PRIOR PRINTER'S NO. 747
PRINTER'S NO. 1182
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
676
Session of
2021
INTRODUCED BY PITTMAN, MENSCH, STEFANO AND BAKER, MAY 11, 2021
SENATOR DISANTO, BANKING AND INSURANCE, AS AMENDED,
OCTOBER 27, 2021
AN ACT
Amending Title 75 (Vehicles) of the Pennsylvania Consolidated
Statutes, in financial responsibility, further providing for
DEFINITIONS, FOR AVAILABILITY, SCOPE AND AMOUNT OF COVERAGE,
FOR request for lower limits of coverage, for coverages in
excess of required amounts, for stacking of uninsured and
underinsured benefits and option to waive, for notice of
available benefits and limits and for availability of
uninsured, underinsured, bodily injury liability and property
damage coverages and mandatory deductibles.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Sections 1734, 1736, 1738, 1791 and 1792(a) of
Title 75 of the Pennsylvania Consolidated Statutes are amended
to read:
SECTION 1. THE DEFINITION OF "FINANCIAL RESPONSIBILITY" IN
SECTION 1702 OF TITLE 75 OF THE PENNSYLVANIA CONSOLIDATED
STATUTES IS AMENDED TO READ:
§ 1702. DEFINITIONS.
THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS CHAPTER
SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE
CONTEXT CLEARLY INDICATES OTHERWISE:
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* * *
"FINANCIAL RESPONSIBILITY." THE ABILITY TO RESPOND IN
DAMAGES FOR LIABILITY ON ACCOUNT OF ACCIDENTS ARISING OUT OF THE
MAINTENANCE OR USE OF A MOTOR VEHICLE IN THE MINIMUM AMOUNT OF
[$15,000] $25,000 BECAUSE OF INJURY TO ONE PERSON IN ANY ONE
ACCIDENT, IN THE AMOUNT OF [$30,000] $50,000 BECAUSE OF INJURY
TO TWO OR MORE PERSONS IN ANY ONE ACCIDENT AND IN THE MINIMUM
AMOUNT OF [$5,000] $10,000 BECAUSE OF DAMAGE TO PROPERTY OF
OTHERS IN ANY ONE ACCIDENT. THE FINANCIAL RESPONSIBILITY SHALL
BE IN A FORM ACCEPTABLE TO THE DEPARTMENT OF TRANSPORTATION.
* * *
SECTION 2. SECTIONS 1731(A), 1734, 1736, 1738, 1791 AND
1792(A) OF TITLE 75 ARE AMENDED TO READ:
§ 1731. AVAILABILITY, SCOPE AND AMOUNT OF COVERAGE.
(A) MANDATORY OFFERING.--NO MOTOR VEHICLE LIABILITY
INSURANCE POLICY SHALL BE DELIVERED OR ISSUED FOR DELIVERY IN
THIS COMMONWEALTH, WITH RESPECT TO ANY MOTOR VEHICLE REGISTERED
OR PRINCIPALLY GARAGED IN THIS COMMONWEALTH, UNLESS UNINSURED
MOTORIST AND UNDERINSURED MOTORIST COVERAGES ARE OFFERED THEREIN
OR SUPPLEMENTAL THERETO IN AMOUNTS AS PROVIDED IN SECTION 1734
(RELATING TO REQUEST FOR [LOWER] DIFFERENT LIMITS OF COVERAGE).
PURCHASE OF UNINSURED MOTORIST AND UNDERINSURED MOTORIST
COVERAGES IS OPTIONAL.
* * *
§ 1734. Request for [lower] different limits of coverage.
A named insured may request in writing the issuance of
coverages under section 1731 (relating to availability, scope
and amount of coverage) in amounts [equal to or less than] other
than the limits of liability for bodily injury. A named insured
shall be conclusively presumed to have uninsured and
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underinsured motorist coverage in the same amount as the bodily
injury liability in the policy, unless another amount is elected
in accordance with this chapter.
