THE NAMED INSURED SIGNS A STATEMENT INDICATING THE
2 INSURED IS AWARE THAT THE PURCHASE OF A LOWER DEDUCTIBLE IS
3 PERMISSIBLE AND THAT THERE IS AN ADDITIONAL COST OF
4 PURCHASING A LOWER DEDUCTIBLE, AND THE INSURED AGREES TO
5 ACCEPT IT.
6 (2) UNDER NO CIRCUMSTANCES MAY A PRIVATE PASSENGER
7 AUTOMOBILE INSURANCE POLICY PROVIDE A COLLISION DEDUCTIBLE IN
8 AN AMOUNT LESS THAN $100.
9 (3) ANY PERSON OR ENTITY PROVIDING FINANCING TO THE
10 PURCHASER OF A MOTOR VEHICLE OR OTHERWISE HOLDING A SECURITY
11 INTEREST IN A MOTOR VEHICLE SHALL NOT BE PERMITTED TO REQUIRE
12 THE PURCHASE OF A DEDUCTIBLE FOR LESS THAN $500 FOR COLLISION
13 AND COMPREHENSIVE COVERAGES. ANY FINANCIAL INSTITUTION,
14 INSURER, AGENT OR OTHER PERSON OR ENTITY FOUND TO HAVE
15 VIOLATED THIS PROVISION SHALL BE REQUIRED TO REIMBURSE THE
16 POLICYHOLDER IN AN AMOUNT EQUAL TO THE DIFFERENCE AND, IN
17 ADDITION, SHALL BE REQUIRED TO PAY A CIVIL PENALTY OF $500 TO
18 THE DEPARTMENT OF TRANSPORTATION FOR EACH VIOLATION.
19 (4) WITH THE PURCHASE OF A $500 OR GREATER DEDUCTIBLE,
20 THERE SHALL BE AN IMMEDIATE COMMENSURATE REDUCTION IN RATE
21 FOR COLLISION AND COMPREHENSIVE COVERAGES. THE REDUCTION IN
22 RATE SHALL BE BASED ON THE INSURED'S EXISTING DEDUCTIBLE
23 LEVEL. SHOULD THE INSURED ELECT TO PURCHASE A DEDUCTIBLE IN
24 AN AMOUNT EQUAL TO OR EXCEEDING $100, THERE SHALL BE AN
25 IMMEDIATE COMMENSURATE REDUCTION IN RATE FOR COLLISION AND
26 COMPREHENSIVE COVERAGES, BUT ONLY AS IT RELATES TO THE
27 INSURED'S EXISTING DEDUCTIBLE RATE.
28 § 1797. CUSTOMARY CHARGES FOR TREATMENT.
29 (A) GENERAL RULE.--A PERSON OR INSTITUTION PROVIDING
30 TREATMENT, ACCOMMODATIONS, PRODUCTS OR SERVICES TO AN INJURED
19890H0376B2938 - 36 -
1 PERSON FOR AN INJURY COVERED BY [MEDICAL OR CATASTROPHIC LOSS
2 BENEFITS] LIABILITY OR FIRST PARTY MEDICAL BENEFITS FOR A MOTOR
3 VEHICLE DESCRIBED IN SUBCHAPTER B (RELATING TO MOTOR VEHICLE
4 LIABILITY INSURANCE FIRST PARTY BENEFITS), SHALL NOT [MAKE A
5 CHARGE] REQUIRE, REQUEST OR ACCEPT PAYMENT FOR THE TREATMENT,
6 ACCOMMODATIONS, PRODUCTS OR SERVICES IN EXCESS OF [THE AMOUNT
7 THE PERSON OR INSTITUTION CUSTOMARILY CHARGES FOR LIKE
8 TREATMENT, ACCOMMODATIONS, PRODUCTS AND SERVICES IN CASES
9 INVOLVING NO INSURANCE.] 110% OF THE PREVAILING CHARGE AT THE
10 75TH PERCENTILE; 110% OF THE APPLICABLE FEE SCHEDULE, THE
11 RECOMMENDED FEE OR THE INFLATION INDEX CHARGE; OR 110% OF THE
12 DIAGNOSTIC RELATED GROUPS (DRG) PAYMENT; WHICHEVER PERTAINS TO
13 THE SPECIALTY SERVICE INVOLVED, DETERMINED TO BE APPLICABLE IN
14 THIS COMMONWEALTH UNDER THE MEDICARE PROGRAM FOR COMPARABLE
15 SERVICES AT THE TIME THE SERVICES WERE RENDERED, OR THE
16 PROVIDER'S USUAL AND CUSTOMARY CHARGE, WHICHEVER IS LESS. IF A
17 PREVAILING CHARGE, FEE SCHEDULE, RECOMMENDED FEE, INFLATION
18 INDEX CHARGE OR DRG PAYMENT HAS NOT BEEN CALCULATED UNDER THE
19 MEDICARE PROGRAM FOR A PARTICULAR TREATMENT, ACCOMMODATION,
20 PRODUCT OR SERVICE, THE AMOUNT OF THE PAYMENT MAY NOT EXCEED 80%
21 OF THE PROVIDER'S USUAL AND CUSTOMARY CHARGE. IF ACUTE CARE IS
22 PROVIDED IN AN ACUTE CARE FACILITY TO A PATIENT WITH AN
23 IMMEDIATELY LIFE-THREATENING OR URGENT INJURY BY A LEVEL I OR
24 LEVEL II TRAUMA CENTER ACCREDITED BY THE PENNSYLVANIA TRAUMA
25 SYSTEMS FOUNDATION UNDER THE ACT OF JULY 3, 1985 (P.L.164,
26 NO.45), KNOWN AS THE EMERGENCY MEDICAL SERVICES ACT, OR TO A
27 MAJOR BURN INJURY PATIENT BY A BURN FACILITY WHICH MEETS ALL THE
28 SERVICE STANDARDS OF THE AMERICAN BURN ASSOCIATION, THE AMOUNT
29 OF PAYMENT MAY NOT EXCEED THE USUAL AND CUSTOMARY CHARGE.
30 PROVIDERS SUBJECT TO THIS SECTION MAY NOT BILL THE INSURED
19890H0376B2938 - 37 -
1 DIRECTLY BUT MUST BILL THE INSURER FOR A DETERMINATION OF THE
2 AMOUNT PAYABLE. THE PROVIDER SHALL NOT BILL OR OTHERWISE ATTEMPT
3 TO COLLECT FROM THE INSURED THE DIFFERENCE BETWEEN THE
4 PROVIDER'S FULL CHARGE AND THE AMOUNT PAID BY THE INSURER.
5 (B) PEER REVIEW PLAN FOR CHALLENGES TO REASONABLENESS AND
6 NECESSITY OF TREATMENT.--
7 (1) PEER REVIEW PLAN.--INSURERS SHALL CONTRACT JOINTLY
8 OR SEPARATELY WITH ANY PEER REVIEW ORGANIZATION ESTABLISHED
9 FOR THE PURPOSE OF EVALUATING TREATMENT, HEALTH CARE
10 SERVICES, PRODUCTS OR ACCOMMODATIONS PROVIDED TO ANY INJURED
11 PERSON. SUCH EVALUATION SHALL BE FOR THE PURPOSE OF
12 CONFIRMING THAT SUCH TREATMENT, PRODUCTS, SERVICES OR
13 ACCOMMODATIONS CONFORM TO THE PROFESSIONAL STANDARDS OF
14 PERFORMANCE AND ARE MEDICALLY NECESSARY. AN INSURER'S
15 CHALLENGE MUST BE MADE TO A PRO WITHIN 90 DAYS OF THE
16 INSURER'S RECEIPT OF THE PROVIDER'S BILL FOR TREATMENT OR
17 SERVICES OR MAY BE MADE AT ANY TIME FOR CONTINUING TREATMENT
18 OR SERVICES.
19 (2) PRO RECONSIDERATION.--AN INSURER, PROVIDER OR
20 INSURED MAY REQUEST A RECONSIDERATION BY THE PRO OF THE PRO'S
21 INITIAL DETERMINATION. SUCH A REQUEST FOR RECONSIDERATION
22 MUST BE MADE WITHIN 30 DAYS OF THE PRO'S INITIAL
23 DETERMINATION. IF RECONSIDERATION IS REQUESTED FOR THE
24 SERVICES OF A PHYSICIAN OR OTHER LICENSED HEALTH CARE
25 PROFESSIONAL, THEN THE REVIEWING INDIVIDUAL MUST BE, OR THE
26 REVIEWING PANEL MUST INCLUDE, AN INDIVIDUAL IN THE SAME
27 SPECIALTY AS THE INDIVIDUAL SUBJECT TO REVIEW.
28 (3) PENDING DETERMINATIONS BY PRO.--IF THE INSURER
29 CHALLENGES WITHIN 30 DAYS OF RECEIPT OF A BILL FOR MEDICAL
30 TREATMENT OR REHABILITATIVE SERVICES, THE INSURER NEED NOT
19890H0376B2938 - 38 -
1 PAY THE PROVIDER SUBJECT TO THE CHALLENGE UNTIL A
2 DETERMINATION HAS BEEN MADE BY THE PRO. THE INSURED MAY NOT
3 BE BILLED FOR ANY TREATMENT, ACCOMMODATIONS, PRODUCTS OR
4 SERVICES DURING THE PEER REVIEW PROCESS.
5 (4) APPEAL TO COURT.--A PROVIDER OF MEDICAL TREATMENT OR
6 REHABILITATIVE SERVICES OR MERCHANDISE OR AN INSURED MAY
7 CHALLENGE BEFORE A COURT AN INSURER'S REFUSAL TO PAY FOR PAST
8 OR FUTURE MEDICAL TREATMENT OR REHABILITATIVE SERVICES OR
9 MERCHANDISE, THE REASONABLENESS OR NECESSITY OF WHICH THE
10 INSURER HAS NOT CHALLENGED BEFORE A PRO. CONDUCT CONSIDERED
11 TO BE "WANTON" SHALL BE SUBJECT TO A PAYMENT OF TREBLE
12 DAMAGES TO THE INJURED PARTY.
13 (5) PRO DETERMINATION IN FAVOR OF PROVIDER OR INSURED.--
14 IF A PRO DETERMINES THAT MEDICAL TREATMENT OR REHABILITATIVE
15 SERVICES OR MERCHANDISE WERE MEDICALLY NECESSARY, THE INSURER
16 MUST PAY TO THE PROVIDER THE OUTSTANDING AMOUNT PLUS INTEREST
17 AT 12% PER YEAR ON ANY AMOUNT WITHHELD BY THE INSURER PENDING
18 PRO REVIEW.
19 (6) COURT DETERMINATION IN FAVOR OF PROVIDER OR
20 INSURED.--IF PURSUANT TO PARAGRAPH (4) A COURT DETERMINES
21 THAT MEDICAL TREATMENT OR REHABILITATIVE SERVICES OR
22 MERCHANDISE WERE MEDICALLY NECESSARY, THE INSURER MUST PAY TO
23 THE PROVIDER THE OUTSTANDING AMOUNT PLUS INTEREST AT 12%, AS
24 WELL AS THE COSTS OF THE CHALLENGE AND ALL ATTORNEY FEES.
25 (7) DETERMINATION IN FAVOR OF INSURER.--IF IT IS
26 DETERMINED BY A PRO OR COURT THAT A PROVIDER HAS PROVIDED
27 UNNECESSARY MEDICAL TREATMENT OR REHABILITATIVE SERVICES OR
28 MERCHANDISE OR THAT FUTURE PROVISION OF SUCH TREATMENT,
29 SERVICES OR MERCHANDISE WILL BE UNNECESSARY, OR BOTH, THE
30 PROVIDER MAY NOT COLLECT PAYMENT FOR THE MEDICALLY
19890H0376B2938 - 39 -
1 UNNECESSARY TREATMENT, SERVICES OR MERCHANDISE. IF THE
2 PROVIDER HAS COLLECTED SUCH PAYMENT, IT MUST RETURN THE
3 AMOUNT PAID PLUS INTEREST AT 12% PER YEAR WITHIN 30 DAYS. IN
4 NO CASE DOES THE FAILURE OF THE PROVIDER TO RETURN THE SAID
5 PAYMENT OBLIGATE THE INSURED TO ASSUME RESPONSIBILITY FOR
6 PAYMENT FOR THE TREATMENT, SERVICES OR MERCHANDISE.
7 (C) REVIEW AUTHORIZED.--BY DECEMBER 1, 1991, THE LEGISLATIVE
8 BUDGET AND FINANCE COMMITTEE SHALL COMMENCE A REVIEW OF THE
9 IMPACT OF THIS SECTION. SUCH REVIEW MAY BE CONDUCTED BIENNIALLY.
10 SECTION 17. TITLE 75 IS AMENDED BY ADDING SECTIONS TO READ:
11 § 1799.1. RESTRAINT SYSTEM.
12 (A) GENERAL RULE.--ALL INSURANCE COMPANIES AUTHORIZED TO
13 WRITE PRIVATE PASSENGER AUTOMOBILE INSURANCE WITHIN THIS
14 COMMONWEALTH SHALL REDUCE THE PREMIUMS FOR FIRST PARTY COVERAGES
15 AS DEFINED IN SECTION 1712 (RELATING TO AVAILABILITY OF
16 BENEFITS) FOR ANY INSURED VEHICLE EQUIPPED WITH A PASSIVE
17 RESTRAINT SYSTEM FOR FRONT SEAT PASSENGERS: 15% FOR PASSIVE SEAT
18 BELTS, 20% FOR ONE AIR BAG ON THE DRIVER'S SIDE OF THE VEHICLE
19 OR 30% FOR TWO AIR BAGS.
20 (B) DEFINITIONS.--AS USED IN THIS SECTION, THE FOLLOWING
21 WORDS AND PHRASES SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS
22 SECTION UNLESS THE CONTEXT CLEARLY INDICATES OTHERWISE:
23 "PASSIVE RESTRAINT." ANY FRONTAL AUTOMOBILE CRASH PROTECTION
24 SYSTEM WHICH REQUIRES NO ACTION OF THE VEHICLE OCCUPANTS AND
25 COMPLIES WITH STANDARD 751.208 OF THE NATIONAL TRAFFIC SAFETY
26 ADMINISTRATION OR ITS SUCCESSOR.
27 § 1799.2. ANTITHEFT DEVICES.
28 (A) GENERAL RULE.--ALL INSURANCE COMPANIES AUTHORIZED TO
29 WRITE PRIVATE PASSENGER AUTOMOBILE INSURANCE WITHIN THIS
30 COMMONWEALTH SHALL REDUCE BY 10% THE PREMIUMS FOR COMPREHENSIVE
19890H0376B2938 - 40 -
1 COVERAGE FOR ALL INSURED VEHICLES EQUIPPED WITH PASSIVE
2 ANTITHEFT DEVICES.
3 (B) DEFINITIONS.--AS USED IN THIS SECTION, THE FOLLOWING
4 WORDS AND PHRASES SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS
5 SECTION UNLESS THE CONTEXT CLEARLY INDICATES OTHERWISE:
6 "PASSIVE ANTITHEFT DEVICE." ANY ITEM OR SYSTEM INSTALLED IN
7 AN AUTOMOBILE WHICH IS ACTIVATED AUTOMATICALLY WHEN THE OPERATOR
8 TURNS THE IGNITION KEY TO THE OFF POSITION AND WHICH IS DESIGNED
9 TO PREVENT UNAUTHORIZED USE, AS PRESCRIBED BY REGULATIONS OF THE
10 DEPARTMENT. THE TERM DOES NOT INCLUDE AN IGNITION INTERLOCK
11 PROVIDED AS A STANDARD ANTITHEFT DEVICE BY THE ORIGINAL
12 AUTOMOBILE MANUFACTURER.
13 § 1799.3. DRIVER IMPROVEMENT COURSE DISCOUNTS.
14 (A) MOTOR VEHICLE DRIVER IMPROVEMENT COURSE.--EVERY INSURER
15 WHICH WRITES A POLICY OF AUTOMOBILE INSURANCE IN THIS
16 COMMONWEALTH SHALL REDUCE BY 5% THE TOTAL PREMIUM CHARGED FOR
17 EACH VEHICLE FOR THOSE INSUREDS 55 YEARS OF AGE AND OLDER FOR A
18 THREE-YEAR PERIOD AFTER THEY SUCCESSFULLY COMPLETE A MOTOR
19 VEHICLE DRIVER IMPROVEMENT COURSE MEETING THE STANDARDS OF THE
20 DEPARTMENT.
21 (B) COMPLETION OF COURSE.--UPON SUCCESSFULLY COMPLETING THE
22 APPROVED COURSE, EACH PARTICIPANT SHALL BE ISSUED, BY THE
23 COURSE'S SPONSORING AGENCY, A CERTIFICATE WHICH SHALL BE THE
24 BASIS OF QUALIFICATION FOR THE DISCOUNT ON INSURANCE.
25 (C) CONTINUING ELIGIBILITY.--EACH PARTICIPANT SHALL TAKE AN
26 APPROVED COURSE EVERY THREE YEARS TO CONTINUE TO BE ELIGIBLE FOR
27 THE DISCOUNT ON INSURANCE. EACH INSURER MAY REQUIRE, AS A
28 CONDITION OF PROVIDING AND MAINTAINING THE DISCOUNT, THAT THE
29 INSURED FOR A THREE-YEAR PERIOD AFTER COURSE COMPLETION:
30 (1) NOT BE INVOLVED IN AN ACCIDENT FOR WHICH THE INSURED
19890H0376B2938 - 41 -
1 IS CHARGEABLE; AND
2 (2) NOT HAVE ANY ACCUMULATION OF POINTS FOR A TRAFFIC
3 VIOLATION.
4 (D) NONAPPLICABILITY.--THIS SECTION SHALL NOT APPLY IN THE
5 EVENT THE APPROVED COURSE IS SPECIFIED BY A COURT OR OTHER
6 GOVERNMENTAL ENTITY RESULTING FROM A MOVING TRAFFIC VIOLATION.
7 § 1799.4. GOOD DRIVER DISCOUNT.
