PRINTER'S NO. 1865
No. 1510 Session of 2007
INTRODUCED BY SHIMKUS, DERMODY, BELFANTI, BISHOP, BLACKWELL, CALTAGIRONE, CARROLL, HALUSKA, JAMES, MANDERINO, McCALL, MELIO, PALLONE, READSHAW, SANTONI, SIPTROTH, WALKO AND YOUNGBLOOD, JUNE 7, 2007
REFERRED TO COMMITTEE ON JUDICIARY, JUNE 7, 2007
AN ACT 1 Amending Title 75 (Vehicles) of the Pennsylvania Consolidated 2 Statutes, further providing for election of tort options in 3 financial responsibility. 4 The General Assembly of the Commonwealth of Pennsylvania 5 hereby enacts as follows: 6 Section 1. Section 1705 heading and (a)(1), (2), (3), (4) 7 and (5), (b), (c), (d) and (e) of Title 75 of the Pennsylvania 8 Consolidated Statutes are amended to read: 9 § 1705. Election of [tort] right to sue options. 10 (a) Financial responsibility requirements.-- 11 (1) Each insurer, not less than 45 days prior to the 12 first renewal of a private passenger motor vehicle liability 13 insurance policy on and after July 1, 1990, shall notify in 14 writing each named insured of the availability of two 15 alternatives of full [tort] right to sue insurance and 16 limited [tort] right to sue insurance described in 17 subsections (c) and (d). The notice shall be a standardized
1 form adopted by the commissioner and shall include the 2 following language: 3 NOTICE TO NAMED INSUREDS 4 A. "Limited [Tort] Right to Sue" Option--The laws of the 5 Commonwealth of Pennsylvania give you the right to choose 6 a form of insurance that limits your right and the right 7 of resident relative members of your household to seek 8 financial compensation for injuries caused by other 9 drivers. Under this form of insurance, you and other 10 household [members] relatives covered under this policy 11 may seek recovery for all medical and other out-of-pocket 12 expenses, but not for pain and suffering or other 13 nonmonetary damages unless the injuries suffered fall 14 within the definition of "serious injury" as set forth in 15 the policy or unless one of several other exceptions 16 noted in the policy and enumerated in subsection (d) 17 applies. The annual premium for basic coverage as 18 required by law under this "limited [tort] right to sue" 19 option is $ . 20 Additional coverages under this option are available at 21 additional cost. 22 B. "Full [Tort] Right to Sue" Option--The laws of the 23 Commonwealth of Pennsylvania also give you the right to 24 choose a form of insurance under which you maintain an 25 unrestricted right for you and the resident relative 26 members of your household to seek financial compensation 27 for injuries caused by other drivers. Under this form of 28 insurance, you and other household [members] relatives 29 covered under this policy may seek recovery for all 30 medical and other out-of-pocket expenses and may also 20070H1510B1865 - 2 -
1 seek financial compensation for pain and suffering and 2 other nonmonetary damages as a result of injuries caused 3 by other drivers. The annual premium for basic coverage 4 as required by law under this "full [tort] right to sue" 5 option is $ . 6 Additional coverages under this option are available at 7 additional cost. 8 C. You may contact your insurance agent, broker or 9 company to discuss the cost of other coverages. 10 D. If you wish to choose the "limited [tort] right to 11 sue" option described in paragraph A, you must sign this 12 notice where indicated below and return it. If you do not 13 sign and return this notice, you will be considered to 14 have chosen the "full [tort] right to sue" coverage as 15 described in paragraph B and you will be charged the 16 "full [tort] right to sue" premium. In the event the cost 17 comparisons in paragraphs A and B are incomplete, even if 18 you sign for the "limited right to sue" option under this 19 section, you will be considered to have chosen the "full 20 right to sue" option. 21 I wish to choose the "limited [tort] right to sue" option 22 described in paragraph A: 23 ......................... ........... 24 Named Insured Date 25 E. If you wish to choose the "full [tort] right to sue" 26 option described in paragraph B, you may sign this notice 27 where indicated below and return it. However, if you do 28 not sign and return this notice or if the cost 29 comparisons in paragraphs A and B are incomplete, you 30 will be considered to have chosen the "full [tort] right 20070H1510B1865 - 3 -
1 to sue" coverage as described in paragraph B and you will 2 be charged the "full [tort] right to sue" premium. 3 I wish to choose the "full [tort] right to sue" option 4 described in paragraph B: 5 ......................... ........... 6 Named Insured Date 7 (2) Insurers shall print the [above notice] right to sue 8 option notices under paragraph (1) containing both options on 9 one sheet in prominent type and place in a prominent 10 location. Any person signing, or otherwise bound by, a 11 document containing such terms is bound by such election and 12 is precluded from claiming liability of any person based upon 13 being inadequately informed in making the election between 14 full [tort] right to sue or limited [tort] right to sue 15 alternatives. Where there are two or more named insureds on a 16 policy, any named insured may make the full or limited [tort] 17 right to sue election provided for in this section for all 18 named insureds on the policy. 19 (3) If a named insured who receives [a] notice under 20 paragraph (1) does not indicate a choice within 20 days, the 21 insurer shall send a second notice. The second notice shall 22 be in a form identical to the first notice, except that it 23 shall be identified as a second and final notice. If a named 24 insured has not responded to either notice ten days prior to 25 the renewal date, the named insured and those he is empowered 26 by this section to bind by his choice are conclusively 27 presumed to have chosen the full [tort] right to sue 28 alternative. All notices required by this section shall 29 advise that if no [tort] right to sue election is made, the 30 named insured and those he is empowered to bind by his choice 20070H1510B1865 - 4 -
