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Pennsylvania State Senate
09/18/2024 02:59 PM
Pennsylvania State Senate
https://www.legis.state.pa.us/cfdocs/Legis/CSM/showMemoPublic.cfm?SPick=20230&chamber=S&cosponId=40628
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Senate of Pennsylvania
Session of 2023 - 2024 Regular Session

MEMORANDUM

Posted: April 28, 2023 12:59 PM
From: Senator Chris Gebhard
To: All Senate members
Subject: Repeal of Stacking for Auto Insurance
 
I will soon introduce legislation to address the confusing "stacking" option our constituents face when they purchase Uninsured and Underinsured (UM/UIM) coverage for their auto insurance.  Senator Pittman sponsored similar legislation last session in the form of Senate Bill 676 that passed the Senate on July 7, 2022.  
 
Uninsured and Underinsured Motorist (UM/UIM) coverage is a first party benefit, meaning it protects a policyholder for injuries caused by another driver with no insurance or insufficient insurance.  Under current law, this coverage can be multiplied or “stacked” based on the number of cars covered by a policy – a confusing and complicated system that most motorists don’t understand and further complicated when an insured adds or deletes vehicles from their policy.  Because of this, my legislation will eliminate stacking in favor of a more straightforward approach to purchasing this coverage.  
 
Upon enactment, existing policies with stacked coverage will be afforded an equivalent amount of unstacked UM/UIM coverage at renewal.  For new policies, personal auto insurance applicants will be able to purchase UM/UIM at a level up to four times the amount of the bodily injury liability limit on their policy (coverage that protects other motorists) in an amount not to exceed $2 million.  For all other policies, the amount of UM/UIM coverage will be consistent with the amount of bodily injury coverage.   
    
UM/UIM is an important coverage, and because of that consumers should make informed purchasing decisions with respect to the amount of coverage they have and how it works.  My legislation strikes that balance.
 
And it is in that spirit that I ask you to join me in co-sponsoring this legislation.
 



Introduced as SB901


Memo Updated: April 28, 2023 01:01 PM