8 EVERY INSURER WHICH WRITES A POLICY OF AUTOMOBILE INSURANCE
9 IN THIS COMMONWEALTH SHALL REDUCE BY 10% THE TOTAL PREMIUM
10 CHARGED FOR EACH VEHICLE AS TO WHICH NO AT-FAULT CLAIM HAS BEEN
11 FILED FOR FIVE CONSECUTIVE YEARS IMMEDIATELY PRECEDING THE
12 PERIOD FOR WHICH THE POLICY IS WRITTEN IF NONE OF THE DRIVERS
13 NAMED IN THE POLICY HAS COMMITTED A MOVING VIOLATION DURING THE
14 FIVE-YEAR PERIOD WHICH RESULTED IN A CONVICTION OR WHICH REMAINS
15 UNRESOLVED.
16 (1) IF A VIOLATION WHICH IS UNRESOLVED AT THE TIME THE
17 POLICY IS WRITTEN RESULTS IN AN ACQUITTAL, THE DISCOUNT SHALL
18 BE ALLOWED EITHER AS A REFUND OR AS A CREDIT ON A SUBSEQUENT
19 POLICY.
20 (2) FOR THE PURPOSE OF THIS SECTION, THE TERM
21 "CONVICTION" INCLUDES A PLEA OF GUILTY, A PLEA OF NOLO
22 CONTENDERE, A FINDING OF GUILTY BY A COURT, AN UNVACATED
23 FORFEITURE OF BAIL OR COLLATERAL DEPOSITED TO SECURE A
24 DEFENDANT'S APPEARANCE IN COURT, AND A PAYMENT BY ANY PERSON
25 CHARGED WITH A VIOLATION OF THE FINE PRESCRIBED FOR THE
26 VIOLATION.
27 § 1799.5. LIMIT ON SURCHARGES, LATE PENALTIES AND POINT
28 ASSIGNMENTS.
29 (A) PROPERTY DAMAGE CLAIMS.--NO SURCHARGE, RATE PENALTY OR
30 DRIVER RECORD POINT ASSIGNMENT SHALL BE MADE IF THE AGGREGATE
19890H0376B2938 - 42 -
1 COST TO THE INSURER OF REPAIR OR REPLACEMENT OF PROPERTY DAMAGED
2 OR BODILY INJURY LIABILITY IS DETERMINED TO BE LESS THAN $650 IN
3 EXCESS OF ANY SELF-INSURED RETENTION OR DEDUCTIBLE APPLICABLE TO
4 THE NAMED INSURED.
5 (B) FIRST PARTY MEDICAL CLAIMS.--NO SURCHARGE, RATE PENALTY
6 OR DRIVER RECORD POINT ASSIGNMENT SHALL BE MADE AS A RESULT OF
7 AN INSURER PAYING A FIRST PARTY MEDICAL CLAIM.
8 (C) NOTICE TO INSURED.--IF AN INSURER MAKES A DETERMINATION
9 TO IMPOSE A SURCHARGE, RATE PENALTY OR DRIVER RECORD POINT
10 ASSIGNMENT, THE INSURER SHALL INFORM THE NAMED INSURED OF THE
11 DETERMINATION AND SHALL SPECIFY THE MANNER IN WHICH THE
12 SURCHARGE, RATE PENALTY OR DRIVER RECORD POINT ASSIGNMENT WAS
13 MADE AND CLEARLY IDENTIFY THE AMOUNT OF THE SURCHARGE OR RATE
14 PENALTY ON THE PREMIUM NOTICE FOR AS LONG AS THE SURCHARGE OR
15 RATE PENALTY IS IN EFFECT.
16 (D) ADJUSTMENT OF CAP.--THE INSURANCE DEPARTMENT, AT LEAST
17 ONCE EVERY THREE YEARS, SHALL ADJUST THE $650 CAP OR LIMIT ON
18 THE PROPERTY DAMAGE OR BODILY INJURY LIABILITY SURCHARGE, RATE
19 PENALTY OR DRIVER RECORD POINT ASSIGNMENT SCHEME RELATIVE TO
20 CHANGES IN THE COMPONENTS OF THE CONSUMER PRICE INDEX (URBAN) TO
21 MEASURE SEASONALLY ADJUSTED CHANGES IN MEDICAL CARE AND
22 AUTOMOBILE MAINTENANCE AND REPAIR COSTS AND SHALL MAKE SUCH
23 ADJUSTMENTS TO THE CAP OR LIMIT AS SHALL BE NECESSARY TO
24 MAINTAIN THE SAME RATE OF CHANGE IN THE CAP OR LIMIT AS HAS
25 OCCURRED IN THE CONSUMER PRICE INDEX (URBAN). SUCH ADJUSTMENTS
26 MAY BE ROUNDED OFF TO THE NEAREST $50 FIGURE.
27 § 1799.6. EXAMINATION OF VEHICLE REPAIRS.
28 UPON REQUEST OF THE INSURER, AN INSURANCE ADJUSTER SHALL BE
29 AFFORDED A REASONABLE OPPORTUNITY TO ENTER A REPAIR FACILITY AND
30 EXAMINE COVERED REPAIRS BEING MADE TO A SPECIFIC INSURED'S
19890H0376B2938 - 43 -
1 VEHICLE AT A MUTUALLY ARRANGED TIME DURING REGULAR BUSINESS
2 HOURS.
3 § 1799.7. CONDUCT OF MARKET STUDY.
4 (A) DUTY OF INSURANCE DEPARTMENT.--THE INSURANCE DEPARTMENT
5 MAY AUTHORIZE A MARKET CONDUCT STUDY OF PRIVATE PASSENGER
6 AUTOMOBILE INSURERS.
7 (B) PURPOSES OF STUDY.--THE PURPOSES OF THE STUDY SHALL BE
8 TO:
9 (1) DETERMINE EXTENT OF INSURER COMPETITION.
10 (2) DETERMINE THE NUMBER OF UNINSURED MOTORISTS.
11 (3) DETERMINE EXTENT OF INSURER PROFITS AND LOSSES.
12 (4) DETERMINE IF ALL RATE FILINGS ARE REASONABLE IN
13 TERMS OF STATUTORY AND REGULATORY REQUIREMENTS.
14 (5) DETERMINE THE VALIDITY OF EXISTING RATING
15 TERRITORIES AND IF RATE DIFFERENTIALS BETWEEN OR AMONG RATING
16 TERRITORIES IS JUSTIFIED BY THE LOSSES.
17 (6) DETERMINE IF THE VARIOUS POLICIES FOR AUTOMOBILE
18 INSURANCE WRITTEN IN THIS COMMONWEALTH ARE AVAILABLE EQUALLY
19 TO EACH RESIDENT.
20 § 1799.8. CONDUCT OF RANDOM FIELD SURVEYS.
21 (A) AUTHORITY.--IN FURTHERANCE OF THE PURPOSES AND GOALS OF
22 SECTION 1799.7 (RELATING TO CONDUCT OF MARKET STUDY), THE
23 INSURANCE DEPARTMENT MAY CONDUCT FIELD SURVEYS IN THIS
24 COMMONWEALTH. THE FIELD SURVEY SHALL:
25 (1) DETERMINE THE GEOGRAPHICAL AREA TO BE SURVEYED.
26 (2) ESTABLISH A LIST OF INSURANCE PRODUCERS IN THE
27 SURVEYED AREA OR ITS IMMEDIATE NEIGHBORHOOD.
28 (3) CONSTRUCT HYPOTHETICAL RISK EXAMPLES AND OBTAIN
29 PREMIUM QUOTATIONS.
30 (4) DEVELOP A TENTATIVE LIST OF QUESTIONS FOR THE
19890H0376B2938 - 44 -
1 AGENTS.
2 (5) INTERVIEW AGENTS AT THEIR OFFICES AND OBTAIN PREMIUM
3 QUOTATIONS FROM THE AGENT FOR EACH COMPANY REPRESENTED BY
4 THAT AGENT.
5 (6) SORT AND CATEGORIZE INFORMATION.
6 (7) CONSTRUCT A TABLE DISPLAYING QUOTATIONS BY INSURER,
7 AREA AND RISK.
8 (8) WRITE A REPORT OF THE FINDINGS.
9 (B) CONJUNCTIVE ANALYSIS OF MARKET STUDY AND FIELD SURVEY.--
10 THE DEPARTMENT MAY ANALYZE INFORMATION COLLECTED FROM INSURANCE
11 COMPANIES UNDER SECTION 1799.7 IN CONJUNCTION WITH INFORMATION
12 COLLECTED FROM FIELD SURVEYS. THIS ANALYSIS MAY BE ONGOING.
13 § 1799.9. INSURANCE IN CITIES OF THE FIRST CLASS.
