SENATE AMENDED
PRIOR PRINTER'S NOS. 416, 1571, 2829 PRINTER'S NO. 2898
No. 376 Session of 1989
INTRODUCED BY MOWERY, HAYES, GEIST, PHILLIPS, HERMAN, NAILOR,
BROUJOS, LANGTRY, FARMER, G. SNYDER, WAMBACH, McCALL AND
MARSICO, FEBRUARY 13, 1989
AS AMENDED ON SECOND CONSIDERATION, IN SENATE, DECEMBER 11, 1989
AN ACT
1 Amending Title 75 (Vehicles) of the Pennsylvania Consolidated <--
2 Statutes, further providing for prisoner of war plates AND <--
3 FOR SPECIAL PLATES FOR RECIPIENTS OF THE PURPLE HEART; and
4 providing for a special license plate for Pearl Harbor
5 survivors.
6 AMENDING TITLES 18 (CRIMES AND OFFENSES), 42 (JUDICIARY AND <--
7 JUDICIAL PROCEDURE) AND 75 (VEHICLES) OF THE PENNSYLVANIA
8 CONSOLIDATED STATUTES, FURTHER PROVIDING FOR CORRUPT
9 ORGANIZATIONS; PROVIDING FOR INSURANCE FRAUD; PROVIDING FOR
10 CERTIFICATION OF PLEADINGS, MOTIONS AND OTHER PAPERS;
11 PROVIDING FOR SPECIAL DAMAGES; FURTHER PROVIDING FOR VEHICLE
12 REGISTRATION; FURTHER PROVIDING FOR FINANCIAL RESPONSIBILITY
13 AND INSURANCE RELATED TO MOTOR VEHICLES; PROVIDING FOR PROOF
14 OF INSURANCE; FURTHER PROVIDING FOR REINSTATEMENT OF
15 OPERATING PRIVILEGES OR VEHICLE REGISTRATION; FURTHER
16 PROVIDING FOR DRIVING UNDER THE INFLUENCE OF ALCOHOL OR
17 CONTROLLED SUBSTANCES; FURTHER PROVIDING FOR INSPECTION OF
18 VEHICLES; PROVIDING FOR CERTAIN REDUCTIONS IN AUTOMOBILE
19 INSURANCE PREMIUMS; CONFERRING POWERS AND DUTIES ON THE
20 INSURANCE DEPARTMENT AND THE DEPARTMENT OF TRANSPORTATION;
21 AND MAKING REPEALS.
22 The General Assembly of the Commonwealth of Pennsylvania
23 hereby enacts as follows:
24 Section 1. Section 1342(d) SECTIONS 1342(D) AND 1346 of <--
25 Title 75 of the Pennsylvania Consolidated Statutes is ARE <--
26 amended to read:
1 § 1342. Veteran plates and placard.
2 * * *
3 (d) Prisoner of war plate.--On the application of an ex-
4 prisoner of war whose imprisonment while in the service of the
5 armed forces of the United States is certified by the
6 appropriate branch of the armed forces, the department shall
7 issue a special registration plate designating the vehicle as
8 belonging to an ex-prisoner of war. The registration plate shall
9 contain the letters "POW" and such other numbers or letters as
10 the department may determine and shall have the words "prisoner
11 of war" in at least ten-point bold type inscribed at the bottom
12 of the plate. The surviving spouse of an ex-prisoner of war may
13 retain the "POW" special registration plate. The special
14 registration plate may be used only on one passenger vehicle or
15 one other vehicle with a registered gross weight of not more
16 than 9,000 pounds.
17 * * *
18 § 1346. SPECIAL PLATES FOR RECIPIENTS OF PURPLE HEART. <--
19 UPON APPLICATION OF ANY PERSON WHO IS A RECIPIENT OF THE
20 PURPLE HEART, THE DEPARTMENT SHALL ISSUE TO SUCH PERSON A
21 SPECIAL REGISTRATION PLATE DESIGNATING THE VEHICLE SO LICENSED
22 AS BELONGING TO A PERSON WHO IS A RECIPIENT OF THE PURPLE HEART.
23 THE PLATE SHALL HAVE A WHITE BACKGROUND WITH A PURPLE BORDER AND
24 PURPLE LETTERS OR NUMBERS. THE WORDS "COMBAT WOUNDED VETERAN"
25 SHALL BE EMBOSSED IN RED ALONG THE TOP OF THE PLATE IN FULL
26 UPPER CASE LETTERS AND THE WORD "PENNSYLVANIA" SHALL BE EMBOSSED
27 IN RED ALONG THE BOTTOM OF THE PLATE. THE LETTER "P" OVER THE
28 LETTER "H" SHALL BE EMBOSSED IN PURPLE ON THE LEFT SIDE OF THE
29 PLATE. THE CENTER OF THE PLATE SHALL BEAR A DECAL OR APPLIQUE
30 REPLICA OF THE PURPLE HEART IN FULL CONFORMITY WITH THE
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1 DESCRIPTION SET FORTH IN 32 CFR § 578.14(B), EXCEPT AS TO
2 MATERIAL AND SIZE. A SEVERELY DISABLED VETERAN, AS DESCRIBED IN
3 SECTION 1342(A) (RELATING TO VETERAN PLATES AND PLACARD), WHO IS
4 QUALIFIED TO RECEIVE A PLATE UNDER THIS SECTION MAY ALSO ELECT
5 TO RECEIVE A PLACARD UNDER SECTION 1342(B). THE SPECIAL
6 REGISTRATION PLATE MAY BE USED ONLY ON ONE PASSENGER VEHICLE OR
7 ONE OTHER VEHICLE WITH A REGISTERED GROSS WEIGHT OF NOT MORE
8 THAN 9,000 POUNDS.
9 Section 2. Title 75 is amended by adding a section to read:
10 § 1348. Special plates for Pearl Harbor survivors.
11 Upon application of any person who is a survivor of Pearl
12 Harbor, accompanied by a fee of $20 which shall be in addition
13 to the annual registration fee and by such documentation as the
14 department shall require by regulation, the department shall
15 issue to such person a special registration plate designating
16 the vehicle so licensed as belonging to a person who is a
17 survivor of Pearl Harbor. The special registration plate may be
18 used only on one passenger vehicle or one other vehicle with a
19 registered gross weight of not more than 9,000 pounds.
20 Section 3. This act shall take effect in 60 days.
21 SECTION 1. SECTION 911(H) OF TITLE 18 OF THE PENNSYLVANIA <--
22 CONSOLIDATED STATUTES IS AMENDED TO READ:
23 § 911. CORRUPT ORGANIZATIONS.
24 * * *
25 (H) DEFINITIONS.--AS USED IN THIS SECTION:
26 (1) "RACKETEERING ACTIVITY" MEANS:
27 (I) ANY ACT WHICH IS INDICTABLE UNDER ANY OF THE
28 FOLLOWING PROVISIONS OF THIS TITLE:
29 CHAPTER 25 (RELATING TO CRIMINAL HOMICIDE)
30 SECTION 2706 (RELATING TO TERRORISTIC THREATS)
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1 CHAPTER 29 (RELATING TO KIDNAPPING)
2 CHAPTER 33 (RELATING TO ARSON, ETC.)
3 CHAPTER 37 (RELATING TO ROBBERY)
4 CHAPTER 39 (RELATING TO THEFT AND RELATED
5 OFFENSES)
6 SECTION 4108 (RELATING TO COMMERCIAL BRIBERY AND
7 BREACH OF DUTY TO ACT DISINTERESTEDLY)
8 SECTION 4109 (RELATING TO RIGGING PUBLICLY
9 EXHIBITED CONTEST)
10 SECTION 4117 (RELATING TO AUTOMOBILE INSURANCE
11 FRAUD)
12 CHAPTER 47 (RELATING TO BRIBERY AND CORRUPT
13 INFLUENCE)
14 CHAPTER 49 (RELATING TO PERJURY AND OTHER
15 FALSIFICATION IN OFFICIAL MATTERS)
16 SECTION 5512 THROUGH 5514 (RELATING TO GAMBLING)
17 CHAPTER 59 (RELATING TO PUBLIC INDECENCY)
18 (II) ANY OFFENSE INDICTABLE UNDER SECTION 13 OF THE
19 ACT OF APRIL 14, 1972 (P.L.233, NO.64), KNOWN AS ["]THE
20 CONTROLLED SUBSTANCE, DRUG, DEVICE AND COSMETIC ACT["]
21 (RELATING TO THE SALE AND DISPENSING OF NARCOTIC DRUGS);
22 (III) ANY CONSPIRACY TO COMMIT ANY OF THE OFFENSES
23 SET FORTH IN SUBPARAGRAPHS (I) AND (II) OF THIS
24 PARAGRAPH; OR
25 (IV) THE COLLECTION OF ANY MONEY OR OTHER PROPERTY
26 IN FULL OR PARTIAL SATISFACTION OF A DEBT WHICH AROSE AS
27 THE RESULT OF THE LENDING OF MONEY OR OTHER PROPERTY AT A
28 RATE OF INTEREST EXCEEDING 25% PER ANNUM OR THE
29 EQUIVALENT RATE FOR A LONGER OR SHORTER PERIOD, WHERE NOT
30 OTHERWISE AUTHORIZED BY LAW.
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1 ANY ACT WHICH OTHERWISE WOULD BE CONSIDERED RACKETEERING
2 ACTIVITY BY REASON OF THE APPLICATION OF THIS PARAGRAPH,
3 SHALL NOT BE EXCLUDED FROM ITS APPLICATION SOLELY BECAUSE THE
4 OPERATIVE ACTS TOOK PLACE OUTSIDE THE JURISDICTION OF THIS
5 COMMONWEALTH, IF SUCH ACTS WOULD HAVE BEEN IN VIOLATION OF
6 THE LAW OF THE JURISDICTION IN WHICH THEY OCCURRED.
7 (2) "PERSON" MEANS ANY INDIVIDUAL OR ENTITY CAPABLE OF
8 HOLDING A LEGAL OR BENEFICIAL INTEREST IN PROPERTY.
9 (3) "ENTERPRISE" MEANS ANY INDIVIDUAL, PARTNERSHIP,
10 CORPORATION, ASSOCIATION OR OTHER LEGAL ENTITY, AND ANY UNION
11 OR GROUP OF INDIVIDUALS ASSOCIATED IN FACT ALTHOUGH NOT A
12 LEGAL ENTITY, ENGAGED IN COMMERCE.
13 (4) "PATTERN OF RACKETEERING ACTIVITY" REFERS TO A
14 COURSE OF CONDUCT REQUIRING TWO OR MORE ACTS OF RACKETEERING
15 ACTIVITY ONE OF WHICH OCCURRED AFTER THE EFFECTIVE DATE OF
16 THIS SECTION.
17 (5) "RACKETEERING INVESTIGATOR" MEANS AN ATTORNEY,
18 INVESTIGATOR OR INVESTIGATIVE BODY SO DESIGNATED IN WRITING
19 BY THE ATTORNEY GENERAL AND CHARGED WITH THE DUTY OF
20 ENFORCING OR CARRYING INTO EFFECT THE PROVISIONS OF THIS
21 SECTION.
22 (6) "RACKETEERING INVESTIGATION" MEANS ANY INQUIRY
23 CONDUCTED BY ANY RACKETEERING INVESTIGATOR FOR THE PURPOSE OF
24 ASCERTAINING WHETHER ANY PERSON HAS BEEN INVOLVED IN ANY
25 VIOLATION OF THIS SECTION OR OF ANY ORDER, JUDGMENT, OR
26 DECREE OF ANY COURT DULY ENTERED IN ANY CASE OR PROCEEDING
27 ARISING UNDER THIS SECTION.
28 (7) "DOCUMENTARY MATERIAL" MEANS ANY BOOK, PAPER,
29 RECORD, RECORDING, TAPE, REPORT, MEMORANDUM, WRITTEN
30 COMMUNICATION, OR OTHER DOCUMENT RELATING TO THE BUSINESS
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1 AFFAIRS OF ANY PERSON OR ENTERPRISE.
2 SECTION 2. TITLE 18 IS AMENDED BY ADDING A SECTION TO READ:
3 § 4117. AUTOMOBILE INSURANCE FRAUD.
4 (A) OFFENSE DEFINED.--A PERSON COMMITS AN OFFENSE IF THE
5 PERSON DOES ANY OF THE FOLLOWING:
6 (1) KNOWINGLY AND WITH THE INTENT TO DEFRAUD A
7 GOVERNMENT OR LOCAL AGENCY FILES, PRESENTS OR CAUSES TO BE
8 FILED WITH OR PRESENTED TO THE GOVERNMENT OR LOCAL AGENCY A
9 DOCUMENT THAT CONTAINS FALSE, INCOMPLETE OR MISLEADING
10 INFORMATION CONCERNING ANY FACT OR THING MATERIAL TO THE
11 AGENCY'S DETERMINATION IN APPROVING OR DISAPPROVING AN
12 AUTOMOBILE INSURANCE RATE FILING, AN AUTOMOBILE INSURANCE
13 TRANSACTION OR OTHER AUTOMOBILE INSURANCE ACTION WHICH IS
14 REQUIRED OR FILED IN RESPONSE TO AN AGENCY'S REQUEST.
15 (2) KNOWINGLY AND WITH THE INTENT TO DEFRAUD ANY INSURER
16 PRESENTS OR CAUSES TO BE PRESENTED TO ANY INSURER ANY
17 STATEMENT FORMING A PART OF, OR IN SUPPORT OF, AN AUTOMOBILE
18 INSURANCE CLAIM THAT CONTAINS ANY FALSE, INCOMPLETE OR
19 MISLEADING INFORMATION CONCERNING ANY FACT OR THING MATERIAL
20 TO THE AUTOMOBILE INSURANCE CLAIM.
21 (3) KNOWINGLY AND WITH THE INTENT TO DEFRAUD ANY INSURER
22 ASSISTS, ABETS, SOLICITS OR CONSPIRES WITH ANOTHER TO PREPARE
23 OR MAKE ANY STATEMENT THAT IS INTENDED TO BE PRESENTED TO ANY
24 INSURER IN CONNECTION WITH, OR IN SUPPORT OF, AN AUTOMOBILE
25 INSURANCE CLAIM THAT CONTAINS ANY FALSE, INCOMPLETE OR
26 MISLEADING INFORMATION CONCERNING ANY FACT OR THING MATERIAL
27 TO THE AUTOMOBILE INSURANCE CLAIM.
28 (4) ENGAGES IN UNLICENSED AGENT OR BROKER ACTIVITY AS
29 DEFINED BY THE ACT OF MAY 17, 1921 (P.L.789, NO.285), KNOWN
30 AS THE INSURANCE DEPARTMENT ACT OF ONE THOUSAND NINE HUNDRED
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1 AND TWENTY-ONE, KNOWINGLY AND WITH THE INTENT TO DEFRAUD AN
2 AUTOMOBILE INSURER OR THE PUBLIC.
3 (5) KNOWINGLY BENEFITS, DIRECTLY OR INDIRECTLY, FROM THE
4 PROCEEDS DERIVED FROM A VIOLATION OF THIS SECTION DUE TO THE
5 ASSISTANCE, CONSPIRACY OR URGING OF ANY PERSON.
6 (6) IS THE OWNER, ADMINISTRATOR OR EMPLOYEE OF ANY
7 HEALTH CARE FACILITY, AND KNOWINGLY ALLOWS THE USE OF SUCH
8 FACILITY BY ANY PERSON IN FURTHERANCE OF A SCHEME OR
9 CONSPIRACY TO VIOLATE ANY OF THE PROVISIONS OF THIS SECTION.
10 (7) BORROWS OR USES ANOTHER PERSON'S FINANCIAL
11 RESPONSIBILITY IDENTIFICATION CARD OR PERMITS HIS FINANCIAL
12 RESPONSIBILITY IDENTIFICATION CARD TO BE USED BY ANOTHER,
13 KNOWINGLY AND WITH INTENT TO PRESENT A FRAUDULENT AUTOMOBILE
14 INSURANCE CLAIM FOR REIMBURSEMENT TO AN INSURER.
15 (8) KNOWINGLY, FOR PROFIT, GAIN, BENEFIT, FAVOR, OR
16 OTHERWISE, MAKES ANY FALSE ORAL STATEMENT, MISREPRESENTS,
17 SUBSTITUTES PERSONS OR REALTY OR GOODS, SUBSCRIBES TO OR
18 PREPARES, OR HELPS TO PREPARE, ANY FRAUDULENT LETTER,
19 DOCUMENT, APPLICATION, AFFIDAVIT, INVENTORY, FINANCIAL OR
20 OTHER STATEMENT, OR IN ANY METHOD OR MANNER ATTEMPTS TO
21 DECEIVE, FOR THE PURPOSE OF OBTAINING FOR HIMSELF, HERSELF,
22 OR OTHERS, AUTOMOBILE INSURANCE PROVIDED FOR BY THE ACT OF
23 MAY 17, 1921 (P.L.682, NO.284), KNOWN AS THE INSURANCE
24 COMPANY LAW OF 1921; OR KNOWINGLY, FOR PROFIT, GAIN, BENEFIT,
25 FAVOR, OR OTHERWISE, PREPARES OR FORWARDS ANY FRAUDULENT
26 AUTOMOBILE INSURANCE APPLICATION.
27 (B) ADDITIONAL OFFENSES DEFINED.--
28 (1) IN A CLAIM ARISING OUT OF AN AUTOMOBILE ACCIDENT, A
29 LAWYER MAY NOT COMPENSATE OR GIVE ANYTHING OF VALUE TO A NON-
30 LAWYER TO RECOMMEND OR SECURE EMPLOYMENT BY A CLIENT OR AS A
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1 REWARD FOR HAVING MADE A RECOMMENDATION RESULTING IN
2 EMPLOYMENT BY A CLIENT; EXCEPT THAT THE LAWYER MAY PAY:
3 (I) THE REASONABLE COST OF ADVERTISING OR WRITTEN
4 COMMUNICATION AS PERMITTED BY THE RULES OF PROFESSIONAL
5 CONDUCT; OR
6 (II) THE USUAL CHARGES OF A NOT-FOR-PROFIT LAWYER-
7 REFERRAL SERVICE OR OTHER LEGAL SERVICE ORGANIZATION.
8 (2) WITH RESPECT TO A MOTOR VEHICLE INSURANCE BENEFIT OR
9 CLAIM, A HEALTH CARE PROVIDER MAY NOT COMPENSATE OR GIVE
10 ANYTHING OF VALUE TO A PERSON TO RECOMMEND OR SECURE THE
11 PROVIDER'S SERVICE TO OR EMPLOYMENT BY A PATIENT OR AS A
12 REWARD FOR HAVING MADE A RECOMMENDATION RESULTING IN THE
13 PROVIDER'S SERVICE TO OR EMPLOYMENT BY A PATIENT; EXCEPT THAT
14 THE PROVIDER MAY PAY THE REASONABLE COST OF ADVERTISING OR
15 WRITTEN COMMUNICATION AS PERMITTED BY RULES OF PROFESSIONAL
16 CONDUCT.
17 (3) A PERSON MAY NOT RECEIVE COMPENSATION, A REWARD OR
18 ANYTHING OF VALUE IN RETURN FOR PROVIDING NAMES, ADDRESSES,
19 TELEPHONE NUMBERS OR OTHER IDENTIFYING INFORMATION OF VICTIMS
20 INVOLVED IN AUTOMOBILE ACCIDENTS TO A LAWYER OR HEALTH CARE
21 PROVIDER WHICH RESULTS IN EMPLOYMENT OF THE LAWYER OR HEALTH
22 CARE PROVIDER BY THE VICTIMS FOR PURPOSES OF A MOTOR VEHICLE
23 INSURANCE CLAIM OR SUIT. ATTEMPTS TO CIRCUMVENT THIS
24 PARAGRAPH THROUGH USE OF ANY OTHER PERSON, INCLUDING, BUT NOT
25 LIMITED TO, EMPLOYEES, AGENTS OR SERVANTS, SHALL ALSO BE
26 PROHIBITED. THIS PROVISION SHALL NOT PROHIBIT A LAWYER OR
27 HEALTH CARE PROVIDER FROM MAKING A REFERRAL AS IS PERMITTED
28 UNDER APPLICABLE PROFESSIONAL RULES OF CONDUCT.
29 (C) ELECTRONIC CLAIMS SUBMISSION.--IF A CLAIM FOR A BENEFIT
30 IS MADE BY MEANS OF COMPUTER BILLING TAPES OR OTHER ELECTRONIC
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1 MEANS, IT SHALL BE A REBUTTABLE PRESUMPTION THAT THE PERSON
2 KNOWINGLY MADE THE CLAIM IF THE PERSON HAS ADVISED THE INSURER
3 IN WRITING THAT CLAIMS FOR BENEFITS WILL BE SUBMITTED BY USE OF
4 COMPUTER BILLING TAPES OR OTHER ELECTRONIC MEANS.
5 (D) GRADING.--AN OFFENSE UNDER SUBSECTION (A)(1) THROUGH (7)
6 IS A FELONY OF THE THIRD DEGREE. AN OFFENSE UNDER SUBSECTION
7 (A)(8) OR (B) IS A MISDEMEANOR OF THE FIRST DEGREE.
