PRINTER'S NO. 3619
No. 2734 Session of 1980
INTRODUCED BY BROWN, KUKOVICH, REED, MRKONIC AND
A. K. HUTCHINSON, JUNE 18, 1980
REFERRED TO COMMITTEE ON INSURANCE, JUNE 18, 1980
AN ACT
1 Amending the act of July 19, 1974 (P.L.489, No.176), entitled
2 "An act providing for a compensation system for persons
3 injured in motor vehicle accidents; requiring insurance for
4 all motor vehicles required to be registered in Pennsylvania;
5 defining compensable damage in motor vehicle accident cases;
6 establishing an assigned claims plan; providing for
7 arbitration; imposing powers and duties on courts, the
8 Department of Transportation and the Insurance Commissioner;
9 prohibiting certain discrimination; and providing penalties,"
10 providing for a reduction in premium rates for reduced
11 driving.
12 The General Assembly of the Commonwealth of Pennsylvania
13 hereby enacts as follows:
14 Section 1. Section 504, act of July 19, 1974 (P.L.489,
15 No.176), known as the "Pennsylvania No-fault Motor Vehicle
16 Insurance Act," is amended by adding a subsection to read:
17 § 504. Policy requirements and premium changes.
18 * * *
19 (d) Reduced rate.--An insured who has had insurance required
20 by this act in effect for at least a year and who has reduced
21 the number of miles he has driven by more than five per cent
22 (5%) from the preceding year shall, upon renewal of the policy,
1 receive a reduction in the premium for the next year. The
2 reduction shall be an amount equal to the percentage of miles
3 driven during the year as compared with the miles driven in the
4 preceding year but not more than twenty per cent (20%).
5 Verification of the miles driven may be by affidavit of the
6 insured or a certified copy of the vehicle inspection record
7 showing the mileage at the time of inspection.
8 Section 2. This act shall take effect in 60 days.
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