14 (A) STUDY BY THE INSURANCE DEPARTMENT.--BY FEBRUARY 1, 1991,
15 THE INSURANCE DEPARTMENT SHALL COMMENCE A STUDY OF THE USE OF A
16 SINGLE CARRIER FOR AUTOMOBILE INSURANCE IN CITIES OF THE FIRST
17 CLASS. THE TERM "SINGLE CARRIER" INCLUDES A PRIVATE INSURANCE
18 COMPANY OR A PUBLIC AUTHORITY OR AGENCY SPECIFICALLY CREATED FOR
19 THE IMPLEMENTATION OF THIS SECTION. UPON COMPLETION, THE STUDY
20 SHALL BE DELIVERED TO THE MAJORITY AND MINORITY LEADERS OF THE
21 SENATE AND THE HOUSE OF REPRESENTATIVES. THE STUDY SHALL
22 INCLUDE, AT A MINIMUM, THE FOLLOWING COMPONENTS:
23 (1) AN ASSESSMENT OF THE NUMBER OF UNINSURED VEHICLES IN
24 CITIES OF THE FIRST CLASS.
25 (2) AN ASSESSMENT OF THE NUMBER OF INSURED VEHICLES IN
26 CITIES OF THE FIRST CLASS.
27 (3) AN ANALYSIS OF SOURCES OF AUTOMOBILE INSURANCE, BY
28 COMPANY, OF VEHICLES IN CITIES OF THE FIRST CLASS. THE
29 ANALYSIS SHALL INCLUDE A DETERMINATION OF THE NUMBER OF
30 VEHICLES INSURED IN CITIES OF THE FIRST CLASS IN BOTH THE
19890H0376B2938 - 45 -
1 VOLUNTARY MARKET AND THE ASSIGNED RISK PLAN BY EACH INSURANCE
2 CARRIER LICENSED TO PROVIDE AUTOMOBILE INSURANCE IN THIS
3 COMMONWEALTH.
4 (4) AN ANALYSIS OF THE COSTS TO MOTORISTS TO INSURE A
5 VEHICLE IN CITIES OF THE FIRST CLASS IN THE VOLUNTARY MARKET
6 AND THROUGH THE ASSIGNED RISK PLAN.
7 (5) AN ASSESSMENT OF THE IMPACT OF "TAKE-OUT" PROVISIONS
8 ON THE VOLUNTARY MARKET PLACE IN CITIES OF THE FIRST CLASS.
9 (6) A DETERMINATION AS TO THE NUMBER OF LAWSUITS FILED
10 FOR BODILY INJURY CLAIMS; THE AMOUNT AND TYPE OF DAMAGES
11 REQUESTED IN SUCH LAWSUITS; THE PERCENTAGE OF CLAIMS SETTLED
12 BEFORE COURT AND THE AMOUNT OF SETTLEMENT; THE PERCENTAGE OF
13 LAWSUITS DECIDED BY THE COURT AND THE AMOUNT OF DAMAGES
14 AWARDED; AND THE FEES CHARGED BY LAWYERS FOR REPRESENTING
15 CLAIMS.
16 (7) AN ASSESSMENT OF THE FREQUENCY, TYPE AND AMOUNT OF
17 PHYSICAL DAMAGE CLAIMS AND FIRST PARTY MEDICAL PAYMENTS.
18 (8) A DETERMINATION AS TO WHETHER THE USE OF A SINGLE
19 CARRIER IN CITIES OF THE FIRST CLASS WOULD HAVE A POSITIVE
20 FINANCIAL IMPACT ON ALL MOTORISTS IN SUCH CITIES AND IN THIS
21 COMMONWEALTH. SUCH DETERMINATION SHALL INCLUDE AN ANALYSIS OF
22 THE USE OF A PUBLIC AUTHORITY OR AGENCY AS THE SINGLE CARRIER
23 AND OF ITS POTENTIAL FOR PROVIDING LOWER RATES WHEN COMPARED
24 TO USE OF A PRIVATE INSURANCE COMPANY AS A SINGLE CARRIER.
25 (9) A LEGAL OPINION AS TO WHETHER THE USE OF A SINGLE
26 CARRIER IN CITIES OF THE FIRST CLASS IS PERMISSIBLE UNDER THE
27 CONSTITUTION AND LAWS OF THE COMMONWEALTH.
28 (B) DUTIES OF INSURANCE COMPANIES.--INSURANCE COMPANIES
29 LICENSED IN THIS COMMONWEALTH TO WRITE POLICIES OF AUTOMOBILE
30 INSURANCE COVERAGE SHALL COOPERATE WITH THE INSURANCE DEPARTMENT
19890H0376B2938 - 46 -
1 STUDY AS DESCRIBED IN SUBSECTION (A). COOPERATION SHALL INCLUDE,
2 BUT NOT BE LIMITED TO, THE PROVISION OF INFORMATION BY INSURANCE
3 COMPANIES WITHIN REASONABLE TIME FRAMES AS REQUESTED BY THE
4 DEPARTMENT, IF THE INFORMATION IS AVAILABLE, TO BE USED TO
5 ADDRESS THE VARIOUS COMPONENTS OF THE STUDY DESCRIBED IN
6 SUBSECTION (A). SUCH INFORMATION MAY BE USED BY THE DEPARTMENT
7 ONLY FOR PURPOSES OF THIS STUDY.
8 (C) IMPLEMENTATION OF SINGLE CARRIER INSURANCE PROGRAM IN
9 CITIES OF THE FIRST CLASS.--IF A STUDY UNDERTAKEN UNDER
10 SUBSECTION (A), SECTION 1799.7 (RELATING TO CONDUCT OF MARKET
11 STUDY) OR SECTION 1799.8 (RELATING TO CONDUCT OF RANDOM FIELD
12 SURVEYS) PROVIDES INFORMATION SUPPORTING A CONCLUSION THAT A
13 SINGLE CARRIER IN CITIES OF THE FIRST CLASS WILL IMPROVE THE
14 AVAILABILITY AND AFFORDABILITY OF AUTOMOBILE INSURANCE IN SUCH
15 CITIES AND IN THIS COMMONWEALTH, THE INSURANCE DEPARTMENT MAY
16 IMPLEMENT THE PROGRAM. IF THE PROGRAM IS IMPLEMENTED, THE
17 INSURANCE DEPARTMENT SHALL DEVELOP REGULATIONS DETAILING THE
18 COMPONENTS AND OPERATION OF A SINGLE CARRIER INSURANCE PROGRAM
19 FOR CITIES OF THE FIRST CLASS AND SHALL CONTRACT WITH A SINGLE
20 CARRIER TO IMPLEMENT SUCH A PROGRAM. THE CONTRACT MUST BE
21 SECURED FOLLOWING THE REQUEST FOR PROPOSAL PROCESS USED BY THE
22 COMMONWEALTH TO SECURE GOODS AND SERVICES. THE REQUEST FOR
23 PROPOSAL PROCESS SHALL INCLUDE A PROCEDURE FOR THE
24 PREQUALIFICATION OF BIDDERS BASED ON FINANCIAL ABILITY TO
25 ADMINISTER THE PROGRAM. ANY CONTRACT SIGNED BY THE DEPARTMENT
26 MUST INCLUDE THE FOLLOWING PROVISIONS:
27 (1) PARTICIPATION IN THE PROGRAM IS VOLUNTARY BY
28 MOTORISTS LIVING IN CITIES OF THE FIRST CLASS.
29 (2) ALL DRIVERS, EXCEPT THOSE DETERMINED TO BE
30 INELIGIBLE AS DEFINED IN SUBSECTION (D), SHALL BE AFFORDED
19890H0376B2938 - 47 -
1 THE OPPORTUNITY TO PURCHASE AUTOMOBILE INSURANCE COVERAGE
2 THROUGH THE PROGRAM.
3 (3) PREFERRED PROVIDER ARRANGEMENTS OR A FEE SCHEDULE
4 MAY BE DEVELOPED IN THE PROGRAM WITH SERVICE PROVIDERS FOR
5 PHYSICAL DAMAGE REPAIR OR REPLACEMENT AND MEDICAL BENEFITS;
6 SUCH ARRANGEMENTS SHALL BE ACCESSIBLE TO THE INSUREDS.
7 (4) FOR PHYSICAL DAMAGE COVERAGE, THE PROGRAM MAY
8 PROVIDE FOR A MINIMUM DEDUCTIBLE HIGHER THAN THAT PROVIDED
9 FOR IN THIS SUBCHAPTER, BUT IN NO CASE MAY THE MINIMUM
10 DEDUCTIBLE BE GREATER THAN $1,000.
11 (5) ANTIFRAUD MECHANISMS MAY BE ESTABLISHED, INCLUDING
12 THE INSPECTION OF PHYSICAL DAMAGE CLAIMS, INVESTIGATION OF
13 SUSPICIOUS CLAIMS, AND CASE MANAGEMENT FOR SELECTED MEDICAL
14 SERVICES.
15 (6) A CANCELLATION CLAUSE PERMITTING THE SINGLE CARRIER
16 TO CANCEL THE CONTRACT WITH 90 DAYS' NOTICE SHOULD ENROLLMENT
17 IN THE PROGRAM FALL BELOW A PERCENTAGE OF THE VEHICLES
18 REGISTERED IN CITIES OF THE FIRST CLASS. THE PERCENTAGE SHALL
19 BE ESTABLISHED IN THE CONTRACT.
20 (7) THE CONTRACT SHALL BE VALID FOR A PERIOD OF NOT LESS
21 THAN FIVE YEARS UNLESS A SHORTER CONTRACT PERIOD IS PROPOSED
22 BY THE SINGLE CARRIER.
23 (8) RATES CHARGED IN THE PROGRAM SHALL BE LOWER THAN
24 RATES AVAILABLE IN THE VOLUNTARY MARKET AND SHALL BE INCLUDED
25 IN THE CONTRACT AND SHALL BE VALID FOR A PERIOD OF NOT LESS
26 THAN TWO YEARS. RATE INCREASES AFTER THIS PERIOD SHALL BE
27 SUBJECT TO APPROVAL AS PROVIDED IN THE ACT OF JUNE 11, 1947
28 (P.L.538, NO.246), KNOWN AS THE CASUALTY AND SURETY RATE
29 REGULATORY ACT.
30 (D) INELIGIBLE DRIVER.--FOR PURPOSES OF SUBSECTION(C), THE
19890H0376B2938 - 48 -
1 TERM "INELIGIBLE DRIVER" SHALL MEAN A PERSON WHO MEETS AT LEAST
2 ONE OF THE FOLLOWING CRITERIA:
3 (1) THE PERSON HAS, WITHIN FIVE YEARS OF THE DATE OF
4 APPLICATION FOR INSURANCE, BEEN CONVICTED OF A VIOLATION OF:
5 (I) SECTION 3731 (RELATING TO DRIVING UNDER THE
6 INFLUENCE OF ALCOHOL OR A CONTROLLED SUBSTANCE);
7 (II) 18 PA.C.S. § 4117 (RELATING TO AUTOMOBILE
8 INSURANCE FRAUD); OR
9 (III) ANY FELONY INVOLVING THE USE OF A MOTOR
10 VEHICLE.
11 (2) THE PERSON HAS PREVIOUSLY BEEN INSURED UNDER A MOTOR
12 VEHICLE INSURANCE POLICY AND HAS MADE MORE THAN ONE CLAIM
13 UNDER AN INSURANCE POLICY, WITHIN 36 MONTHS OF THE DATE OF
14 APPLICATION FOR INSURANCE UNDER THIS SECTION, ARISING OUT OF
15 AN ACCIDENT WHERE THE INSURED WAS FOUND TO BE SUBSTANTIALLY
16 AT FAULT, THAT IS, MORE THAN 50%, AND WHERE A PAYMENT WAS
17 MADE BY THE INSURER THAT EXCEEDED 50% OF THE ANNUAL PREMIUM
18 FOR THE POLICY OF INSURANCE.
19 (3) THE PERSON'S OPERATING PRIVILEGE HAS BEEN SUSPENDED
20 OR REVOKED WITHIN THE PRECEDING 36-MONTH PERIOD.
21 (4) THE PERSON'S DRIVING RECORD SHOWS SIX OR MORE POINTS
22 ASSESSED UNDER SECTION 1535 (RELATING TO SCHEDULE OF
23 CONVICTIONS AND POINTS) FOR VIOLATIONS THAT OCCURRED WITHIN
24 36 MONTHS OF THE DATE OF APPLICATION FOR INSURANCE UNDER THIS
25 SECTION.
26 SECTION 18. SECTION 1960 OF TITLE 75 IS AMENDED TO READ:
27 § 1960. REINSTATEMENT OF OPERATING PRIVILEGE OR VEHICLE
28 REGISTRATION.
29 THE DEPARTMENT SHALL CHARGE A FEE OF $25 OR, IF SECTION
30 1786(C) (RELATING TO REQUIRED FINANCIAL RESPONSIBILITY) APPLIES,
19890H0376B2938 - 49 -
1 A FEE OF $50 TO RESTORE A PERSON'S OPERATING PRIVILEGE OR THE
2 REGISTRATION OF A VEHICLE FOLLOWING A SUSPENSION OR REVOCATION.
3 SECTION 19. TITLE 75 IS AMENDED IS AMENDED BY ADDING A
4 SECTION TO READ:
5 § 3731.1. OPERATORS OF COMMERCIAL VEHICLES.
6 (A) ADDITIONAL OFFENSE DEFINED.--A PERSON MAY NOT DRIVE,
7 OPERATE OR BE IN ACTUAL PHYSICAL CONTROL OF THE MOVEMENT OF A
8 COMMERCIAL VEHICLE WHEN THE AMOUNT OF ALCOHOL BY WEIGHT IN THE
9 BLOOD OF THE PERSON IS 0.04% OR GREATER.
10 (B) DISQUALIFICATION.--UPON RECEIPT OF A CERTIFIED COPY OF A
11 CONVICTION OF A VIOLATION OF THIS SECTION, THE DEPARTMENT SHALL
12 DISQUALIFY THE PERSON FROM DRIVING A COMMERCIAL MOTOR VEHICLE
13 FOR A PERIOD OF ONE YEAR. TWO OR MORE CONVICTIONS OF A VIOLATION
14 OF THIS SECTION SHALL RESULT IN THE DEPARTMENT DISQUALIFYING THE
15 PERSON FROM DRIVING A COMMERCIAL MOTOR VEHICLE, AS PROVIDED IN
16 49 C.F.R. § 383.51 (RELATING TO DISQUALIFICATION OF DRIVERS).
17 (C) DEFINITIONS.--AS USED IN THIS SECTION, "COMMERCIAL
18 VEHICLE" MEANS ANY OF THE FOLLOWING:
19 (1) A VEHICLE WITH A GROSS VEHICLE WEIGHT RATING OF
20 26,001 OR MORE POUNDS.
21 (2) A COMBINATION OF VEHICLES WITH A GROSS COMBINATION
22 WEIGHT RATING OF 26,001 OR MORE POUNDS, INCLUDING THE GROSS
23 VEHICLE WEIGHT RATING OF THE TOWED UNIT OR UNITS.
24 (3) A VEHICLE WHICH IS DESIGNED TO TRANSPORT 16 OR MORE
25 PASSENGERS, INCLUDING THE DRIVER.
26 (4) A VEHICLE WHICH IS TRANSPORTING HAZARDOUS MATERIAL
27 AND WHICH IS REQUIRED TO BE PLACARDED FOR HAZARDOUS
28 MATERIALS.
29 SECTION 20. SECTION 4703(D) OF TITLE 75 IS AMENDED TO READ:
30 § 4703. OPERATION OF VEHICLE WITHOUT OFFICIAL CERTIFICATE OF
19890H0376B2938 - 50 -
1 INSPECTION.
2 * * *
3 (D) NEWLY-PURCHASED VEHICLES.--NEWLY-PURCHASED VEHICLES MAY
4 BE DRIVEN WITHOUT A CURRENT INSPECTION CERTIFICATE FOR [FIVE]
5 TEN DAYS AFTER SALE OR RESALE OR ENTRY INTO THIS COMMONWEALTH,
6 WHICHEVER OCCURS LATER.
7 * * *
8 SECTION 21. SECTION 4727 OF TITLE 75 IS AMENDED BY ADDING A
9 SUBSECTION TO READ:
10 § 4727. ISSUANCE OF CERTIFICATE OF INSPECTION.
11 * * *
12 (D) PROOF OF INSURANCE.--NO CERTIFICATE OF INSPECTION SHALL
13 BE ISSUED UNLESS A FINANCIAL RESPONSIBILITY IDENTIFICATION CARD
14 INDICATING PROPER PROOF OF FINANCIAL RESPONSIBILITY AS REQUIRED
15 BY LAW IS SUBMITTED TO THE INSPECTION OFFICIAL, WHO SHALL, ON A
16 FORM PROVIDED BY THE DEPARTMENT, KEEP A RECORD OF THE NAME OF
17 THE INSURED, THE VEHICLE TAG NUMBER, THE ISSUING COMPANY, THE
18 POLICY NUMBER, AND THE EXPIRATION DATE. IN THOSE CASES WHERE THE
19 INSURED FAILS TO PRESENT PROOF OF FINANCIAL RESPONSIBILITY TO
20 THE INSPECTION OFFICIAL, THE INSPECTION OFFICIAL, IN ADDITION TO
21 DENYING A CERTIFICATE OF INSPECTION, MAY PROVIDE NOTIFICATION TO
22 THE DEPARTMENT ON THE FORM PROVIDED BY THE DEPARTMENT WITHIN 30
23 DAYS OF THE INSURED'S FAILURE TO PRESENT PROOF OF FINANCIAL
24 RESPONSIBILITY.
25 SECTION 22. SECTION 6104 OF TITLE 75 IS AMENDED BY ADDING A
26 SUBSECTION TO READ:
27 § 6104. ADMINISTRATIVE DUTIES OF DEPARTMENT.