§ 1736. Coverages in excess of required amounts.
The coverages provided under this subchapter may be offered
by insurers in amounts higher than those required by this
chapter [but] and may [not] be greater than the limits of
liability specified in the bodily injury liability provisions of
the insured's policy.
§ 1738. Stacking of uninsured and underinsured benefits [and
option to waive] prohibited.
[(a) Limit for each vehicle.--When more than one vehicle is
insured under one or more policies providing uninsured or
underinsured motorist coverage, the stated limit for uninsured
or underinsured coverage shall apply separately to each vehicle
so insured. The limits of coverages available under this
subchapter for an insured shall be the sum of the limits for
each motor vehicle as to which the injured person is an insured.
(b) Waiver.--Notwithstanding the provisions of subsection
(a), a named insured may waive coverage providing stacking of
uninsured or underinsured coverages in which case the limits of
coverage available under the policy for an insured shall be the
stated limits for the motor vehicle as to which the injured
person is an insured.
(c) More than one vehicle.--Each named insured purchasing
uninsured or underinsured motorist coverage for more than one
vehicle under a policy shall be provided the opportunity to
waive the stacked limits of coverage and instead purchase
coverage as described in subsection (b). The premiums for an
insured who exercises such waiver shall be reduced to reflect
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the different cost of such coverage.
(d) Forms.--
(1) The named insured shall be informed that he may
exercise the waiver of the stacked limits of uninsured
motorist coverage by signing the following written rejection
form:
UNINSURED COVERAGE LIMITS
By signing this waiver, I am rejecting stacked limits
of uninsured motorist coverage under the policy for
myself and members of my household under which the limits
of coverage available would be the sum of limits for each
motor vehicle insured under the policy. Instead, the
limits of coverage that I am purchasing shall be reduced
to the limits stated in the policy. I knowingly and
voluntarily reject the stacked limits of coverage. I
understand that my premiums will be reduced if I reject
this coverage.
Signature of First Named Insured
Date
(2) The named insured shall be informed that he may
exercise the waiver of the stacked limits of underinsured
motorist coverage by signing the following written rejection
form:
UNDERINSURED COVERAGE LIMITS
By signing this waiver, I am rejecting stacked limits
of underinsured motorist coverage under the policy for
myself and members of my household under which the limits
of coverage available would be the sum of limits for each
motor vehicle insured under the policy. Instead, the
limits of coverage that I am purchasing shall be reduced
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to the limits stated in the policy. I knowingly and
voluntarily reject the stacked limits of coverage. I
understand that my premiums will be reduced if I reject
this coverage.
Signature of First Named Insured
Date
(e) Signature and date.--The forms described in subsection
(d) must be signed by the first named insured and dated to be
valid. Any rejection form that does not comply with this section
is void.]
(a) General rule.--Regardless of the number of policies
issued, vehicles or premiums shown on a policy, premiums paid,
persons covered, vehicles involved in an accident, claims made
or lawsuits filed, in no event shall the limit of liability for
uninsured or underinsured motorist coverage applicable to two or
more motor vehicles covered under the same or separate policies,
where the injured person is a named insured or resident relative
under the policy or policies, be added together to determine the
liability for the coverage available to an injured person or
persons for any one accident.
(b) Noncovered vehicles.--If a person insured for uninsured
or underinsured coverage under a policy is an occupant of a
vehicle not covered in the policy, the priority of recovery in
section 1733 (relating to priority of recovery) shall apply. The
maximum amount payable under section 1733(a)(2) shall be the
single highest limit on any one vehicle for which the injured
person is a named insured or resident relative under the policy.
(c) Covered vehicles.--If a person insured for uninsured or
underinsured motorist coverage is an occupant of a vehicle
covered in that policy, the uninsured or underinsured motorist
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coverage afforded by the policy covering the vehicle occupied at
the time of the accident shall be the only uninsured and
underinsured motorist coverage available.
