CHAPTER 17

FINANCIAL RESPONSIBILITY

Subchapter

A.         General Provisions

B.         Motor Vehicle Liability Insurance First Party Benefits

C.         Uninsured and Underinsured Motorist Coverage

D.         Assigned Risk Plan

E.         Assigned Claims Plan

F.         Catastrophic Loss Trust Fund (Repealed 12/12/88)

G.         Nonpayment of Judgments

H.         Proof of Financial Responsibility

I.          Miscellaneous Provisions

SUBCHAPTER A

GENERAL PROVISIONS

Sec.

1701.  Short title of chapter.

1702.  Definitions.

1703.  Application of chapter.

1704.  Administration of chapter.

1705.  Election of tort options.

Sec. 1701.      Short title of chapter.

This chapter shall be known and may be cited as the Motor Vehicle Financial Responsibility Law.

Sec. 1702.      Definitions.

The following words and phrases when used in this chapter shall have the meanings given to them in this section unless the context clearly indicates otherwise:

“Assigned Risk Plan.”  A program for the equitable apportionment of assigned risks and clean risks among insurers.

“Automobile Insurance Policy Act.”  The act of June 5, 1968 (P.L. 140, No. 78), entitled “An act regulating the writing, cancellation of or refusal to renew policies of automobile insurance; and imposing powers and duties on the Insurance Commissioner therefor.”

“Benefits” or “first party benefits.” Medical benefits, income loss benefits, accidental death benefits and funeral benefits.

“Clean risk.”  An insured or an applicant for insurance, who for the 36‑month period immediately preceding the date of application or renewal date of the policy:

(1)        has not been involved in an accident as a driver, provided, that for purposes of this paragraph, an “accident” shall not include accidents described in section 3 of the Automobile Insurance Policy Act or section 1799.3 (relating to limit on cancellations, refusals to renew, refusals to write, surcharges, rate penalties and point assignments);

(2)        has not received more than three points for violations as set forth in Chapter 15 (relating to licensing of drivers); and

(3)        whose operator’s license has not been suspended or revoked except under section 1533 (relating to suspension of operating privilege for failure to respond to citation) and the insured is able to produce proof that he or she has responded to all citations and paid all fines and pena1ties imposed under that section and provided further that the named insured has been a licensed operator in Pennsylvania or another state for the immediately preceding three years.

“Commissioner.”   The Insurance Commissioner of the Commonwealth.

“Department.”  The Department of Transportation or Insurance Department, as applicable.

“Financial Responsibility.” The ability to respond in damages for liability on account of accidents arising out of the maintenance or use of a motor vehicle in the amount of $15,000.00 because of injury to one person in any one accident, in the amount of $30,000.00 because of injury to two or more persons in any one accident and in the amount of $5,000.00 because of damage to property of others in any one accident. The financial responsibility shall be in a form acceptable to the Department of Transportation.

“Injury.” Accidentally sustained bodily harm to an individual and that individual’s illness, disease or death resulting therefrom.

“Insured.” Any of the following:

(1)        An individual identified by name as an insured in a policy of motor vehicle liability insurance.

(2)        If residing in the household of the named insured:

(i)         a spouse or other relative of the named insured; or

(ii)        a minor in the custody of either the named insured or a relative of the named insured.

“Insurer” or “insurance company.” A motor vehicle liability insurer subject to the requirements of this chapter.

“Necessary medical treatment and rehabilitative services.”  Treatment, accommodations, products or services which are determined to be necessary by a licensed health care provider unless they shall have been found or determined to be unnecessary by a State‑approved Peer Review Organization (PRO).

“Noneconomic loss.” Pain and suffering and other nonmonetary detriment.

“Peer Review Organization” or “PRO.” Any Peer Review Organization with which the Federal Health Care Financing Administration or the Commonwealth contracts for medical review of Medicare or medical assistance services, or any health care review company, approved by the commissioner, that engages in peer review for the purposes of determining that medical and rehabilitation services are medically necessary and economically provided. The membership of any PRO utilized in connection with this chapter shall include representation from the profession whose services are subject to the review.

“Private passenger motor vehicle.” A four-wheel motor vehicle, except recreational vehicles not intended for highway use, which is insured by a natural person and:

(1)        is a passenger car neither used as a public or livery conveyance nor rented to others; or

(2)        has a gross weight not exceeding 9,000 pounds and is not principally used for commercial purposes other than farming.

The term does not include any motor vehicle insured exclusively under a policy covering garage, automobile sales agency repair shop, service station or public parking operation hazards.

“Self‑insurer.”  An entity providing benefits and qualified in the manner set forth in section 1787 (relating to self‑insurance).

“Serious injury.” A personal injury resulting in death, serious impairment of body function or permanent serious disfigurement.  

“Underinsured motor vehicle.”  A motor vehicle for which the limits of available liability insurance and self‑insurance are insufficient to pay losses and damages.

“Uninsured motor vehicle.”  Any of the following:

(1)        A motor vehicle for which there is no liability insurance or self‑insurance applicable at the time of the accident.