28 * * *
29 (F) FURNISHING INFORMATION TO MUNICIPAL POLICE DEPARTMENTS
30 AND SHERIFFS' OFFICES.--THE DEPARTMENT SHALL REGULARLY TRANSMIT
19890H0376B2938 - 51 -
1 TO EACH MUNICIPAL POLICE DEPARTMENT AND SHERIFF'S OFFICE A LIST
2 OF THE NAMES OF PERSONS RESIDING WITHIN ITS JURISDICTION WHOSE
3 OPERATING PRIVILEGE OR REGISTRATION HAS BEEN SUSPENDED OR
4 REVOKED.
5 SECTION 23. TITLE 75 IS AMENDED BY ADDING A SECTION TO READ:
6 § 6308.1. PAYMENT TO POLICE OR SHERIFF'S OFFICE OF ONE-HALF OF
7 REINSTATEMENT FEE.
8 THE POLICE DEPARTMENT OR SHERIFF'S OFFICE WHOSE OFFICERS OR
9 DEPUTIES SEIZE A SUSPENDED OR REVOKED DRIVER'S LICENSE OR
10 VEHICLE REGISTRATION SHALL, IN EVERY CASE WHERE THE DRIVER'S
11 LICENSE OR VEHICLE REGISTRATION IS REINSTATED, RECEIVE FROM THE
12 DEPARTMENT ONE-HALF OF THE FEE IMPOSED UNDER SECTION 1960
13 (RELATING TO REINSTATEMENT OF OPERATING PRIVILEGE OR VEHICLE
14 REGISTRATION).
15 SECTION 24. (A) RATE FREEZE.--IN ORDER TO PROVIDE STABILITY
16 DURING THE PERIOD OF TRANSITION LEADING UP TO THE EFFECTIVE DATE
17 OF THE AMENDMENTS TO 75 PA.C.S. CH. 17 (RELATING TO FINANCIAL
18 RESPONSIBILITY) AND TO ASSURE FAIR AND EQUITABLE TREATMENT OF
19 INSURER AND INSURERS, IT IS IN THE BEST INTEREST OF THE
20 COMMONWEALTH TO TEMPORARILY SUSPEND THE ADOPTION OF NEW RATES.
21 NOTWITHSTANDING ANY PROVISIONS TO THE CONTRARY, ALL RATES
22 APPROVED PRIOR TO DECEMBER 1, 1989, AND IN EFFECT AS OF THAT
23 DATE MAY NOT BE CHANGED UNTIL JUNE 1, 1990. ANY RATE REQUESTS
24 FILED WITH THE INSURANCE DEPARTMENT AND NOT APPROVED AS OF
25 DECEMBER 1, 1989, SHALL BE DISAPPROVED AS BEING IN CONFLICT WITH
26 THIS ACT.
27 (B) RATE FILING.--ALL INSURERS SUBJECT TO 75 PA.C.S. CH. 17
28 SHALL FILE FOR NEW RATES IN COMPLIANCE WITH SUBSECTIONS (C) AND
29 (D) BY MAY 15, 1990. THE RATES SHALL BE EFFECTIVE FOR ONE YEAR,
30 BEGINNING JUNE 1, 1990. A FILING WITH AN EFFECTIVE DATE AFTER
19890H0376B2938 - 52 -
1 MAY 31, 1990, BUT BEFORE MAY 31, 1991, UNDER SECTION 4 OF THE
2 ACT OF JUNE 11, 1947 (P.L.538, NO.246), KNOWN AS THE CASUALTY
3 AND SURETY RATE REGULATORY ACT, SHALL BECOME EFFECTIVE
4 IMMEDIATELY UPON ITS FILING AND IS DEEMED TO COMPLY WITH THAT
5 ACT UNLESS DISAPPROVED BY THE INSURANCE COMMISSIONER UNDER THE
6 PROCEDURES DESCRIBED IN SECTION 5 OF THAT ACT. THIS SUBSECTION
7 IS LIMITED TO TWO FILINGS PER COVERAGE. THIS SUBSECTION
8 SUPERSEDES THE PRIOR APPROVAL REQUIREMENTS OF THE CASUALTY AND
9 SURETY RATE REGULATORY ACT AND REGULATIONS PROMULGATED UNDER
10 THAT ACT INSOFAR AS THEY ARE INCONSISTENT WITH THIS ACT.
11 (C) RATE ROLLBACK.--TOTAL PREMIUMS CHARGED BY ANY INSURER
12 FOR AN INSURED DURING THE FIRST 12-MONTH PERIOD FOLLOWING THE
13 EFFECTIVE DATE OF THIS ACT SHALL BE REDUCED FROM THE RATES IN
14 EFFECT ON DECEMBER 1, 1989, BY 20% FOR A GOOD DRIVER AS DEFINED
15 IN 75 PA.C.S. § 1799.4 (RELATING TO GOOD DRIVER DISCOUNT). TOTAL
16 PREMIUMS FOR AN INSURED WHO DOES NOT MEET THE CONDITIONS OF 75
17 PA.C.S. § 1799.4 SHALL BE REDUCED BY 10%.
18 (D) ADDITIONAL PREMIUM REDUCTIONS.--NOTWITHSTANDING ANY
19 OTHER PROVISIONS OF THIS ACT TO THE CONTRARY, IN ADDITION TO
20 REDUCTIONS PROVIDED IN SUBSECTION (C) BASED ON THE PREMIUM
21 REDUCTION REQUIREMENTS CONTAINED IN SECTION 8 (75 PA.C.S. §§
22 1711, 1712 AND 1731), SECTION 16 (75 PA.C.S. § 1792) AND SECTION
23 17 (75 PA.C.S. §§ 1799.1, 1799.2 AND 1799.3), THE PREMIUMS FOR
24 AN INSURED SHALL BE REDUCED UP TO A TOTAL OF AT LEAST 30%. AN
25 INSURED WHO ELECTS TO PURCHASE COVERAGES AS SPECIFIED IN THOSE
26 SECTIONS SHALL RECEIVE A REDUCTION COMMENSURATE WITH THE
27 ELECTION.
28 (E) RATE INCREASE JUSTIFICATION.--TOTAL PREMIUMS CHARGED BY
29 AN INSURER FOR AN INSURED DURING THE SECOND 12-MONTH PERIOD
30 FOLLOWING THE EFFECTIVE DATE OF THIS ACT MAY NOT BE INCREASED
19890H0376B2938 - 53 -
1 OVER THE RATES IN EFFECT ON MAY 31, 1991, BY AN AMOUNT GREATER
2 THAN THAT INDICATED BY AN INCREASE IN THE CONSUMER PRICE INDEX,
3 THE COST OF MEDICAL CARE SERVICES, THE COST OF AUTOMOBILE
4 REPAIRS OR OTHER COST INCREASES AFFECTING AUTOMOBILE INSURANCE.
5 BY MARCH 1, 1991, THE INSURANCE COMMISSIONER SHALL PROMULGATE
6 REGULATIONS CONTAINING THE CRITERIA WHICH SHALL BE USED BY
7 INSURERS TO JUSTIFY ANY RATE INCREASES DURING THAT TIME PERIOD.
8 (F) PROVISION FOR INSOLVENCY.--THE INSURANCE COMMISSIONER
9 SHALL PERMIT RATE REDUCTIONS LOWER THAN THOSE INDICATED IN THIS
10 SECTION UPON DEMONSTRATION BY AN INSURER THAT THE RATE
11 REDUCTIONS PROVIDED FOR IN THIS SECTION WILL RESULT IN
12 INSOLVENCY OF THE INSURER.
13 SECTION 25. (A) INSURERS SHALL PROVIDE THE FOLLOWING NOTICE
14 ALL POLICYHOLDERS NO LATER THAN JUNE 1, 1990:
15 IMPORTANT NOTICE
16 CHANGES IN REQUIRED INSURANCE BENEFITS
17 AS A RESULT OF THE PENNSYLVANIA GENERAL ASSEMBLY'S RECENT
18 AMENDMENT TO THE MOTOR VEHICLE FINANCIAL RESPONSIBILITY
19 LAW, AS OF JUNE 1, 1990, A NUMBER OF AUTOMOBILE INSURANCE
20 COVERAGES WHICH YOU PREVIOUSLY WERE REQUIRED TO PURCHASE
21 ARE NOW OPTIONAL. THESE OPTIONAL COVERAGES ARE WAGE LOSS
22 COVERAGE, ACCIDENTAL DEATH COVERAGE, FUNERAL EXPENSE
23 BENEFITS AND UNINSURED/UNDERINSURED MOTORIST COVERAGE. IN
24 ADDITION, THE REQUIRED MEDICAL BENEFIT HAS BEEN REDUCED
25 TO $5,000. THE RECENT AMENDMENT ALSO PROVIDES DISCOUNTS
26 FOR POLICYHOLDERS WHO HAVE VEHICLES WITH CERTAIN PASSIVE
27 RESTRAINT SYSTEMS AND ANTITHEFT DEVICES. PLEASE CONTACT
28 YOUR AGENT FOR ADDITIONAL INFORMATION.
29 (B) INSURERS SHALL PROVIDE A NOTICE TO ALL POLICYHOLDERS
30 UPON APPLICATION OR RENEWAL STATING THAT DISCOUNTS ARE AVAILABLE
19890H0376B2938 - 54 -
1 FOR DRIVERS WHO MEET THE REQUIREMENTS OF 75 PA.C.S. §§ 1799.1
2 (RELATING TO RESTRAINT SYSTEM), 1799.2 (RELATING TO ANTITHEFT
3 DEVICES), 1799.3 (RELATING TO DRIVER IMPROVEMENT COURSE
4 DISCOUNTS) AND 1799.4 (RELATING TO GOOD DRIVER DISCOUNT).
5 SECTION 26. THE INSURANCE DEPARTMENT AND THE DEPARTMENT OF
6 TRANSPORTATION SHALL PROMULGATE REGULATIONS TO THE EXTENT
7 NECESSARY TO CARRY OUT THE PROVISIONS OF SECTIONS 1 (18 PA.C.S.
8 § 911(H)), 2 (18 PA.C.S. § 4117), 4 (75 PA.C.S. §§ 1305 AND
9 1306), 6 (75 PA.C.S. §§ 1376 AND 1540) AND 14 (75 PA.C.S. §
10 1786).
11 SECTION 27. (A) SECTION 349 OF THE ACT OF MAY 17, 1921
12 (P.L.682, NO.284), KNOWN AS THE INSURANCE COMPANY LAW OF 1921 IS
13 REPEALED INSOFAR AS IT IS INCONSISTENT WITH THIS ACT.
14 (B) SECTIONS 604 AND 623 OF THE ACT OF MAY 17, 1921
15 (P.L.789, NO.285), KNOWN AS THE INSURANCE DEPARTMENT ACT OF ONE
16 THOUSAND NINE HUNDRED AND TWENTY-ONE ARE REPEALED.
17 SECTION 28. THIS ACT SHALL TAKE EFFECT AS FOLLOWS:
18 (1) SECTIONS 24, 25, 26 AND THIS SECTION SHALL TAKE
19 EFFECT IMMEDIATELY.
20 (2) SECTION 17 (75 PA.C.S. §§ 1799.7, 1799.8 AND 1799.9)
21 SHALL TAKE EFFECT IN 60 DAYS.
22 (3) SECTION 16 (75 PA.C.S. § 1797) SHALL TAKE EFFECT
23 APRIL 1, 1990, OR IMMEDIATELY, WHICHEVER IS LATER.
24 (4) SECTION 19 (75 PA.C.S. § 3731.1) SHALL TAKE EFFECT
25 APRIL 1, 1992.
26 (5) THE REMAINDER OF THIS ACT SHALL TAKE EFFECT JUNE 1,
27 1990, OR IMMEDIATELY, WHICHEVER IS LATER.
28 SECTION 1. SECTIONS 1342(D) AND 1346 OF TITLE 75 OF THE <--
29 PENNSYLVANIA CONSOLIDATED STATUTES ARE AMENDED TO READ:
30 § 1342. VETERAN PLATES AND PLACARD.
19890H0376B2938 - 55 -
1 * * *
2 (D) PRISONER OF WAR PLATE.--ON THE APPLICATION OF AN EX-
3 PRISONER OF WAR WHOSE IMPRISONMENT WHILE IN THE SERVICE OF THE
4 ARMED FORCES OF THE UNITED STATES IS CERTIFIED BY THE
5 APPROPRIATE BRANCH OF THE ARMED FORCES, THE DEPARTMENT SHALL
6 ISSUE A SPECIAL REGISTRATION PLATE DESIGNATING THE VEHICLE AS
7 BELONGING TO AN EX-PRISONER OF WAR. THE REGISTRATION PLATE SHALL
8 CONTAIN THE LETTERS "POW" AND SUCH OTHER NUMBERS OR LETTERS AS
9 THE DEPARTMENT MAY DETERMINE AND SHALL HAVE THE WORDS "PRISONER
10 OF WAR" IN AT LEAST TEN-POINT BOLD TYPE INSCRIBED AT THE BOTTOM
11 OF THE PLATE. THE SURVIVING SPOUSE OF AN EX-PRISONER OF WAR MAY
12 RETAIN THE "POW" SPECIAL REGISTRATION PLATE. THE SPECIAL
13 REGISTRATION PLATE MAY BE USED ONLY ON ONE PASSENGER VEHICLE OR
14 ONE OTHER VEHICLE WITH A REGISTERED GROSS WEIGHT OF NOT MORE
15 THAN 9,000 POUNDS.
16 * * *
17 § 1346. SPECIAL PLATES FOR RECIPIENTS OF PURPLE HEART.
18 UPON APPLICATION OF ANY PERSON WHO IS A RECIPIENT OF THE
19 PURPLE HEART, THE DEPARTMENT SHALL ISSUE TO SUCH PERSON A
20 SPECIAL REGISTRATION PLATE DESIGNATING THE VEHICLE SO LICENSED
21 AS BELONGING TO A PERSON WHO IS A RECIPIENT OF THE PURPLE HEART.
22 THE PLATE SHALL HAVE A WHITE BACKGROUND WITH A PURPLE BORDER AND
23 PURPLE LETTERS OR NUMBERS. THE WORDS "COMBAT WOUNDED VETERAN"
24 SHALL BE EMBOSSED IN RED ALONG THE TOP OF THE PLATE IN FULL
25 UPPER CASE LETTERS AND THE WORD "PENNSYLVANIA" SHALL BE EMBOSSED
26 IN RED ALONG THE BOTTOM OF THE PLATE. THE LETTER "P" OVER THE
27 LETTER "H" SHALL BE EMBOSSED IN PURPLE ON THE LEFT SIDE OF THE
28 PLATE. THE CENTER OF THE PLATE SHALL BEAR A DECAL OR APPLIQUE
29 REPLICA OF THE PURPLE HEART IN FULL CONFORMITY WITH THE
30 DESCRIPTION SET FORTH IN 32 CFR § 578.14(B), EXCEPT AS TO
19890H0376B2938 - 56 -
1 MATERIAL AND SIZE. A SEVERELY DISABLED VETERAN, AS DESCRIBED IN
2 SECTION 1342(A) (RELATING TO VETERAN PLATES AND PLACARD), WHO IS
3 QUALIFIED TO RECEIVE A PLATE UNDER THIS SECTION MAY ALSO ELECT
4 TO RECEIVE A PLACARD UNDER SECTION 1342(B). THE SPECIAL
5 REGISTRATION PLATE MAY BE USED ONLY ON ONE PASSENGER VEHICLE OR
6 ONE OTHER VEHICLE WITH A REGISTERED GROSS WEIGHT OF NOT MORE
7 THAN 9,000 POUNDS.
8 SECTION 2. TITLE 75 IS AMENDED BY ADDING A SECTION TO READ:
9 § 1348. SPECIAL PLATES FOR PEARL HARBOR SURVIVORS.
10 UPON APPLICATION OF ANY PERSON WHO IS A SURVIVOR OF PEARL
11 HARBOR, ACCOMPANIED BY A FEE OF $20 WHICH SHALL BE IN ADDITION
12 TO THE ANNUAL REGISTRATION FEE AND BY SUCH DOCUMENTATION AS THE
13 DEPARTMENT SHALL REQUIRE BY REGULATION, THE DEPARTMENT SHALL
14 ISSUE TO SUCH PERSON A SPECIAL REGISTRATION PLATE DESIGNATING
15 THE VEHICLE SO LICENSED AS BELONGING TO A PERSON WHO IS A
16 SURVIVOR OF PEARL HARBOR. THE SPECIAL REGISTRATION PLATE MAY BE
17 USED ONLY ON ONE PASSENGER VEHICLE OR ONE OTHER VEHICLE WITH A
18 REGISTERED GROSS WEIGHT OF NOT MORE THAN 9,000 POUNDS.
19 SECTION 3. SECTION 1701 OF TITLE 75 IS AMENDED TO READ:
20 § 1701. SHORT TITLE OF CHAPTER.
21 THIS CHAPTER SHALL BE KNOWN AND MAY BE CITED AS THE [MOTOR
22 VEHICLE FINANCIAL RESPONSIBILITY LAW] CONSUMER AUTOMOBILE
23 INSURANCE REFORM ACT.
24 SECTION 4. TITLE 75 IS AMENDED BY ADDING A SECTION TO READ:
25 § 1701.1. FINDINGS AND PURPOSES.
26 (A) FINDINGS.--THE GENERAL ASSEMBLY HEREBY FINDS AND
27 DECLARES THAT:
28 (1) A REASONABLE, COMPREHENSIVE AND FAIR STATEWIDE
29 SYSTEM FOR COMPENSATING AND RESTORING MOTOR VEHICLE ACCIDENT
30 VICTIMS IS NECESSARY FOR THE PROTECTION OF THE CITIZENS OF
19890H0376B2938 - 57 -
1 THIS COMMONWEALTH.
2 (2) IT IS THE COMMONWEALTH'S OBLIGATION TO ENSURE THAT
3 MANDATORY AUTO INSURANCE COVERAGE IS AVAILABLE AT A
4 REASONABLE COST FOR ALL ITS CITIZENS IN ORDER THAT THEY MAY
5 COMPLY WITH THE LAW.
6 (3) MANY COMMONWEALTH CITIZENS ARE UNABLE TO OBTAIN THE
7 BASIC MINIMUM AUTOMOBILE INSURANCE COVERAGE REQUIRED BY THE
8 MOTOR VEHICLE FINANCIAL RESPONSIBILITY LAW DUE TO THE
9 UNAVAILABILITY OF THE COVERAGE IN THEIR AREA OF THE
10 COMMONWEALTH AND DUE TO THE UNREASONABLE COST OF THE
11 COVERAGE. CONSEQUENTLY, MANY CITIZENS DO NOT MAINTAIN
12 REQUIRED AUTOMOBILE INSURANCE, THEREBY DEPRIVING THEMSELVES
13 OF COVERAGE FOR MEDICAL EXPENSES, AND OFTEN PRECLUDING
14 INNOCENT VICTIMS FROM OBTAINING REASONABLE COMPENSATION FOR
15 INJURIES SUFFERED.
16 (4) AUTOMOBILE INSURANCE RATES HAVE INCREASED AT LEAST
17 20% SINCE LATE 1986 AND WILL CONTINUE TO ESCALATE UNDER THE
18 MOTOR VEHICLE FINANCIAL RESPONSIBILITY LAW, RENDERING BASIC
19 MINIMUM COVERAGE UNAFFORDABLE TO A LARGE NUMBER OF THIS
20 COMMONWEALTH'S CITIZENS.
21 (5) THE MAJOR CAUSE FOR ESCALATING AUTO INSURANCE RATES
22 IS THE HIGH FREQUENCY OF SMALL BODILY INJURY CLAIMS.
23 (6) THE ESTABLISHMENT OF AN OPTIONAL VERBAL CLAIMS
24 THRESHOLD IN CONJUNCTION WITH MANDATORY FIRST PARTY BENEFITS
25 WILL ELIMINATE UP TO 90% OF BODILY INJURY LIABILITY CLAIMS
26 RESULTING FROM MINOR MOTOR VEHICLE ACCIDENTS FOR THOSE
27 ELECTING THE LIMITED TORT OPTION. THE THRESHOLD WILL SERVE TO
28 REDUCE THE COST OF PROVIDING AUTO INSURANCE WHILE PROVIDING
29 FOR THE ADEQUATE PROTECTION OF INJURED VICTIMS.
30 (B) PURPOSE.--IT IS HEREBY DECLARED TO BE THE POLICY OF THE
19890H0376B2938 - 58 -
1 GENERAL ASSEMBLY TO ESTABLISH A COMPREHENSIVE SYSTEM WHICH WILL
2 ASSURE THE AVAILABILITY AND REASONABLE COST OF AUTOMOBILE
3 INSURANCE COVERAGE THROUGH THE PRIVATE SECTOR. THE ESTABLISHMENT
4 OF A FAIR AND EQUITABLE MOTOR VEHICLE INSURANCE SYSTEM WILL
5 FURTHER THE HEALTH AND WELFARE OF THE CITIZENS OF THIS
6 COMMONWEALTH BY PROVIDING PROMPT MEDICAL CARE TO MOTOR VEHICLE
7 ACCIDENT VICTIMS AND PROVIDING REASONABLE COMPENSATION TO
8 SERIOUSLY INJURED MOTOR VEHICLE ACCIDENT VICTIMS.
9 SECTION 5. THE DEFINITION OF "INSURED" IN SECTION 1702 OF
10 TITLE 75 IS AMENDED AND THE SECTION IS AMENDED BY ADDING
11 DEFINITIONS TO READ:
12 § 1702. DEFINITIONS.
13 THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS CHAPTER
14 SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE
15 CONTEXT CLEARLY INDICATES OTHERWISE:
16 * * *
17 "COMMISSIONER." THE INSURANCE COMMISSIONER OF THE
18 COMMONWEALTH.
19 * * *
20 "ELIGIBLE DRIVER." ANY APPLICANT FOR A MOTOR VEHICLE
21 INSURANCE POLICY, EXCEPT AN APPLICANT DETERMINED TO BE AN
22 INELIGIBLE DRIVER UNDER SECTION 1741.1 (RELATING TO INELIGIBLE
23 DRIVERS).
24 * * *
25 "INSURED." ANY OF THE FOLLOWING:
26 (1) AN INDIVIDUAL IDENTIFIED BY NAME AS AN INSURED IN A
27 POLICY OF MOTOR VEHICLE LIABILITY INSURANCE.
28 (2) IF RESIDING IN THE HOUSEHOLD OF THE NAMED INSURED[:
29 (I)], A SPOUSE OR OTHER RELATIVE OF THE NAMED
30 INSURED[;], OR
19890H0376B2938 - 59 -
1 [(II)] A MINOR IN THE CUSTODY OF EITHER THE NAMED
2 INSURED OR RELATIVE OF THE NAMED INSURED, UNLESS SUCH
3 SPOUSE, RELATIVE OR MINOR HAS REQUESTED TO BE EXCLUDED
4 FROM COVERAGE AND IS INSURED ON ANOTHER POLICY OF MOTOR
5 VEHICLE LIABILITY INSURANCE.
6 * * *
7 "NECESSARY MEDICAL TREATMENT AND REHABILITATIVE SERVICES."