8 (E) RESTITUTION.--THE COURT MAY, IN ADDITION TO ANY OTHER
9 SENTENCE AUTHORIZED BY LAW, SENTENCE A PERSON CONVICTED OF
10 VIOLATING THIS SECTION TO MAKE RESTITUTION UNDER SECTION 1106
11 (RELATING TO RESTITUTION FOR INJURIES TO PERSON OR PROPERTY).
12 (F) IMMUNITY.--AN INSURER, AND ANY AGENT, SERVANT OR
13 EMPLOYEE ACTING IN THE COURSE AND SCOPE OF HIS EMPLOYMENT, SHALL
14 BE IMMUNE FROM CIVIL OR CRIMINAL LIABILITY ARISING FROM THE
15 SUPPLY OR RELEASE OF WRITTEN OR ORAL INFORMATION TO ANY ENTITY
16 DULY AUTHORIZED TO RECEIVE SUCH INFORMATION BY FEDERAL OR STATE
17 LAW, OR BY INSURANCE DEPARTMENT REGULATIONS, ONLY IF BOTH OF THE
18 FOLLOWING CONDITIONS EXIST:
19 (1) THE INFORMATION IS SUPPLIED TO THE AGENCY IN
20 CONNECTION WITH AN ALLEGATION OF FRAUDULENT CONDUCT ON THE
21 PART OF ANY PERSON RELATING TO THE FILING OR MAINTENANCE OF
22 AN INSURANCE CLAIM OR BODILY INJURY OR PROPERTY DAMAGE; AND
23 (2) THE INSURER, AGENT, SERVANT OR EMPLOYEE HAS PROBABLE
24 CAUSE TO BELIEVE THAT THE INFORMATION SUPPLIED IS REASONABLY
25 RELATED TO THE ALLEGATION OF FRAUD.
26 (G) CIVIL ACTION.--AN INSURER DAMAGED AS A RESULT OF A
27 VIOLATION OF THIS SECTION MAY SUE THEREFOR IN ANY COURT OF
28 COMPETENT JURISDICTION TO RECOVER COMPENSATORY DAMAGES, WHICH
29 MAY INCLUDE REASONABLE INVESTIGATION EXPENSES, COSTS OF SUIT AND
30 ATTORNEY FEES. A SUCCESSFUL CLAIMANT MAY RECOVER TREBLE DAMAGES
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1 IF THE COURT DETERMINES THAT THE DEFENDANT HAS ENGAGED IN A
2 PATTERN OF VIOLATING THIS SECTION.
3 (H) CRIMINAL ACTION.--THE ATTORNEY GENERAL AND THE DISTRICT
4 ATTORNEYS OF THE SEVERAL COUNTIES SHALL HAVE CONCURRENT
5 AUTHORITY TO INSTITUTE CRIMINAL PROCEEDINGS UNDER THE PROVISIONS
6 OF THIS SECTION.
7 (I) REGULATORY AND INVESTIGATIVE POWERS ADDITIONAL TO THOSE
8 NOW EXISTING.--NOTHING CONTAINED IN THIS SECTION SHALL BE
9 CONSTRUED TO LIMIT THE REGULATORY OR INVESTIGATIVE AUTHORITY OF
10 ANY DEPARTMENT OR AGENCY OF THE COMMONWEALTH WHOSE FUNCTIONS
11 MIGHT RELATE TO PERSONS, ENTERPRISES, OR MATTERS FALLING WITHIN
12 THE SCOPE OF THIS SECTION.
13 (J) DEFINITIONS.--AS USED IN THIS SECTION, THE FOLLOWING
14 WORDS AND PHRASES SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS
15 SUBSECTION:
16 "INSURANCE CLAIM." A CLAIM FOR PAYMENT OR OTHER BENEFIT
17 PURSUANT TO AN INSURANCE POLICY.
18 "INSURANCE POLICY." A DOCUMENT SETTING FORTH THE TERMS AND
19 CONDITIONS OF A CONTRACT OF INSURANCE.
20 "INSURER." A COMPANY, ASSOCIATION OR EXCHANGE DEFINED BY
21 SECTION 101 OF THE ACT OF MAY 17, 1921 (P.L.682, NO.284), KNOWN
22 AS THE INSURANCE COMPANY LAW OF 1921; AN UNINCORPORATED
23 ASSOCIATION OF UNDERWRITING MEMBERS; A HOSPITAL PLAN
24 CORPORATION; A PROFESSIONAL HEALTH SERVICES PLAN CORPORATION; A
25 HEALTH MAINTENANCE ORGANIZATION; A FRATERNAL BENEFIT SOCIETY;
26 AND A HEALTH INSURED HEALTH CARE ENTITY UNDER THE ACT OF OCTOBER
27 15, 1975 (P.L.390, NO.111), KNOWN AS THE HEALTH CARE SERVICES
28 MALPRACTICE ACT.
29 "PERSON." ANY INDIVIDUAL, CORPORATION, ASSOCIATION,
30 PARTNERSHIP, RECIPROCAL EXCHANGE, INTER-INSURER, LLOYD'S
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1 INSURER, FRATERNAL BENEFIT SOCIETY, BENEFICIAL ASSOCIATION AND
2 ANY OTHER LEGAL ENTITY ENGAGED OR PROPOSING TO BECOME ENGAGED,
3 EITHER DIRECTLY OR INDIRECTLY, IN THE BUSINESS OF INSURANCE,
4 INCLUDING AGENTS, BROKERS, ADJUSTERS AND HEALTH CARE PLANS AS
5 DEFINED IN 40 PA.C.S. CHS. 61 (RELATING TO HOSPITAL PLAN
6 CORPORATIONS), 63 (RELATING TO PROFESSIONAL HEALTH SERVICES PLAN
7 CORPORATIONS), 65 (RELATING TO FRATERNAL BENEFIT SOCIETIES) AND
8 67 (RELATING TO BENEFICIAL SOCIETIES) AND THE ACT OF DECEMBER
9 29, 1972 (P.L.1701, NO.364), KNOWN AS THE HEALTH MAINTENANCE
10 ORGANIZATION ACT. FOR PURPOSES OF THIS SECTION, HEALTH CARE
11 PLANS, FRATERNAL BENEFIT SOCIETIES AND BENEFICIAL SOCIETIES
12 SHALL BE DEEMED TO BE ENGAGED IN THE BUSINESS OF INSURANCE.
13 "STATEMENT." ANY ORAL OR WRITTEN PRESENTATION OR OTHER
14 EVIDENCE OF LOSS, INJURY OR EXPENSE, INCLUDING, BUT NOT LIMITED
15 TO, ANY NOTICE, STATEMENT, PROOF OF LOSS, BILL OF LADING,
16 RECEIPT FOR PAYMENT, INVOICE, ACCOUNT, ESTIMATE OF PROPERTY
17 DAMAGES, BILL FOR SERVICES, DIAGNOSIS, PRESCRIPTION, HOSPITAL OR
18 DOCTOR RECORDS, X-RAY, TEST RESULT OR COMPUTER-GENERATED
19 DOCUMENTS.
20 SECTION 3. CHAPTER 83 OF TITLE 42 IS AMENDED BY ADDING A
21 SECTION AND A SUBCHAPTER TO READ:
22 § 8355. CERTIFICATION OF PLEADINGS, MOTIONS AND OTHER PAPERS.
23 EVERY PLEADING, MOTION AND OTHER PAPER OF A PARTY REPRESENTED
24 BY AN ATTORNEY SHALL BE SIGNED BY AT LEAST ONE ATTORNEY OF
25 RECORD IN HIS INDIVIDUAL NAME AND HIS ADDRESS SHALL BE STATED. A
26 PARTY WHO IS NOT REPRESENTED BY AN ATTORNEY SHALL SIGN HIS
27 PLEADING, MOTION OR OTHER PAPER AND STATE HIS ADDRESS. EXCEPT
28 WHEN OTHERWISE SPECIFICALLY PROVIDED BY RULE OR STATUTE,
29 PLEADINGS NEED NOT BE VERIFIED OR ACCOMPANIED BY AFFIDAVIT. THE
30 SIGNATURE OF AN ATTORNEY OR PARTY CONSTITUTES A CERTIFICATION BY
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1 HIM THAT HE HAS READ THE PLEADING, MOTION OR OTHER PAPER; THAT,
2 TO THE BEST OF HIS KNOWLEDGE, INFORMATION AND BELIEF, IT IS WELL
3 GROUNDED IN FACT AND IS WARRANTED BY EXISTING LAW OR A GOOD-
4 FAITH ARGUMENT FOR THE EXTENSION, MODIFICATION OR REVERSAL OF
5 EXISTING LAW; AND THAT IT IS NOT INTERPOSED IN BAD FAITH OR FOR
6 ANY IMPROPER PURPOSE, SUCH AS TO HARASS ANOTHER, TO MALICIOUSLY
7 INJURE ANOTHER OR TO CAUSE UNNECESSARY DELAY OR INCREASE IN THE
8 COST OF LITIGATION. IF A PLEADING, MOTION OR OTHER PAPER IS NOT
9 SIGNED, IT SHALL BE STRICKEN UNLESS IT IS SIGNED PROMPTLY AFTER
10 THE OMISSION IS CALLED TO THE ATTENTION OF THE PLEADER OR
11 MOVANT. IF A PLEADING, MOTION OR OTHER PAPER IS SIGNED IN
12 VIOLATION OF THIS SECTION, THE COURT SHALL AWARD TO THE
13 SUCCESSFUL PARTY COSTS AND REASONABLE ATTORNEY FEES IN ADDITION
14 TO A FINE; THE FINE SHALL NOT EXCEED $10,000. SUCH COSTS, FEES
15 AND FINES SHALL BE IN ADDITION TO ANY OTHER JUDGMENT AWARDED TO
16 THE SUCCESSFUL PARTY AND SHALL BE IMPOSED UPON THE PERSON WHO
17 SIGNED THE PLEADING, MOTION OR OTHER PAPER, OR A REPRESENTED
18 PARTY, OR BOTH. THIS SECTION IS IN ADDITION TO AND SHALL NOT BE
19 CONSTRUED TO LIMIT ANY OTHER REMEDIES OR SANCTIONS PROVIDED BY
20 LAW.
21 SUBCHAPTER G
22 SPECIAL DAMAGES
23 SEC.
24 8371. ACTIONS ON INSURANCE POLICIES.
25 § 8371. ACTIONS ON INSURANCE POLICIES.
26 IN AN ACTION ARISING UNDER AN INSURANCE POLICY, IF THE COURT
27 FINDS THAT THE INSURER HAS ACTED IN BAD FAITH TOWARD THE
28 INSURED, THE COURT MAY TAKE ALL OF THE FOLLOWING ACTIONS:
29 (1) AWARD INTEREST ON THE AMOUNT OF THE CLAIM FROM THE
30 DATE THE CLAIM WAS MADE BY THE INSURED IN AN AMOUNT EQUAL TO
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1 THE PRIME RATE OF INTEREST PLUS 3%.
2 (2) AWARD PUNITIVE DAMAGES AGAINST THE INSURER.
3 (3) ASSESS COURT COSTS AND ATTORNEY FEES AGAINST THE
4 INSURER.
5 SECTION 4. SECTIONS 1305 AND 1306 OF TITLE 75 ARE AMENDED TO
6 READ:
7 § 1305. APPLICATION FOR REGISTRATION.
8 (A) GENERAL RULE.--APPLICATION FOR THE REGISTRATION OF A
9 VEHICLE SHALL BE MADE TO THE DEPARTMENT UPON THE APPROPRIATE
10 FORM OR FORMS FURNISHED BY THE DEPARTMENT. THE APPLICATION SHALL
11 CONTAIN THE FULL NAME AND ADDRESS OF THE OWNER OR OWNERS; THE
12 MAKE, MODEL, YEAR AND VEHICLE IDENTIFICATION NUMBER OF THE
13 VEHICLE; AND SUCH OTHER INFORMATION AS THE DEPARTMENT MAY
14 REQUIRE. APPLICANTS FOR REGISTRATION OF A TRUCK, TRUCK TRACTOR,
15 TRAILER OR BUS SHALL PROVIDE THE VEHICLE'S GROSS VEHICLE WEIGHT
16 RATING (GVWR), OR THE GROSS COMBINATION WEIGHT RATING (GCWR), AS
17 APPLICABLE. IF THE MANUFACTURER'S RATINGS ARE NOT AVAILABLE, THE
18 APPLICANT SHALL PROVIDE SUFFICIENT INFORMATION AS TO THE
19 HORSEPOWER, BRAKING CAPACITY AND SUCH OTHER DATA AS NECESSARY
20 FOR THE DEPARTMENT TO DETERMINE AN EQUIVALENT MEASURE OF THE
21 VEHICLE'S HAULING AND STOPPING CAPABILITY. IF THE APPLICANT
22 WISHES TO REGISTER A VEHICLE AT A REGISTERED GROSS WEIGHT LESS
23 THAN THE GROSS VEHICLE WEIGHT RATING, THE APPLICATION SHALL
24 INCLUDE INFORMATION AS TO WEIGHT, LOAD AND ANY OTHER SUCH
25 INFORMATION AS THE DEPARTMENT MAY REQUIRE. THE APPLICATION SHALL
26 BE ACCOMPANIED BY SELF-CERTIFICATION OF FINANCIAL RESPONSIBILITY
27 AND THE APPLICABLE FEE.
28 (B) EVIDENCE OF P.U.C. APPROVAL FOR BUSES AND TAXIS.--BEFORE
29 REGISTERING ANY BUS OR TAXI WHICH IS REQUIRED UNDER THE LAWS OF
30 THIS COMMONWEALTH TO OBTAIN A CERTIFICATE OF PUBLIC CONVENIENCE
19890H0376B2898 - 13 -
1 FROM THE PENNSYLVANIA PUBLIC UTILITY COMMISSION, THE DEPARTMENT
2 SHALL REQUIRE EVIDENCE THAT THE CERTIFICATE HAS BEEN ISSUED AND
3 HAS NOT BEEN REVOKED OR HAS NOT EXPIRED.
4 (C) DESIGNATION OF LESSEE AS REGISTRANT.--THE OWNER AS
5 LESSOR MAY DESIGNATE THE LESSEE AS THE REGISTRANT OF THE VEHICLE
6 AND THE NAME AND ADDRESS OF THE LESSEE MAY BE SUBSTITUTED ON THE
7 REGISTRATION CARD FOR THE ADDRESS OF THE LESSOR. THE DEPARTMENT
8 SHALL DESIGNATE THE RELATIONSHIP UPON THE CARD IN A MANNER IT
9 DEEMS APPROPRIATE. THIS SUBSECTION IS APPLICABLE ONLY FOR THE
10 PERIOD DURING WHICH THE LEASE REMAINS IN EFFECT.
11 (D) SELF-CERTIFICATION OF FINANCIAL RESPONSIBILITY.--IN
12 ADDITION TO THE OTHER REQUIREMENTS TO REGISTRATION, THE
13 APPLICANT SHALL FILE A SELF-CERTIFICATION OF FINANCIAL
14 RESPONSIBILITY WHICH SHALL INCLUDE:
15 (1) THE COMPLETE NAME, ADDRESS AND TELEPHONE NUMBER OF
16 THE APPLICANT.
17 (2) THE NAME OF THE INSURANCE COMPANY WHICH IS INSURING
18 THE SUBJECT VEHICLE.
19 (3) THE POLICY NUMBER, EFFECTIVE DATE AND EXPIRATION
20 DATE OF THE POLICY OF INSURANCE INSURING THE VEHICLE.
21 § 1306. GROUNDS FOR REFUSING REGISTRATION.
22 THE DEPARTMENT SHALL REFUSE REGISTRATION OR RENEWAL OR
23 TRANSFER OF REGISTRATION WHEN ANY OF THE FOLLOWING CIRCUMSTANCES
24 EXISTS:
25 (1) THE APPLICANT IS NOT ENTITLED TO REGISTRATION UNDER
26 THE PROVISIONS OF THIS CHAPTER.
27 (2) THE APPLICANT HAS AT REGISTRATION OR TITLING
28 NEGLECTED OR REFUSED TO FURNISH THE DEPARTMENT WITH THE
29 INFORMATION REQUIRED ON THE APPROPRIATE OFFICIAL FORM, OR ANY
30 REASONABLE ADDITIONAL INFORMATION REQUIRED BY THE DEPARTMENT.
19890H0376B2898 - 14 -
1 (3) THE DEPARTMENT HAS REASONABLE GROUNDS TO BELIEVE
2 THAT THE APPLICATION CONTAINS FALSE OR FRAUDULENT
3 INFORMATION, OR THAT THE VEHICLE IS STOLEN, WHICH FACT THE
4 DEPARTMENT SHALL ASCERTAIN BY REFERENCE TO THE STOLEN VEHICLE
5 FILE REQUIRED TO BE MAINTAINED UNDER SECTION 7114 (RELATING
6 TO RECORDS OF STOLEN VEHICLES), OR THAT THE GRANTING OF
7 REGISTRATION WOULD CONSTITUTE A FRAUD AGAINST THE RIGHTFUL
8 OWNER OR OTHER PERSON HAVING A VALID LIEN UPON THE VEHICLE.
9 (4) THE FEES REQUIRED BY LAW HAVE NOT BEEN PAID.
