PRINTER'S NO. 2013

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 1579 Session of 1985


        INTRODUCED BY LUCYK, WOZNIAK, McCALL AND BATTISTO, JUNE 28, 1985

        REFERRED TO COMMITTEE ON INSURANCE, JUNE 28, 1985

                                     AN ACT

     1  Amending Title 75 (Vehicles) of the Pennsylvania Consolidated
     2     Statutes, providing that participation in the Catastrophic
     3     Loss Trust Fund shall be optional; and repealing mandatory
     4     financial responsibility.

     5     The General Assembly of the Commonwealth of Pennsylvania
     6  hereby enacts as follows:
     7     Section 1.  The definitions of "eligible claimant" and
     8  "ineligible claimant" in section 1761 of Title 75 of the
     9  Pennsylvania Consolidated Statutes are amended to read:
    10  § 1761.  Definitions.
    11     The following words and phrases when used in this subchapter
    12  shall have the meanings given to them in this section unless the
    13  context clearly indicates otherwise:
    14     * * *
    15     "Eligible claimant."  Except as provided in the definition of
    16  ineligible claimant, eligible claimant includes a resident of
    17  this Commonwealth who suffers injury on or after the effective
    18  date of this subchapter arising out of the maintenance or use of
    19  a motor vehicle in the United States, its territories or

     1  possessions and Canada, the owner of which is current in payment
     2  of charges levied for participation in the Catastrophic Loss
     3  Trust Fund. The estate of an eligible claimant shall be entitled
     4  to receive catastrophic loss benefits pursuant to section 1766
     5  to the extent that financial obligations for reasonable and
     6  necessary medical treatment and rehabilitative services were
     7  incurred by the eligible claimant prior to the death of that
     8  person. Otherwise eligible claimants shall not be disqualified
     9  from participating in or receiving benefits from the
    10  Catastrophic Loss Trust Fund for injuries suffered after the
    11  effective date of this subchapter but prior to their first
    12  registration renewal after the effective date of this
    13  subchapter.
    14     * * *
    15     "Ineligible claimant."  Any of the following:
    16         (1)  A person who is the owner of a motor vehicle who has
    17     not complied with the registration requirements of Chapter 13
    18     (relating to registration of vehicles).
    19         (2)  A person who is the driver or occupant of a
    20     recreational vehicle not intended for highway use, a
    21     motorcycle, a motorized pedalcycle, a motor-driven cycle or
    22     like type vehicle required to be registered under this title
    23     but not subject to the charge levied in section 1762
    24     (relating to funding).
    25         (3)  A person who is the owner of a motor vehicle and who
    26     has not elected to participate in the Catastrophic Loss Trust
    27     Fund.
    28     * * *
    29     Section 2.  Section 1762 of Title 75 is amended to read:
    30  § 1762.  Funding.
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     1     (a)  General rule.--The Catastrophic Loss Trust Fund shall be
     2  funded by levying an initial charge of $5 upon all motor
     3  vehicles required to be registered under Chapter 13 (relating to
     4  registration of vehicles) except trailers, recreational vehicles
     5  not intended for highway use, motorcycles, motor-driven cycles,
     6  motorized pedalcycles or like type vehicles, the owners of which
     7  have elected to participate in the Catastrophic Loss Trust Fund.
     8  This charge shall be remitted to an insurance company or other
     9  party as may be designated by the Insurance Department. Upon
    10  receipt of the charge, the insurance company or other designated
    11  party shall remit it to the Insurance Department for deposit in
    12  the trust fund. The Catastrophic Loss Trust Fund Board shall, by
    13  regulation, determine by January 1 of each calendar year the
    14  amount of the fund charge for each registration year subsequent
    15  to the initial registration year and shall notify the Insurance
    16  Department which shall notify the insurance companies or other
    17  designated parties to collect the charge.
    18     (b)  Election to participate.--Any owner of a motor vehicle
    19  required to be registered under Chapter 13, except trailers,
    20  recreational vehicles not intended for highway use, motorcycles,
    21  motor-driven cycles, motorized pedalcycles or like-type
    22  vehicles, may elect to participate in the Catastrophic Loss
    23  Trust Fund. It is the duty of the Department of Transportation
    24  to send a notice to all owners of such motor vehicles informing
    25  them of the availability of participation in the trust fund,
    26  explaining the advantages of participation and explaining that
    27  participation is optional.
    28     Section 3.  Section 1763 of Title 75 is repealed.
    29     Section 4.  Section 1773 of Title 75 is amended to read:
    30  § 1773.  Continuation of suspension until judgments paid [and
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     1             proof given].
     2     A person's operating privilege shall remain suspended and
     3  shall not be renewed in the name of that person unless and until
     4  every judgment is stayed[,] or satisfied in full or to the
     5  extent provided in this subchapter[, and until the person
     6  furnishes proof of financial responsibility as required].
     7     Section 5.  Sections 1781, 1783, 1784 and 1785 of Title 75
     8  are repealed.
     9     Section 6.  Section 1787(d) of Title 75 is amended to read:
    10  § 1787.  Self-insurance.
    11     * * *
    12     (d)  Catastrophic Loss Trust Fund.--Self-insurers who elect
    13  to participate in the Catastrophic Loss Trust Fund shall
    14  contribute to the Catastrophic Loss Trust Fund in the manner
    15  provided in Subchapter F (relating to Catastrophic Loss Trust
    16  Fund).
    17     * * *
    18     Section 7.  This act shall take effect immediately.








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