8 TREATMENT, ACCOMMODATIONS, PRODUCTS OR SERVICES WHICH ARE
9 DETERMINED TO BE NECESSARY BY A LICENSED HEALTH CARE PROVIDER
10 UNLESS THEY SHALL HAVE BEEN FOUND OR DETERMINED TO BE
11 UNNECESSARY BY A PEER REVIEW ORGANIZATION (PRO).
12 "NONECONOMIC LOSS." PAIN AND SUFFERING AND SIMILAR
13 NONMONETARY DETRIMENT.
14 "PEER REVIEW ORGANIZATION" OR "PRO." ANY PEER REVIEW
15 ORGANIZATION WITH WHICH THE FEDERAL HEALTH CARE FINANCING AGENCY
16 OR THE COMMONWEALTH CONTRACTS FOR MEDICAL REVIEW OF MEDICARE OR
17 MEDICAL ASSISTANCE SERVICES, OR ANY HEALTH CARE REVIEW
18 COMMITTEE, APPROVED BY THE INSURANCE COMMISSIONER, THAT ENGAGES
19 IN PEER REVIEW FOR THE PURPOSE OF DETERMINING THAT MEDICAL AND
20 REHABILITATION SERVICES ARE MEDICALLY NECESSARY AND ECONOMICALLY
21 PROVIDED.
22 "PRIVATE PASSENGER MOTOR VEHICLE." A MOTOR VEHICLE OF THE
23 PRIVATE PASSENGER OR STATION WAGON TYPE THAT IS NOT USED AS A
24 PUBLIC OR LIVERY CONVEYANCE FOR PASSENGERS AND IS NOT RENTED TO
25 OTHERS, OR ANY FOUR-WHEEL MOTOR VEHICLE WITH A GROSS WEIGHT NOT
26 EXCEEDING 9,000 POUNDS WHICH IS NOT PRINCIPALLY USED IN THE
27 OCCUPATION, PROFESSION OR BUSINESS OF THE INSURED OTHER THAN
28 FARMING. THE TERM DOES NOT INCLUDE ANY MOTOR VEHICLE INSURED
29 UNDER A POLICY COVERING GARAGE, AUTOMOBILE SALES AGENCY REPAIR
30 SHOP, SERVICE STATIONS OR PUBLIC PARKING PLACE OPERATION
19890H0376B2938 - 60 -
1 HAZARDS.
2 * * *
3 "SERIOUS INJURY." A PERSONAL INJURY WHICH RESULTS IN DEATH;
4 DISMEMBERMENT; SIGNIFICANT DISFIGUREMENT; A FRACTURE; LOSS OF A
5 FETUS; PERMANENT LOSS OF USE OF A BODY ORGAN, MEMBER, FUNCTION
6 OR SYSTEM; PERMANENT CONSEQUENTIAL LIMITATION OF USE OF A BODY
7 ORGAN OR MEMBER; SIGNIFICANT LIMITATION OF USE OF A BODY
8 FUNCTION OR SYSTEM; OR A MEDICALLY DETERMINED INJURY OR
9 IMPAIRMENT OF A NONPERMANENT NATURE WHICH PREVENTS THE INJURED
10 PERSON FROM PERFORMING SUBSTANTIALLY ALL OF THE MATERIAL ACTS
11 WHICH CONSTITUTE SUCH PERSON'S USUAL AND CUSTOMARY DAILY
12 ACTIVITIES FOR NOT LESS THAN 90 DAYS DURING THE 180 DAYS
13 IMMEDIATELY FOLLOWING THE OCCURRENCE OF THE INJURY OR
14 IMPAIRMENT.
15 * * *
16 SECTION 6. TITLE 75 IS AMENDED BY ADDING A SECTION TO READ:
17 § 1705. ELECTION OF TORT OPTIONS.
18 (A) FINANCIAL RESPONSIBILITY REQUIREMENTS.--
19 (1) EACH INSURER, PRIOR TO ISSUANCE OR RENEWAL OF A
20 MOTOR VEHICLE LIABILITY INSURANCE POLICY ON AND AFTER THE
21 EFFECTIVE DATE OF THIS SECTION, SHALL NOTIFY, IN WRITING,
22 EACH APPLICANT AND EACH NAMED INSURED OF THE AVAILABILITY OF
23 THE TWO ALTERNATIVES OF FULL TORT INSURANCE AND LIMITED TORT
24 INSURANCE DESCRIBED IN SUBSECTIONS (B) AND (C). THE NOTICE
25 SHALL BE IN A STANDARDIZED FORM PROMULGATED BY THE
26 COMMISSIONER AND SHALL INCLUDE A COMPARISON OF THE PREMIUMS
27 THAT WOULD BE CHARGED UNDER EACH OPTION. ANY PERSON SIGNING,
28 OR OTHERWISE BOUND BY, A DOCUMENT CONTAINING SUCH TERMS IS
29 BOUND BY SUCH ELECTION AND IS PRECLUDED FROM CLAIMING
30 LIABILITY OF ANY PERSON BASED UPON BEING INADEQUATELY
19890H0376B2938 - 61 -
1 INFORMED IN MAKING THE ELECTION BETWEEN FULL TORT OR LIMITED
2 TORT ALTERNATIVES.
3 (2) IF AN INSURED OR ANY PERSON WHO RECEIVES A NOTICE
4 UNDER PARAGRAPH (1) AND DOES NOT INDICATE A CHOICE, THE OWNER
5 AND THOSE HE IS EMPOWERED BY THIS SECTION TO BIND BY HIS
6 CHOICE ARE PRESUMED TO HAVE CHOSEN THE FULL TORT ALTERNATIVE
7 UNTIL SUCH TIME AS A WRITTEN ELECTION IS RECEIVED BY THE
8 INSURER. IF AN INSURED FAILS TO RESPOND TO THE NOTICE
9 REQUIRED BY PARAGRAPH (1), THE INSURER SHALL SEND A SECOND
10 NOTICE.
11 (3) AN OWNER OF A CURRENTLY REGISTERED MOTOR VEHICLE WHO
12 DOES NOT HAVE FINANCIAL RESPONSIBILITY SHALL BE DEEMED TO
13 HAVE CHOSEN THE LIMITED TORT ALTERNATIVE.
14 (4) NOTHING IN THIS SECTION CHANGES OR MODIFIES THE
15 EXISTING REQUIREMENT THAT OWNERS OF REGISTERED VEHICLES
16 MAINTAIN BODILY INJURY AND PROPERTY DAMAGE LIABILITY
17 INSURANCE ARISING OUT OF THE OWNERSHIP, MAINTENANCE OR USE OF
18 A MOTOR VEHICLE.
19 (B) FULL TORT INSURANCE ALTERNATIVE.--
20 (1) FULL TORT INSURANCE COVERS EACH PERSON WHO IS:
21 (I) A NAMED INSURED UNDER A MOTOR VEHICLE INSURANCE
22 POLICY.
23 (II) THE SPOUSE, OTHER RELATIVE OR DEPENDENT
24 RESIDING IN THE SAME HOUSEHOLD OF A NAMED INSURED.
25 (III) ANYONE OPERATING THE VEHICLE WITH THE
26 PERMISSION OF THE OWNER.
27 FULL TORT INSURANCE COVERAGE SHALL BE FOR THE LEGAL LIABILITY
28 FOR BODILY INJURY, INCLUDING DEATH, AND PROPERTY DAMAGE
29 ARISING OUT OF THE OWNERSHIP, MAINTENANCE OR USE OF THE
30 VEHICLE TO THE APPLICABLE LIMITS OF LIABILITY, EXCLUSIVE OF
19890H0376B2938 - 62 -
1 INTEREST AND COSTS.
2 (2) EACH PERSON WHO IS A NAMED INSURED UNDER A FULL TORT
3 INSURANCE POLICY, EACH PERSON BOUND BY THE ELECTION OF THE
4 NAMED INSURED AND COVERED UNDER A POLICY ISSUED UNDER THE
5 FULL TORT ALTERNATIVE, AND EACH PERSON WHO IS AN OCCUPANT OF
6 A MOTOR VEHICLE INSURED UNDER THE FULL TORT INSURANCE
7 ALTERNATIVE, UNLESS SUCH PERSON IS AN INSURED UNDER AN
8 INSURANCE POLICY ISSUED UNDER THE LIMITED TORT ALTERNATIVE,
9 MAY OBTAIN COMPENSATION FOR NONECONOMIC LOSS CLAIMED AND
10 ECONOMIC LOSS SUSTAINED IN EXCESS OF APPLICABLE COVERAGE
11 LIMITS IN A MOTOR VEHICLE ACCIDENT AS THE CONSEQUENCE OF THE
12 FAULT OF ANOTHER PERSON PURSUANT TO APPLICABLE TORT LAW.
13 (C) LIMITED TORT INSURANCE ALTERNATIVE.--
14 (1) LIMITED TORT INSURANCE COVERS EACH PERSON WHO IS:
15 (I) A NAMED INSURED UNDER A MOTOR VEHICLE INSURANCE
16 POLICY.
17 (II) THE SPOUSE, OTHER RELATIVE OR DEPENDENT
18 RESIDING IN THE SAME HOUSEHOLD OF A NAMED INSURED.
19 (III) ANYONE OPERATING THE VEHICLE WITH THE
20 PERMISSION OF THE OWNER.
21 (2) EACH PERSON WHO IS A NAMED INSURED UNDER A LIMITED
22 TORT INSURANCE POLICY, EACH PERSON BOUND BY THE ELECTION OF
23 THE NAMED INSURED AND COVERED UNDER A POLICY ISSUED UNDER THE
24 LIMITED TORT ALTERNATIVE, AND EACH PERSON WHO IS AN OCCUPANT
25 OF A MOTOR VEHICLE INSURED UNDER THE LIMITED TORT
26 ALTERNATIVE, UNLESS SUCH PERSON IS AN INSURED UNDER AN
27 INSURANCE POLICY ISSUED UNDER THE FULL TORT INSURANCE
28 ALTERNATIVE, SHALL BE PRECLUDED FROM MAINTAINING AN ACTION
29 FOR ANY BODILY INJURY DAMAGES, INCLUDING, BUT NOT LIMITED TO,
30 NONECONOMIC LOSS, UNLESS THE INJURY SUSTAINED IS A SERIOUS
19890H0376B2938 - 63 -
1 INJURY OR AS OTHERWISE PROVIDED IN PARAGRAPH (3).
2 (3) THE TORT LIMITATION UNDER THIS SUBSECTION SHALL NOT
3 APPLY IN ANY OF THE FOLLOWING CIRCUMSTANCES:
4 (I) THE NAMED INSURED OR OTHER OPERATOR OF THE
5 COVERED MOTOR VEHICLE WHO IS BOUND BY THE ELECTION OF THE
6 LIMITED TORT INSURANCE ALTERNATIVE AND WHO SUSTAINS
7 DAMAGES IN A MOTOR VEHICLE ACCIDENT AS THE CONSEQUENCE OF
8 THE FAULT OF ANOTHER PERSON WHO IS CONVICTED OF DRIVING
9 UNDER THE INFLUENCE OF ALCOHOL OR A CONTROLLED OR ILLEGAL
10 DRUG OR SUBSTANCE MAY RECOVER DAMAGES AS IF THE
11 INDIVIDUAL DAMAGED HAD ELECTED THE FULL TORT ALTERNATIVE.
12 (II) A PERSON IN THE BUSINESS OF DESIGNING,
13 MANUFACTURING, REPAIRING, SERVICING OR OTHERWISE
14 MAINTAINING MOTOR VEHICLES REMAINS LIABLE FOR INJURY
15 ARISING OUT OF A DEFECT IN SUCH MOTOR VEHICLE WHICH IS
16 CAUSED BY OR NOT CORRECTED BY AN ACT OR OMISSION IN THE
17 COURSE OF SUCH BUSINESS, OTHER THAN A DEFECT IN A MOTOR
18 VEHICLE WHICH IS OPERATED BY SUCH BUSINESS.
19 (III) A PERSON REMAINS LIABLE FOR INTENTIONALLY
20 INJURING HIMSELF OR ANOTHER PERSON. AN INDIVIDUAL DOES
21 NOT INTENTIONALLY INJURE HIMSELF OR ANOTHER INDIVIDUAL
22 MERELY BECAUSE HIS ACT OR FAILURE TO ACT IS INTENTIONAL
23 OR DONE WITH HIS REALIZATION THAT IT CREATES A GRAVE RISK
24 OF CAUSING INJURY OR THE ACT OR OMISSION CAUSING THE
25 INJURY IS FOR THE PURPOSE OF AVERTING BODILY HARM TO
26 HIMSELF OR ANOTHER INDIVIDUAL.
27 (IV) THE NAMED INSURED OR OTHER OPERATOR OF THE
28 COVERED MOTOR VEHICLE WHO IS BOUND BY THE ELECTION OF THE
29 LIMITED TORT INSURANCE ALTERNATIVE AND WHO SUSTAINS
30 DAMAGES IN A MOTOR VEHICLE ACCIDENT AS THE CONSEQUENCE OF
19890H0376B2938 - 64 -
1 THE FAULT OF ANOTHER PERSON WHO HAS NOT MAINTAINED
2 FINANCIAL RESPONSIBILITY AS REQUIRED BY THIS CHAPTER MAY
3 RECOVER FROM THE PERSONAL ASSETS OF THE AT-FAULT PERSON.
4 NOTHING IN THIS SUBPARAGRAPH SHALL EFFECT THE LIMITATION
5 OF SECTION 1731(D)(2) (RELATING TO AVAILABILITY, SCOPE
6 AND AMOUNT OF COVERAGE).
7 SECTION 7. SECTION 1711 OF TITLE 75 IS AMENDED TO READ:
8 § 1711. REQUIRED BENEFITS.
9 AN INSURER ISSUING OR DELIVERING LIABILITY INSURANCE POLICIES
10 COVERING ANY MOTOR VEHICLE OF THE TYPE REQUIRED TO BE REGISTERED
11 UNDER THIS TITLE, EXCEPT RECREATIONAL VEHICLES NOT INTENDED FOR
12 HIGHWAY USE, MOTORCYCLES, MOTOR-DRIVEN CYCLES OR MOTORIZED
13 PEDALCYCLES OR LIKE TYPE VEHICLES, REGISTERED AND OPERATED IN
14 THIS COMMONWEALTH, SHALL INCLUDE COVERAGE PROVIDING A MEDICAL
15 BENEFIT IN THE AMOUNT OF $10,000[,] AND AN INCOME LOSS BENEFIT
16 UP TO A MONTHLY MAXIMUM OF $1,000 UP TO A MAXIMUM BENEFIT OF
17 $5,000 [AND A FUNERAL BENEFIT IN THE AMOUNT OF $1,500], AS
18 DEFINED IN SECTION 1712 (RELATING TO AVAILABILITY OF BENEFITS),
19 WITH RESPECT TO INJURY ARISING OUT OF THE MAINTENANCE OR USE OF
20 A MOTOR VEHICLE. THE INCOME LOSS BENEFIT PROVIDED UNDER THIS
21 SECTION MAY BE EXPRESSLY WAIVED BY THE NAMED INSURED PROVIDED
22 THE NAMED INSURED HAS NO EXPECTATION OF ACTUAL INCOME LOSS DUE
23 TO AGE, DISABILITY OR LACK OF EMPLOYMENT HISTORY. AT THE
24 ELECTION OF THE NAMED INSURED, SUCH POLICY SHALL ALSO INCLUDE AN
25 EXTRAORDINARY MEDICAL BENEFIT AS DESCRIBED IN SECTION
26 1715(A)(1.1) AND (D) (RELATING TO AVAILABILITY OF ADEQUATE
27 LIMITS).
28 SECTION 8. SECTION 1712 OF TITLE 75 IS AMENDED TO READ:
29 § 1712. AVAILABILITY OF BENEFITS.
30 AN INSURER ISSUING OR DELIVERING LIABILITY INSURANCE POLICIES
19890H0376B2938 - 65 -
1 COVERING ANY MOTOR VEHICLE OF THE TYPE REQUIRED TO BE REGISTERED
2 UNDER THIS TITLE, EXCEPT RECREATIONAL VEHICLES NOT INTENDED FOR
3 HIGHWAY USE, MOTORCYCLES, MOTOR-DRIVEN CYCLES OR MOTORIZED
4 PEDALCYCLES OR LIKE TYPE VEHICLES, REGISTERED AND OPERATED IN
5 THIS COMMONWEALTH, SHALL MAKE AVAILABLE FOR PURCHASE FIRST PARTY
6 BENEFITS WITH RESPECT TO INJURY ARISING OUT OF THE MAINTENANCE
7 OR USE OF A MOTOR VEHICLE AS FOLLOWS:
8 (1) MEDICAL BENEFIT.--[COVERAGE] SUBJECT TO THE
9 LIMITATIONS OF SECTION 1797 (RELATING TO CUSTOMARY CHARGES
10 FOR TREATMENT), COVERAGE TO PROVIDE FOR REASONABLE AND
11 NECESSARY MEDICAL TREATMENT AND REHABILITATIVE SERVICES,
12 INCLUDING, BUT NOT LIMITED TO, HOSPITAL, DENTAL, SURGICAL,
13 PSYCHIATRIC, PSYCHOLOGICAL, OSTEOPATHIC, AMBULANCE,
14 CHIROPRACTIC, LICENSED PHYSICAL THERAPY, NURSING SERVICES,
15 VOCATIONAL REHABILITATION AND OCCUPATIONAL THERAPY, SPEECH
16 PATHOLOGY AND AUDIOLOGY, OPTOMETRIC SERVICES, MEDICATIONS,
17 MEDICAL SUPPLIES AND PROSTHETIC DEVICES, ALL WITHOUT
18 LIMITATION AS TO TIME, PROVIDED THAT, WITHIN 18 MONTHS FROM
19 THE DATE OF THE ACCIDENT CAUSING INJURY, IT IS ASCERTAINABLE
20 WITH REASONABLE MEDICAL PROBABILITY THAT FURTHER EXPENSES MAY
21 BE INCURRED AS A RESULT OF THE INJURY. BENEFITS UNDER THIS
22 PARAGRAPH MAY INCLUDE ANY NONMEDICAL REMEDIAL CARE AND
23 TREATMENT RENDERED IN ACCORDANCE WITH A RECOGNIZED RELIGIOUS
24 METHOD OF HEALING.
25 (2) INCOME LOSS BENEFIT.--INCLUDES THE FOLLOWING:
26 (I) EIGHTY PERCENT OF ACTUAL LOSS OF GROSS INCOME.