10 (5) THE VEHICLE IS NOT CONSTRUCTED OR EQUIPPED AS
11 REQUIRED BY THIS TITLE.
12 (6) THE REGISTRATION OF THE VEHICLE STANDS SUSPENDED FOR
13 ANY REASON AS PROVIDED FOR IN THIS TITLE.
14 (7) SELF-CERTIFICATION OF FINANCIAL RESPONSIBILITY, AS
15 REQUIRED UNDER SECTION 1305(D) (RELATING TO APPLICATION FOR
16 REGISTRATION) IS NOT FILED WITH THE REGISTRATION APPLICATION.
17 SECTION 5. TITLE 75 IS AMENDED BY ADDING A SECTION TO READ:
18 § 1318. DUTIES OF AGENTS.
19 (A) VERIFICATION OF FINANCIAL RESPONSIBILITY.--AN AGENT WHO
20 IS AUTHORIZED TO ISSUE ON BEHALF OF THE DEPARTMENT A VEHICLE
21 REGISTRATION RENEWAL OR TEMPORARY REGISTRATION SHALL BE REQUIRED
22 TO VERIFY FINANCIAL RESPONSIBILITY PRIOR TO ISSUANCE.
23 (B) PROOF.--PROOF OF FINANCIAL RESPONSIBILITY SHALL BE
24 VERIFIED BY EXAMINING ONE OF THE FOLLOWING DOCUMENTS:
25 (1) AN IDENTIFICATION CARD AS REQUIRED BY REGULATIONS
26 PROMULGATED BY THE INSURANCE DEPARTMENT.
27 (2) THE DECLARATION PAGE OF AN INSURANCE POLICY.
28 (3) A CERTIFICATE OF FINANCIAL RESPONSIBILITY.
29 (4) A VALID BINDER OF INSURANCE ISSUED BY AN INSURANCE
30 COMPANY LICENSED TO SELL AUTOMOBILE LIABILITY INSURANCE IN
19890H0376B2898 - 15 -
1 PENNSYLVANIA.
2 SECTION 6. SECTIONS 1376 AND 1540(C) OF TITLE 75 ARE AMENDED
3 TO READ:
4 § 1376. SURRENDER OF REGISTRATION PLATES AND CARDS UPON
5 SUSPENSION OR REVOCATION.
6 (A) GENERAL RULE.--THE DEPARTMENT, UPON SUSPENDING OR
7 REVOKING ANY REGISTRATION, SHALL REQUIRE THE REGISTRATION PLATE
8 OR PLATES AND REGISTRATION CARD OR CARDS TO BE SURRENDERED
9 IMMEDIATELY TO THE DEPARTMENT [AND].
10 (B) DELEGATION OF AUTHORITY.--IF WITHIN 35 DAYS THE
11 REGISTRATION PLATES AND CARDS ARE NOT SURRENDERED UNDER
12 SUBSECTION (A), THE DEPARTMENT MAY DELEGATE AUTHORITY TO [ANY
13 AUTHORIZED DEPARTMENT EMPLOYEE, MEMBER OF THE PENNSYLVANIA STATE
14 POLICE OR LOCAL POLICE OFFICER TO SEIZE THE REGISTRATION PLATE
15 OR PLATES AND REGISTRATION CARD OR CARDS.] THE FOLLOWING PERSONS
16 TO SEIZE A REGISTRATION PLATE AND REGISTRATION CARD WHICH ARE
17 REQUIRED TO BE SURRENDERED UNDER SUBSECTION (A):
18 (1) A DESIGNATED DEPARTMENT EMPLOYEE.
19 (2) MEMBERS OF THE PENNSYLVANIA STATE POLICE.
20 (3) LOCAL POLICE OFFICERS.
21 (4) SHERIFFS OR DEPUTY SHERIFFS.
22 (5) CONSTABLES OR DEPUTY CONSTABLES. IF CONSTABLES AND
23 DEPUTY CONSTABLES ARE DELEGATED AUTHORITY TO SEIZE
24 REGISTRATION PLATES AND REGISTRATION CARDS UNDER THIS
25 SECTION, THEY SHALL BE COMPENSATED BY THE DEPARTMENT AT THE
26 RATE OF $15 FOR EACH REGISTRATION PLATE AND CARD JOINTLY
27 SEIZED, PLUS MILEAGE. THE DEPARTMENT SHALL PAY A CONSTABLE OR
28 DEPUTY CONSTABLE WITHIN 30 DAYS AFTER A DOCUMENTED REQUEST
29 FOR PAYMENT IS SUBMITTED TO IT.
30 (C) REGULATIONS.--THE DEPARTMENT SHALL, BY REGULATION,
19890H0376B2898 - 16 -
1 PRESCRIBE THE MANNER OF SELECTING [THE EMPLOYEES AND STATE AND
2 LOCAL POLICE OFFICERS] THOSE OFFICIALS WHO ARE DELEGATED
3 AUTHORITY UNDER THIS SECTION TO SEIZE THE REGISTRATION PLATES
4 AND REGISTRATION CARDS.
5 [(B)] (D) PENALTY.--ANY PERSON FAILING OR REFUSING TO
6 SURRENDER TO THE DEPARTMENT OR ITS AUTHORIZED DELEGATE, UPON
7 DEMAND, ANY REGISTRATION PLATE OR CARD WHICH HAS BEEN SUSPENDED
8 OR REVOKED IS GUILTY OF A SUMMARY OFFENSE AND SHALL, UPON
9 CONVICTION, BE SENTENCED TO PAY A FINE OF [$100] $300, PLUS
10 COSTS. COST SHALL INCLUDE A REASONABLE FEE FOR OFFICIAL SEIZURE
11 OF THE UNSURRENDERED ITEMS.
12 § 1540. SURRENDER OF LICENSE.
13 * * *
14 (C) SEIZURE OF REVOKED AND SUSPENDED LICENSES.--
15 (1) THE DEPARTMENT MAY DELEGATE AUTHORITY TO [ANY
16 AUTHORIZED DEPARTMENT EMPLOYEE, MEMBER OF THE PENNSYLVANIA
17 STATE POLICE OR LOCAL POLICE OFFICER] THE FOLLOWING PERSONS
18 TO SEIZE THE DRIVER'S LICENSE OF ANY PERSON [WHEN THE
19 OPERATING PRIVILEGE OF THAT PERSON HAS BEEN REVOKED OR
20 SUSPENDED AND HIS] WHOSE DRIVER'S LICENSE HAS BEEN ORDERED TO
21 BE SURRENDERED BY A COURT OR DISTRICT ATTORNEY OR BY THE
22 DEPARTMENT[.]:
23 (I) A DESIGNATED DEPARTMENT EMPLOYEE.
24 (II) MEMBERS OF THE PENNSYLVANIA STATE POLICE.
25 (III) LOCAL POLICE OFFICERS.
26 (IV) SHERIFFS OR DEPUTY SHERIFFS.
27 (V) CONSTABLES OR DEPUTY CONSTABLES. IF CONSTABLES
28 AND DEPUTY CONSTABLES ARE DELEGATED AUTHORITY TO SEIZE
29 DRIVERS' LICENSES UNDER THIS SUBSECTION, THEY SHALL BE
30 COMPENSATED BY THE DEPARTMENT AT THE RATE OF $15 FOR EACH
19890H0376B2898 - 17 -
1 DRIVER'S LICENSE SEIZED, PLUS MILEAGE. THE DEPARTMENT
2 SHALL PAY A CONSTABLE OR DEPUTY CONSTABLE WITHIN 30 DAYS
3 AFTER A DOCUMENTED REQUEST IS SUBMITTED TO IT.
4 (2) THE DEPARTMENT SHALL, BY REGULATION, PRESCRIBE THE
5 MANNER OF SELECTING [THE EMPLOYEES AND STATE AND LOCAL POLICE
6 OFFICERS] THOSE OFFICIALS WHO ARE DELEGATED AUTHORITY UNDER
7 THIS SUBSECTION TO SEIZE THE DRIVERS' LICENSES.
8 SECTION 7. SECTION 1702 OF TITLE 75 IS AMENDED BY ADDING
9 DEFINITIONS TO READ:
10 § 1702. DEFINITIONS.
11 THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS CHAPTER
12 SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE
13 CONTEXT CLEARLY INDICATES OTHERWISE:
14 * * *
15 "COMMISSIONER." THE INSURANCE COMMISSIONER OF THE
16 COMMONWEALTH.
17 * * *
18 "NECESSARY MEDICAL TREATMENT AND REHABILITATIVE SERVICES."
19 TREATMENT, ACCOMMODATIONS, PRODUCTS OR SERVICES WHICH ARE
20 DETERMINED TO BE NECESSARY BY A LICENSED HEALTH CARE PROVIDER
21 UNLESS THEY SHALL HAVE BEEN FOUND OR DETERMINED TO BE
22 UNNECESSARY BY A STATE-APPROVED PEER REVIEW ORGANIZATION (PRO).
23 "PEER REVIEW ORGANIZATION" OR "PRO." ANY PEER REVIEW
24 ORGANIZATION WITH WHICH THE FEDERAL HEALTH CARE FINANCING
25 ADMINISTRATION OR THE COMMONWEALTH CONTRACTS FOR MEDICAL REVIEW
26 OF MEDICARE OR MEDICAL ASSISTANCE SERVICES, OR ANY HEALTH CARE
27 REVIEW COMPANY, APPROVED BY THE COMMISSIONER, THAT ENGAGES IN
28 PEER REVIEW FOR THE PURPOSE OF DETERMINING THAT MEDICAL AND
29 REHABILITATION SERVICES ARE MEDICALLY NECESSARY AND ECONOMICALLY
30 PROVIDED. THE MEMBERSHIP OF ANY PRO UTILIZED IN CONNECTION WITH
19890H0376B2898 - 18 -
1 THE ACT SHALL INCLUDE REPRESENTATION FROM THE PROFESSION WHOSE
2 SERVICES ARE SUBJECT TO THE REVIEW.
3 * * *
4 SECTION 8. SECTIONS 1711, 1712, 1715(A), 1718(C), 1722 AND
5 1731 OF TITLE 75 ARE AMENDED TO READ:
6 § 1711. REQUIRED BENEFITS.
7 (A) MEDICAL BENEFIT.--AN INSURER ISSUING OR DELIVERING
8 LIABILITY INSURANCE POLICIES COVERING ANY MOTOR VEHICLE OF THE
9 TYPE REQUIRED TO BE REGISTERED UNDER THIS TITLE, EXCEPT
10 RECREATIONAL VEHICLES NOT INTENDED FOR HIGHWAY USE, MOTORCYCLES,
11 MOTOR-DRIVEN CYCLES OR MOTORIZED PEDALCYCLES OR LIKE TYPE
12 VEHICLES, REGISTERED AND OPERATED IN THIS COMMONWEALTH, SHALL
13 INCLUDE COVERAGE PROVIDING A MEDICAL BENEFIT IN THE AMOUNT OF
14 [$10,000, AN INCOME LOSS BENEFIT UP TO A MONTHLY MAXIMUM OF
15 $1,000 UP TO A MAXIMUM BENEFIT OF $5,000 AND A FUNERAL BENEFIT
16 IN THE AMOUNT OF $1,500, AS DEFINED IN SECTION 1712 (RELATING TO
17 AVAILABILITY OF BENEFITS), WITH RESPECT TO INJURY ARISING OUT OF
18 THE MAINTENANCE OR USE OF A MOTOR VEHICLE. THE INCOME LOSS
19 BENEFIT PROVIDED UNDER THIS SECTION MAY BE EXPRESSLY WAIVED BY
20 THE NAMED INSURED PROVIDED THE NAMED INSURED HAS NO EXPECTATION
21 OF ACTUAL INCOME LOSS DUE TO AGE, DISABILITY OR LACK OF
22 EMPLOYMENT HISTORY. AT THE ELECTION OF THE NAMED INSURED, SUCH
23 POLICY SHALL ALSO INCLUDE AN EXTRAORDINARY MEDICAL BENEFIT AS
24 DESCRIBED IN SECTION 1715(A)(1.1) AND (D) (RELATING TO
25 AVAILABILITY OF ADEQUATE LIMITS).] $5,000.
26 (B) MINIMUM POLICY.--ALL INSURERS SUBJECT TO THIS CHAPTER
27 SHALL MAKE AVAILABLE FOR PURCHASE AN AUTOMOBILE INSURANCE POLICY
28 WHICH CONTAINS ONLY THE MINIMUM REQUIREMENTS OF FINANCIAL
29 RESPONSIBILITY AND MEDICAL BENEFITS AS PROVIDED FOR IN THIS
30 CHAPTER.
19890H0376B2898 - 19 -
1 § 1712. AVAILABILITY OF BENEFITS.
2 AN INSURER ISSUING OR DELIVERING LIABILITY INSURANCE POLICIES
3 COVERING ANY MOTOR VEHICLE OF THE TYPE REQUIRED TO BE REGISTERED
4 UNDER THIS TITLE, EXCEPT RECREATIONAL VEHICLES NOT INTENDED FOR
5 HIGHWAY USE, MOTORCYCLES, MOTOR-DRIVEN CYCLES OR MOTORIZED
6 PEDALCYCLES OR LIKE TYPE VEHICLES, REGISTERED AND OPERATED IN
7 THIS COMMONWEALTH, SHALL MAKE AVAILABLE FOR PURCHASE FIRST PARTY
8 BENEFITS AND UNINSURED AND UNDERINSURED MOTORIST COVERAGE WITH
9 RESPECT TO INJURY ARISING OUT OF THE MAINTENANCE OR USE OF A
10 MOTOR VEHICLE AS FOLLOWS:
11 (1) MEDICAL BENEFIT.--[COVERAGE] SUBJECT TO THE
12 LIMITATIONS OF SECTION 1797 (RELATING TO CUSTOMARY CHARGES
13 FOR TREATMENT), COVERAGE TO PROVIDE FOR REASONABLE AND
14 NECESSARY MEDICAL TREATMENT AND REHABILITATIVE SERVICES,
15 INCLUDING, BUT NOT LIMITED TO, HOSPITAL, DENTAL, SURGICAL,
16 PSYCHIATRIC, PSYCHOLOGICAL, OSTEOPATHIC, AMBULANCE,
17 CHIROPRACTIC, LICENSED PHYSICAL THERAPY, NURSING SERVICES,
18 VOCATIONAL REHABILITATION AND OCCUPATIONAL THERAPY, SPEECH
19 PATHOLOGY AND AUDIOLOGY, OPTOMETRIC SERVICES, MEDICATIONS,
20 MEDICAL SUPPLIES AND PROSTHETIC DEVICES, ALL WITHOUT
21 LIMITATION AS TO TIME, PROVIDED THAT, WITHIN 18 MONTHS FROM
22 THE DATE OF THE ACCIDENT CAUSING INJURY, IT IS ASCERTAINABLE
23 WITH REASONABLE MEDICAL PROBABILITY THAT FURTHER EXPENSES MAY
24 BE INCURRED AS A RESULT OF THE INJURY. BENEFITS UNDER THIS
25 PARAGRAPH MAY INCLUDE ANY NONMEDICAL REMEDIAL CARE AND
26 TREATMENT RENDERED IN ACCORDANCE WITH A RECOGNIZED RELIGIOUS
27 METHOD OF HEALING.
28 (2) INCOME LOSS BENEFIT.--INCLUDES THE FOLLOWING:
29 (I) EIGHTY PERCENT OF ACTUAL LOSS OF GROSS INCOME.
30 (II) REASONABLE EXPENSES ACTUALLY INCURRED FOR
19890H0376B2898 - 20 -
1 HIRING A SUBSTITUTE TO PERFORM SELF-EMPLOYMENT SERVICES
2 THEREBY MITIGATING LOSS OF GROSS INCOME OR FOR HIRING
3 SPECIAL HELP THEREBY ENABLING A PERSON TO WORK AND
4 MITIGATE LOSS OF GROSS INCOME.
5 INCOME LOSS DOES NOT INCLUDE LOSS OF EXPECTED INCOME FOR ANY
6 PERIOD FOLLOWING THE DEATH OF AN INDIVIDUAL OR EXPENSES
7 INCURRED FOR SERVICES PERFORMED FOLLOWING THE DEATH OF AN
8 INDIVIDUAL. INCOME LOSS SHALL NOT COMMENCE UNTIL FIVE WORKING
9 DAYS HAVE BEEN LOST AFTER THE DATE OF THE ACCIDENT. THE TOTAL
10 PREMIUM FOR ALL FIRST PARTY COVERAGES FOR AN INSURED WHO
11 ELECTS NOT TO PURCHASE AN INCOME LOSS BENEFIT SHALL BE
12 REDUCED BY AT LEAST 15%.
13 (3) ACCIDENTAL DEATH BENEFIT.--A DEATH BENEFIT PAID TO
14 THE PERSONAL REPRESENTATIVE OF THE INSURED, SHOULD INJURY
15 RESULTING FROM A MOTOR VEHICLE ACCIDENT CAUSE DEATH WITHIN 24
16 MONTHS FROM THE DATE OF THE ACCIDENT.
17 (4) FUNERAL BENEFIT.--EXPENSES DIRECTLY RELATED TO THE
18 FUNERAL, BURIAL, CREMATION OR OTHER FORM OF DISPOSITION OF
19 THE REMAINS OF A DECEASED INDIVIDUAL, INCURRED AS A RESULT
20 OF THE DEATH OF THE INDIVIDUAL AS A RESULT OF THE ACCIDENT
21 AND WITHIN 24 MONTHS FROM THE DATE OF THE ACCIDENT. THE TOTAL
22 PREMIUM FOR ALL FIRST PARTY COVERAGES FOR AN INSURED WHO
23 ELECTS NOT TO PURCHASE A FUNERAL BENEFIT SHALL BE REDUCED BY
24 AT LEAST 1%.
25 (5) COMBINATION BENEFIT.--A COMBINATION OF BENEFITS
26 DESCRIBED IN PARAGRAPHS (1) THROUGH (4) AS AN ALTERNATIVE TO
27 THE SEPARATE PURCHASE OF THOSE BENEFITS.
28 (6) UNINSURED AND UNDERINSURED MOTORIST COVERAGE.
29 (7) EXTRAORDINARY MEDICAL BENEFITS.--MEDICAL BENEFITS,
30 AS DEFINED IN PARAGRAPH (1), WHICH EXCEED $100,000.
19890H0376B2898 - 21 -
1 § 1715. AVAILABILITY OF ADEQUATE LIMITS.