(2)        A motor vehicle for which the insurance company denies coverage or the insurance company is or becomes involved in insolvency proceedings in any jurisdiction.

(3)        An unidentified motor vehicle that causes an accident resulting in injury provided the accident is reported to the police or proper governmental authority and the claimant notifies his insurer within 30 days, or as soon as practicable thereafter, that the claimant or his legal representative has a legal action arising out of the accident.

“Voluntary rate.”  An insurer’s rating plan approved by the commissioner. In the case of an insurer with multiple rating plans, the voluntary rate shall be that rating plan applicable to the risk.

Sec. 1703.      Application of chapter.

This chapter does not apply with respect to any motor vehicle owned by the United States.

Sec. 1704.      Administration of chapter.

(a)        General rule.‑‑Except as provided in subsection (b), the Department of Transportation shall administer and enforce this chapter and may make rules and regulations necessary for the administration and enforcement of this chapter.

(b)        Insurance matters.‑‑The Insurance Department shall administer and enforce those provisions of this Chapter as to matters under its jurisdiction as determined by this chapter or other statute and may make rules and regulations necessary for the administration and enforcement of those provisions.

Sec. 1705.      Election of tort options.

(a)        Financial responsibility requirements.--

(1)        Each insurer, not less than 45 days prior to the first renewal of a private passenger motor vehicle liability insurance policy on and after July 1, 1990, shall notify, in writing, each named insured of the availability of two alternatives of full tort insurance and limited tort insurance described in subsections (c) and (d). The notice shall be a standardized form adopted by the commissioner and shall include the following language:

NOTICE TO NAMED INSUREDS

A.         “Limited Tort” Option‑‑The laws of the Commonwealth of Pennsylvania give you the right to choose a form of insurance that limits your right and the rights of members of your household to seek financial compensation for injuries caused by other drivers. Under this form of insurance, you and other household members covered under this policy may seek recovery for all medical and other out‑of‑pocket expenses, but not for pain and suffering or other nonmonetary damages unless the injuries suffered fall within the definition of “serious injury” as set forth in the policy, or unless one of several other exceptions noted in the policy applies. The annual premium for basic coverage as required by law under this “limited tort” option is $_______.  Additional coverages under this option are available at additional cost.

B.         “Full Tort” Option‑‑The laws of the Commonwealth of Pennsylvania also give you the right to choose a form of insurance under which you maintain an unrestricted right for you and the members of your household to seek financial compensation for injuries caused by other drivers. Under this form of insurance, you and other household members covered under this policy may seek recovery for all medical and other out‑of‑pocket expenses and may also seek financial compensation for pain and suffering and other nonmonetary damages as a result of injuries caused by other drivers. The annual premium for basic coverage as required by law under this “full tort” option is $__________.  Additional coverages under this option are available at additional cost.

C.         You may contact your insurance agent, broker or company to discuss the cost of other coverages.

D.         If you wish to choose the “limited tort” option described in paragraph A, you must sign this notice where indicated below and return it. If you do not sign and return this notice, you will be considered to have chosen the “full tort” coverage as described in paragraph B and you will be charged the “full tort” premium.

I wish to choose the “limited tort” option described in Paragraph A:

_________________________                      __________________________

Named Insured                                                Date

E.         If you wish to choose the “full tort” option described in paragraph B, you may sign this notice where indicated below and return it. However, if you do not sign and return this notice, you will be considered to have chosen the “full tort” coverage as described in paragraph B and you will be charged the “full tort” premium.

I wish to choose the “full tort” option described in paragraph B:

_________________________                      __________________________

Named Insured                                                Date

(2)        Insurers shall print the above notice containing both options on one sheet in prominent type and place in a prominent location. Any person signing, or otherwise bound by, a document containing such terms is bound by such election and is precluded from claiming liability of any person based upon being inadequately informed in making the election between full tort or limited tort alternatives. Where there are two or more named insureds on a policy, any named insured may make the full or limited tort election provided for in this section for all named insureds on the policy.

(3)        If a named insured who receives a notice under paragraph (1) does not indicate a choice within 20 days, the insurer shall send a second notice. The second notice shall be in a form identical to the first notice, except that it shall be identified as a second and final notice. If a named insured has not responded to either notice, ten days prior to the renewal date, the named insured and those he is empowered by this section to bind by his choice are conclusively presumed to have chosen the full tort alternative. All notices required by this section shall advise that if no tort election is made, the named insured and those he is empowered to bind by his choice are conclusively presumed to have chosen the full tort alternative. Any person subject to the limited tort option by virtue of this section shall be precluded from claiming liability of any person based upon being inadequately informed.

(4)        Each insurer, prior to the first issuance of a private passenger motor vehicle liability insurance policy on and after July 1, 1990, shall provide each applicant with the notice required by paragraph (1). A policy may not be issued until the applicant has been provided an opportunity to elect a tort option.

(5)        An owner of a currently registered private passenger motor vehicle who does not have financial responsibility shall be deemed to have chosen the limited tort alternative.