27 (II) REASONABLE EXPENSES ACTUALLY INCURRED FOR
28 HIRING A SUBSTITUTE TO PERFORM SELF-EMPLOYMENT SERVICES
29 THEREBY MITIGATING LOSS OF GROSS INCOME OR FOR HIRING
30 SPECIAL HELP THEREBY ENABLING A PERSON TO WORK AND
19890H0376B2938 - 66 -
1 MITIGATE LOSS OF GROSS INCOME.
2 INCOME LOSS DOES NOT INCLUDE LOSS OF EXPECTED INCOME FOR ANY
3 PERIOD FOLLOWING THE DEATH OF AN INDIVIDUAL OR EXPENSES
4 INCURRED FOR SERVICES PERFORMED FOLLOWING THE DEATH OF AN
5 INDIVIDUAL. INCOME LOSS SHALL NOT COMMENCE UNTIL FIVE WORKING
6 DAYS HAVE BEEN LOST AFTER THE DATE OF THE ACCIDENT.
7 (3) ACCIDENTAL DEATH BENEFIT.--A DEATH BENEFIT PAID TO
8 THE PERSONAL REPRESENTATIVE OF THE INSURED, SHOULD INJURY
9 RESULTING FROM A MOTOR VEHICLE ACCIDENT CAUSE DEATH WITHIN 24
10 MONTHS FROM THE DATE OF THE ACCIDENT.
11 (4) FUNERAL BENEFIT.--EXPENSES DIRECTLY RELATED TO THE
12 FUNERAL, BURIAL, CREMATION OR OTHER FORM OF DISPOSITION OF
13 THE REMAINS OF A DECEASED INDIVIDUAL, INCURRED AS A RESULT OF
14 THE DEATH OF THE INDIVIDUAL AS A RESULT OF THE ACCIDENT AND
15 WITHIN 24 MONTHS FROM THE DATE OF THE ACCIDENT.
16 (5) COMBINATION BENEFIT.--A COMBINATION OF BENEFITS
17 DESCRIBED IN PARAGRAPHS (1) THROUGH (4) AS AN ALTERNATIVE TO
18 THE SEPARATE PURCHASE OF THOSE BENEFITS.
19 (6) UNINSURED AND UNDERINSURED MOTORIST COVERAGE.
20 SECTION 9. SECTION 1715(A) OF TITLE 75 IS AMENDED TO READ:
21 § 1715. AVAILABILITY OF ADEQUATE LIMITS.
22 (A) GENERAL RULE.--AN INSURER SHALL MAKE AVAILABLE FOR
23 PURCHASE FIRST PARTY BENEFITS AS FOLLOWS:
24 (1) FOR MEDICAL BENEFITS, UP TO AT LEAST $100,000.
25 (1.1) FOR EXTRAORDINARY MEDICAL BENEFITS, FROM $100,000
26 TO $1,100,000, WHICH MAY BE OFFERED IN INCREMENTS OF
27 $100,000, AS LIMITED BY SUBSECTION (D).
28 (2) FOR INCOME LOSS BENEFITS, UP TO AT LEAST $2,500 PER
29 MONTH UP TO A MAXIMUM BENEFIT OF AT LEAST $50,000.
30 (3) FOR ACCIDENTAL DEATH BENEFITS, UP TO AT LEAST
19890H0376B2938 - 67 -
1 $25,000.
2 (4) FOR FUNERAL BENEFITS, $2,500.
3 (5) FOR COMBINATION OF BENEFITS ENUMERATED IN PARAGRAPHS
4 (1) THROUGH (4) AND SUBJECT TO A LIMIT ON THE ACCIDENTAL
5 DEATH BENEFIT OF UP TO $25,000 AND A LIMIT ON THE FUNERAL
6 BENEFIT OF $2,500, UP TO AT LEAST [$277,500] $177,500 OF
7 BENEFITS IN THE AGGREGATE OR BENEFITS PAYABLE UP TO THREE
8 YEARS FROM THE DATE OF THE ACCIDENT, WHICHEVER OCCURS FIRST,
9 PROVIDED THAT NOTHING CONTAINED IN THIS SUBSECTION SHALL BE
10 CONSTRUED TO LIMIT, REDUCE, MODIFY OR CHANGE THE PROVISIONS
11 OF SUBSECTION (D).
12 (6) FOR UNINSURED AND UNDERINSURED COVERAGE, THE
13 STACKING OF LIMITS OF COVERAGE OF MULTIPLE MOTOR VEHICLES
14 COVERED UNDER THE SAME POLICY OF INSURANCE OR MULTIPLE MOTOR
15 VEHICLES POLICIES COVERING THE INDIVIDUAL FOR THE SAME LOSS.
16 (7) UNINSURED AND UNDERINSURED MOTORIST COVERAGE IN
17 AMOUNTS AT LEAST EQUAL TO THE MOTOR VEHICLE LIABILITY
18 INSURANCE REQUIRED UNDER THIS CHAPTER.
19 * * *
20 SECTION 10. SECTION 1717 OF TITLE 75 IS AMENDED TO READ:
21 § 1717. STACKING OF BENEFITS.
22 FIRST PARTY BENEFITS AND, UNLESS STATED IN THE POLICY,
23 UNINSURED AND UNDERINSURED MOTORIST COVERAGE SHALL NOT BE
24 INCREASED BY STACKING THE LIMITS OF COVERAGE OF:
25 (1) MULTIPLE MOTOR VEHICLES COVERED UNDER THE SAME
26 POLICY OF INSURANCE; OR
27 (2) MULTIPLE MOTOR VEHICLE POLICIES COVERING THE
28 INDIVIDUAL FOR THE SAME LOSS.
29 SECTION 11. SECTION 1722 OF TITLE 75 IS AMENDED TO READ:
30 § 1722. PRECLUSION OF PLEADING, PROVING AND RECOVERING REQUIRED
19890H0376B2938 - 68 -
1 BENEFITS.
2 IN ANY ACTION FOR DAMAGES AGAINST A TORTFEASOR ARISING OUT OF
3 THE MAINTENANCE OR USE OF A MOTOR VEHICLE, A PERSON WHO IS
4 ELIGIBLE TO RECEIVE BENEFITS UNDER THE COVERAGES SET FORTH IN
5 [SECTION 1711 (RELATING TO REQUIRED BENEFITS) OR THE COVERAGE
6 SET FORTH IN SECTION 1715(A)(1.1) (RELATING TO AVAILABILITY OF
7 ADEQUATE LIMITS)] THIS SUBCHAPTER SHALL BE PRECLUDED FROM
8 PLEADING, INTRODUCING INTO EVIDENCE OR RECOVERING THE AMOUNT OF
9 BENEFITS PAID OR PAYABLE UNDER [SECTION 1711 OR 1715(A)(1.1).
10 THIS PRECLUSION APPLIES ONLY TO THE AMOUNT OF BENEFITS SET FORTH
11 IN SECTIONS 1711 AND 1715(A)(1.1)] THIS SUBCHAPTER.
12 SECTION 12. TITLE 75 IS AMENDED BY ADDING A SECTION TO READ:
13 § 1725. AVAILABILITY OF INSURANCE.
14 (A) ELIGIBLE DRIVERS.--NO INSURERS ISSUING OR DELIVERING
15 LIABILITY INSURANCE POLICIES UNDER THIS CHAPTER SHALL REFUSE TO
16 ISSUE OR RENEW, UPON PAYMENT OF THE PREMIUM, AN INSURANCE POLICY
17 TO AN ELIGIBLE DRIVER.
18 (B) INELIGIBLE DRIVERS.--AN INSURER ISSUING OR DELIVERING
19 LIABILITY INSURANCE POLICIES UNDER THIS CHAPTER MAY ISSUE OR
20 RENEW, UPON PAYMENT OF THE PREMIUM, AN INSURANCE POLICY TO A
21 PERSON DETERMINED TO BE AN INELIGIBLE DRIVER UNDER SECTION
22 1741.1 (RELATING TO INELIGIBLE DRIVERS).
23 SECTION 13. SECTION 1731(A) AND (D) OF TITLE 75 ARE AMENDED
24 TO READ:
25 § 1731. [SCOPE] AVAILABILITY, SCOPE AND AMOUNT OF COVERAGE.
26 (A) [GENERAL RULE] MANDATORY OFFERING.--NO MOTOR VEHICLE
27 LIABILITY INSURANCE POLICY SHALL BE DELIVERED OR ISSUED FOR
28 DELIVERY IN THIS COMMONWEALTH, WITH RESPECT TO ANY MOTOR VEHICLE
29 REGISTERED OR PRINCIPALLY GARAGED IN THIS COMMONWEALTH, UNLESS
30 UNINSURED MOTORIST AND UNDERINSURED MOTORIST COVERAGES ARE
19890H0376B2938 - 69 -
1 [PROVIDED] OFFERED THEREIN OR SUPPLEMENTAL THERETO IN AMOUNTS
2 [EQUAL TO THE BODILY INJURY LIABILITY COVERAGE EXCEPT] AS
3 PROVIDED IN SECTION 1734 (RELATING TO REQUEST FOR LOWER OR
4 HIGHER LIMITS OF COVERAGE). PURCHASE OF UNINSURED MOTORIST AND
5 UNDERINSURED MOTORIST COVERAGES IS OPTIONAL.
6 * * *
7 (D) LIMITATION ON RECOVERY.--
8 (1) A PERSON WHO RECOVERS DAMAGES UNDER UNINSURED
9 MOTORIST COVERAGE OR COVERAGES CANNOT RECOVER DAMAGES UNDER
10 UNDERINSURED MOTORIST COVERAGE OR COVERAGES FOR THE SAME
11 ACCIDENT.
12 (2) A PERSON PRECLUDED FROM MAINTAINING AN ACTION FOR
13 DAMAGES UNDER SECTION 1705(C)(2) (RELATING TO ELECTION OF
14 TORT OPTIONS) MAY NOT RECOVER UNINSURED MOTORIST COVERAGE OR
15 UNDERINSURED MOTORIST COVERAGE.
16 (3) RECOVERY OF UNDERINSURED MOTORIST COVERAGE SHALL NOT
17 EXCEED THE DIFFERENCE BETWEEN THE APPLICABLE UNDERINSURED
18 MOTORIST COVERAGE LIMIT AND THE APPLICABLE LIABILITY LIMITS.
19 SECTION 14. SECTION 1732 OF TITLE 75 IS REPEALED.
20 SECTION 15. SECTIONS 1733, 1734 AND 1741 OF TITLE 75 ARE
21 AMENDED TO READ:
22 § 1733. PRIORITY OF RECOVERY.
23 [WHERE MULTIPLE POLICIES APPLY, PAYMENT SHALL BE MADE IN THE
24 FOLLOWING ORDER OF PRIORITY:
25 (1) A POLICY COVERING A MOTOR VEHICLE OCCUPIED BY THE
26 INJURED PERSON AT THE TIME OF THE ACCIDENT.
27 (2) A POLICY COVERING A MOTOR VEHICLE NOT INVOLVED IN
28 THE ACCIDENT WITH RESPECT TO WHICH THE INJURED PERSON IS AN
29 INSURED.]
30 (A) GENERAL RULE.--A PERSON SHALL RECOVER UNINSURED AND
19890H0376B2938 - 70 -
1 UNDERINSURED BENEFITS AGAINST APPLICABLE INSURANCE COVERAGE IN
2 THE FOLLOWING ORDER OF PRIORITY:
3 (1) FOR A NAMED INSURED, THE POLICY ON WHICH HE IS THE
4 NAMED INSURED.
5 (2) FOR AN INSURED, THE POLICY COVERING THE INSURED.
6 (B) MULTIPLE SOURCES OF EQUAL PRIORITY.--THE INSURER AGAINST
7 WHOM A CLAIM IS ASSERTED FIRST UNDER THE PRIORITIES SET FORTH IN
8 SUBSECTION (A) SHALL PROCESS AND PAY THE CLAIM AS IF WHOLLY
9 RESPONSIBLE. THE INSURER IS THEREAFTER ENTITLED TO RECOVER
10 CONTRIBUTION PRO RATA FROM ANY OTHER INSURER FOR THE BENEFITS
11 PAID AND THE COSTS OF PROCESSING THE CLAIM.
12 § 1734. REQUEST FOR LOWER [OR HIGHER] LIMITS OF COVERAGE.
13 A NAMED INSURED MAY REQUEST IN WRITING THE ISSUANCE OF
14 COVERAGES UNDER SECTION 1731 (RELATING TO SCOPE AND AMOUNT OF
15 COVERAGE) IN AMOUNTS EQUAL TO OR LESS THAN THE LIMITS OF
16 LIABILITY FOR BODILY INJURY BUT IN NO EVENT LESS THAN THE
17 AMOUNTS REQUIRED BY THIS CHAPTER FOR BODILY INJURY. [IF THE
18 NAMED INSURED HAS SELECTED UNINSURED AND UNDERINSURED MOTORIST
19 COVERAGE IN CONNECTION WITH A POLICY PREVIOUSLY ISSUED TO HIM BY
20 THE SAME INSURER UNDER SECTION 1731, THE COVERAGES OFFERED NEED
21 NOT BE PROVIDED IN EXCESS OF THE LIMITS OF LIABILITY PREVIOUSLY
22 ISSUED FOR UNINSURED AND UNDERINSURED MOTORIST COVERAGE UNLESS
23 THE NAMED INSURED REQUESTS IN WRITING HIGHER LIMITS OF LIABILITY
24 FOR THOSE COVERAGES.]
25 § 1741. ESTABLISHMENT.
26 THE INSURANCE DEPARTMENT SHALL, AFTER CONSULTATION WITH THE
27 INSURERS LICENSED TO WRITE MOTOR VEHICLE LIABILITY INSURANCE IN
28 THIS COMMONWEALTH, ADOPT A REASONABLE ASSIGNED RISK PLAN FOR THE
29 EQUITABLE APPORTIONMENT AMONG THOSE INSURERS OF APPLICANTS FOR
30 MOTOR VEHICLE LIABILITY INSURANCE WHO ARE [ENTITLED TO, BUT ARE
19890H0376B2938 - 71 -
1 UNABLE TO, PROCURE INSURANCE THROUGH ORDINARY METHODS]
2 INELIGIBLE DRIVERS. WHEN THE PLAN HAS BEEN ADOPTED, ALL MOTOR
3 VEHICLE LIABILITY INSURERS SHALL SUBSCRIBE THERETO AND SHALL
4 PARTICIPATE IN THE PLAN. THE PLAN MAY PROVIDE REASONABLE MEANS
5 FOR THE TRANSFER OF INDIVIDUALS INSURED THEREUNDER INTO THE
6 ORDINARY MARKET, AT THE SAME OR LOWER RATES, PURSUANT TO
7 REGULATIONS ESTABLISHED BY THE DEPARTMENT.
8 SECTION 16. TITLE 75 IS AMENDED BY ADDING A SECTION TO READ:
9 § 1741.1. INELIGIBLE DRIVERS.
10 AN INELIGIBLE DRIVER IS A PERSON WHO MEETS AT LEAST ONE OF
11 THE FOLLOWING CRITERIA:
12 (1) THE PERSON HAS, WITHIN FIVE YEARS OF THE DATE OF
13 APPLICATION FOR INSURANCE, BEEN CONVICTED OF A VIOLATION OF:
14 (I) SECTION 3731 (RELATING TO DRIVING UNDER
15 INFLUENCE OF ALCOHOL OR CONTROLLED SUBSTANCE);
16 (II) ANY OFFENSE INVOLVING FRAUDULENT CONDUCT
17 RELATING TO INSURANCE COVERAGE OR THE FILING OR
18 MAINTENANCE OF A MOTOR VEHICLE INSURANCE CLAIM FOR BODILY
19 INJURY OR PROPERTY DAMAGE; OR
20 (III) ANY FELONY INVOLVING THE USE OF A MOTOR
21 VEHICLE.
22 (2) THE PERSON HAS PREVIOUSLY BEEN AN INSURED UNDER A
23 MOTOR VEHICLE INSURANCE POLICY AND HAS:
24 (I) FAILED TO PAY AN INSURANCE PREMIUM ON OR BEFORE
25 THE DATE THE PREMIUM WAS DUE; OR
26 (II) MADE MORE THAN ONE CLAIM UNDER AN INSURANCE
27 POLICY, WITHIN THREE YEARS OF THE DATE OF APPLICATION FOR
28 INSURANCE UNDER THIS SUBCHAPTER, ARISING OUT OF AN
29 ACCIDENT WHERE THE INSURED WAS FOUND TO BE SUBSTANTIALLY
30 AT FAULT (OVER 50%) AND WHERE A PAYMENT WAS MADE BY THE
19890H0376B2938 - 72 -
1 INSURER THAT EXCEEDED 50% OF THE ANNUAL PREMIUM FOR THE
2 POLICY OF INSURANCE.
3 (3) THE PERSON'S OPERATING PRIVILEGE HAS BEEN SUSPENDED
4 OR REVOKED.
5 (4) THE PERSON'S DRIVING RECORD SHOWS SIX OR MORE POINTS
6 ASSESSED UNDER SECTION 1535 (RELATING TO SCHEDULE OF
7 CONVICTIONS AND POINTS) FOR VIOLATIONS THAT OCCURRED WITHIN
8 THREE YEARS OF THE DATE OF APPLICATION FOR INSURANCE UNDER
9 THIS SUBCHAPTER.
10 SECTION 17. SECTIONS 1753 AND 1754 OF TITLE 75 ARE AMENDED
11 TO READ:
12 § 1753. BENEFITS AVAILABLE.