2 (A) GENERAL RULE.--AN INSURER SHALL MAKE AVAILABLE FOR
3 PURCHASE FIRST PARTY BENEFITS AND UNINSURED AND UNDERINSURED
4 MOTORIST COVERAGE AS FOLLOWS:
5 (1) FOR MEDICAL BENEFITS, UP TO AT LEAST $100,000.
6 (1.1) FOR EXTRAORDINARY MEDICAL BENEFITS, FROM $100,000
7 TO $1,100,000, WHICH MAY BE OFFERED IN INCREMENTS OF
8 $100,000, AS LIMITED BY SUBSECTION (D).
9 (2) FOR INCOME LOSS BENEFITS, UP TO AT LEAST $2,500 PER
10 MONTH UP TO A MAXIMUM BENEFIT OF AT LEAST $50,000.
11 (3) FOR ACCIDENTAL DEATH BENEFITS, UP TO AT LEAST
12 $25,000.
13 (4) FOR FUNERAL BENEFITS, $2,500.
14 (5) FOR COMBINATION OF BENEFITS ENUMERATED IN PARAGRAPHS
15 (1) THROUGH (4) AND SUBJECT TO A LIMIT ON THE ACCIDENTAL
16 DEATH BENEFIT OF UP TO $25,000 AND A LIMIT ON THE FUNERAL
17 BENEFIT OF $2,500, UP TO AT LEAST [$277,500] $177,500 OF
18 BENEFITS IN THE AGGREGATE OR BENEFITS PAYABLE UP TO THREE
19 YEARS FROM THE DATE OF THE ACCIDENT, WHICHEVER OCCURS FIRST,
20 PROVIDED THAT NOTHING CONTAINED IN THIS SUBSECTION SHALL BE
21 CONSTRUED TO LIMIT, REDUCE, MODIFY OR CHANGE THE PROVISIONS
22 OF SUBSECTION (D).
23 (6) UNINSURED AND UNDERINSURED MOTORIST COVERAGE IN
24 AMOUNTS EQUAL TO OR LESS THAN THE MOTOR VEHICLE LIABILITY
25 INSURANCE REQUIRED UNDER THIS CHAPTER.
26 * * *
27 § 1718. EXCLUSION FROM BENEFITS.
28 * * *
29 (C) NAMED DRIVER EXCLUSION.--AN INSURER OR THE FIRST NAMED
30 INSURED MAY EXCLUDE ANY [INSURED] PERSON OR HIS PERSONAL
19890H0376B2898 - 22 -
1 REPRESENTATIVE FROM BENEFITS UNDER A POLICY ENUMERATED IN
2 SECTION 1711 OR 1712 WHEN [THE INSURED] ANY OF THE FOLLOWING
3 APPLY:
4 (1) THE PERSON IS EXCLUDED FROM COVERAGE WHILE OPERATING
5 A MOTOR VEHICLE IN ACCORDANCE WITH THE ACT OF JUNE 5, 1968
6 (P.L.140, NO.78), RELATING TO THE WRITING, CANCELLATION OF OR
7 REFUSAL TO RENEW POLICIES OF AUTOMOBILE INSURANCE.
8 (2) THE FIRST NAMED INSURED HAS REQUESTED THAT THE
9 PERSON BE EXCLUDED FROM COVERAGE WHILE OPERATING A MOTOR
10 VEHICLE. THIS PARAGRAPH SHALL ONLY APPLY IF THE EXCLUDED
11 PERSON IS INSURED ON ANOTHER POLICY OF MOTOR VEHICLE
12 LIABILITY INSURANCE.
13 § 1722. PRECLUSION OF PLEADING, PROVING AND RECOVERING REQUIRED
14 BENEFITS.
15 IN ANY ACTION FOR DAMAGES AGAINST A TORTFEASOR ARISING OUT OF
16 THE MAINTENANCE OR USE OF A MOTOR VEHICLE, A PERSON WHO IS
17 ELIGIBLE TO RECEIVE BENEFITS UNDER THE COVERAGES SET FORTH IN
18 [SECTION 1711 (RELATING TO REQUIRED BENEFITS) OR THE COVERAGE
19 SET FORTH IN SECTION 1715(A)(1.1) (RELATING TO AVAILABILITY OF
20 ADEQUATE LIMITS)] THIS SUBCHAPTER SHALL BE PRECLUDED FROM
21 PLEADING, INTRODUCING INTO EVIDENCE OR RECOVERING THE AMOUNT OF
22 BENEFITS PAID OR PAYABLE UNDER [SECTION 1711 OR 1715(A)(1.1).
23 THIS PRECLUSION APPLIES ONLY TO THE AMOUNT OF BENEFITS SET FORTH
24 IN SECTIONS 1711 AND 1715(A)(1.1)] THIS SUBCHAPTER.
25 § 1731. [SCOPE] AVAILABILITY, SCOPE AND AMOUNT OF COVERAGE.
26 (A) [GENERAL RULE] MANDATORY AVAILABILITY.--NO MOTOR VEHICLE
27 LIABILITY INSURANCE POLICY SHALL BE DELIVERED OR ISSUED FOR
28 DELIVERY IN THIS COMMONWEALTH, WITH RESPECT TO ANY MOTOR VEHICLE
29 REGISTERED OR PRINCIPALLY GARAGED IN THIS COMMONWEALTH, UNLESS
30 UNINSURED MOTORIST AND UNDERINSURED MOTORIST COVERAGES ARE
19890H0376B2898 - 23 -
1 [PROVIDED] MADE AVAILABLE THEREIN OR SUPPLEMENTAL THERETO IN
2 AMOUNTS EQUAL TO THE BODILY INJURY LIABILITY COVERAGE EXCEPT AS
3 PROVIDED IN SECTION 1734 (RELATING TO REQUEST FOR LOWER [OR
4 HIGHER] LIMITS OF COVERAGE). PURCHASE OF UNINSURED MOTORIST AND
5 UNDERINSURED MOTORIST COVERAGES IS OPTIONAL, PROVIDED THAT THE
6 TOTAL PREMIUM FOR ALL FIRST PARTY COVERAGES FOR AN INSURED WHO
7 ELECTS NOT TO PURCHASE UNINSURED AND UNDERINSURED MOTORIST
8 COVERAGE BENEFIT SHALL BE REDUCED BY AT LEAST 35%.
9 (B) UNINSURED MOTORIST COVERAGE.--UNINSURED MOTORIST
10 COVERAGE SHALL PROVIDE PROTECTION FOR PERSONS WHO SUFFER INJURY
11 ARISING OUT OF THE MAINTENANCE OR USE OF A MOTOR VEHICLE AND ARE
12 LEGALLY ENTITLED TO RECOVER DAMAGES THEREFOR FROM OWNERS OR
13 OPERATORS OF UNINSURED MOTOR VEHICLES. THE INSURED MAY REJECT
14 UNINSURED MOTORIST COVERAGE BY SIGNING THE FOLLOWING WRITTEN
15 REJECTION FORM.
16 REJECTION OF UNINSURED MOTORIST PROTECTION
17 BY SIGNING THIS WAIVER I AM REJECTING UNINSURED MOTORIST
18 COVERAGE UNDER THIS POLICY, FOR MYSELF AND ALL RELATIVES
19 RESIDING IN MY HOUSEHOLD. UNINSURED COVERAGE PROTECTS ME AND
20 RELATIVES LIVING IN MY HOUSEHOLD FOR LOSSES AND DAMAGES SUFFERED
21 IF INJURY IS CAUSED BY THE NEGLIGENCE OF A DRIVER WHO DOES NOT
22 HAVE ANY INSURANCE TO PAY FOR LOSSES AND DAMAGES. I KNOWINGLY
23 AND VOLUNTARILY REJECT THIS COVERAGE.
24 ................................
25 SIGNATURE OF FIRST NAMED INSURED
26 ................................
27 DATE
28 (C) UNDERINSURED MOTORIST COVERAGE.--UNDERINSURED MOTORIST
29 COVERAGE SHALL PROVIDE PROTECTION FOR PERSONS WHO SUFFER INJURY
30 ARISING OUT OF THE MAINTENANCE OR USE OF A MOTOR VEHICLE AND ARE
19890H0376B2898 - 24 -
1 LEGALLY ENTITLED TO RECOVER DAMAGES THEREFOR FROM OWNERS OR
2 OPERATORS OF UNDERINSURED MOTOR VEHICLES. THE INSURED MAY REJECT
3 UNDERINSURED MOTORIST COVERAGE BY SIGNING THE FOLLOWING WRITTEN
4 REJECTION FORM.
5 REJECTION OF UNDERINSURED MOTORIST PROTECTION
6 BY SIGNING THIS WAIVER I AM REJECTING UNDERINSURED MOTORIST
7 COVERAGE UNDER THIS POLICY, FOR MYSELF AND ALL RELATIVES
8 RESIDING IN MY HOUSEHOLD. UNDERINSURED COVERAGE PROTECTS ME AND
9 RELATIVES LIVING IN MY HOUSEHOLD FOR LOSSES AND DAMAGES SUFFERED
10 IF INJURY IS CAUSED BY THE NEGLIGENCE OF A DRIVER WHO DOES NOT
11 HAVE ENOUGH INSURANCE TO PAY FOR ALL LOSSES AND DAMAGES. I
12 KNOWINGLY AND VOLUNTARILY REJECT THIS COVERAGE.
13 ................................
14 SIGNATURE OF FIRST NAMED INSURED
15 ................................
16 DATE
17 (C.1) FORM OF WAIVER.--INSURERS SHALL PRINT THE REJECTION
18 FORMS REQUIRED BY SUBSECTIONS (B) AND (C) ON SEPARATE SHEETS IN
19 PROMINENT TYPE AND LOCATION. THE FORMS MUST BE SIGNED BY THE
20 FIRST NAMED INSURED AND DATED TO BE VALID. THE SIGNATURES ON THE
21 FORMS MAY BE WITNESSED BY AN INSURANCE AGENT OR BROKER. ANY
22 REJECTION FORM THAT DOES NOT SPECIFICALLY COMPLY WITH THIS
23 SECTION IS VOID. IF THE INSURER FAILS TO PRODUCE A VALID
24 REJECTION FORM, UNINSURED OR UNDERINSURED COVERAGE, OR BOTH, AS
25 THE CASE MAY BE, UNDER THAT POLICY SHALL BE EQUAL TO THE BODILY
26 INJURY LIABILITY LIMITS. ON POLICIES IN WHICH EITHER UNINSURED
27 OR UNDERINSURED COVERAGE HAS BEEN REJECTED, THE POLICY RENEWALS
28 MUST CONTAIN NOTICE IN PROMINENT TYPE THAT THE POLICY DOES NOT
29 PROVIDE PROTECTION AGAINST DAMAGES CAUSED BY UNINSURED OR
30 UNDERINSURED MOTORISTS.
19890H0376B2898 - 25 -
1 (D) LIMITATION ON RECOVERY.--A PERSON WHO RECOVERS DAMAGES
2 UNDER UNINSURED MOTORIST COVERAGE OR COVERAGES CANNOT RECOVER
3 DAMAGES UNDER UNDERINSURED MOTORIST COVERAGE OR COVERAGES FOR
4 THE SAME ACCIDENT.
5 SECTION 9. SECTION 1732 OF TITLE 75 IS REPEALED.
6 SECTION 10. SECTIONS 1733 AND 1734 OF TITLE 75 ARE AMENDED
7 TO READ:
8 § 1733. PRIORITY OF RECOVERY.
9 (A) GENERAL RULE.--WHERE MULTIPLE POLICIES APPLY, PAYMENT
10 SHALL BE MADE IN THE FOLLOWING ORDER OF PRIORITY:
11 (1) A POLICY COVERING A MOTOR VEHICLE OCCUPIED BY THE
12 INJURED PERSON AT THE TIME OF THE ACCIDENT.
13 (2) A POLICY COVERING A MOTOR VEHICLE NOT INVOLVED IN
14 THE ACCIDENT WITH RESPECT TO WHICH THE INJURED PERSON IS AN
15 INSURED.
16 (B) MULTIPLE SOURCES OF EQUAL PRIORITY.--THE INSURER AGAINST
17 WHOM A CLAIM IS ASSERTED FIRST UNDER THE PRIORITIES SET FORTH IN
18 SUBSECTION (A) SHALL PROCESS AND PAY THE CLAIM AS IF WHOLLY
19 RESPONSIBLE. THE INSURER IS THEREAFTER ENTITLED TO RECOVER
20 CONTRIBUTION PRO RATA FROM ANY OTHER INSURER FOR THE BENEFITS
21 PAID AND THE COSTS OF PROCESSING THE CLAIM.
22 § 1734. REQUEST FOR LOWER [OR HIGHER] LIMITS OF COVERAGE.
23 A NAMED INSURED MAY REQUEST IN WRITING THE ISSUANCE OF
24 COVERAGES UNDER SECTION 1731 (RELATING TO AVAILABILITY, SCOPE
25 AND AMOUNT OF COVERAGE) IN AMOUNTS EQUAL TO OR LESS THAN THE
26 LIMITS OF LIABILITY FOR BODILY INJURY. [BUT IN NO EVENT LESS
27 THAN THE AMOUNTS REQUIRED BY THIS CHAPTER FOR BODILY INJURY. IF
28 THE NAMED INSURED HAS SELECTED UNINSURED AND UNDERINSURED
29 MOTORIST COVERAGE IN CONNECTION WITH A POLICY PREVIOUSLY ISSUED
30 TO HIM BY THE SAME INSURER UNDER SECTION 1731, THE COVERAGES
19890H0376B2898 - 26 -
1 OFFERED NEED NOT BE PROVIDED IN EXCESS OF THE LIMITS OF
2 LIABILITY PREVIOUSLY ISSUED FOR UNINSURED AND UNDERINSURED
3 MOTORIST COVERAGE UNLESS THE NAMED INSURED REQUESTS IN WRITING
4 HIGHER LIMITS OF LIABILITY FOR THOSE COVERAGES.]
5 SECTION 11. TITLE 75 IS AMENDED BY ADDING SECTIONS TO READ:
6 § 1737. RIGHTS TO PAYMENT.
7 (A) SUBROGATION.--IN CLAIMS ARISING OUT OF THE MAINTENANCE
8 OR USE OF AN UNDERINSURED MOTOR VEHICLE, THERE SHALL BE NO RIGHT
9 OF SUBROGATION BY AN INSURER WITH RESPECT TO THE PAYMENT OF
10 UNDERINSURED MOTORIST BENEFITS.
11 (B) CONDITION TO PAYMENT.--NO POLICY OF INSURANCE SHALL
12 REQUIRE, AS A CONDITION TO THE PAYMENT OF UNDERINSURED MOTORIST
13 BENEFITS, THE PRIOR CONSENT OF THE INSURER TO THE SETTLEMENT OF
14 A BODILY INJURY CLAIM WITH ANY PERSON.
15 § 1738. STACKING OF UNINSURED AND UNDERINSURED BENEFITS.
16 WHEN MULTIPLE VEHICLES ARE INSURED UNDER ONE OR MORE POLICIES
17 OF INSURANCE, THE STATED LIMIT SHALL APPLY SEPARATELY TO EACH
18 VEHICLE. THE LIMITS OF COVERAGE AVAILABLE UNDER THIS SUBCHAPTER
19 FOR AN INSURED SHALL BE THE SUM OF THE LIMITS FOR EACH MOTOR
20 VEHICLE AS TO WHICH THE INJURED PERSON IS AN INSURED.
21 SECTION 12. SECTION 1753 OF TITLE 75 IS AMENDED TO READ:
22 § 1753. BENEFITS AVAILABLE.
23 AN ELIGIBLE CLAIMANT MAY RECOVER MEDICAL BENEFITS, AS
24 DESCRIBED IN SECTION 1712(1) (RELATING TO AVAILABILITY OF
25 BENEFITS), UP TO A MAXIMUM OF $5,000. NO INCOME LOSS BENEFIT OR
26 ACCIDENTAL DEATH BENEFIT SHALL BE PAYABLE UNDER THIS SUBCHAPTER.
27 [FUNERAL EXPENSES, AS DESCRIBED IN SECTION 1712(4), IN THE
28 AMOUNT OF $1,500 SHALL BE RECOVERABLE AS AN OFFSET TO THE
29 MAXIMUM AMOUNT OF MEDICAL BENEFITS AVAILABLE UNDER THIS
30 SECTION.]
19890H0376B2898 - 27 -
1 SECTION 13. SECTION 1782 OF TITLE 75 IS AMENDED BY ADDING A
2 SUBSECTION TO READ:
3 § 1782. MANNER OF PROVIDING PROOF OF FINANCIAL RESPONSIBILITY.