(d) Pedestrians.--If a person insured for uninsured or
underinsured motorist coverage is injured as a pedestrian in a
motor vehicle accident, the uninsured or underinsured motorist
coverage shall be the single highest limit on any one vehicle
for which the injured person is a named insured or insured under
the policy.
(F) PROHIBITION.--THE LIMIT OF LIABILITY FOR UNINSURED OR
UNDERINSURED MOTORIST COVERAGE APPLICABLE TO TWO OR MORE MOTOR
VEHICLES COVERED UNDER THE SAME OR SEPARATE POLICY OF AN INSURED
SHALL NOT BE ADDED TOGETHER TO DETERMINE THE LIMIT OF THE
COVERAGE AVAILABLE TO AN INJURED PERSON FOR AN ACCIDENT.
(G) NONCOVERED VEHICLES.--SECTION 1733 (RELATING TO PRIORITY
OF RECOVERY) SHALL APPLY IF AN INSURED IS INJURED AS AN OCCUPANT
IN A VEHICLE NOT COVERED UNDER THE INSURED'S POLICY, UNLESS THE
COVERAGE IS OTHERWISE EXCLUDED. THE MAXIMUM PAYMENT UNDER
SECTION 1733(A)(2) SHALL BE THE SINGLE HIGHEST LIMIT ON ANY ONE
VEHICLE FOR WHICH THE INJURED PERSON IS AN INSURED.
(H) COVERED VEHICLES.--IF AN INSURED IS INJURED AS AN
OCCUPANT OF A VEHICLE COVERED UNDER THE INSURED'S POLICY, UNLESS
THE COVERAGE IS OTHERWISE EXCLUDED, THE UNINSURED OR
UNDERINSURED MOTORIST COVERAGE AFFORDED BY THE POLICY COVERING
THE VEHICLE OCCUPIED AT THE TIME OF THE ACCIDENT SHALL BE THE
ONLY UNINSURED OR UNDERINSURED MOTORIST COVERAGE AVAILABLE.
(I) PEDESTRIANS.--IF AN INSURED IS INJURED AS A PEDESTRIAN
IN A MOTOR VEHICLE ACCIDENT, THE UNINSURED OR UNDERINSURED
MOTORIST COVERAGE SHALL BE THE SINGLE HIGHEST LIMIT ON ANY ONE
VEHICLE FOR WHICH THE INJURED PERSON IS AN INSURED.
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§ 1791. Notice of available benefits and limits.
It shall be presumed that the insured has been advised of the
benefits and limits available under this chapter provided the
following notice in bold print of at least ten-point type is
given to the applicant at the time of application for original
coverage, and no other notice or rejection shall be required:
IMPORTANT NOTICE
Insurance companies operating in the Commonwealth of
Pennsylvania are required by law to make available for
purchase the following benefits for you, your spouse or
other relatives or minors in your custody or in the
custody of your relatives, residing in your household,
occupants of your motor vehicle or persons struck by your
motor vehicle:
(1) Medical benefits, up to at least $100,000.
(1.1) Extraordinary medical benefits, from $100,000
to $1,100,000 which may be offered in increments of
$100,000.
(2) Income loss benefits, up to at least $2,500 per
month up to a maximum benefit of at least $50,000.
(3) Accidental death benefits, up to at least
$25,000.
(4) Funeral benefits, $2,500.
(5) As an alternative to paragraphs (1), (2), (3)
and (4), a combination benefit, up to at least $177,500
of benefits in the aggregate or benefits payable up to
three years from the date of the accident, whichever
occurs first, subject to a limit on accidental death
benefit of up to $25,000 and a limit on funeral benefit
of $2,500, provided that nothing contained in this
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subsection shall be construed to limit, reduce, modify or
change the provisions of section 1715(d) (relating to
availability of adequate limits).