1 are conclusively presumed to have chosen the full [tort] 2 right to sue alternative. Any person subject to the limited 3 [tort] right to sue option by virtue of this section shall be 4 precluded from claiming liability of any person based upon 5 being inadequately informed. 6 (4) Each insurer, prior to the first issuance of a 7 private passenger motor vehicle liability insurance policy on 8 and after July 1, 1990, shall provide each applicant with the 9 [notice] notices required by paragraph (1). A policy may not 10 be issued until the applicant has been provided an 11 opportunity to elect a [tort] right to sue option. 12 (5) An owner of a currently registered private passenger 13 motor vehicle who does not have financial responsibility 14 shall be deemed to have chosen the limited [tort] right to 15 sue alternative if the owner is the driver of the uninsured 16 motor vehicle at the time of the owner's injury. 17 * * * 18 (b) Application of [tort] right to sue options.-- 19 (1) The [tort] right to sue option elected by a named 20 insured shall apply to all private passenger motor vehicle 21 policies of the named insured issued by the same insurer and 22 shall continue in force as to all subsequent renewal 23 policies, replacement policies and any other private 24 passenger motor vehicle policies under which the individual 25 is a named insured until the insurer, or its authorized 26 representative, receives a properly executed form electing 27 the other [tort] right to sue option. 28 (2) The [tort] right to sue option elected by a named 29 insured shall apply to all insureds under the private 30 passenger motor vehicle policy who are not named insureds 20070H1510B1865 - 5 -
1 under another private passenger motor vehicle policy. In the 2 case where more than one private passenger motor vehicle 3 policy is applicable to an insured and the policies have 4 conflicting [tort] right to sue options, the insured is bound 5 by the [tort] right to sue option of the policy associated 6 with the private passenger motor vehicle in which the insured 7 is an occupant at the time of the accident if he is an 8 insured on that policy and bound by the full [tort] right to 9 sue option otherwise. 10 (3) An individual who is not an owner of a currently 11 registered private passenger motor vehicle and who is not a 12 named insured or insured under any private passenger motor 13 vehicle policy shall not be precluded from maintaining an 14 action for noneconomic loss or economic loss sustained in a 15 motor vehicle accident [as the consequence of the fault of 16 another person pursuant to applicable tort law.] and is, 17 therefore, deemed to have selected the full right to sue 18 option. 19 (c) Full [tort] right to sue alternative.--Each person who 20 is bound by the full [tort] right to sue election remains 21 eligible to seek compensation for noneconomic loss claimed and 22 economic loss sustained in a motor vehicle accident as the 23 consequence of the fault of another person pursuant to 24 applicable tort law. 25 (d) Limited [tort] right to sue alternative.--Each person 26 who elects the limited [tort] right to sue alternative remains 27 eligible to seek compensation for economic loss sustained in a 28 motor vehicle accident as the consequence of the fault of 29 another person pursuant to applicable tort law. Unless the 30 injury sustained is a serious injury, each person who is bound 20070H1510B1865 - 6 -
1 by the limited [tort] right to sue election shall be precluded 2 from maintaining an action for any noneconomic loss, except 3 that: 4 (1) An individual otherwise bound by the limited [tort] 5 right to sue election who sustains damages in a motor vehicle 6 accident as the consequence of the fault of another person 7 may recover damages as if the individual damaged had elected 8 the full [tort] right to sue alternative whenever the person 9 at fault: 10 (i) is convicted or accepts Accelerated 11 Rehabilitative Disposition (ARD) for driving under the 12 influence of alcohol or a controlled substance in that 13 accident; 14 (ii) is operating a motor vehicle registered in 15 another state; 16 (iii) intends to injure himself or another person, 17 provided that an individual does not intentionally injure 18 himself or another person merely because his act or 19 failure to act is intentional or done with his 20 realization that it creates a grave risk of causing 21 injury or the act or omission causing the injury is for 22 the purpose of averting bodily harm to himself or another 23 person; or 24 (iv) has not maintained financial responsibility as 25 required by this chapter, provided that nothing in this 26 paragraph shall affect the limitation of section 27 1731(d)(2) (relating to availability, scope and amount of 28 coverage). 29 (2) An individual otherwise bound by the limited [tort] 30 right to sue election shall retain full [tort] rights to sue 20070H1510B1865 - 7 -
1 with respect to claims against a person in the business of 2 designing, manufacturing, repairing, servicing or otherwise 3 maintaining motor vehicles arising out of a defect in such 4 motor vehicle which is caused by or not corrected by an act 5 or omission in the course of such business, other than a 6 defect in a motor vehicle which is operated by such business. 7 (3) An individual otherwise bound by the limited [tort] 8 right to sue election shall retain full [tort] rights to sue 9 if injured while an occupant of a motor vehicle other than a 10 private passenger motor vehicle. 11 (e) Nondiscrimination.--No insurer shall cancel, refuse to 12 write or refuse to renew a motor vehicle insurance policy based 13 on the [tort] right to sue option election of the named insured. 14 Any violation of this subsection shall be deemed a violation of 15 [the Automobile Insurance Policy Act] Article XX of the act of 16 May 17, 1921 (P.L.682, No.284), known as The Insurance Company 17 Law of 1921. 18 * * * 19 Section 2. This act shall take effect in 60 days. E7L75BIL/20070H1510B1865 - 8 -