4 * * *
5 (D) FINANCIAL RESPONSIBILITY IDENTIFICATION CARDS.--INSURERS
6 SHALL PROVIDE FINANCIAL RESPONSIBILITY IDENTIFICATION CARDS TO
7 INSUREDS WHICH SHALL BE VALID ONLY FOR THE PERIOD FOR WHICH
8 COVERAGE HAS BEEN PAID BY THE INSURED. FINANCIAL RESPONSIBILITY
9 IDENTIFICATION CARDS SHALL DISCLOSE THE PERIOD FOR WHICH
10 COVERAGE HAS BEEN PAID BY THE INSURED AND SHALL CONTAIN SUCH
11 OTHER INFORMATION AS REQUIRED BY THE INSURANCE DEPARTMENT. IN
12 SUCH INSTANCE WHERE THE INSURED HAS FINANCED PREMIUMS THROUGH A
13 PREMIUM FINANCE COMPANY OR WHERE THE INSURED IS ON AN INSURER-
14 SPONSORED OR AGENCY-SPONSORED PAYMENT PLAN, FINANCIAL
15 RESPONSIBILITY IDENTIFICATION CARDS MAY BE ISSUED FOR PERIODS OF
16 SIX MONTHS EVEN THOUGH SUCH PAYMENT BY THE INSURED MAY BE FOR A
17 PERIOD OF LESS THAN SIX MONTHS. NOTHING IN THIS PARAGRAPH SHALL
18 BE CONSTRUED TO REQUIRE THE IMMEDIATE ISSUANCE OF FINANCIAL
19 RESPONSIBILITY IDENTIFICATION CARDS WHERE AN INSURED REPLACES AN
20 INSURED VEHICLE, ADDS A VEHICLE, OR INCREASES COVERAGES UNDER AN
21 EXISTING POLICY FOR WHICH A PREMIUM ADJUSTMENT IS REQUIRED.
22 SECTION 14. SECTIONS 1786 AND 1791 OF TITLE 75 ARE AMENDED
23 TO READ:
24 § 1786. [SELF-CERTIFICATION OF] REQUIRED FINANCIAL
25 RESPONSIBILITY.
26 (A) SELF-CERTIFICATION.--THE DEPARTMENT OF TRANSPORTATION
27 SHALL REQUIRE THAT EACH MOTOR VEHICLE REGISTRANT CERTIFY THAT
28 THE REGISTRANT IS FINANCIALLY RESPONSIBLE AT THE TIME OF
29 REGISTRATION OR RENEWAL THEREOF. THE DEPARTMENT SHALL REFUSE TO
30 REGISTER OR RENEW THE REGISTRATION OF A VEHICLE FOR FAILURE TO
19890H0376B2898 - 28 -
1 COMPLY WITH THIS REQUIREMENT OR FALSIFICATION OF SELF-
2 CERTIFICATION.
3 (B) CONSENT TO PRODUCE PROOF OF FINANCIAL RESPONSIBILITY.--
4 UPON REGISTERING A MOTOR VEHICLE OR RENEWING A MOTOR VEHICLE
5 REGISTRATION, THE OWNER OF THE MOTOR VEHICLE SHALL BE DEEMED TO
6 HAVE GIVEN CONSENT TO PRODUCE PROOF TO THE DEPARTMENT OF
7 TRANSPORTATION OR A POLICE OFFICER THAT THE VEHICLE REGISTRANT
8 HAS THE FINANCIAL RESPONSIBILITY REQUIRED BY THIS CHAPTER.
9 (C) SUSPENSION OF REGISTRATION AND OPERATING PRIVILEGE.--THE
10 DEPARTMENT OF TRANSPORTATION SHALL SUSPEND OR REVOKE THE
11 REGISTRATION OF A VEHICLE IF IT DETERMINES THE REQUIRED
12 FINANCIAL RESPONSIBILITY HAS NOT BEEN SECURED AS REQUIRED BY
13 THIS CHAPTER AND MAY SUSPEND THE OPERATING PRIVILEGE OF THE
14 REGISTRANT. THE OPERATING PRIVILEGE SHALL NOT BE RESTORED UNTIL
15 PROOF OF FINANCIAL RESPONSIBILITY IS SUBMITTED, TOGETHER WITH
16 THE RESTORATION FEE FOR OPERATING PRIVILEGE PROVIDED BY SECTION
17 1960 (RELATING TO REINSTATEMENT OF OPERATING PRIVILEGE OR
18 VEHICLE REGISTRATION). WHENEVER THE DEPARTMENT REVOKES OR
19 SUSPENDS THE REGISTRATION OF ANY VEHICLE UNDER THIS CHAPTER, THE
20 DEPARTMENT SHALL NOT RESTORE THE REGISTRATION UNTIL THE VEHICLE
21 OWNER FURNISHES PROOF OF FINANCIAL RESPONSIBILITY IN A MANNER
22 DETERMINED BY THE DEPARTMENT AND SUBMITS AN APPLICATION FOR
23 REGISTRATION TO THE DEPARTMENT, ACCOMPANIED BY THE FEE FOR
24 RESTORATION OF REGISTRATION PROVIDED BY SECTION 1960.
25 (D) OBLIGATIONS UPON TERMINATION OF FINANCIAL
26 RESPONSIBILITY.--
27 (1) AN OWNER OF A MOTOR VEHICLE WHO CEASES TO MAINTAIN
28 FINANCIAL RESPONSIBILITY ON A REGISTERED VEHICLE SHALL NOT
29 OPERATE OR PERMIT OPERATION OF THE VEHICLE IN THIS
30 COMMONWEALTH UNTIL PROOF OF THE REQUIRED FINANCIAL
19890H0376B2898 - 29 -
1 RESPONSIBILITY HAS BEEN PROVIDED TO THE DEPARTMENT OF
2 TRANSPORTATION.
3 (2) AN INSURER WHO HAS ISSUED A CONTRACT OF MOTOR
4 VEHICLE LIABILITY INSURANCE, OR ANY APPROVED SELF-INSURANCE
5 ENTITY, SHALL NOTIFY THE DEPARTMENT IN A TIMELY MANNER AND IN
6 A METHOD PRESCRIBED BY THE DEPARTMENT'S REGULATIONS.
7 (3) AN INSURER WHO HAS ISSUED A CONTRACT OF MOTOR
8 VEHICLE LIABILITY INSURANCE AND KNOWS OR HAS REASON TO
9 BELIEVE THAT THE CONTRACT IS FOR THE PURPOSE OF PROVIDING
10 PROOF OF FINANCIAL RESPONSIBILITY SHALL NOTIFY THE DEPARTMENT
11 IF THE INSURANCE HAS BEEN CANCELED OR TERMINATED BY THE
12 INSURED OR BY THE INSURER. THE INSURER SHALL NOTIFY THE
13 DEPARTMENT NOT LATER THAN TEN DAYS FOLLOWING THE EFFECTIVE
14 DATE OF THE CANCELLATION OR TERMINATION.
15 (4) A PERSON WHO, AFTER MAINTAINING FINANCIAL
16 RESPONSIBILITY ON THE VEHICLE OF ANOTHER PERSON, CEASES TO
17 MAINTAIN SUCH FINANCIAL RESPONSIBILITY SHALL IMMEDIATELY
18 NOTIFY THE VEHICLE'S OWNER, WHO SHALL NOT OPERATE, OR PERMIT
19 OPERATION OF, THE VEHICLE IN THIS COMMONWEALTH.
20 (5) IN THE CASE OF A PERSON WHO LEASES ANY MOTOR VEHICLE
21 FROM A PERSON ENGAGED IN THE BUSINESS OF LEASING MOTOR
22 VEHICLES, THE LESSEE SHALL SIGN A STATEMENT INDICATING THAT
23 THE REQUIRED FINANCIAL RESPONSIBILITY HAS BEEN PROVIDED
24 THROUGH THE LESSOR OR THROUGH THE LESSEE'S MOTOR VEHICLE
25 LIABILITY INSURANCE POLICY COVERAGE. THE LESSEE SHALL SUBMIT
26 THE STATEMENT TO THE LESSOR.
27 (E) OPERATION OF A MOTOR VEHICLE WITHOUT REQUIRED FINANCIAL
28 RESPONSIBILITY.--ANY OWNER OF A MOTOR VEHICLE FOR WHICH THE
29 EXISTENCE OF FINANCIAL RESPONSIBILITY IS A REQUIREMENT FOR ITS
30 LEGAL OPERATION SHALL NOT OPERATE THE MOTOR VEHICLE OR PERMIT IT
19890H0376B2898 - 30 -
1 TO BE OPERATED UPON A HIGHWAY OF THIS COMMONWEALTH WITHOUT THE
2 FINANCIAL RESPONSIBILITY REQUIRED BY THIS CHAPTER AND SHALL,
3 UPON REQUEST OF A POLICE OFFICER OR THE DEPARTMENT, PRODUCE
4 PROOF OF FINANCIAL RESPONSIBILITY ON A FORM PROVIDED BY THE
5 DEPARTMENT. ANY PERSON WHO FAILS TO COMPLY WITH THIS SUBSECTION
6 COMMITS A SUMMARY OFFENSE AND SHALL, UPON CONVICTION, BE
7 SENTENCED TO PAY A FINE OF $300; AND THE DEPARTMENT SHALL
8 SUSPEND THE OPERATING PRIVILEGE OF THE PERSON FOR 30 DAYS.
9 (F) TIME LIMIT TO PRODUCE PROOF.--FAILURE OF A REGISTERED
10 VEHICLE OWNER TO PROVIDE PROOF OF FINANCIAL RESPONSIBILITY IN A
11 FORM AUTHORIZED BY INSURANCE DEPARTMENT REGULATION WITHIN 15
12 DAYS OF A REQUEST BY THE DEPARTMENT FOR THE PROOF PROVIDED FOR
13 IN SUBSECTION (E) SHALL SUBJECT THE OWNER TO AN ADDITIONAL CIVIL
14 PENALTY OF $200 AND TO A THREE-MONTH REVOCATION OF VEHICLE
15 REGISTRATION.
16 (G) DEFENSES.--
17 (1) NO PERSON SHALL BE CONVICTED OF FAILING TO PRODUCE
18 PROOF OF FINANCIAL RESPONSIBILITY UNDER SECTION 3743
19 (RELATING TO ACCIDENTS INVOLVING DAMAGE TO ATTENDED VEHICLE
20 OR PROPERTY) OR 6308 (RELATING TO INVESTIGATION BY POLICE
21 OFFICERS), IF THE PERSON PRODUCES, AT THE OFFICE OF THE
22 ISSUING AUTHORITY WITHIN FIVE DAYS OF THE DATE OF THE
23 VIOLATION, PROOF THAT HE POSSESSED THE REQUIRED FINANCIAL
24 RESPONSIBILITY AT THE TIME OF THE VIOLATION.
25 (2) NO PERSON SHALL BE PENALIZED FOR MAINTAINING A
26 REGISTERED MOTOR VEHICLE WITHOUT FINANCIAL RESPONSIBILITY
27 UNDER SUBSECTION (C) IF THE REGISTRATION AND LICENSE PLATES
28 WERE SURRENDERED TO THE DEPARTMENT OF TRANSPORTATION AT THE
29 TIME INSURANCE COVERAGE TERMINATED OR FINANCIAL
30 RESPONSIBILITY LAPSED.
19890H0376B2898 - 31 -
1 (H) LACK OF KNOWLEDGE.--NO PERSON, OTHER THAN A REGISTRANT,
2 WHO PROVES THAT HE WAS AUTHORIZED TO DRIVE THE VEHICLE AND THAT
3 HE DID NOT KNOW AND HAD NO REASON TO BELIEVE THAT THE REQUIRED
4 FINANCIAL RESPONSIBILITY HAD NOT BEEN PROVIDED SHALL BE
5 CONVICTED OF FAILING TO PRODUCE PROOF OF FINANCIAL
6 RESPONSIBILITY AS REQUIRED UNDER THIS SECTION. IN SUCH CASE,
7 HOWEVER, THE REGISTRANT MAY BE CHARGED WITH A VIOLATION.
8 § 1791. NOTICE OF AVAILABLE BENEFITS AND LIMITS.
9 IT SHALL BE PRESUMED THAT THE INSURED HAS BEEN ADVISED OF THE
10 BENEFITS AND LIMITS AVAILABLE UNDER THIS CHAPTER PROVIDED THE
11 FOLLOWING NOTICE IN BOLD PRINT OF AT LEAST TEN-POINT TYPE IS
12 GIVEN TO THE APPLICANT AT THE TIME OF APPLICATION FOR ORIGINAL
13 COVERAGE [OR AT THE TIME OF THE FIRST RENEWAL AFTER OCTOBER 1,
14 1984], AND NO OTHER NOTICE OR REJECTION SHALL BE REQUIRED:
15 IMPORTANT NOTICE
16 INSURANCE COMPANIES OPERATING IN THE COMMONWEALTH OF
17 PENNSYLVANIA ARE REQUIRED BY LAW TO MAKE AVAILABLE FOR
18 PURCHASE THE FOLLOWING BENEFITS FOR YOU, YOUR SPOUSE OR
19 OTHER RELATIVES OR MINORS IN YOUR CUSTODY OR IN THE
20 CUSTODY OF YOUR RELATIVES, RESIDING IN YOUR HOUSEHOLD,
21 OCCUPANTS OF YOUR MOTOR VEHICLE OR PERSONS STRUCK BY YOUR
22 MOTOR VEHICLE:
23 (1) MEDICAL BENEFITS, UP TO AT LEAST $100,000.
24 (1.1) EXTRAORDINARY MEDICAL BENEFITS, FROM $100,000
25 TO $1,100,000 WHICH MAY BE OFFERED IN INCREMENTS OF
26 $100,000.
27 (2) INCOME LOSS BENEFITS, UP TO AT LEAST $2,500 PER
28 MONTH UP TO A MAXIMUM BENEFIT OF AT LEAST $50,000.
29 (3) ACCIDENTAL DEATH BENEFITS, UP TO AT LEAST
30 $25,000.
19890H0376B2898 - 32 -
1 (4) FUNERAL BENEFITS, $2,500.
2 (5) AS AN ALTERNATIVE TO PARAGRAPHS (1) THROUGH (4),
3 A COMBINATION BENEFIT, UP TO AT LEAST [$277,500] $177,500
4 OF BENEFITS IN THE AGGREGATE OR BENEFITS PAYABLE UP TO
5 THREE YEARS FROM THE DATE OF THE ACCIDENT, WHICHEVER
6 OCCURS FIRST, SUBJECT TO A LIMIT ON ACCIDENTAL DEATH
7 BENEFIT OF UP TO $25,000 AND A LIMIT ON FUNERAL BENEFIT
8 OF $2,500, PROVIDED THAT NOTHING CONTAINED IN THIS
9 SUBSECTION SHALL BE CONSTRUED TO LIMIT, REDUCE, MODIFY OR
10 CHANGE THE PROVISIONS OF SECTION 1715(D) (RELATING TO
11 AVAILABILITY OF ADEQUATE LIMITS).
12 (6) UNINSURED, UNDERINSURED AND BODILY INJURY
13 LIABILITY COVERAGE UP TO AT LEAST $100,000 BECAUSE OF
14 INJURY TO ONE PERSON IN ANY ONE ACCIDENT AND UP TO AT
15 LEAST $300,000 BECAUSE OF INJURY TO TWO OR MORE PERSONS
16 IN ANY ONE ACCIDENT OR, AT THE OPTION OF THE INSURER, UP
17 TO AT LEAST $300,000 IN A SINGLE LIMIT FOR THESE
18 COVERAGES, EXCEPT FOR POLICIES ISSUED UNDER THE ASSIGNED
19 RISK PLAN. ALSO, AT LEAST $5,000 FOR DAMAGE TO PROPERTY
20 OF OTHERS IN ANY ONE ACCIDENT.
21 ADDITIONALLY, INSURERS MAY OFFER HIGHER BENEFIT LEVELS
22 THAN THOSE ENUMERATED ABOVE AS WELL AS ADDITIONAL
23 BENEFITS. HOWEVER, AN INSURED MAY ELECT TO PURCHASE LOWER
24 BENEFIT LEVELS THAN THOSE ENUMERATED ABOVE.
25 YOUR SIGNATURE ON THIS NOTICE OR YOUR PAYMENT OF ANY
26 RENEWAL PREMIUM EVIDENCES YOUR ACTUAL KNOWLEDGE AND
27 UNDERSTANDING OF THE AVAILABILITY OF THESE BENEFITS AND
28 LIMITS AS WELL AS THE BENEFITS AND LIMITS YOU HAVE
29 SELECTED.
30 IF YOU HAVE ANY QUESTIONS OR YOU DO NOT UNDERSTAND ALL OF
19890H0376B2898 - 33 -
1 THE VARIOUS OPTIONS AVAILABLE TO YOU, CONTACT YOUR AGENT
2 OR COMPANY.
3 IF YOU DO NOT UNDERSTAND ANY OF THE PROVISIONS CONTAINED
4 IN THIS NOTICE, CONTACT YOUR AGENT OR COMPANY BEFORE YOU
5 SIGN.
6 SECTION 15. TITLE 75 IS AMENDED BY ADDING A SECTION TO READ:
7 § 1791.1. DISCLOSURE OF PREMIUM CHARGES.