13 AN ELIGIBLE CLAIMANT MAY RECOVER MEDICAL BENEFITS, AS
14 DESCRIBED IN SECTION 1712(1) (RELATING TO AVAILABILITY OF
15 BENEFITS), UP TO A MAXIMUM OF [$5,000] $10,000. NO INCOME LOSS
16 BENEFIT OR ACCIDENTAL DEATH BENEFIT SHALL BE PAYABLE UNDER THIS
17 SUBCHAPTER. FUNERAL EXPENSES, AS DESCRIBED IN SECTION 1712(4),
18 IN THE AMOUNT OF $1,500 SHALL ALSO BE RECOVERABLE [AS AN OFFSET
19 TO THE MAXIMUM AMOUNT OF MEDICAL BENEFITS AVAILABLE UNDER THIS
20 SECTION].
21 § 1754. ADDITIONAL COVERAGE.
22 AN ELIGIBLE CLAIMANT WHO HAS SUSTAINED A SERIOUS INJURY AND
23 HAS NO OTHER SOURCE OF APPLICABLE UNINSURED MOTORIST COVERAGE
24 AND IS OTHERWISE ENTITLED TO RECOVER IN AN ACTION IN TORT
25 AGAINST A PARTY WHO HAS FAILED TO COMPLY WITH THIS CHAPTER MAY
26 RECOVER FOR LOSSES OR DAMAGES SUFFERED AS A RESULT OF THE INJURY
27 UP TO $15,000 SUBJECT TO AN AGGREGATE LIMIT FOR ALL CLAIMS
28 ARISING OUT OF ANY ONE MOTOR VEHICLE ACCIDENT OF $30,000. [IF A
29 CLAIMANT RECOVERS MEDICAL BENEFITS UNDER SECTION 1753 (RELATING
30 TO BENEFITS AVAILABLE), THE AMOUNT OF MEDICAL BENEFITS RECOVERED
19890H0376B2938 - 73 -
1 OR RECOVERABLE UP TO $5,000 SHALL BE SET OFF AGAINST ANY AMOUNTS
2 RECOVERABLE IN THIS SECTION.]
3 SECTION 18. SECTION 1791 OF TITLE 75 IS AMENDED TO READ:
4 § 1791. NOTICE OF AVAILABLE BENEFITS AND LIMITS.
5 IT SHALL BE PRESUMED THAT THE INSURED HAS BEEN ADVISED OF THE
6 BENEFITS AND LIMITS AVAILABLE UNDER THIS CHAPTER PROVIDED THE
7 FOLLOWING NOTICE IN BOLD PRINT OF AT LEAST TEN-POINT TYPE IS
8 GIVEN TO THE APPLICANT AT THE TIME OF APPLICATION FOR ORIGINAL
9 COVERAGE [OR AT THE TIME OF THE FIRST RENEWAL AFTER OCTOBER 1,
10 1984], AND NO OTHER NOTICE OR REJECTION SHALL BE REQUIRED:
11 IMPORTANT NOTICE
12 INSURANCE COMPANIES OPERATING IN THE COMMONWEALTH OF
13 PENNSYLVANIA ARE REQUIRED BY LAW TO MAKE AVAILABLE FOR
14 PURCHASE THE FOLLOWING BENEFITS FOR YOU, YOUR SPOUSE OR
15 OTHER RELATIVES OR MINORS IN YOUR CUSTODY OR IN THE
16 CUSTODY OF YOUR RELATIVES, RESIDING IN YOUR HOUSEHOLD,
17 OCCUPANTS OF YOUR MOTOR VEHICLE OR PERSONS STRUCK BY YOUR
18 MOTOR VEHICLE:
19 (1) MEDICAL BENEFITS, UP TO AT LEAST $100,000.
20 (1.1) EXTRAORDINARY MEDICAL BENEFITS, FROM $100,000
21 TO $1,100,000 WHICH MAY BE OFFERED IN INCREMENTS OF
22 $100,000.
23 (2) INCOME LOSS BENEFITS, UP TO AT LEAST $2,500 PER
24 MONTH UP TO A MAXIMUM BENEFIT OF AT LEAST $50,000.
25 (3) ACCIDENTAL DEATH BENEFITS, UP TO AT LEAST
26 $25,000.
27 (4) FUNERAL BENEFITS, $2,500.
28 (5) AS AN ALTERNATIVE TO PARAGRAPHS (1) THROUGH (4),
29 A COMBINATION BENEFIT, UP TO AT LEAST [$277,500] $177,500
30 OF BENEFITS IN THE AGGREGATE OR BENEFITS PAYABLE UP TO
19890H0376B2938 - 74 -
1 THREE YEARS FROM THE DATE OF THE ACCIDENT, WHICHEVER
2 OCCURS FIRST, SUBJECT TO A LIMIT ON ACCIDENTAL DEATH
3 BENEFIT OF UP TO $25,000 AND A LIMIT ON FUNERAL BENEFIT
4 OF $2,500, PROVIDED THAT NOTHING CONTAINED IN THIS
5 SUBSECTION SHALL BE CONSTRUED TO LIMIT, REDUCE, MODIFY OR
6 CHANGE THE PROVISIONS OF SECTION 1715(D) (RELATING TO
7 AVAILABILITY OF ADEQUATE LIMITS).
8 (6) UNINSURED, UNDERINSURED AND BODILY INJURY
9 LIABILITY COVERAGE UP TO AT LEAST $100,000 BECAUSE OF
10 INJURY TO ONE PERSON IN ANY ONE ACCIDENT AND UP TO AT
11 LEAST $300,000 BECAUSE OF INJURY TO TWO OR MORE PERSONS
12 IN ANY ONE ACCIDENT OR, AT THE OPTION OF THE INSURER, UP
13 TO AT LEAST $300,000 IN A SINGLE LIMIT FOR THESE
14 COVERAGES, EXCEPT FOR POLICIES ISSUED UNDER THE ASSIGNED
15 RISK PLAN. ALSO, AT LEAST $5,000 FOR DAMAGE TO PROPERTY
16 OF OTHERS IN ANY ONE ACCIDENT.
17 ADDITIONALLY, INSURERS MAY OFFER HIGHER BENEFIT LEVELS
18 THAN THOSE ENUMERATED ABOVE AS WELL AS ADDITIONAL
19 BENEFITS. HOWEVER, AN INSURED MAY ELECT TO PURCHASE LOWER
20 BENEFIT LEVELS THAN THOSE ENUMERATED ABOVE.
21 YOUR SIGNATURE ON THIS NOTICE OR YOUR PAYMENT OF ANY
22 RENEWAL PREMIUM EVIDENCES YOUR ACTUAL KNOWLEDGE AND
23 UNDERSTANDING OF THE AVAILABILITY OF THESE BENEFITS AND
24 LIMITS AS WELL AS THE BENEFITS AND LIMITS YOU HAVE
25 SELECTED.
26 IF YOU HAVE ANY QUESTIONS OR YOU DO NOT UNDERSTAND ALL OF
27 THE VARIOUS OPTIONS AVAILABLE TO YOU, CONTACT YOUR AGENT
28 TO OBTAIN THE ANSWERS TO YOUR QUESTIONS.
29 IF YOU DO NOT UNDERSTAND ANY OF THE PROVISIONS CONTAINED
30 IN THIS NOTICE, CONTACT YOUR AGENT TO GET AN EXPLANATION
19890H0376B2938 - 75 -
1 BEFORE YOU SIGN.
2 SECTION 19. SECTIONS 1792 AND 1797 OF TITLE 75 ARE AMENDED
3 TO READ:
4 § 1792. AVAILABILITY OF UNINSURED, UNDERINSURED, BODILY INJURY
5 LIABILITY AND PROPERTY DAMAGE COVERAGES AND PHYSICAL
6 DAMAGES.
7 EXCEPT FOR POLICIES ISSUED UNDER SUBCHAPTER D (RELATING TO
8 ASSIGNED RISK PLAN), AN INSURER ISSUING A POLICY OF BODILY
9 INJURY LIABILITY COVERAGE PURSUANT TO THIS CHAPTER SHALL MAKE
10 AVAILABLE FOR PURCHASE HIGHER LIMITS OF UNINSURED, UNDERINSURED
11 AND BODILY INJURY LIABILITY COVERAGES UP TO AT LEAST $100,000
12 BECAUSE OF INJURY TO ONE PERSON IN ANY ONE ACCIDENT AND UP TO AT
13 LEAST $300,000 BECAUSE OF INJURY TO TWO OR MORE PERSONS IN ANY
14 ONE ACCIDENT OR, AT THE OPTION OF THE INSURER, UP TO AT LEAST
15 $300,000 IN A SINGLE LIMIT FOR THESE COVERAGES. ADDITIONALLY, AN
16 INSURER SHALL MAKE AVAILABLE FOR PURCHASE AT LEAST $5,000
17 BECAUSE OF DAMAGE TO PROPERTY OF OTHERS IN ANY ONE ACCIDENT, AND
18 DEDUCTIBLES IN AMOUNTS UP TO AT LEAST $500 FOR COLLISION AND
19 COMPREHENSIVE COVERAGES. HOWEVER, THE EXCLUSION OF AVAILABILITY
20 RELATING TO THE ASSIGNED RISK PLAN SHALL NOT APPLY TO DAMAGE TO
21 PROPERTY OF OTHERS IN ANY ONE ACCIDENT. ANY PERSON OR ENTITY
22 PROVIDING FINANCING TO THE PURCHASER OF A MOTOR VEHICLE OR
23 OTHERWISE HOLDING A SECURITY INTEREST IN A MOTOR VEHICLE SHALL
24 NOT BE PERMITTED TO REQUIRE THE PURCHASE OF A DEDUCTIBLE FOR
25 LESS THAN $500 FOR COLLISION AND COMPREHENSIVE COVERAGES. ANY
26 FINANCIAL INSTITUTION, INSURER, AGENT OR OTHER PERSON OR ENTITY
27 FOUND TO HAVE VIOLATED THIS PROVISION SHALL BE REQUIRED TO
28 REIMBURSE THE POLICYHOLDER IN AN AMOUNT EQUAL TO THE DIFFERENCE
29 AND, IN ADDITION, SHALL BE REQUIRED TO PAY A CIVIL PENALTY OF
30 $500 TO THE DEPARTMENT OF TRANSPORTATION FOR EACH VIOLATION.
19890H0376B2938 - 76 -
1 § 1797. CUSTOMARY CHARGES FOR TREATMENT.
2 (A) GENERAL RULE.--A PERSON OR INSTITUTION PROVIDING
3 TREATMENT, ACCOMMODATIONS, PRODUCTS OR SERVICES TO AN INJURED
4 PERSON FOR AN INJURY COVERED BY [MEDICAL OR CATASTROPHIC LOSS
5 BENEFITS] LIABILITY OR FIRST PARTY MEDICAL BENEFIT FOR A MOTOR
6 VEHICLE DESCRIBED IN SUBCHAPTER B (RELATING TO MOTOR VEHICLE
7 LIABILITY INSURANCE FIRST PARTY BENEFITS), SHALL NOT [MAKE A
8 CHARGE] REQUIRE, REQUEST OR ACCEPT PAYMENT FOR THE TREATMENT,
9 ACCOMMODATIONS, PRODUCTS OR SERVICES IN EXCESS OF [THE AMOUNT
10 THE PERSON OR INSTITUTION CUSTOMARILY CHARGES FOR LIKE
11 TREATMENT, ACCOMMODATIONS, PRODUCTS AND SERVICES IN CASES
12 INVOLVING NO INSURANCE.] 110% OF THE PREVAILING CHARGE AT THE
13 75TH PERCENTILE, APPLICABLE FEE SCHEDULE, RECOMMENDED FEE , THE
14 INFLATION INDEX CHARGE OR DIAGNOSTIC RELATED GROUPS, WHICHEVER
15 PERTAINS TO THE SPECIALTY SERVICE INVOLVED, DETERMINED TO BE
16 APPLICABLE UNDER THE MEDICARE PROGRAM FOR COMPARABLE SERVICES AT
17 THE TIME THE SERVICES WERE RENDERED, OR THE PROVIDER'S ACTUAL
18 CHARGE, WHICHEVER IS LESS. PROVIDERS SUBJECT TO THIS SECTION MAY
19 NOT BILL THE INSURED DIRECTLY BUT MUST BILL THE INSURER FOR A
20 DETERMINATION OF THE AMOUNT PAYABLE. THE PROVIDER SHALL NOT BILL
21 OR OTHERWISE ATTEMPT TO COLLECT FROM THE INSURED THE DIFFERENCE
22 BETWEEN THE PROVIDER'S FULL CHARGE AND THE AMOUNT PAID BY THE
23 INSURER.
24 (B) CHALLENGES TO REASONABLENESS OF TREATMENT.--
25 (1) PEER REVIEW PLAN.--INSURERS SHALL CONTRACT JOINTLY
26 OR SEPARATELY WITH ANY PEER REVIEW ORGANIZATION ESTABLISHED
27 FOR THE PURPOSE OF EVALUATING TREATMENT, HEALTH CARE
28 SERVICES, PRODUCTS OR ACCOMMODATIONS PROVIDED TO ANY INJURED
29 PERSON. THE PEER REVIEW PLAN OF EACH INSURER AND ALL
30 AMENDMENTS THERETO SHALL BE SUBJECT TO THE APPROVAL OF THE
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1 COMMISSIONER. THE INITIAL PEER REVIEW PLAN SHALL BE FILED
2 WITHIN 120 DAYS OF THE EFFECTIVE DATE OF THIS SECTION. SUCH
3 EVALUATION SHALL BE FOR THE PURPOSE OF CONFIRMING THAT SUCH
4 TREATMENT, PRODUCTS, SERVICES OR ACCOMMODATIONS CONFORM TO
5 THE PROFESSIONAL STANDARDS OF PERFORMANCE. AN INSURER'S
6 CHALLENGE MUST BE MADE TO A PRO WITHIN 90 DAYS OF THE
7 INSURER'S RECEIPT OF THE PROVIDER'S BILL FOR TREATMENT OR
8 SERVICES.
9 (2) PRO RECOGNITION.--AN INSURER, PROVIDER OR INSURED
10 MAY REQUEST A RECONSIDERATION BY THE PRO OF THE PRO'S INITIAL
11 DETERMINATION. SUCH A REQUEST FOR RECONSIDERATION MUST BE
12 MADE WITHIN 30 DAYS OF THE PRO'S INITIAL DETERMINATION.
13 (3) PENDING DETERMINATIONS BY PRO.--IF THE INSURER
14 CHALLENGES WITHIN 30 DAYS OF RECEIPT OF A BILL FOR MEDICAL
15 TREATMENT OR REHABILITATIVE SERVICES THE INSURER NEED NOT PAY
16 THE PROVIDER SUBJECT TO THE CHALLENGE UNTIL A DETERMINATION
17 HAS BEEN MADE BY THE PRO. THE INSURED MAY NOT BE BILLED FOR
18 ANY TREATMENT, ACCOMMODATIONS, PRODUCTS OR SERVICES DURING
19 THE PEER REVIEW PROCESS.
20 (4) APPEAL TO COURT.--A PROVIDER OF MEDICAL SERVICES OR
21 MERCHANDISE OR AN INSURED MAY CHALLENGE BEFORE A COURT AN
22 INSURER'S REFUSAL TO PAY FOR PAST OR FUTURE MEDICAL SERVICES
23 OR MERCHANDISE, THE REASONABLENESS OR NECESSITY OF WHICH THE
24 INSURER HAS NOT CHALLENGED BEFORE A PRO. CONDUCT CONSIDERED
25 TO BE "WANTON" SHALL BE SUBJECT TO A PAYMENT OF TREBLE
26 DAMAGES TO THE INJURED PARTY.
27 (5) PRO DETERMINATION IN FAVOR OF PROVIDER OR INSURED.--
28 IF A PRO DETERMINES THAT SERVICES OR MERCHANDISE WERE
29 MEDICALLY NECESSARY, THE INSURER MUST PAY TO THE PROVIDER THE
30 OUTSTANDING AMOUNT PLUS INTEREST AT 12% PER YEAR.
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1 (6) COURT DETERMINATION IN FAVOR OF PROVIDER OR
2 INSURED.--IF PURSUANT TO PARAGRAPH (4) A COURT DETERMINES
3 THAT SERVICES OR MERCHANDISE WERE MEDICALLY NECESSARY, THE
4 INSURER MUST PAY TO THE PROVIDER THE OUTSTANDING AMOUNT PLUS
5 INTEREST AT 12%, AS WELL AS THE COSTS OF THE CHALLENGE AND
6 ALL ATTORNEY FEES.
7 (7) DETERMINATION IN FAVOR OF INSURER.--IF IT IS
8 DETERMINED BY A PRO OR COURT THAT A PROVIDER HAS PROVIDED
9 UNNECESSARY MEDICAL SERVICES OR MERCHANDISE, THE PROVIDER MAY
10 NOT COLLECT PAYMENT FOR THE MEDICALLY UNNECESSARY SERVICES OR
11 MERCHANDISE. IF THE PROVIDER HAS COLLECTED SUCH PAYMENT, IT
12 MUST RETURN THE AMOUNT PAID PLUS INTEREST AT 12% PER YEAR
13 WITHIN 30 DAYS. IN NO CASE DOES THE FAILURE OF THE PROVIDER
14 TO RETURN THE SAID PAYMENT OBLIGATE THE INSURED TO ASSUME
15 RESPONSIBILITY FOR PAYMENT FOR THE SERVICES OR MERCHANDISE.
16 SECTION 20. TITLE 75 IS AMENDED BY ADDING SECTIONS TO READ:
17 § 1799. RATES.
