1Amending Title 75 (Vehicles) of the Pennsylvania Consolidated
2Statutes, further providing for required financial

4The General Assembly of the Commonwealth of Pennsylvania
5hereby enacts as follows:

6Section 1. Section 1786(d)(2) and (e) of Title 75 of the
7Pennsylvania Consolidated Statutes are amended and subsection
8(d) is amended by adding a paragraph to read:

9§ 1786. Required financial responsibility.

10* * *

11(d) Suspension of registration and operating privilege.--

12* * *

13(1.1) In lieu of serving a registration suspension
14imposed under this section, an owner or registrant may pay to
15the department a civil penalty of $500, the fee for
16restoration of registration provided by section 1960 and
17furnish proof of financial responsibility in a manner
18determined by the department.

1(2) Whenever the department revokes or suspends the
2registration of any vehicle under this chapter, the
3department shall not restore or transfer the registration
4until the suspension has been served or the civil penalty has 
5been paid to the department and the vehicle owner furnishes
6proof of financial responsibility in a manner determined by
7the department and submits an application for registration to
8the department, accompanied by the fee for restoration of
9registration provided by section 1960. This subsection shall
10not apply in the following circumstances:

11(i) The owner or registrant proves to the
12satisfaction of the department that the lapse in
13financial responsibility coverage was for a period of
14less than 31 days and that the owner or registrant did
15not operate or permit the operation of the vehicle during
16the period of lapse in financial responsibility.

17(ii) The owner or registrant is a member of the
18armed services of the United States, the owner or
19registrant has previously had the financial
20responsibility required by this chapter, financial
21responsibility had lapsed while the owner or registrant
22was on temporary, emergency duty and the vehicle was not
23operated during the period of lapse in financial
24responsibility. The exemption granted by this paragraph
25shall continue for 30 days after the owner or registrant
26returns from duty as long as the vehicle is not operated
27until the required financial responsibility has been

29(iii) The insurance coverage has terminated or
30financial responsibility has lapsed simultaneously with

1or subsequent to expiration of a seasonal registration,
2as provided in section 1307(a.1) (relating to period of

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5(e) Obligations upon issuance, lapse, termination or
6cancellation of financial responsibility.--

7(1) An owner of a motor vehicle who ceases to maintain
8financial responsibility on a registered vehicle shall not
9operate or permit operation of the vehicle in this
10Commonwealth until proof of the required financial
11responsibility has been provided to the Department of

13(2) An insurer who has issued a contract of motor
14vehicle liability insurance, or any approved self-insurance
15entity, shall notify the department [in a timely manner] of 
16such issuance within 24 hours and in a method prescribed by
17the [department's regulations] department. [Upon request of
18an owner or registrant in the case of an appeal brought by an
19owner or registrant for suspension under this section, an
20insurer shall provide a copy of the notice of cancellation or
21a copy of the insurer's filing procedures with proof that the
22notice was written in the normal course of business and
23placed in the normal course of mailing. The department shall
24not be required to produce such copy or any other proof that
25notice of termination, lapse or cancellation was provided to
26the owner or registrant in order to satisfy the burden of
27proof in a proceeding under this section.]

28(2.1) Upon request by the department, an insurer shall
29notify the department of all vehicles for which it is
30providing vehicle liability insurance on the date of the

1request. The insurer shall submit the information as
2prescribed by the department.

3(3) An insurer who has issued a contract of motor
4vehicle liability insurance [and knows or has reason to
5believe that the contract is only for the purpose of
6providing proof of financial responsibility] shall notify the
7department if the insurance has lapsed or been canceled or
8terminated by the insured or by the insurer. The insurer
9shall notify the department not later than ten days following
10the effective date of the cancellation or termination. Upon 
11request of a motor vehicle owner or in the case of an appeal 
12brought by an owner or registrant for suspension under this 
13section, an insurer shall provide a copy of the notice of 
14termination, lapse or cancellation or a copy of the insurer's 
15filing procedures with proof that the notice was written in 
16the normal course of business and placed in the normal course 
17of mailing. The department shall not be required to produce 
18such copy or any other proof that notice of termination, 
19lapse or cancellation was provided to the owner or registrant 
20in order to satisfy the burden of proof in a proceeding under 
21this section.

22(4) A person who, after maintaining financial
23responsibility on the vehicle of another person, ceases to
24maintain such financial responsibility shall immediately
25notify the vehicle's owner who shall not operate, or permit
26operation of, the vehicle in this Commonwealth.

27(5) In the case of a person who leases any motor vehicle
28from a person engaged in the business of leasing motor
29vehicles, the lessee shall sign a statement indicating that
30the required financial responsibility has been provided

1through the lessor or through the lessee's motor vehicle
2liability insurance policy coverage. The lessee shall submit
3the statement to the lessor.

4(6) Upon request of the department, an insurer shall
5verify whether a contract of motor vehicle liability
6insurance has been issued for a vehicle.

7(7) Certification by the department that it was unable
8to verify the existence of insurance shall be admissible into
9evidence, shall be prima facie evidence of the absence of
10required financial responsibility for purposes of this
11section and shall establish a presumption that the coverage
12does not exist.

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14Section 2. This act shall take effect in 60 days.