8 (A) INVOICE.--AT THE TIME OF APPLICATION FOR ORIGINAL
9 COVERAGE AND EVERY RENEWAL THEREAFTER, AN INSURER MUST PROVIDE
10 TO AN INSURED AN ITEMIZED INVOICE LISTING THE MINIMUM AUTOMOBILE
11 INSURANCE COVERAGE LEVELS MANDATED BY THE COMMONWEALTH AND THE
12 PREMIUM CHARGE FOR THE INSURED TO PURCHASE THE MINIMUM MANDATED
13 COVERAGES. THE INVOICE MUST CONTAIN THE FOLLOWING NOTICE IN
14 PRINT OF NO LESS THAN TEN-POINT TYPE:
15 THE LAWS OF THE COMMONWEALTH OF PENNSYLVANIA, AS ENACTED
16 BY THE GENERAL ASSEMBLY, REQUIRE THAT YOU PURCHASE ONLY
17 LIABILITY AND MEDICAL BENEFIT COVERAGES TO COMPLY WITH
18 PENNSYLVANIA LAW. ANY ADDITIONAL COVERAGES OR COVERAGES
19 IN EXCESS OF THE LIMITS REQUIRED BY LAW ARE PROVIDED ONLY
20 AT YOUR REQUEST AS ENHANCEMENTS TO BASIC COVERAGES.
21 THE INSURER SHALL PROVIDE THE ITEMIZED INVOICE TO THE INSURED IN
22 CONJUNCTION WITH THE DECLARATION OF COVERAGE LIMITS AND PREMIUMS
23 FOR THE INSURED'S EXISTING COVERAGES.
24 (B) COST INFORMATION.--UPON AN ORAL OR WRITTEN REQUEST, AN
25 INSURER SUBJECT TO THIS CHAPTER SHALL PROVIDE TO THE REQUESTOR
26 INFORMATION ON THE REQUESTOR'S COST TO PURCHASE FROM THE INSURER
27 THE MINIMUM AUTOMOBILE INSURANCE COVERAGES REQUIRED UNDER THIS
28 CHAPTER. THIS REQUIREMENT SHALL INCLUDE THE REQUEST FOR AND
29 PROVISION OF INFORMATION BY TELEPHONE.
30 SECTION 16. SECTIONS 1792 AND 1797 OF TITLE 75 ARE AMENDED
19890H0376B2898 - 34 -
1 TO READ:
2 § 1792. AVAILABILITY OF UNINSURED, UNDERINSURED, BODILY INJURY
3 LIABILITY AND PROPERTY DAMAGE COVERAGES AND MANDATORY
4 DEDUCTIBLES.
5 (A) AVAILABILITY OF COVERAGES.--EXCEPT FOR POLICIES ISSUED
6 UNDER SUBCHAPTER D (RELATING TO ASSIGNED RISK PLAN), AN INSURER
7 ISSUING A POLICY OF BODILY INJURY LIABILITY COVERAGE PURSUANT TO
8 THIS CHAPTER SHALL MAKE AVAILABLE FOR PURCHASE HIGHER LIMITS OF
9 UNINSURED, UNDERINSURED AND BODILY INJURY LIABILITY COVERAGES UP
10 TO AT LEAST $100,000 BECAUSE OF INJURY TO ONE PERSON IN ANY ONE
11 ACCIDENT AND UP TO AT LEAST $300,000 BECAUSE OF INJURY TO TWO OR
12 MORE PERSONS IN ANY ONE ACCIDENT OR, AT THE OPTION OF THE
13 INSURER, UP TO AT LEAST $300,000 IN A SINGLE LIMIT FOR THESE
14 COVERAGES. ADDITIONALLY, AN INSURER SHALL MAKE AVAILABLE FOR
15 PURCHASE AT LEAST $5,000 BECAUSE OF DAMAGE TO PROPERTY OF OTHERS
16 IN ANY ONE ACCIDENT. HOWEVER, THE EXCLUSION OF AVAILABILITY
17 RELATING TO THE ASSIGNED RISK PLAN SHALL NOT APPLY TO DAMAGE TO
18 PROPERTY OF OTHERS IN ANY ONE ACCIDENT.
19 (B) MANDATORY DEDUCTIBLES.--
20 (1) EVERY PRIVATE PASSENGER AUTOMOBILE INSURANCE POLICY
21 PROVIDING COLLISION COVERAGE ISSUED OR RENEWED ON OR AFTER
22 THE EFFECTIVE DATE OF THIS SUBSECTION, SHALL PROVIDE A
23 DEDUCTIBLE IN AN AMOUNT OF $500 FOR COLLISION COVERAGE,
24 UNLESS THE NAMED INSURED SIGNS A STATEMENT INDICATING THE
25 INSURED IS AWARE THAT THE PURCHASE OF A LOWER DEDUCTIBLE IS
26 PERMISSIBLE AND THAT THERE IS AN ADDITIONAL COST OF
27 PURCHASING A LOWER DEDUCTIBLE, AND THE INSURED AGREES TO
28 ACCEPT IT.
29 (2) UNDER NO CIRCUMSTANCES MAY A PRIVATE PASSENGER
30 AUTOMOBILE INSURANCE POLICY PROVIDE A COLLISION DEDUCTIBLE IN
19890H0376B2898 - 35 -
1 AN AMOUNT LESS THAN $100.
2 (3) ANY PERSON OR ENTITY PROVIDING FINANCING TO THE
3 PURCHASER OF A MOTOR VEHICLE OR OTHERWISE HOLDING A SECURITY
4 INTEREST IN A MOTOR VEHICLE SHALL NOT BE PERMITTED TO REQUIRE
5 THE PURCHASE OF A DEDUCTIBLE FOR LESS THAN $500 FOR COLLISION
6 AND COMPREHENSIVE COVERAGES. ANY FINANCIAL INSTITUTION,
7 INSURER, AGENT OR OTHER PERSON OR ENTITY FOUND TO HAVE
8 VIOLATED THIS PROVISION SHALL BE REQUIRED TO REIMBURSE THE
9 POLICYHOLDER IN AN AMOUNT EQUAL TO THE DIFFERENCE AND, IN
10 ADDITION, SHALL BE REQUIRED TO PAY A CIVIL PENALTY OF $500 TO
11 THE DEPARTMENT OF TRANSPORTATION FOR EACH VIOLATION.
12 (4) WITH THE PURCHASE OF A $500 OR GREATER DEDUCTIBLE,
13 THERE SHALL BE AN IMMEDIATE COMMENSURATE REDUCTION IN RATE
14 FOR COLLISION AND COMPREHENSIVE COVERAGES. THE REDUCTION IN
15 RATE SHALL BE BASED ON THE INSURED'S EXISTING DEDUCTIBLE
16 LEVEL. SHOULD THE INSURED ELECT TO PURCHASE A DEDUCTIBLE IN
17 AN AMOUNT EQUAL TO OR EXCEEDING $100, THERE SHALL BE AN
18 IMMEDIATE COMMENSURATE REDUCTION IN RATE FOR COLLISION AND
19 COMPREHENSIVE COVERAGES, BUT ONLY AS IT RELATES TO THE
20 INSURED'S EXISTING DEDUCTIBLE RATE.
21 § 1797. CUSTOMARY CHARGES FOR TREATMENT.
22 (A) GENERAL RULE.--A PERSON OR INSTITUTION PROVIDING
23 TREATMENT, ACCOMMODATIONS, PRODUCTS OR SERVICES TO AN INJURED
24 PERSON FOR AN INJURY COVERED BY [MEDICAL OR CATASTROPHIC LOSS
25 BENEFITS] LIABILITY OR FIRST PARTY MEDICAL BENEFITS FOR A MOTOR
26 VEHICLE DESCRIBED IN SUBCHAPTER B (RELATING TO MOTOR VEHICLE
27 LIABILITY INSURANCE FIRST PARTY BENEFITS), SHALL NOT [MAKE A
28 CHARGE] REQUIRE, REQUEST OR ACCEPT PAYMENT FOR THE TREATMENT,
29 ACCOMMODATIONS, PRODUCTS OR SERVICES IN EXCESS OF [THE AMOUNT
30 THE PERSON OR INSTITUTION CUSTOMARILY CHARGES FOR LIKE
19890H0376B2898 - 36 -
1 TREATMENT, ACCOMMODATIONS, PRODUCTS AND SERVICES IN CASES
2 INVOLVING NO INSURANCE.] 110% OF THE PREVAILING CHARGE AT THE
3 75TH PERCENTILE; 110% OF THE APPLICABLE FEE SCHEDULE, THE
4 RECOMMENDED FEE OR THE INFLATION INDEX CHARGE; OR 110% OF THE
5 DIAGNOSTIC RELATED GROUPS (DRG) PAYMENT; WHICHEVER PERTAINS TO
6 THE SPECIALTY SERVICE INVOLVED, DETERMINED TO BE APPLICABLE IN
7 THIS COMMONWEALTH UNDER THE MEDICARE PROGRAM FOR COMPARABLE
8 SERVICES AT THE TIME THE SERVICES WERE RENDERED, OR THE
9 PROVIDER'S USUAL AND CUSTOMARY CHARGE, WHICHEVER IS LESS. IF A
10 PREVAILING CHARGE, FEE SCHEDULE, RECOMMENDED FEE, INFLATION
11 INDEX CHARGE OR DRG PAYMENT HAS NOT BEEN CALCULATED UNDER THE
12 MEDICARE PROGRAM FOR A PARTICULAR TREATMENT, ACCOMMODATION,
13 PRODUCT OR SERVICE, THE AMOUNT OF THE PAYMENT MAY NOT EXCEED 80%
14 OF THE PROVIDER'S USUAL AND CUSTOMARY CHARGE. IF ACUTE CARE IS
15 PROVIDED IN AN ACUTE CARE FACILITY TO A PATIENT WITH AN
16 IMMEDIATELY LIFE-THREATENING OR URGENT INJURY BY A LEVEL I OR
17 LEVEL II TRAUMA CENTER ACCREDITED BY THE PENNSYLVANIA TRAUMA
18 SYSTEMS FOUNDATION UNDER THE ACT OF JULY 3, 1985 (P.L.164,
19 NO.45), KNOWN AS THE EMERGENCY MEDICAL SERVICES ACT, OR TO A
20 MAJOR BURN INJURY PATIENT BY A BURN FACILITY WHICH MEETS ALL THE
21 SERVICE STANDARDS OF THE AMERICAN BURN ASSOCIATION, THE AMOUNT
22 OF PAYMENT MAY NOT EXCEED THE USUAL AND CUSTOMARY CHARGE.
23 PROVIDERS SUBJECT TO THIS SECTION MAY NOT BILL THE INSURED
24 DIRECTLY BUT MUST BILL THE INSURER FOR A DETERMINATION OF THE
25 AMOUNT PAYABLE. THE PROVIDER SHALL NOT BILL OR OTHERWISE ATTEMPT
26 TO COLLECT FROM THE INSURED THE DIFFERENCE BETWEEN THE
27 PROVIDER'S FULL CHARGE AND THE AMOUNT PAID BY THE INSURER.
28 (B) PEER REVIEW PLAN FOR CHALLENGES TO REASONABLENESS AND
29 NECESSITY OF TREATMENT.--
30 (1) PEER REVIEW PLAN.--INSURERS SHALL CONTRACT JOINTLY
19890H0376B2898 - 37 -
1 OR SEPARATELY WITH ANY PEER REVIEW ORGANIZATION ESTABLISHED
2 FOR THE PURPOSE OF EVALUATING TREATMENT, HEALTH CARE
3 SERVICES, PRODUCTS OR ACCOMMODATIONS PROVIDED TO ANY INJURED
4 PERSON. SUCH EVALUATION SHALL BE FOR THE PURPOSE OF
5 CONFIRMING THAT SUCH TREATMENT, PRODUCTS, SERVICES OR
6 ACCOMMODATIONS CONFORM TO THE PROFESSIONAL STANDARDS OF
7 PERFORMANCE AND ARE MEDICALLY NECESSARY. AN INSURER'S
8 CHALLENGE MUST BE MADE TO A PRO WITHIN 90 DAYS OF THE
9 INSURER'S RECEIPT OF THE PROVIDER'S BILL FOR TREATMENT OR
10 SERVICES OR MAY BE MADE AT ANY TIME FOR CONTINUING TREATMENT
11 OR SERVICES.
12 (2) PRO RECONSIDERATION.--AN INSURER, PROVIDER OR
13 INSURED MAY REQUEST A RECONSIDERATION BY THE PRO OF THE PRO'S
14 INITIAL DETERMINATION. SUCH A REQUEST FOR RECONSIDERATION
15 MUST BE MADE WITHIN 30 DAYS OF THE PRO'S INITIAL
16 DETERMINATION. IF RECONSIDERATION IS REQUESTED FOR THE
17 SERVICES OF A PHYSICIAN OR OTHER LICENSED HEALTH CARE
18 PROFESSIONAL, THEN THE REVIEWING INDIVIDUAL MUST BE, OR THE
19 REVIEWING PANEL MUST INCLUDE, AN INDIVIDUAL IN THE SAME
20 SPECIALTY AS THE INDIVIDUAL SUBJECT TO REVIEW.
21 (3) PENDING DETERMINATIONS BY PRO.--IF THE INSURER
22 CHALLENGES WITHIN 30 DAYS OF RECEIPT OF A BILL FOR MEDICAL
23 TREATMENT OR REHABILITATIVE SERVICES, THE INSURER NEED NOT
24 PAY THE PROVIDER SUBJECT TO THE CHALLENGE UNTIL A
25 DETERMINATION HAS BEEN MADE BY THE PRO. THE INSURED MAY NOT
26 BE BILLED FOR ANY TREATMENT, ACCOMMODATIONS, PRODUCTS OR
27 SERVICES DURING THE PEER REVIEW PROCESS.
28 (4) APPEAL TO COURT.--A PROVIDER OF MEDICAL TREATMENT OR
29 REHABILITATIVE SERVICES OR MERCHANDISE OR AN INSURED MAY
30 CHALLENGE BEFORE A COURT AN INSURER'S REFUSAL TO PAY FOR PAST
19890H0376B2898 - 38 -
1 OR FUTURE MEDICAL TREATMENT OR REHABILITATIVE SERVICES OR
2 MERCHANDISE, THE REASONABLENESS OR NECESSITY OF WHICH THE
3 INSURER HAS NOT CHALLENGED BEFORE A PRO. CONDUCT CONSIDERED
4 TO BE "WANTON" SHALL BE SUBJECT TO A PAYMENT OF TREBLE
5 DAMAGES TO THE INJURED PARTY.
6 (5) PRO DETERMINATION IN FAVOR OF PROVIDER OR INSURED.--
7 IF A PRO DETERMINES THAT MEDICAL TREATMENT OR REHABILITATIVE
8 SERVICES OR MERCHANDISE WERE MEDICALLY NECESSARY, THE INSURER
9 MUST PAY TO THE PROVIDER THE OUTSTANDING AMOUNT PLUS INTEREST
10 AT 12% PER YEAR ON ANY AMOUNT WITHHELD BY THE INSURER PENDING
11 PRO REVIEW.
12 (6) COURT DETERMINATION IN FAVOR OF PROVIDER OR
13 INSURED.--IF PURSUANT TO PARAGRAPH (4) A COURT DETERMINES
14 THAT MEDICAL TREATMENT OR REHABILITATIVE SERVICES OR
15 MERCHANDISE WERE MEDICALLY NECESSARY, THE INSURER MUST PAY TO
16 THE PROVIDER THE OUTSTANDING AMOUNT PLUS INTEREST AT 12%, AS
17 WELL AS THE COSTS OF THE CHALLENGE AND ALL ATTORNEY FEES.
18 (7) DETERMINATION IN FAVOR OF INSURER.--IF IT IS
19 DETERMINED BY A PRO OR COURT THAT A PROVIDER HAS PROVIDED
20 UNNECESSARY MEDICAL TREATMENT OR REHABILITATIVE SERVICES OR
21 MERCHANDISE OR THAT FUTURE PROVISION OF SUCH TREATMENT,
22 SERVICES OR MERCHANDISE WILL BE UNNECESSARY, OR BOTH, THE
23 PROVIDER MAY NOT COLLECT PAYMENT FOR THE MEDICALLY
24 UNNECESSARY TREATMENT, SERVICES OR MERCHANDISE. IF THE
25 PROVIDER HAS COLLECTED SUCH PAYMENT, IT MUST RETURN THE
26 AMOUNT PAID PLUS INTEREST AT 12% PER YEAR WITHIN 30 DAYS. IN
27 NO CASE DOES THE FAILURE OF THE PROVIDER TO RETURN THE SAID
28 PAYMENT OBLIGATE THE INSURED TO ASSUME RESPONSIBILITY FOR
29 PAYMENT FOR THE TREATMENT, SERVICES OR MERCHANDISE.
30 (C) REVIEW AUTHORIZED.--BY DECEMBER 1, 1991, THE LEGISLATIVE
19890H0376B2898 - 39 -
1 BUDGET AND FINANCE COMMITTEE SHALL COMMENCE A REVIEW OF THE
2 IMPACT OF THIS SECTION. SUCH REVIEW MAY BE CONDUCTED BIENNIALLY.
3 SECTION 17. TITLE 75 IS AMENDED BY ADDING SECTIONS TO READ:
4 § 1799.1. RESTRAINT SYSTEM.
5 (A) GENERAL RULE.--ALL INSURANCE COMPANIES AUTHORIZED TO
6 WRITE PRIVATE PASSENGER AUTOMOBILE INSURANCE WITHIN THIS
7 COMMONWEALTH SHALL REDUCE THE PREMIUMS FOR FIRST PARTY COVERAGES
8 AS DEFINED IN SECTION 1712 (RELATING TO AVAILABILITY OF
9 BENEFITS) FOR ANY INSURED VEHICLE EQUIPPED WITH A PASSIVE
10 RESTRAINT SYSTEM FOR FRONT SEAT PASSENGERS: 15% FOR PASSIVE SEAT
11 BELTS, 20% FOR ONE AIR BAG ON THE DRIVER'S SIDE OF THE VEHICLE
12 OR 30% FOR TWO AIR BAGS.
13 (B) DEFINITIONS.--AS USED IN THIS SECTION, THE FOLLOWING
14 WORDS AND PHRASES SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS
15 SECTION UNLESS THE CONTEXT CLEARLY INDICATES OTHERWISE:
16 "PASSIVE RESTRAINT." ANY FRONTAL AUTOMOBILE CRASH PROTECTION
17 SYSTEM WHICH REQUIRES NO ACTION OF THE VEHICLE OCCUPANTS AND
18 COMPLIES WITH STANDARD 751.208 OF THE NATIONAL TRAFFIC SAFETY
19 ADMINISTRATION OR ITS SUCCESSOR.
20 § 1799.2. ANTITHEFT DEVICES.
21 (A) GENERAL RULE.--ALL INSURANCE COMPANIES AUTHORIZED TO
22 WRITE PRIVATE PASSENGER AUTOMOBILE INSURANCE WITHIN THIS
23 COMMONWEALTH SHALL REDUCE BY 10% THE PREMIUMS FOR COMPREHENSIVE
24 COVERAGE FOR ALL INSURED VEHICLES EQUIPPED WITH PASSIVE
25 ANTITHEFT DEVICES.
26 (B) DEFINITIONS.--AS USED IN THIS SECTION, THE FOLLOWING
27 WORDS AND PHRASES SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS
28 SECTION UNLESS THE CONTEXT CLEARLY INDICATES OTHERWISE:
29 "PASSIVE ANTITHEFT DEVICE." ANY ITEM OR SYSTEM INSTALLED IN
30 AN AUTOMOBILE WHICH IS ACTIVATED AUTOMATICALLY WHEN THE OPERATOR
19890H0376B2898 - 40 -
1 TURNS THE IGNITION KEY TO THE OFF POSITION AND WHICH IS DESIGNED
2 TO PREVENT UNAUTHORIZED USE, AS PRESCRIBED BY REGULATIONS OF THE
3 DEPARTMENT. THE TERM DOES NOT INCLUDE AN IGNITION INTERLOCK
4 PROVIDED AS A STANDARD ANTITHEFT DEVICE BY THE ORIGINAL
5 AUTOMOBILE MANUFACTURER.
6 § 1799.3. DRIVER IMPROVEMENT COURSE DISCOUNTS.
7 (A) MOTOR VEHICLE DRIVER IMPROVEMENT COURSE.--EVERY INSURER
8 WHICH WRITES A POLICY OF AUTOMOBILE INSURANCE IN THIS
9 COMMONWEALTH SHALL REDUCE BY 5% THE TOTAL PREMIUM CHARGED FOR
10 EACH VEHICLE FOR THOSE INSUREDS 55 YEARS OF AGE AND OLDER FOR A
11 THREE-YEAR PERIOD AFTER THEY SUCCESSFULLY COMPLETE A MOTOR
12 VEHICLE DRIVER IMPROVEMENT COURSE MEETING THE STANDARDS OF THE
13 DEPARTMENT.
14 (B) COMPLETION OF COURSE.--UPON SUCCESSFULLY COMPLETING THE
15 APPROVED COURSE, EACH PARTICIPANT SHALL BE ISSUED, BY THE
16 COURSE'S SPONSORING AGENCY, A CERTIFICATE WHICH SHALL BE THE
17 BASIS OF QUALIFICATION FOR THE DISCOUNT ON INSURANCE.
18 (C) CONTINUING ELIGIBILITY.--EACH PARTICIPANT SHALL TAKE AN
19 APPROVED COURSE EVERY THREE YEARS TO CONTINUE TO BE ELIGIBLE FOR
20 THE DISCOUNT ON INSURANCE. EACH INSURER MAY REQUIRE, AS A
21 CONDITION OF PROVIDING AND MAINTAINING THE DISCOUNT, THAT THE
22 INSURED FOR A THREE-YEAR PERIOD AFTER COURSE COMPLETION:
23 (1) NOT BE INVOLVED IN AN ACCIDENT FOR WHICH THE INSURED
24 IS CHARGEABLE; AND
25 (2) NOT HAVE ANY ACCUMULATION OF POINTS FOR A TRAFFIC
26 VIOLATION.
27 (D) NONAPPLICABILITY.--THIS SECTION SHALL NOT APPLY IN THE
28 EVENT THE APPROVED COURSE IS SPECIFIED BY A COURT OR OTHER
29 GOVERNMENTAL ENTITY RESULTING FROM A MOVING TRAFFIC VIOLATION.
30 § 1799.4. GOOD DRIVER DISCOUNT.
