PRINTER'S NO. 955
No. 820 Session of 2003
INTRODUCED BY MAITLAND, CAPPELLI, SAYLOR, BELFANTI, FRANKEL, HORSEY, KELLER, LEWIS, SCRIMENTI AND YOUNGBLOOD, MARCH 11, 2003
REFERRED TO COMMITTEE ON INSURANCE, MARCH 11, 2003
AN ACT 1 Amending Title 75 (Vehicles) of the Pennsylvania Consolidated 2 Statutes, further defining "financial responsibility"; and 3 further providing for payments sufficient to satisfy 4 judgments, for notice of available benefits and limits and 5 for availability of uninsured, underinsured, bodily injury 6 liability and property damage coverages and mandatory 7 deductibles. 8 The General Assembly of the Commonwealth of Pennsylvania 9 hereby enacts as follows: 10 Section 1. The definition of "financial responsibility" in 11 section 1702 of Title 75 of the Pennsylvania Consolidated 12 Statutes is amended to read: 13 § 1702. Definitions. 14 The following words and phrases when used in this chapter 15 shall have the meanings given to them in this section unless the 16 context clearly indicates otherwise: 17 * * * 18 "Financial responsibility." The ability to respond in 19 damages for liability on account of accidents arising out of the 20 maintenance or use of a motor vehicle in the amount of $15,000
1 because of injury to one person in any one accident, in the 2 amount of $30,000 because of injury to two or more persons in 3 any one accident and in the amount of [$5,000] $10,000 because 4 of damage to property of others in any one accident. The 5 financial responsibility shall be in a form acceptable to the 6 Department of Transportation. 7 * * * 8 Section 2. Sections 1774(a), 1791 and 1792(a) of Title 75 9 are amended to read: 10 § 1774. Payments sufficient to satisfy judgments. 11 (a) General rule.--For the purpose of this chapter only, 12 judgments shall be deemed satisfied upon the occurrence of one 13 of the following: 14 (1) When $15,000 has been credited upon any judgment or 15 judgments rendered in excess of that amount because of injury 16 to one person as the result of any one accident. 17 (2) When $30,000 has been credited upon any judgment or 18 judgments rendered in excess of that amount because of injury 19 to two or more persons as the result of any one accident. 20 (3) When [$5,000] $10,000 has been credited upon any 21 judgment or judgments rendered in excess of that amount 22 because of damage to property of others as the result of any 23 one accident. 24 * * * 25 § 1791. Notice of available benefits and limits. 26 It shall be presumed that the insured has been advised of the 27 benefits and limits available under this chapter provided the 28 following notice in bold print of at least ten-point type is 29 given to the applicant at the time of application for original 30 coverage, and no other notice or rejection shall be required: 20030H0820B0955 - 2 -
1 IMPORTANT NOTICE 2 Insurance companies operating in the Commonwealth of 3 Pennsylvania are required by law to make available for 4 purchase the following benefits for you, your spouse or 5 other relatives or minors in your custody or in the 6 custody of your relatives, residing in your household, 7 occupants of your motor vehicle or persons struck by your 8 motor vehicle: 9 (1) Medical benefits, up to at least $100,000. 10 (1.1) Extraordinary medical benefits, from $100,000 11 to $1,100,000 which may be offered in increments of 12 $100,000. 13 (2) Income loss benefits, up to at least $2,500 per 14 month up to a maximum benefit of at least $50,000. 15 (3) Accidental death benefits, up to at least 16 $25,000. 17 (4) Funeral benefits, $2,500. 18 (5) As an alternative to paragraphs (1), (2), (3) 19 and (4), a combination benefit, up to at least $177,500 20 of benefits in the aggregate or benefits payable up to 21 three years from the date of the accident, whichever 22 occurs first, subject to a limit on accidental death 23 benefit of up to $25,000 and a limit on funeral benefit 24 of $2,500, provided that nothing contained in this 25 subsection shall be construed to limit, reduce, modify or 26 change the provisions of section 1715(d) (relating to 27 availability of adequate limits). 28 (6) Uninsured, underinsured and bodily injury 29 liability coverage up to at least $100,000 because of 30 injury to one person in any one accident and up to at 20030H0820B0955 - 3 -
1 least $300,000 because of injury to two or more persons 2 in any one accident or, at the option of the insurer, up 3 to at least $300,000 in a single limit for these 4 coverages, except for policies issued under the Assigned 5 Risk Plan. Also, at least [$5,000] $10,000 for damage to 6 property of others in any one accident. 7 Additionally, insurers may offer higher benefit levels 8 than those enumerated above as well as additional 9 benefits. However, for certain benefits, an insured may 10 elect to purchase lower benefit levels than those 11 enumerated above. 12 Your signature on this notice or your payment of any 13 renewal premium evidences your actual knowledge and 14 understanding of the availability of these benefits and 15 limits as well as the benefits and limits you have 16 selected. 17 If you have any questions or you do not understand all of 18 the various options available to you, contact your agent 19 or company. 20 If you do not understand any of the provisions contained 21 in this notice, contact your agent or company before you 22 sign. 23 § 1792. Availability of uninsured, underinsured, bodily injury 24 liability and property damage coverages and mandatory 25 deductibles. 26 (a) Availability of coverages.--Except for policies issued 27 under Subchapter D (relating to Assigned Risk Plan), an insurer 28 issuing a policy of bodily injury liability coverage pursuant to 29 this chapter shall make available for purchase higher limits of 30 uninsured, underinsured and bodily injury liability coverages up 20030H0820B0955 - 4 -
1 to at least $100,000 because of injury to one person in any one
2 accident and up to at least $300,000 because of injury to two or
3 more persons in any one accident or, at the option of the
4 insurer, up to at least $300,000 in a single limit for these
5 coverages. Additionally, an insurer shall make available for
6 purchase at least [$5,000] $10,000 because of damage to property
7 of others in any one accident. However, the exclusion of
8 availability relating to the Assigned Risk Plan shall not apply
9 to damage to property of others in any one accident.
10 * * *
11 Section 3. This act shall take effect in 60 days.
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