PRINTER'S NO. 1831
No. 1457 Session of 2003
INTRODUCED BY VEON, WASHINGTON, GRUCELA, BEBKO-JONES, LEACH,
JAMES, GERGELY, HARHAI, THOMAS, MELIO, WATERS, HORSEY,
KIRKLAND, COHEN, GOODMAN, MYERS AND DeWEESE, MAY 14, 2003
REFERRED TO COMMITTEE ON INSURANCE, MAY 14, 2003
AN ACT
1 Amending Title 75 (Vehicles) of the Pennsylvania Consolidated
2 Statutes, further providing for financial responsibility
3 coverage.
4 The General Assembly of the Commonwealth of Pennsylvania
5 hereby enacts as follows:
6 Section 1. Sections 1731(a), (b), (b.1), (b.2), (b.3), (c)
7 and (c.1), 1734, 1736 and 1738(b), (c), (d) and (e) of Title 75
8 of the Pennsylvania Consolidated Statutes are amended to read:
9 § 1731. Availability, scope and amount of coverage.
10 (a) Mandatory [offering] coverage.--No motor vehicle
11 liability insurance policy shall be delivered or issued for
12 delivery in this Commonwealth, with respect to any motor vehicle
13 registered or principally garaged in this Commonwealth, unless
14 uninsured motorist and underinsured motorist coverages are
15 offered therein or supplemental thereto in amounts [as provided
16 in section 1734 (relating to request for lower limits of
17 coverage). Purchase of uninsured motorist and underinsured
18 motorist coverages is optional] equal to the amount of liability
1 coverage.
2 (b) Uninsured motorist coverage.--Uninsured motorist
3 coverage shall provide protection for persons who suffer injury
4 arising out of the maintenance or use of a motor vehicle and are
5 legally entitled to recover damages therefor from owners or
6 operators of uninsured motor vehicles. [The named insured shall
7 be informed that he may reject uninsured motorist coverage by
8 signing the following written rejection form:
9 REJECTION OF UNINSURED MOTORIST PROTECTION
10 By signing this waiver I am rejecting uninsured motorist
11 coverage under this policy, for myself and all relatives
12 residing in my household. Uninsured coverage protects me and
13 relatives living in my household for losses and damages
14 suffered if injury is caused by the negligence of a driver
15 who does not have any insurance to pay for losses and
16 damages. I knowingly and voluntarily reject this coverage.
17 ................................
18 Signature of First Named Insured
19 ................................
20 Date
21 (b.1) Limitation of rejection.--Uninsured motorist
22 protection may be rejected for the driver and passengers for
23 rental or lease vehicles which are not otherwise common carriers
24 by motor vehicle, but such coverage may only be rejected if the
25 rental or lease agreement is signed by the person renting or
26 leasing the vehicle and contains the following rejection
27 language:
28 Rejection of Uninsured Motorist Protection
29 I am rejecting uninsured motorist coverage under this
30 rental or lease agreement, and any policy of insurance or
20030H1457B1831 - 2 -
1 self-insurance issued under this agreement, for myself
2 and all other passengers of this vehicle. Uninsured
3 coverage protects me and other passengers in this vehicle
4 for losses and damages suffered if injury is caused by
5 the negligence of a driver who does not have any
6 insurance to pay for losses and damages.
7 (b.2) Rejection language change.--The rejection language of
8 subsection (b.1) may only be changed grammatically to reflect a
9 difference in tense in the rental agreement or lease agreement.
10 (b.3) Vehicle rental services.--The requirements of
11 subsection (b.1) may be met in connection with an expedited
12 vehicle rental service, which service by agreement of the renter
13 does not require the renter's signature for each rental, if a
14 master enrollment or rental agreement contains the rejection
15 language of subsection (b.1) and such agreement is signed by the
16 renter.]
17 (c) Underinsured motorist coverage.--Underinsured motorist
18 coverage shall provide protection for persons who suffer injury
19 arising out of the maintenance or use of a motor vehicle and are
20 legally entitled to recover damages therefor from owners or
21 operators of underinsured motor vehicles. [The named insured
22 shall be informed that he may reject underinsured motorist
23 coverage by signing the following written rejection form:
24 REJECTION OF UNDERINSURED MOTORIST PROTECTION
25 By signing this waiver I am rejecting underinsured
26 motorist coverage under this policy, for myself and all
27 relatives residing in my household. Underinsured coverage
28 protects me and relatives living in my household for losses
29 and damages suffered if injury is caused by the negligence of
30 a driver who does not have enough insurance to pay for all
20030H1457B1831 - 3 -
1 losses and damages. I knowingly and voluntarily reject this
2 coverage.
