PRIOR PRINTER'S NOS. 2169, 3386 PRINTER'S NO. 3499
No. 1805 Session of 1991
INTRODUCED BY D. R. WRIGHT, McCALL, PESCI, VEON, CESSAR, GEIST,
BATTISTO, OLASZ, NAHILL, TELEK, MRKONIC, SALOOM, CARN,
SCRIMENTI, HALUSKA, BILLOW, MELIO, D. W. SNYDER, HERSHEY,
OLIVER, HANNA, STETLER, MAYERNIK, SAURMAN, DeLUCA, DAVIES,
DURHAM, STABACK, VAN HORNE, BOWLEY, BELFANTI, CAPPABIANCA,
CARONE, CLARK, KASUNIC, DERMODY, E. Z. TAYLOR, MERRY, THOMAS,
PITTS, PISTELLA, CIVERA, FLEAGLE, BELARDI, WOGAN, LAUGHLIN,
ROBINSON, COY, TIGUE, FARGO, CORRIGAN, TRELLO, JOHNSON,
FLICK, LEE, HARPER, J. TAYLOR, HARLEY, TULLI, KENNEY,
STEELMAN, JAMES AND RICHARDSON, JUNE 28, 1991
AS AMENDED ON THIRD CONSIDERATION, HOUSE OF REPRESENTATIVES,
MAY 5, 1992
AN ACT
1 Amending the act of June 5, 1968 (P.L.140, No.78), entitled "An
2 act regulating the writing, cancellation of or refusal to
3 renew policies of automobile insurance; and imposing powers
4 and duties on the Insurance Commissioner therefor," providing
5 for a certain notice to insureds relating to the surrender of
6 registration plates; AND PROVIDING FOR EXCLUSION OF CERTAIN <--
7 DRIVERS FROM COVERAGE.
8 The General Assembly of the Commonwealth of Pennsylvania
9 hereby enacts as follows:
10 Section 1. Section 5 of the act of June 5, 1968 (P.L.140,
11 No.78), entitled "An act regulating the writing, cancellation of
12 or refusal to renew policies of automobile insurance; and
13 imposing powers and duties on the Insurance Commissioner
14 therefor," amended July 14, 1988 (P.L.546, No.97), is amended to
15 read:
16 Section 5. No cancellation or refusal to renew by an insurer
1 of a policy of automobile insurance shall be effective unless
2 the insurer shall deliver or mail, to the named insured at the
3 address shown in the policy a written notice of the cancellation
4 or refusal to renew. Such notice shall:
5 (1) Be approved as to form by the Insurance Commissioner
6 prior to use;
7 (2) State the date, not less than sixty days after the date
8 of such mailing or delivering on which such cancellation or
9 refusal to renew shall become effective, except that such
10 effective date may be fifteen days from the date of mailing or
11 delivery when it is being cancelled or not renewed for the
12 reasons set forth in clauses (1) and (2) of section 4;
13 (3) State the specific reason or reasons of the insurer for
14 cancellation or refusal to renew;
15 (4) Advise the insured of his right to request in writing,
16 within thirty days of the receipt of the notice of cancellation
17 or intention not to renew, and of the receipt of the reason or
18 reasons for the cancellation or refusal to renew as stated in
19 the notice of cancellation or of intention not to renew, that
20 the Insurance Commissioner review the action of the insurer;
21 (5) Either in the notice or in an accompanying statement
22 advise the insured of his possible eligibility for insurance
23 through the automobile assigned risk plan;
24 (6) Advise the insured that he must obtain compulsory
25 automobile insurance coverage if he operates or registers a
26 motor vehicle in the Commonwealth, that the insurer is notifying
27 the Department of Transportation that the insurance is being
28 cancelled or not renewed, that the insured must surrender his
29 vehicle registration plates upon cancellation or nonrenewal of
30 his policy or face a 90-day suspension of the vehicle
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1 registration, and that the insured must notify the Department of
2 Transportation that he has replaced said coverage.
3 (7) Clearly state that, when coverage is to be terminated
4 due to nonresponse to a citation imposed under 75 Pa.C.S. § 1533
5 (relating to suspension of operating privilege for failure to
6 respond to citation) or nonpayment of a fine or penalty imposed
7 under that section, coverage shall not terminate if the insured
8 provides the insurer with proof that the insured has responded
9 to all citations and paid all fines and penalties and that he or
10 she has done so on or before the termination date of the policy.
11 SECTION 2. SECTION 6 OF THE ACT IS AMENDED BY ADDING A <--
12 CLAUSE TO READ:
13 SECTION 6. NOTHING IN THIS ACT SHALL APPLY:
14 * * *
15 (4) IN ANY CASE WHERE AN INSURER IS AUTHORIZED UNDER THIS
16 ARTICLE TO CANCEL OR NON-RENEW OR INCREASE THE PREMIUMS ON AN
17 AUTOMOBILE LIABILITY INSURANCE POLICY UNDER WHICH MORE THAN ONE
18 PERSON IS INSURED BECAUSE OF THE CLAIM EXPERIENCE OR DRIVING
19 RECORD OF ONE OR MORE BUT LESS THAN ALL OF THE PERSONS INSURED
20 UNDER THE POLICY, THE INSURER SHALL, IN LIEU OF CANCELLATION,
21 NON-RENEWAL OR PREMIUM INCREASE, OFFER TO CONTINUE OR RENEW THE
22 INSURANCE, BUT TO EXCLUDE FROM COVERAGE, BY NAME, THE PERSON OR
23 PERSONS WHOSE CLAIM EXPERIENCE OR DRIVING RECORD WOULD HAVE
24 JUSTIFIED THE CANCELLATION OR NON-RENEWAL. THE PREMIUMS CHARGED
25 ON ANY SUCH POLICY EXCLUDING A NAMED DRIVER OR DRIVERS SHALL NOT
26 REFLECT THE CLAIMS, EXPERIENCE OR DRIVING RECORD OF THE EXCLUDED
27 NAMED DRIVER OR DRIVERS. WITH RESPECT TO ANY PERSON EXCLUDED
28 FROM COVERAGE, THE POLICY MAY PROVIDE THAT THE INSURER SHALL NOT
29 BE LIABLE FOR DAMAGES, LOSSES OR CLAIMS ARISING OUT OF THIS
30 OPERATION OR USE OF THE INSURED MOTOR VEHICLE, WHETHER OR NOT
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1 SUCH OPERATION OR USE WAS WITH THE EXPRESS OR IMPLIED PERMISSION
2 OF A PERSON INSURED UNDER THE POLICY. IF THE EXCLUDED DRIVER HAS
3 AN ACCIDENT, REGARDLESS OF FAULT, THAT EVENT SHALL BE GROUNDS
4 FOR CANCELLATION OF THE POLICY.
5 Section 2 3. This act shall take effect in 60 days. <--
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