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Senate of Pennsylvania
Session of 2013 - 2014 Regular Session


Posted: March 13, 2013 12:00 PM
From: Senator Michael L. Waugh
To: All Senate members
Subject: Prohibiting Denial of Certain Insurance Claims
I am reintroducing legislation in response to a situation in York County where an insured individual demolished an innocent third party’s garage while he was fleeing from the police. The driver’s insurance policy had a clause that excused the insurance company from paying claims if the insured was committing a felony at the time of the accident. This was Senate Bill 1021 of the 2011-12 session of the General Assembly.

This legislation amends section 1718 of Title 75 (Vehicles) of Pennsylvania Consolidated Statutes by adding a new subsection. Under this legislation, an insurance company may not deny the payment of benefits to an innocent third party injured by the insured if the insured was committing a felony at the time of the injury.

The insurance company may still deny any claims by the defendant for bodily injury to him or herself, or to his or her own vehicle. It will also allow the insurance company to deny the claims of any co-defendants (for example, someone riding with the defendant in the vehicle at the time the felony is being committed).

Co-sponsors of Senate Bill 1021 were Senators Alloway, Boscola, Erickson, Fontana, Kasunic, Pileggi, Rafferty, Solobay, Washington and Williams.

If you have any questions regarding this legislation, please contact Greg Beckenbaugh in my office at 787-3817 or gbeckenbaugh@pasen.gov .

Introduced as SB853