3 ................................
4 Signature of First Named Insured
5 ................................
6 Date
7 (c.1) Form of waiver.--Insurers shall print the rejection
8 forms required by subsections (b) and (c) on separate sheets in
9 prominent type and location. The forms must be signed by the
10 first named insured and dated to be valid. The signatures on the
11 forms may be witnessed by an insurance agent or broker. Any
12 rejection form that does not specifically comply with this
13 section is void. If the insurer fails to produce a valid
14 rejection form, uninsured or underinsured coverage, or both, as
15 the case may be, under that policy shall be equal to the bodily
16 injury liability limits. On policies in which either uninsured
17 or underinsured coverage has been rejected, the policy renewals
18 must contain notice in prominent type that the policy does not
19 provide protection against damages caused by uninsured or
20 underinsured motorists. Any person who executes a waiver under
21 subsection (b) or (c) shall be precluded from claiming liability
22 of any person based upon inadequate information.]
23 * * *
24 [§ 1734. Request for lower limits of coverage.
25 A named insured may request in writing the issuance of
26 coverages under section 1731 (relating to availability, scope
27 and amount of coverage) in amounts equal to or less than the
28 limits of liability for bodily injury.]
29 [§ 1736. Coverages in excess of required amounts.
30 The coverages provided under this subchapter may be offered
20030H1457B1831 - 4 -
1 by insurers in amounts higher than those required by this
2 chapter but may not be greater than the limits of liability
3 specified in the bodily injury liability provisions of the
4 insured's policy.]
5 § 1738. Stacking of uninsured and underinsured benefits and
6 option to waive.
7 * * *
8 [(b) Waiver.--Notwithstanding the provisions of subsection
9 (a), a named insured may waive coverage providing stacking of
10 uninsured or underinsured coverages in which case the limits of
11 coverage available under the policy for an insured shall be the
12 stated limits for the motor vehicle as to which the injured
13 person is an insured.
14 (c) More than one vehicle.--Each named insured purchasing
15 uninsured or underinsured motorist coverage for more than one
16 vehicle under a policy shall be provided the opportunity to
17 waive the stacked limits of coverage and instead purchase
18 coverage as described in subsection (b). The premiums for an
19 insured who exercises such waiver shall be reduced to reflect
20 the different cost of such coverage.
21 (d) Forms.--
22 (1) The named insured shall be informed that he may
23 exercise the waiver of the stacked limits of uninsured
24 motorist coverage by signing the following written rejection
25 form:
26 UNINSURED COVERAGE LIMITS
27 By signing this waiver, I am rejecting stacked limits
28 of uninsured motorist coverage under the policy for
29 myself and members of my household under which the limits
30 of coverage available would be the sum of limits for each
20030H1457B1831 - 5 -
1 motor vehicle insured under the policy. Instead, the
2 limits of coverage that I am purchasing shall be reduced
3 to the limits stated in the policy. I knowingly and
4 voluntarily reject the stacked limits of coverage. I
5 understand that my premiums will be reduced if I reject
6 this coverage.
7 ................................
8 Signature of First Named Insured
9 ................................
10 Date
11 (2) The named insured shall be informed that he may
12 exercise the waiver of the stacked limits of underinsured
13 motorist coverage by signing the following written rejection
14 form:
15 UNDERINSURED COVERAGE LIMITS
16 By signing this waiver, I am rejecting stacked limits
17 of underinsured motorist coverage under the policy for
18 myself and members of my household under which the limits
19 of coverage available would be the sum of limits for each
20 motor vehicle insured under the policy. Instead, the
21 limits of coverage that I am purchasing shall be reduced
22 to the limits stated in the policy. I knowingly and
23 voluntarily reject the stacked limits of coverage. I
24 understand that my premiums will be reduced if I reject
25 this coverage.
26 ................................
27 Signature of First Named Insured
28 ................................
29 Date
20030H1457B1831 - 6 -
1 (e) Signature and date.--The forms described in subsection
2 (d) must be signed by the first named insured and dated to be
3 valid. Any rejection form that does not comply with this section
4 is void.]
5 Section 2. This act shall take effect in 60 days.
B3L75MRD/20030H1457B1831 - 7 -