(6) [Uninsured, underinsured and bodily] Bodily
injury liability coverage up to at least $100,000 because
of injury to one person in any one accident and up to at
least $300,000 because of injury to two or more persons
in any one accident or, at the option of the insurer, up
to at least $300,000 in a single limit for these
coverages, except for policies issued under the Assigned
Risk Plan. Also, at least $5,000 for damage to property
of others in any one accident.
[Additionally, insurers] (7) Uninsured and
underinsured liability coverage up to at least $300,000
because of injury to one person in any one accident and
up to at least $900,000 because of injury to two or more
persons in any one accident or, at the option of the
insurer, up to at least $900,000 in a single limit for
these coverages, except for policies issued under the
Assigned Risk Plan.
(8) Insurers may offer higher benefit levels than
those enumerated above as well as additional benefits.
However, an insured may elect to purchase lower benefit
levels than those enumerated above.
Your signature on this notice or your payment of any
renewal premium evidences your actual knowledge and
understanding of the availability of these benefits and
limits as well as the benefits and limits you have
selected.
If you have any questions or you do not understand all of
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the various options available to you, contact your agent
or company.
If you do not understand any of the provisions contained
in this notice, contact your agent or company before you
sign.
§ 1792. Availability of uninsured, underinsured, bodily injury
liability and property damage coverages and mandatory
deductibles.
(a) Availability of coverages.--
(1) Except for policies issued under Subchapter D
(relating to Assigned Risk Plan)[, an]:
(i) An insurer issuing a policy of bodily injury
liability coverage pursuant to this chapter shall make
available for purchase higher limits of [uninsured,
underinsured and] bodily injury liability coverages up to
at least $100,000 because of injury to one person in any
one accident and up to at least $300,000 because of
injury to two or more persons in any one accident or, at
the option of the insurer, up to at least $300,000 in a
single limit for these coverages.
(ii) An insurer issuing a policy of bodily injury
coverage under this chapter shall make available for
purchase higher limits of uninsured and underinsured
liability coverages up to at least $300,000 because of
injury to one person in any one accident and up to
$900,000 because of injury to two or more persons in any
one accident or, at the option of the insurers INSURER ,
up to at least $900,000 in a single limit for these
coverages.
(2) Additionally, an insurer shall make available for
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purchase at least $5,000 because of damage to property of
others in any one accident. However, the exclusion of
availability relating to the Assigned Risk Plan shall not
apply to damage to property of others in any one accident.
* * *
Section 2. The amendment of 75 Pa.C.S. §§ 1734, 1736, 1738,
1791 and 1792(a) shall apply to policies issued or renewed on or
after 180 days after the effective date of this section.
Section 3. This act shall take effect in 180 days.
SECTION 3. ANY CHANGE IN COVERAGE OF A PRIVATE PASSENGER
AUTOMOBILE INSURANCE POLICY RESULTING FROM THE AMENDMENT OF 75
PA.C.S. § 1702 SHALL NOT IMPACT THE VALIDITY OF ANY WAIVER,
SELECTION OF BENEFITS OR AMOUNT OF BENEFITS IN THAT POLICY
BEYOND THE COVERAGE AMOUNTS AS A RESULT OF THE AMENDMENT OF 75
PA.C.S. § 1702, NOR REQUIRE THAT NEW FORMS BE SIGNED BY THE
INSURED NAMED IN THE POLICY.
SECTION 4. THIS ACT SHALL APPLY TO POLICIES ISSUED OR
RENEWED ON OR AFTER 180 DAYS AFTER THE EFFECTIVE DATE OF THIS
SECTION. NOTHING IN THIS ACT SHALL BE CONSTRUED TO ALTER THE
ELECTION OF TORT OPTIONS IN A POLICY ISSUED OR RENEWED ON OR
AFTER ONE YEAR AFTER THE EFFECTIVE DATE OF THIS SECTION.
SECTION 5. THIS ACT SHALL TAKE EFFECT IN 180 DAYS.
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