19890H0376B2898 - 41 -
1 EVERY INSURER WHICH WRITES A POLICY OF AUTOMOBILE INSURANCE
2 IN THIS COMMONWEALTH SHALL REDUCE BY 10% THE TOTAL PREMIUM
3 CHARGED FOR EACH VEHICLE AS TO WHICH NO AT-FAULT CLAIM HAS BEEN
4 FILED FOR FIVE CONSECUTIVE YEARS IMMEDIATELY PRECEDING THE
5 PERIOD FOR WHICH THE POLICY IS WRITTEN IF NONE OF THE DRIVERS
6 NAMED IN THE POLICY HAS COMMITTED A MOVING VIOLATION DURING THE
7 FIVE-YEAR PERIOD WHICH RESULTED IN A CONVICTION OR WHICH REMAINS
8 UNRESOLVED.
9 (1) IF A VIOLATION WHICH IS UNRESOLVED AT THE TIME THE
10 POLICY IS WRITTEN RESULTS IN AN ACQUITTAL, THE DISCOUNT SHALL
11 BE ALLOWED EITHER AS A REFUND OR AS A CREDIT ON A SUBSEQUENT
12 POLICY.
13 (2) FOR THE PURPOSE OF THIS SECTION, THE TERM
14 "CONVICTION" INCLUDES A PLEA OF GUILTY, A PLEA OF NOLO
15 CONTENDERE, A FINDING OF GUILTY BY A COURT, AN UNVACATED
16 FORFEITURE OF BAIL OR COLLATERAL DEPOSITED TO SECURE A
17 DEFENDANT'S APPEARANCE IN COURT, AND A PAYMENT BY ANY PERSON
18 CHARGED WITH A VIOLATION OF THE FINE PRESCRIBED FOR THE
19 VIOLATION.
20 § 1799.5. LIMIT ON SURCHARGES, LATE PENALTIES AND POINT
21 ASSIGNMENTS.
22 (A) PROPERTY DAMAGE CLAIMS.--NO SURCHARGE, RATE PENALTY OR
23 DRIVER RECORD POINT ASSIGNMENT SHALL BE MADE IF THE AGGREGATE
24 COST TO THE INSURER OF REPAIR OR REPLACEMENT OF PROPERTY DAMAGED
25 OR BODILY INJURY LIABILITY IS DETERMINED TO BE LESS THAN $650 IN
26 EXCESS OF ANY SELF-INSURED RETENTION OR DEDUCTIBLE APPLICABLE TO
27 THE NAMED INSURED.
28 (B) FIRST PARTY MEDICAL CLAIMS.--NO SURCHARGE, RATE PENALTY
29 OR DRIVER RECORD POINT ASSIGNMENT SHALL BE MADE AS A RESULT OF
30 AN INSURER PAYING A FIRST PARTY MEDICAL CLAIM.
19890H0376B2898 - 42 -
1 (C) NOTICE TO INSURED.--IF AN INSURER MAKES A DETERMINATION
2 TO IMPOSE A SURCHARGE, RATE PENALTY OR DRIVER RECORD POINT
3 ASSIGNMENT, THE INSURER SHALL INFORM THE NAMED INSURED OF THE
4 DETERMINATION AND SHALL SPECIFY THE MANNER IN WHICH THE
5 SURCHARGE, RATE PENALTY OR DRIVER RECORD POINT ASSIGNMENT WAS
6 MADE AND CLEARLY IDENTIFY THE AMOUNT OF THE SURCHARGE OR RATE
7 PENALTY ON THE PREMIUM NOTICE FOR AS LONG AS THE SURCHARGE OR
8 RATE PENALTY IS IN EFFECT.
9 (D) ADJUSTMENT OF CAP.--THE INSURANCE DEPARTMENT, AT LEAST
10 ONCE EVERY THREE YEARS, SHALL ADJUST THE $650 CAP OR LIMIT ON
11 THE PROPERTY DAMAGE OR BODILY INJURY LIABILITY SURCHARGE, RATE
12 PENALTY OR DRIVER RECORD POINT ASSIGNMENT SCHEME RELATIVE TO
13 CHANGES IN THE COMPONENTS OF THE CONSUMER PRICE INDEX (URBAN) TO
14 MEASURE SEASONALLY ADJUSTED CHANGES IN MEDICAL CARE AND
15 AUTOMOBILE MAINTENANCE AND REPAIR COSTS AND SHALL MAKE SUCH
16 ADJUSTMENTS TO THE CAP OR LIMIT AS SHALL BE NECESSARY TO
17 MAINTAIN THE SAME RATE OF CHANGE IN THE CAP OR LIMIT AS HAS
18 OCCURRED IN THE CONSUMER PRICE INDEX (URBAN). SUCH ADJUSTMENTS
19 MAY BE ROUNDED OFF TO THE NEAREST $50 FIGURE.
20 § 1799.6. EXAMINATION OF VEHICLE REPAIRS.
21 UPON REQUEST OF THE INSURER, AN INSURANCE ADJUSTER SHALL BE
22 AFFORDED A REASONABLE OPPORTUNITY TO ENTER A REPAIR FACILITY AND
23 EXAMINE COVERED REPAIRS BEING MADE TO A SPECIFIC INSURED'S
24 VEHICLE AT A MUTUALLY ARRANGED TIME DURING REGULAR BUSINESS
25 HOURS.
26 § 1799.7. CONDUCT OF MARKET STUDY.
27 (A) DUTY OF INSURANCE DEPARTMENT.--THE INSURANCE DEPARTMENT
28 MAY AUTHORIZE A MARKET CONDUCT STUDY OF PRIVATE PASSENGER
29 AUTOMOBILE INSURERS.
30 (B) PURPOSES OF STUDY.--THE PURPOSES OF THE STUDY SHALL BE
19890H0376B2898 - 43 -
1 TO:
2 (1) DETERMINE EXTENT OF INSURER COMPETITION.
3 (2) DETERMINE THE NUMBER OF UNINSURED MOTORISTS.
4 (3) DETERMINE EXTENT OF INSURER PROFITS AND LOSSES.
5 (4) DETERMINE IF ALL RATE FILINGS ARE REASONABLE IN
6 TERMS OF STATUTORY AND REGULATORY REQUIREMENTS.
7 (5) DETERMINE THE VALIDITY OF EXISTING RATING
8 TERRITORIES AND IF RATE DIFFERENTIALS BETWEEN OR AMONG RATING
9 TERRITORIES IS JUSTIFIED BY THE LOSSES.
10 (6) DETERMINE IF THE VARIOUS POLICIES FOR AUTOMOBILE
11 INSURANCE WRITTEN IN THIS COMMONWEALTH ARE AVAILABLE EQUALLY
12 TO EACH RESIDENT.
13 § 1799.8. CONDUCT OF RANDOM FIELD SURVEYS.
14 (A) AUTHORITY.--IN FURTHERANCE OF THE PURPOSES AND GOALS OF
15 SECTION 1799.7 (RELATING TO CONDUCT OF MARKET STUDY), THE
16 INSURANCE DEPARTMENT MAY CONDUCT FIELD SURVEYS IN THIS
17 COMMONWEALTH. THE FIELD SURVEY SHALL:
18 (1) DETERMINE THE GEOGRAPHICAL AREA TO BE SURVEYED.
19 (2) ESTABLISH A LIST OF INSURANCE PRODUCERS IN THE
20 SURVEYED AREA OR ITS IMMEDIATE NEIGHBORHOOD.
21 (3) CONSTRUCT HYPOTHETICAL RISK EXAMPLES AND OBTAIN
22 PREMIUM QUOTATIONS.
23 (4) DEVELOP A TENTATIVE LIST OF QUESTIONS FOR THE
24 AGENTS.
25 (5) INTERVIEW AGENTS AT THEIR OFFICES AND OBTAIN PREMIUM
26 QUOTATIONS FROM THE AGENT FOR EACH COMPANY REPRESENTED BY
27 THAT AGENT.
28 (6) SORT AND CATEGORIZE INFORMATION.
29 (7) CONSTRUCT A TABLE DISPLAYING QUOTATIONS BY INSURER,
30 AREA AND RISK.
19890H0376B2898 - 44 -
1 (8) WRITE A REPORT OF THE FINDINGS.
2 (B) CONJUNCTIVE ANALYSIS OF MARKET STUDY AND FIELD SURVEY.--
3 THE DEPARTMENT MAY ANALYZE INFORMATION COLLECTED FROM INSURANCE
4 COMPANIES UNDER SECTION 1799.7 IN CONJUNCTION WITH INFORMATION
5 COLLECTED FROM FIELD SURVEYS. THIS ANALYSIS MAY BE ONGOING.
6 § 1799.9. INSURANCE IN CITIES OF THE FIRST CLASS.
7 (A) STUDY BY THE INSURANCE DEPARTMENT.--BY FEBRUARY 1, 1991,
8 THE INSURANCE DEPARTMENT SHALL COMMENCE A STUDY OF THE USE OF A
9 SINGLE CARRIER FOR AUTOMOBILE INSURANCE IN CITIES OF THE FIRST
10 CLASS. THE TERM "SINGLE CARRIER" INCLUDES A PRIVATE INSURANCE
11 COMPANY OR A PUBLIC AUTHORITY OR AGENCY SPECIFICALLY CREATED FOR
12 THE IMPLEMENTATION OF THIS SECTION. UPON COMPLETION, THE STUDY
13 SHALL BE DELIVERED TO THE MAJORITY AND MINORITY LEADERS OF THE
14 SENATE AND THE HOUSE OF REPRESENTATIVES. THE STUDY SHALL
15 INCLUDE, AT A MINIMUM, THE FOLLOWING COMPONENTS:
16 (1) AN ASSESSMENT OF THE NUMBER OF UNINSURED VEHICLES IN
17 CITIES OF THE FIRST CLASS.
18 (2) AN ASSESSMENT OF THE NUMBER OF INSURED VEHICLES IN
19 CITIES OF THE FIRST CLASS.
20 (3) AN ANALYSIS OF SOURCES OF AUTOMOBILE INSURANCE, BY
21 COMPANY, OF VEHICLES IN CITIES OF THE FIRST CLASS. THE
22 ANALYSIS SHALL INCLUDE A DETERMINATION OF THE NUMBER OF
23 VEHICLES INSURED IN CITIES OF THE FIRST CLASS IN BOTH THE
24 VOLUNTARY MARKET AND THE ASSIGNED RISK PLAN BY EACH INSURANCE
25 CARRIER LICENSED TO PROVIDE AUTOMOBILE INSURANCE IN THIS
26 COMMONWEALTH.
27 (4) AN ANALYSIS OF THE COSTS TO MOTORISTS TO INSURE A
28 VEHICLE IN CITIES OF THE FIRST CLASS IN THE VOLUNTARY MARKET
29 AND THROUGH THE ASSIGNED RISK PLAN.
30 (5) AN ASSESSMENT OF THE IMPACT OF "TAKE-OUT" PROVISIONS
19890H0376B2898 - 45 -
1 ON THE VOLUNTARY MARKET PLACE IN CITIES OF THE FIRST CLASS.
2 (6) A DETERMINATION AS TO THE NUMBER OF LAWSUITS FILED
3 FOR BODILY INJURY CLAIMS; THE AMOUNT AND TYPE OF DAMAGES
4 REQUESTED IN SUCH LAWSUITS; THE PERCENTAGE OF CLAIMS SETTLED
5 BEFORE COURT AND THE AMOUNT OF SETTLEMENT; THE PERCENTAGE OF
6 LAWSUITS DECIDED BY THE COURT AND THE AMOUNT OF DAMAGES
7 AWARDED; AND THE FEES CHARGED BY LAWYERS FOR REPRESENTING
8 CLAIMS.
9 (7) AN ASSESSMENT OF THE FREQUENCY, TYPE AND AMOUNT OF
10 PHYSICAL DAMAGE CLAIMS AND FIRST PARTY MEDICAL PAYMENTS.
11 (8) A DETERMINATION AS TO WHETHER THE USE OF A SINGLE
12 CARRIER IN CITIES OF THE FIRST CLASS WOULD HAVE A POSITIVE
13 FINANCIAL IMPACT ON ALL MOTORISTS IN SUCH CITIES AND IN THIS
14 COMMONWEALTH. SUCH DETERMINATION SHALL INCLUDE AN ANALYSIS OF
15 THE USE OF A PUBLIC AUTHORITY OR AGENCY AS THE SINGLE CARRIER
16 AND OF ITS POTENTIAL FOR PROVIDING LOWER RATES WHEN COMPARED
17 TO USE OF A PRIVATE INSURANCE COMPANY AS A SINGLE CARRIER.
18 (9) A LEGAL OPINION AS TO WHETHER THE USE OF A SINGLE
19 CARRIER IN CITIES OF THE FIRST CLASS IS PERMISSIBLE UNDER THE
20 CONSTITUTION AND LAWS OF THE COMMONWEALTH.
21 (B) DUTIES OF INSURANCE COMPANIES.--INSURANCE COMPANIES
22 LICENSED IN THIS COMMONWEALTH TO WRITE POLICIES OF AUTOMOBILE
23 INSURANCE COVERAGE SHALL COOPERATE WITH THE INSURANCE DEPARTMENT
24 STUDY AS DESCRIBED IN SUBSECTION (A). COOPERATION SHALL INCLUDE,
25 BUT NOT BE LIMITED TO, THE PROVISION OF INFORMATION BY INSURANCE
26 COMPANIES WITHIN REASONABLE TIME FRAMES AS REQUESTED BY THE
27 DEPARTMENT, IF THE INFORMATION IS AVAILABLE, TO BE USED TO
28 ADDRESS THE VARIOUS COMPONENTS OF THE STUDY DESCRIBED IN
29 SUBSECTION (A). SUCH INFORMATION MAY BE USED BY THE DEPARTMENT
30 ONLY FOR PURPOSES OF THIS STUDY.
19890H0376B2898 - 46 -
1 (C) IMPLEMENTATION OF SINGLE CARRIER INSURANCE PROGRAM IN
2 CITIES OF THE FIRST CLASS.--IF A STUDY UNDERTAKEN UNDER
3 SUBSECTION (A), SECTION 1799.7 (RELATING TO CONDUCT OF MARKET
4 STUDY) OR SECTION 1799.8 (RELATING TO CONDUCT OF RANDOM FIELD
5 SURVEYS) PROVIDES INFORMATION SUPPORTING A CONCLUSION THAT A
6 SINGLE CARRIER IN CITIES OF THE FIRST CLASS WILL IMPROVE THE
7 AVAILABILITY AND AFFORDABILITY OF AUTOMOBILE INSURANCE IN SUCH
8 CITIES AND IN THIS COMMONWEALTH, THE INSURANCE DEPARTMENT MAY
9 IMPLEMENT THE PROGRAM. IF THE PROGRAM IS IMPLEMENTED, THE
10 INSURANCE DEPARTMENT SHALL DEVELOP REGULATIONS DETAILING THE
11 COMPONENTS AND OPERATION OF A SINGLE CARRIER INSURANCE PROGRAM
12 FOR CITIES OF THE FIRST CLASS AND SHALL CONTRACT WITH A SINGLE
13 CARRIER TO IMPLEMENT SUCH A PROGRAM. THE CONTRACT MUST BE
14 SECURED FOLLOWING THE REQUEST FOR PROPOSAL PROCESS USED BY THE
15 COMMONWEALTH TO SECURE GOODS AND SERVICES. THE REQUEST FOR
16 PROPOSAL PROCESS SHALL INCLUDE A PROCEDURE FOR THE
17 PREQUALIFICATION OF BIDDERS BASED ON FINANCIAL ABILITY TO
18 ADMINISTER THE PROGRAM. ANY CONTRACT SIGNED BY THE DEPARTMENT
19 MUST INCLUDE THE FOLLOWING PROVISIONS:
20 (1) PARTICIPATION IN THE PROGRAM IS VOLUNTARY BY
21 MOTORISTS LIVING IN CITIES OF THE FIRST CLASS.
22 (2) ALL DRIVERS, EXCEPT THOSE DETERMINED TO BE
23 INELIGIBLE AS DEFINED IN SUBSECTION (D), SHALL BE AFFORDED
24 THE OPPORTUNITY TO PURCHASE AUTOMOBILE INSURANCE COVERAGE
25 THROUGH THE PROGRAM.
26 (3) PREFERRED PROVIDER ARRANGEMENTS OR A FEE SCHEDULE
27 MAY BE DEVELOPED IN THE PROGRAM WITH SERVICE PROVIDERS FOR
28 PHYSICAL DAMAGE REPAIR OR REPLACEMENT AND MEDICAL BENEFITS;
29 SUCH ARRANGEMENTS SHALL BE ACCESSIBLE TO THE INSUREDS.
30 (4) FOR PHYSICAL DAMAGE COVERAGE, THE PROGRAM MAY
19890H0376B2898 - 47 -
1 PROVIDE FOR A MINIMUM DEDUCTIBLE HIGHER THAN THAT PROVIDED
2 FOR IN THIS SUBCHAPTER, BUT IN NO CASE MAY THE MINIMUM
3 DEDUCTIBLE BE GREATER THAN $1,000.
4 (5) ANTIFRAUD MECHANISMS MAY BE ESTABLISHED, INCLUDING
5 THE INSPECTION OF PHYSICAL DAMAGE CLAIMS, INVESTIGATION OF
6 SUSPICIOUS CLAIMS, AND CASE MANAGEMENT FOR SELECTED MEDICAL
7 SERVICES.
8 (6) A CANCELLATION CLAUSE PERMITTING THE SINGLE CARRIER
9 TO CANCEL THE CONTRACT WITH 90 DAYS' NOTICE SHOULD ENROLLMENT
10 IN THE PROGRAM FALL BELOW A PERCENTAGE OF THE VEHICLES
11 REGISTERED IN CITIES OF THE FIRST CLASS. THE PERCENTAGE SHALL
12 BE ESTABLISHED IN THE CONTRACT.
13 (7) THE CONTRACT SHALL BE VALID FOR A PERIOD OF NOT LESS
14 THAN FIVE YEARS UNLESS A SHORTER CONTRACT PERIOD IS PROPOSED
15 BY THE SINGLE CARRIER.
16 (8) RATES CHARGED IN THE PROGRAM SHALL BE LOWER THAN
17 RATES AVAILABLE IN THE VOLUNTARY MARKET AND SHALL BE INCLUDED
18 IN THE CONTRACT AND SHALL BE VALID FOR A PERIOD OF NOT LESS
19 THAN TWO YEARS. RATE INCREASES AFTER THIS PERIOD SHALL BE
20 SUBJECT TO APPROVAL AS PROVIDED IN THE ACT OF JUNE 11, 1947
21 (P.L.538, NO.246), KNOWN AS THE CASUALTY AND SURETY RATE
22 REGULATORY ACT.
23 (D) INELIGIBLE DRIVER.--FOR PURPOSES OF SUBSECTION(C), THE
24 TERM "INELIGIBLE DRIVER" SHALL MEAN A PERSON WHO MEETS AT LEAST
25 ONE OF THE FOLLOWING CRITERIA:
26 (1) THE PERSON HAS, WITHIN FIVE YEARS OF THE DATE OF
27 APPLICATION FOR INSURANCE, BEEN CONVICTED OF A VIOLATION OF:
28 (I) SECTION 3731 (RELATING TO DRIVING UNDER THE
29 INFLUENCE OF ALCOHOL OR A CONTROLLED SUBSTANCE);
30 (II) 18 PA.C.S. § 4117 (RELATING TO AUTOMOBILE
19890H0376B2898 - 48 -
1 INSURANCE FRAUD); OR
2 (III) ANY FELONY INVOLVING THE USE OF A MOTOR
3 VEHICLE.
4 (2) THE PERSON HAS PREVIOUSLY BEEN INSURED UNDER A MOTOR
5 VEHICLE INSURANCE POLICY AND HAS MADE MORE THAN ONE CLAIM
6 UNDER AN INSURANCE POLICY, WITHIN 36 MONTHS OF THE DATE OF
7 APPLICATION FOR INSURANCE UNDER THIS SECTION, ARISING OUT OF
8 AN ACCIDENT WHERE THE INSURED WAS FOUND TO BE SUBSTANTIALLY
9 AT FAULT, THAT IS, MORE THAN 50%, AND WHERE A PAYMENT WAS
10 MADE BY THE INSURER THAT EXCEEDED 50% OF THE ANNUAL PREMIUM
11 FOR THE POLICY OF INSURANCE.
12 (3) THE PERSON'S OPERATING PRIVILEGE HAS BEEN SUSPENDED
13 OR REVOKED WITHIN THE PRECEDING 36-MONTH PERIOD.
14 (4) THE PERSON'S DRIVING RECORD SHOWS SIX OR MORE POINTS
15 ASSESSED UNDER SECTION 1535 (RELATING TO SCHEDULE OF
16 CONVICTIONS AND POINTS) FOR VIOLATIONS THAT OCCURRED WITHIN
17 36 MONTHS OF THE DATE OF APPLICATION FOR INSURANCE UNDER THIS
18 SECTION.
19 SECTION 18. SECTION 1960 OF TITLE 75 IS AMENDED TO READ:
20 § 1960. REINSTATEMENT OF OPERATING PRIVILEGE OR VEHICLE
21 REGISTRATION.
22 THE DEPARTMENT SHALL CHARGE A FEE OF $25 OR, IF SECTION
23 1786(C) (RELATING TO REQUIRED FINANCIAL RESPONSIBILITY) APPLIES,
24 A FEE OF $50 TO RESTORE A PERSON'S OPERATING PRIVILEGE OR THE
25 REGISTRATION OF A VEHICLE FOLLOWING A SUSPENSION OR REVOCATION.
26 SECTION 19. TITLE 75 IS AMENDED IS AMENDED BY ADDING A
27 SECTION TO READ:
28 § 3731.1. OPERATORS OF COMMERCIAL VEHICLES.