18 (A) RATE FILING.--ALL INSURERS MUST FILE FOR NEW RATES
19 WITHIN 30 DAYS OF THE EFFECTIVE DATE OF THIS SECTION. THESE
20 RATES SHALL APPLY TO ALL POLICIES ISSUED AND RENEWED ON AND
21 AFTER THE EFFECTIVE DATE OF THIS AMENDATORY ACT.
22 (B) RATE REDUCTIONS.--THE RATES CHARGED BY INSURERS UNDER
23 THE FILING REQUIRED BY SUBSECTION (A) SHALL BE REDUCED BY A
24 MINIMUM OF 25% FOR ALL COVERAGES FROM RATES IN EFFECT JULY 1,
25 1989.
26 § 1799.1. BIDS FOR VEHICLE REPAIRS.
27 IT SHALL BE THE RESPONSIBILITY OF A CLAIMANT FOR PAYMENT FOR
28 DAMAGE TO A VEHICLE TO SUBMIT TO THE INSURER TWO BIDS TO REPAIR
29 THE VEHICLE.
30 § 1799.2. PROCESSING OF DAMAGE CLAIMS.
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1 WITHIN THREE DAYS OF THE FILING OF A CLAIM FOR DAMAGE TO A
2 VEHICLE, THE INSURER'S ADJUSTER SHALL CONTACT THE CLAIMANT,
3 PHYSICALLY INSPECT THE VEHICLE AND BEGIN PROCESSING THE CLAIM.
4 § 1799.3. INSURANCE IN CITIES OF THE FIRST CLASS.
5 (A) STUDY BY THE INSURANCE DEPARTMENT.--THE INSURANCE
6 DEPARTMENT SHALL COMMENCE A STUDY WHICH SHALL BE SUBMITTED TO
7 THE GENERAL ASSEMBLY BY MARCH 31, 1990, ON THE USE OF A SINGLE
8 CARRIER FOR AUTOMOBILE INSURANCE IN CITIES OF THE FIRST CLASS.
9 THE TERM "SINGLE CARRIER" INCLUDES A PRIVATE INSURANCE COMPANY
10 OR A PUBLIC AUTHORITY OR AGENCY SPECIFICALLY CREATED FOR THE
11 IMPLEMENTATION OF THIS SECTION. UPON COMPLETION, THE STUDY SHALL
12 BE DELIVERED TO THE MAJORITY AND MINORITY LEADERS OF THE SENATE
13 AND THE HOUSE OF REPRESENTATIVES. THE STUDY SHALL INCLUDE, AT A
14 MINIMUM, THE FOLLOWING COMPONENTS:
15 (1) AN ASSESSMENT OF THE NUMBER OF UNINSURED VEHICLES IN
16 CITIES OF THE FIRST CLASS.
17 (2) AN ASSESSMENT OF THE NUMBER OF INSURED VEHICLES IN
18 CITIES OF THE FIRST CLASS.
19 (3) AN ANALYSIS OF SOURCES OF AUTOMOBILE INSURANCE, BY
20 COMPANY, OF VEHICLES IN CITIES OF THE FIRST CLASS. THE
21 ANALYSIS SHALL INCLUDE A DETERMINATION OF THE NUMBER OF
22 VEHICLES INSURED IN CITIES OF THE FIRST CLASS IN BOTH THE
23 VOLUNTARY MARKET AND THE ASSIGNED RISK PLAN BY EACH INSURANCE
24 CARRIER LICENSED TO PROVIDE AUTOMOBILE INSURANCE IN THIS
25 COMMONWEALTH.
26 (4) AN ANALYSIS OF THE COSTS TO MOTORISTS TO INSURE A
27 VEHICLE IN CITIES OF THE FIRST CLASS IN THE VOLUNTARY MARKET
28 AND THROUGH THE ASSIGNED RISK PLAN.
29 (5) AN ASSESSMENT OF THE IMPACT OF "TAKE-OUT" PROVISIONS
30 ON THE VOLUNTARY MARKET PLACE IN CITIES OF THE FIRST CLASS.
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1 (6) A DETERMINATION AS TO THE NUMBER OF LAWSUITS FILED
2 FOR BODILY INJURY CLAIMS; THE AMOUNT AND TYPE OF DAMAGES
3 REQUESTED IN SUCH LAWSUITS; THE PERCENTAGE OF CLAIMS SETTLED
4 BEFORE COURT AND THE AMOUNT OF SETTLEMENT; THE PERCENTAGE OF
5 LAWSUITS DECIDED BY THE COURT AND THE AMOUNT OF DAMAGES
6 AWARDED; AND THE FEES CHARGED BY LAWYERS FOR REPRESENTING
7 CLAIMS.
8 (7) AN ASSESSMENT OF THE FREQUENCY, TYPE AND AMOUNT OF
9 PHYSICAL DAMAGE CLAIMS AND FIRST PARTY MEDICAL PAYMENTS.
10 (8) A DETERMINATION AS TO WHETHER THE USE OF A SINGLE
11 CARRIER IN CITIES OF THE FIRST CLASS WOULD HAVE A POSITIVE
12 FINANCIAL IMPACT ON ALL MOTORISTS IN SUCH CITIES AND IN THIS
13 COMMONWEALTH. SUCH DETERMINATION SHALL INCLUDE AN ANALYSIS OF
14 THE USE OF A PUBLIC AUTHORITY OR AGENCY AS THE SINGLE CARRIER
15 AND OF ITS POTENTIAL FOR PROVIDING LOWER RATES WHEN COMPARED
16 TO USE OF A PRIVATE INSURANCE COMPANY AS A SINGLE CARRIER. IN
17 ADDITION, THE DETERMINATION SHALL INCLUDE AN ANALYSIS OF THE
18 SINGLE CARRIER PROGRAM WHEN VOLUNTARY PARTICIPATION IN THE
19 PROGRAM IS PERMITTED IN COMPARISON TO THE BENEFITS OF
20 MANDATORY PARTICIPATION.
21 (9) A LEGAL OPINION AS TO WHETHER THE USE OF A SINGLE
22 CARRIER IN CITIES OF THE FIRST CLASS IS PERMISSIBLE UNDER THE
23 CONSTITUTION AND LAWS OF THE COMMONWEALTH.
24 (B) DUTIES OF INSURANCE COMPANIES.--INSURANCE COMPANIES
25 LICENSED IN THIS COMMONWEALTH TO WRITE POLICIES OF AUTOMOBILE
26 INSURANCE COVERAGE SHALL COOPERATE WITH THE INSURANCE DEPARTMENT
27 STUDY AS DESCRIBED IN SUBSECTION (A). COOPERATION SHALL INCLUDE,
28 BUT NOT BE LIMITED TO, THE PROVISION OF INFORMATION BY INSURANCE
29 COMPANIES WITHIN REASONABLE TIME FRAMES AS REQUESTED BY THE
30 DEPARTMENT, IF THE INFORMATION IS AVAILABLE, TO BE USED TO
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1 ADDRESS THE VARIOUS COMPONENTS OF THE STUDY DESCRIBED IN
2 SUBSECTION (A). SUCH INFORMATION MAY BE USED BY THE DEPARTMENT
3 ONLY FOR PURPOSES OF THIS STUDY.
4 (C) IMPLEMENTATION OF SINGLE CARRIER INSURANCE PROGRAM IN
5 CITIES OF THE FIRST CLASS.--IF A STUDY UNDERTAKEN UNDER
6 SUBSECTION (A) PROVIDES INFORMATION SUPPORTING A CONCLUSION THAT
7 A SINGLE CARRIER IN CITIES OF THE FIRST CLASS WILL IMPROVE THE
8 AVAILABILITY AND AFFORDABILITY OF AUTOMOBILE INSURANCE IN SUCH
9 CITIES AND IN THIS COMMONWEALTH, THE INSURANCE DEPARTMENT MAY
10 IMPLEMENT THE PROGRAM. IF THE PROGRAM IS IMPLEMENTED, THE
11 INSURANCE DEPARTMENT SHALL DEVELOP REGULATIONS DETAILING THE
12 COMPONENTS AND OPERATION OF A SINGLE CARRIER INSURANCE PROGRAM
13 FOR CITIES OF THE FIRST CLASS AND SHALL CONTRACT WITH A SINGLE
14 CARRIER TO IMPLEMENT SUCH A PROGRAM. THE CONTRACT MUST BE
15 SECURED FOLLOWING THE REQUEST FOR PROPOSAL PROCESS USED BY THE
16 COMMONWEALTH TO SECURE GOODS AND SERVICES. THE REQUEST FOR
17 PROPOSAL PROCESS SHALL INCLUDE A PROCEDURE FOR THE
18 PREQUALIFICATION OF BIDDERS BASED ON FINANCIAL ABILITY TO
19 ADMINISTER THE PROGRAM. ANY CONTRACT SIGNED BY THE DEPARTMENT
20 MUST INCLUDE THE FOLLOWING PROVISIONS:
21 (1) PARTICIPATION IN THE PROGRAM IS VOLUNTARY BY
22 MOTORISTS LIVING IN CITIES OF THE FIRST CLASS UNLESS
23 LEGISLATION HAS BEEN ENACTED SUBSEQUENT TO THIS ACT
24 SPECIFICALLY PROVIDING FOR MANDATORY PARTICIPATION.
25 (2) ALL DRIVERS, EXCEPT THOSE DETERMINED TO BE
26 INELIGIBLE AS DEFINED IN SUBSECTION (D), SHALL BE AFFORDED
27 THE OPPORTUNITY TO PURCHASE AUTOMOBILE INSURANCE COVERAGE
28 THROUGH THE PROGRAM.
29 (3) PREFERRED PROVIDER ARRANGEMENTS OR A FEE SCHEDULE
30 MAY BE DEVELOPED IN THE PROGRAM WITH SERVICE PROVIDERS FOR
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1 MEDICAL BENEFITS; SUCH ARRANGEMENTS SHALL BE ACCESSIBLE TO
2 THE INSUREDS.
3 (4) FOR PHYSICAL DAMAGE REPAIR OR REPLACEMENT, THE
4 PROGRAM MAY PROVIDE FOR A FEE SCHEDULE OR OTHER METHOD TO
5 CONTAIN COSTS, AS WELL AS A MINIMUM DEDUCTIBLE HIGHER THAN
6 THAT PROVIDED FOR IN THIS SUBCHAPTER, BUT IN NO CASE MAY THE
7 MINIMUM DEDUCTIBLE BE GREATER THAN $1,000.
8 (5) ANTIFRAUD MECHANISMS MAY BE ESTABLISHED, INCLUDING
9 THE INSPECTION OF PHYSICAL DAMAGE CLAIMS, INVESTIGATION OF
10 SUSPICIOUS CLAIMS, AND CASE MANAGEMENT FOR SELECTED MEDICAL
11 SERVICES.
12 (6) A CANCELLATION CLAUSE PERMITTING THE SINGLE CARRIER
13 TO CANCEL THE CONTRACT WITH 90 DAYS' NOTICE SHOULD ENROLLMENT
14 IN THE PROGRAM FALL BELOW A PERCENTAGE OF THE VEHICLES
15 REGISTERED IN CITIES OF THE FIRST CLASS. THE PERCENTAGE SHALL
16 BE ESTABLISHED IN THE CONTRACT.
17 (7) THE CONTRACT SHALL BE VALID FOR A PERIOD OF NOT LESS
18 THAN FIVE YEARS UNLESS A SHORTER CONTRACT PERIOD IS PROPOSED
19 BY THE SINGLE CARRIER.
20 (8) RATES CHARGED IN THE PROGRAM SHALL BE LOWER THAN
21 RATES AVAILABLE IN THE VOLUNTARY MARKET AND SHALL BE INCLUDED
22 IN THE CONTRACT AND SHALL BE VALID FOR A PERIOD OF NOT LESS
23 THAN TWO YEARS. RATE INCREASES AFTER THIS PERIOD SHALL BE
24 SUBJECT TO APPROVAL AS PROVIDED IN THE ACT OF JUNE 11, 1947
25 (P.L.538, NO.246), KNOWN AS THE CASUALTY AND SURETY RATE
26 REGULATORY ACT.
27 (D) INELIGIBLE DRIVER.--FOR PURPOSES OF SUBSECTION(C), THE
28 TERM "INELIGIBLE DRIVER" SHALL MEAN A PERSON WHO MEETS AT LEAST
29 ONE OF THE FOLLOWING CRITERIA:
30 (1) THE PERSON HAS, WITHIN FIVE YEARS OF THE DATE OF
19890H0376B2938 - 83 -
1 APPLICATION FOR INSURANCE, BEEN CONVICTED OF A VIOLATION OF:
2 (I) SECTION 3731 (RELATING TO DRIVING UNDER THE
3 INFLUENCE OF ALCOHOL OR A CONTROLLED SUBSTANCE);
4 (II) 18 PA.C.S. § 4117 (RELATING TO AUTOMOBILE
5 INSURANCE FRAUD); OR
6 (III) ANY FELONY INVOLVING THE USE OF A MOTOR
7 VEHICLE.
8 (2) THE PERSON HAS PREVIOUSLY BEEN INSURED UNDER A MOTOR
9 VEHICLE INSURANCE POLICY AND HAS MADE MORE THAN ONE CLAIM
10 UNDER AN INSURANCE POLICY, WITHIN 36 MONTHS OF THE DATE OF
11 APPLICATION FOR INSURANCE UNDER THIS SECTION, ARISING OUT OF
12 AN ACCIDENT WHERE THE INSURED WAS FOUND TO BE SUBSTANTIALLY
13 AT FAULT, THAT IS, MORE THAN 50%, AND WHERE A PAYMENT WAS
14 MADE BY THE INSURER THAT EXCEEDED 50% OF THE ANNUAL PREMIUM
15 FOR THE POLICY OF INSURANCE.
16 (3) THE PERSON'S OPERATING PRIVILEGE HAS BEEN SUSPENDED
17 OR REVOKED WITHIN THE PRECEDING 36-MONTH PERIOD.
18 (4) THE PERSON'S DRIVING RECORD SHOWS SIX OR MORE POINTS
19 ASSESSED UNDER SECTION 1535 (RELATING TO SCHEDULE OF
20 CONVICTIONS AND POINTS) FOR VIOLATIONS THAT OCCURRED WITHIN
21 36 MONTHS OF THE DATE OF APPLICATION FOR INSURANCE UNDER THIS
22 SECTION.
23 SECTION 21. THE PROVISIONS OF SECTIONS 1705, 1715(A)(6),
24 1717 AND 1799 ARE EXPRESSLY AND JOINTLY NONSEVERABLE. IF ANY
25 PROVISION OF THOSE SECTIONS OR THEIR APPLICATION TO ANY PERSON
26 OR CIRCUMSTANCE IS HELD TO BE UNCONSTITUTIONAL OR OTHERWISE
27 INVALID, THE INVALIDITY SHALL NOT AFFECT OTHER PROVISIONS OR
28 APPLICATIONS OF THIS ACT WHICH CAN BE GIVEN EFFECT WITHOUT THE
29 INVALID PROVISIONS OR APPLICATIONS.
30 SECTION 22. ALL ACTS AND PARTS OF ACTS ARE REPEALED INSOFAR
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1 AS THEY ARE INCONSISTENT WITH THIS ACT.
2 SECTION 23. THIS ACT SHALL APPLY TO INSURANCE POLICIES
3 ISSUED OR RENEWED ON OR AFTER THE EFFECTIVE DATE OF THIS ACT.
4 SECTION 24. THIS ACT SHALL TAKE EFFECT AS FOLLOWS:
5 (1) SECTION 1799, SECTION 21 AND THIS SECTION SHALL TAKE
6 EFFECT IMMEDIATELY.
7 (2) THE REMAINDER OF THIS ACT SHALL TAKE EFFECT IN 60
8 DAYS.
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