PRINTER'S NO. 3255

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 2355 Session of 1986


        INTRODUCED BY FOX, SIRIANNI, KOSINSKI, REBER, J. L. WRIGHT,
           NOYE, MORRIS, BELARDI, GANNON, HERMAN, TRELLO, DISTLER,
           HERSHEY, GREENWOOD, RAYMOND, SEMMEL, GLADECK, TRUMAN, GEIST,
           FLICK, MAIALE, LANGTRY, B. SMITH, E. Z. TAYLOR, ITKIN, KENNEY
           AND NAHILL, APRIL 14, 1986

        REFERRED TO COMMITTEE ON TRANSPORTATION, APRIL 14, 1986

                                     AN ACT

     1  Amending Title 75 (Vehicles) of the Pennsylvania Consolidated
     2     Statutes, imposing a duty upon insurers to give notice of
     3     cancellation of motor vehicle liability insurance policies;
     4     and providing a penalty.

     5     The General Assembly of the Commonwealth of Pennsylvania
     6  hereby enacts as follows:
     7     Section 1.  Title 75 of the Pennsylvania Consolidated
     8  Statutes is amended by adding a section to read:
     9  § 1724.  Obligation of insurer to report cancellation of policy.
    10     (a)  General rule.--An insurer who has issued a contract of
    11  motor vehicle liability insurance and knows or has reason to
    12  believe that the contract is for the purpose of providing
    13  financial responsibility shall immediately notify the Department
    14  of Transportation if the insurance has been canceled or
    15  terminated by the insured or by the insurer. The insurer shall
    16  notify the Department of Transportation not later than ten days
    17  following the effective date of the cancellation or termination.


     1  This requirement shall not apply to a policy which has been in
     2  effect for more than six months from the date the policy was
     3  initially issued.
     4     (b)  Penalty.--An insurer that fails to give the notice
     5  required by subsection (a) commits a summary offense and shall,
     6  upon conviction, be sentenced to pay a fine of not less than
     7  $500.
     8     Section 2.  This act shall take effect 60 days.















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