29 (A) ADDITIONAL OFFENSE DEFINED.--A PERSON MAY NOT DRIVE,
30 OPERATE OR BE IN ACTUAL PHYSICAL CONTROL OF THE MOVEMENT OF A
19890H0376B2898 - 49 -
1 COMMERCIAL VEHICLE WHEN THE AMOUNT OF ALCOHOL BY WEIGHT IN THE
2 BLOOD OF THE PERSON IS 0.04% OR GREATER.
3 (B) DISQUALIFICATION.--UPON RECEIPT OF A CERTIFIED COPY OF A
4 CONVICTION OF A VIOLATION OF THIS SECTION, THE DEPARTMENT SHALL
5 DISQUALIFY THE PERSON FROM DRIVING A COMMERCIAL MOTOR VEHICLE
6 FOR A PERIOD OF ONE YEAR. TWO OR MORE CONVICTIONS OF A VIOLATION
7 OF THIS SECTION SHALL RESULT IN THE DEPARTMENT DISQUALIFYING THE
8 PERSON FROM DRIVING A COMMERCIAL MOTOR VEHICLE, AS PROVIDED IN
9 49 C.F.R. § 383.51 (RELATING TO DISQUALIFICATION OF DRIVERS).
10 (C) DEFINITIONS.--AS USED IN THIS SECTION, "COMMERCIAL
11 VEHICLE" MEANS ANY OF THE FOLLOWING:
12 (1) A VEHICLE WITH A GROSS VEHICLE WEIGHT RATING OF
13 26,001 OR MORE POUNDS.
14 (2) A COMBINATION OF VEHICLES WITH A GROSS COMBINATION
15 WEIGHT RATING OF 26,001 OR MORE POUNDS, INCLUDING THE GROSS
16 VEHICLE WEIGHT RATING OF THE TOWED UNIT OR UNITS.
17 (3) A VEHICLE WHICH IS DESIGNED TO TRANSPORT 16 OR MORE
18 PASSENGERS, INCLUDING THE DRIVER.
19 (4) A VEHICLE WHICH IS TRANSPORTING HAZARDOUS MATERIAL
20 AND WHICH IS REQUIRED TO BE PLACARDED FOR HAZARDOUS
21 MATERIALS.
22 SECTION 20. SECTION 4703(D) OF TITLE 75 IS AMENDED TO READ:
23 § 4703. OPERATION OF VEHICLE WITHOUT OFFICIAL CERTIFICATE OF
24 INSPECTION.
25 * * *
26 (D) NEWLY-PURCHASED VEHICLES.--NEWLY-PURCHASED VEHICLES MAY
27 BE DRIVEN WITHOUT A CURRENT INSPECTION CERTIFICATE FOR [FIVE]
28 TEN DAYS AFTER SALE OR RESALE OR ENTRY INTO THIS COMMONWEALTH,
29 WHICHEVER OCCURS LATER.
30 * * *
19890H0376B2898 - 50 -
1 SECTION 21. SECTION 4727 OF TITLE 75 IS AMENDED BY ADDING A
2 SUBSECTION TO READ:
3 § 4727. ISSUANCE OF CERTIFICATE OF INSPECTION.
4 * * *
5 (D) PROOF OF INSURANCE.--NO CERTIFICATE OF INSPECTION SHALL
6 BE ISSUED UNLESS A FINANCIAL RESPONSIBILITY IDENTIFICATION CARD
7 INDICATING PROPER PROOF OF FINANCIAL RESPONSIBILITY AS REQUIRED
8 BY LAW IS SUBMITTED TO THE INSPECTION OFFICIAL, WHO SHALL, ON A
9 FORM PROVIDED BY THE DEPARTMENT, KEEP A RECORD OF THE NAME OF
10 THE INSURED, THE VEHICLE TAG NUMBER, THE ISSUING COMPANY, THE
11 POLICY NUMBER, AND THE EXPIRATION DATE. IN THOSE CASES WHERE THE
12 INSURED FAILS TO PRESENT PROOF OF FINANCIAL RESPONSIBILITY TO
13 THE INSPECTION OFFICIAL, THE INSPECTION OFFICIAL, IN ADDITION TO
14 DENYING A CERTIFICATE OF INSPECTION, MAY PROVIDE NOTIFICATION TO
15 THE DEPARTMENT ON THE FORM PROVIDED BY THE DEPARTMENT WITHIN 30
16 DAYS OF THE INSURED'S FAILURE TO PRESENT PROOF OF FINANCIAL
17 RESPONSIBILITY.
18 SECTION 22. SECTION 6104 OF TITLE 75 IS AMENDED BY ADDING A
19 SUBSECTION TO READ:
20 § 6104. ADMINISTRATIVE DUTIES OF DEPARTMENT.
21 * * *
22 (F) FURNISHING INFORMATION TO MUNICIPAL POLICE DEPARTMENTS
23 AND SHERIFFS' OFFICES.--THE DEPARTMENT SHALL REGULARLY TRANSMIT
24 TO EACH MUNICIPAL POLICE DEPARTMENT AND SHERIFF'S OFFICE A LIST
25 OF THE NAMES OF PERSONS RESIDING WITHIN ITS JURISDICTION WHOSE
26 OPERATING PRIVILEGE OR REGISTRATION HAS BEEN SUSPENDED OR
27 REVOKED.
28 SECTION 23. TITLE 75 IS AMENDED BY ADDING A SECTION TO READ:
29 § 6308.1. PAYMENT TO POLICE OR SHERIFF'S OFFICE OF ONE-HALF OF
30 REINSTATEMENT FEE.
19890H0376B2898 - 51 -
1 THE POLICE DEPARTMENT OR SHERIFF'S OFFICE WHOSE OFFICERS OR
2 DEPUTIES SEIZE A SUSPENDED OR REVOKED DRIVER'S LICENSE OR
3 VEHICLE REGISTRATION SHALL, IN EVERY CASE WHERE THE DRIVER'S
4 LICENSE OR VEHICLE REGISTRATION IS REINSTATED, RECEIVE FROM THE
5 DEPARTMENT ONE-HALF OF THE FEE IMPOSED UNDER SECTION 1960
6 (RELATING TO REINSTATEMENT OF OPERATING PRIVILEGE OR VEHICLE
7 REGISTRATION).
8 SECTION 24. (A) RATE FREEZE.--IN ORDER TO PROVIDE STABILITY
9 DURING THE PERIOD OF TRANSITION LEADING UP TO THE EFFECTIVE DATE
10 OF THE AMENDMENTS TO 75 PA.C.S. CH. 17 (RELATING TO FINANCIAL
11 RESPONSIBILITY) AND TO ASSURE FAIR AND EQUITABLE TREATMENT OF
12 INSURER AND INSURERS, IT IS IN THE BEST INTEREST OF THE
13 COMMONWEALTH TO TEMPORARILY SUSPEND THE ADOPTION OF NEW RATES.
14 NOTWITHSTANDING ANY PROVISIONS TO THE CONTRARY, ALL RATES
15 APPROVED PRIOR TO DECEMBER 1, 1989, AND IN EFFECT AS OF THAT
16 DATE MAY NOT BE CHANGED UNTIL JUNE 1, 1990. ANY RATE REQUESTS
17 FILED WITH THE INSURANCE DEPARTMENT AND NOT APPROVED AS OF
18 DECEMBER 1, 1989, SHALL BE DISAPPROVED AS BEING IN CONFLICT WITH
19 THIS ACT.
20 (B) RATE FILING.--ALL INSURERS SUBJECT TO 75 PA.C.S. CH. 17
21 SHALL FILE FOR NEW RATES IN COMPLIANCE WITH SUBSECTIONS (C) AND
22 (D) BY MAY 15, 1990. THE RATES SHALL BE EFFECTIVE FOR ONE YEAR,
23 BEGINNING JUNE 1, 1990. A FILING WITH AN EFFECTIVE DATE AFTER
24 MAY 31, 1990, BUT BEFORE MAY 31, 1991, UNDER SECTION 4 OF THE
25 ACT OF JUNE 11, 1947 (P.L.538, NO.246), KNOWN AS THE CASUALTY
26 AND SURETY RATE REGULATORY ACT, SHALL BECOME EFFECTIVE
27 IMMEDIATELY UPON ITS FILING AND IS DEEMED TO COMPLY WITH THAT
28 ACT UNLESS DISAPPROVED BY THE INSURANCE COMMISSIONER UNDER THE
29 PROCEDURES DESCRIBED IN SECTION 5 OF THAT ACT. THIS SUBSECTION
30 IS LIMITED TO TWO FILINGS PER COVERAGE. THIS SUBSECTION
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1 SUPERSEDES THE PRIOR APPROVAL REQUIREMENTS OF THE CASUALTY AND
2 SURETY RATE REGULATORY ACT AND REGULATIONS PROMULGATED UNDER
3 THAT ACT INSOFAR AS THEY ARE INCONSISTENT WITH THIS ACT.
4 (C) RATE ROLLBACK.--TOTAL PREMIUMS CHARGED BY ANY INSURER
5 FOR AN INSURED DURING THE FIRST 12-MONTH PERIOD FOLLOWING THE
6 EFFECTIVE DATE OF THIS ACT SHALL BE REDUCED FROM THE RATES IN
7 EFFECT ON DECEMBER 1, 1989, BY 20% FOR A GOOD DRIVER AS DEFINED
8 IN 75 PA.C.S. § 1799.4 (RELATING TO GOOD DRIVER DISCOUNT). TOTAL
9 PREMIUMS FOR AN INSURED WHO DOES NOT MEET THE CONDITIONS OF 75
10 PA.C.S. § 1799.4 SHALL BE REDUCED BY 10%.
11 (D) ADDITIONAL PREMIUM REDUCTIONS.--NOTWITHSTANDING ANY
12 OTHER PROVISIONS OF THIS ACT TO THE CONTRARY, IN ADDITION TO
13 REDUCTIONS PROVIDED IN SUBSECTION (C) BASED ON THE PREMIUM
14 REDUCTION REQUIREMENTS CONTAINED IN SECTION 8 (75 PA.C.S. §§
15 1711, 1712 AND 1731), SECTION 16 (75 PA.C.S. § 1792) AND SECTION
16 17 (75 PA.C.S. §§ 1799.1, 1799.2 AND 1799.3), THE PREMIUMS FOR
17 AN INSURED SHALL BE REDUCED UP TO A TOTAL OF AT LEAST 30%. AN
18 INSURED WHO ELECTS TO PURCHASE COVERAGES AS SPECIFIED IN THOSE
19 SECTIONS SHALL RECEIVE A REDUCTION COMMENSURATE WITH THE
20 ELECTION.
21 (E) RATE INCREASE JUSTIFICATION.--TOTAL PREMIUMS CHARGED BY
22 AN INSURER FOR AN INSURED DURING THE SECOND 12-MONTH PERIOD
23 FOLLOWING THE EFFECTIVE DATE OF THIS ACT MAY NOT BE INCREASED
24 OVER THE RATES IN EFFECT ON MAY 31, 1991, BY AN AMOUNT GREATER
25 THAN THAT INDICATED BY AN INCREASE IN THE CONSUMER PRICE INDEX,
26 THE COST OF MEDICAL CARE SERVICES, THE COST OF AUTOMOBILE
27 REPAIRS OR OTHER COST INCREASES AFFECTING AUTOMOBILE INSURANCE.
28 BY MARCH 1, 1991, THE INSURANCE COMMISSIONER SHALL PROMULGATE
29 REGULATIONS CONTAINING THE CRITERIA WHICH SHALL BE USED BY
30 INSURERS TO JUSTIFY ANY RATE INCREASES DURING THAT TIME PERIOD.
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1 (F) PROVISION FOR INSOLVENCY.--THE INSURANCE COMMISSIONER
2 SHALL PERMIT RATE REDUCTIONS LOWER THAN THOSE INDICATED IN THIS
3 SECTION UPON DEMONSTRATION BY AN INSURER THAT THE RATE
4 REDUCTIONS PROVIDED FOR IN THIS SECTION WILL RESULT IN
5 INSOLVENCY OF THE INSURER.
6 SECTION 25. (A) INSURERS SHALL PROVIDE THE FOLLOWING NOTICE
7 ALL POLICYHOLDERS NO LATER THAN JUNE 1, 1990:
8 IMPORTANT NOTICE
9 CHANGES IN REQUIRED INSURANCE BENEFITS
10 AS A RESULT OF THE PENNSYLVANIA GENERAL ASSEMBLY'S RECENT
11 AMENDMENT TO THE MOTOR VEHICLE FINANCIAL RESPONSIBILITY
12 LAW, AS OF JUNE 1, 1990, A NUMBER OF AUTOMOBILE INSURANCE
13 COVERAGES WHICH YOU PREVIOUSLY WERE REQUIRED TO PURCHASE
14 ARE NOW OPTIONAL. THESE OPTIONAL COVERAGES ARE WAGE LOSS
15 COVERAGE, ACCIDENTAL DEATH COVERAGE, FUNERAL EXPENSE
16 BENEFITS AND UNINSURED/UNDERINSURED MOTORIST COVERAGE. IN
17 ADDITION, THE REQUIRED MEDICAL BENEFIT HAS BEEN REDUCED
18 TO $5,000. THE RECENT AMENDMENT ALSO PROVIDES DISCOUNTS
19 FOR POLICYHOLDERS WHO HAVE VEHICLES WITH CERTAIN PASSIVE
20 RESTRAINT SYSTEMS AND ANTITHEFT DEVICES. PLEASE CONTACT
21 YOUR AGENT FOR ADDITIONAL INFORMATION.
22 (B) INSURERS SHALL PROVIDE A NOTICE TO ALL POLICYHOLDERS
23 UPON APPLICATION OR RENEWAL STATING THAT DISCOUNTS ARE AVAILABLE
24 FOR DRIVERS WHO MEET THE REQUIREMENTS OF 75 PA.C.S. §§ 1799.1
25 (RELATING TO RESTRAINT SYSTEM), 1799.2 (RELATING TO ANTITHEFT
26 DEVICES), 1799.3 (RELATING TO DRIVER IMPROVEMENT COURSE
27 DISCOUNTS) AND 1799.4 (RELATING TO GOOD DRIVER DISCOUNT).
28 SECTION 26. THE INSURANCE DEPARTMENT AND THE DEPARTMENT OF
29 TRANSPORTATION SHALL PROMULGATE REGULATIONS TO THE EXTENT
30 NECESSARY TO CARRY OUT THE PROVISIONS OF SECTIONS 1 (18 PA.C.S.
19890H0376B2898 - 54 -
1 § 911(H)), 2 (18 PA.C.S. § 4117), 4 (75 PA.C.S. §§ 1305 AND
2 1306), 6 (75 PA.C.S. §§ 1376 AND 1540) AND 14 (75 PA.C.S. §
3 1786).
4 SECTION 27. (A) SECTION 349 OF THE ACT OF MAY 17, 1921
5 (P.L.682, NO.284), KNOWN AS THE INSURANCE COMPANY LAW OF 1921 IS
6 REPEALED INSOFAR AS IT IS INCONSISTENT WITH THIS ACT.
7 (B) SECTIONS 604 AND 623 OF THE ACT OF MAY 17, 1921
8 (P.L.789, NO.285), KNOWN AS THE INSURANCE DEPARTMENT ACT OF ONE
9 THOUSAND NINE HUNDRED AND TWENTY-ONE ARE REPEALED.
10 SECTION 28. THIS ACT SHALL TAKE EFFECT AS FOLLOWS:
11 (1) SECTIONS 24, 25, 26 AND THIS SECTION SHALL TAKE
12 EFFECT IMMEDIATELY.
13 (2) SECTION 17 (75 PA.C.S. §§ 1799.7, 1799.8 AND 1799.9)
14 SHALL TAKE EFFECT IN 60 DAYS.
15 (3) SECTION 16 (75 PA.C.S. § 1797) SHALL TAKE EFFECT
16 APRIL 1, 1990, OR IMMEDIATELY, WHICHEVER IS LATER.
17 (4) SECTION 19 (75 PA.C.S. § 3731.1) SHALL TAKE EFFECT
18 APRIL 1, 1992.
19 (5) THE REMAINDER OF THIS ACT SHALL TAKE EFFECT JUNE 1,
20 1990, OR IMMEDIATELY, WHICHEVER IS LATER.
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