(6)        Nothing in this section changes or modifies the existing requirement that owners of registered vehicles maintain bodily injury and property damage liability insurance arising out of the ownership, maintenance or use of a motor vehicle.

(b)        Application of tort options.-‑

(1)        The tort option elected by a named insured shall apply to all private passenger motor vehicle policies of the named insured issued by the same insurer and shall continue in force as to all subsequent renewal policies, replacement policies and any other private passenger motor vehicle policies under which the individual is a named insured, until the insurer, or its authorized representative, receives a properly executed form electing the other tort option.

(2)        The tort option elected by a named insured shall apply to all insureds under the private passenger motor vehicle policy who are not named insureds under another private passenger motor vehicle policy. In the case where more than one private passenger motor vehicle policy is applicable to an insured, and the policies have conflicting tort options, the insured is bound by the tort option of the policy associated with the private passenger motor vehicle in which the insured is an occupant at the time of the accident if he is an insured on that policy, and bound by the full tort option otherwise.

(3)        An individual who is not an owner of a currently registered private passenger motor vehicle and who is not a named insured or insured under any private passenger motor vehicle policy, shall not be precluded from maintaining an action for noneconomic loss or economic loss sustained in a motor vehicle accident as the consequence of the fault of another person pursuant to applicable tort law.

(c)        Full tort alternative.‑‑Each person who is bound by the full tort election remains eligible to seek compensation for noneconomic loss claimed and economic loss sustained in a motor vehicle accident as the consequence of the fault of another person pursuant to applicable tort law.

(d)        Limited tort alternative.‑‑Each person who elects the limited tort alternative remains eligible to seek compensation for economic loss sustained in a motor vehicle accident as the consequence of the fault of another person pursuant to applicable tort law. Unless the injury sustained is a serious injury, each person who is bound by the limited tort election shall be precluded from maintaining an action for any noneconomic loss, except that:

(1)        An individual otherwise bound by the limited tort election who sustains damages in a motor vehicle accident as the consequence of the fault of another person may recover damages as if the individual damaged had elected the full tort alternative whenever the person at fault: ‑

(i)         is convicted, or accepts Accelerated Rehabilitative Disposition (ARD) for driving under the influence of alcohol or a controlled substance in that accident;

(ii)        is operating a motor vehicle registered in another state;

(iii)       intends to injure himself or another person, provided that an individual does not intentionally injure himself or another person merely because his act or failure to act is intentional or done with his realization that it creates a grave risk of causing injury if the act or omission causing the injury is for the purpose of averting bodily harm to himself or another person; or

(iv)       has not maintained financial responsibility as required by this chapter, provided that, nothing in this paragraph shall affect the limitation of section 1731(d)(2) (relating to availability, scope, and amount of coverage).

(2)        An individual otherwise bound by the limited tort election shall retain full tort rights with respect to claims against a person in the business of designing, manufacturing, repairing, servicing or otherwise maintaining motor vehicles arising out of a defect in such motor vehicle which is caused by or not corrected by an act or omission in the course of such business, other than a defect in a motor vehicle which is operated by such business.

(3)        An individual otherwise bound by the limited tort election shall retain full tort rights if injured while an occupant of a motor vehicle other than a private passenger motor vehicle.

(e)        Nondiscrimination.‑‑No insurer shall cancel, refuse to write, or refuse to renew a motor vehicle insurance policy based on the tort option election of the named insured. Any violation of this subsection shall be deemed a violation of the Automobile Insurance Policy Act.

(f)         Definitions.‑‑As used in this section, the following words and phrases when used in this section shall have the meanings given to them in this subsection unless the context clearly indicates otherwise:

“Insured.” Any individual residing in the household of the named insured who is: . ‑

(1)        a spouse or other relative of the named insured;

(2)        a minor in the custody of either the named insured or relative of the named insured.

“Named insured.” Any individual identified by name as an insured in a policy of private passenger motor vehicle insurance.

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SUBCHAPTER B

MOTOR VEHICLE LIABILITY INSURANCE

FIRST PARTY BENEFITS

Sec.

1711.  Required benefits

1712.  Availability of benefits.

1713.  Source of benefits

1714.  Ineligible claimants.

1715.  Availability of adequate limits.

1716.  Payment of benefits.

1717.  Stacking of benefits.

1718.  Exclusion from benefits.

1719.  Coordination of benefits.

1720.  Subrogation.

1721.  Statute of limitations.

1722.  Preclusion of recovering required benefits.

1723.  Reporting requirements.

1724.  Certain nonexcludable conditions.

Sec. 1711.      Required benefits.

(a)        Medical benefit.-‑An insurer issuing or delivering liability insurance policies covering any motor vehicle of the type required to be registered under this title, except recreational vehicles not intended for highway use, motorcycles, motor‑driven cycles or motorized pedalcycles or like type vehicles, registered and operated in this Commonwealth, shall include coverage providing a medical benefit in the amount of $5,000.

(b)        Minimum policy.-‑All insurers subject to this chapter shall make available for purchase a motor vehicle insurance policy which contains only the minimum requirements of financial responsibility and medical benefits as provided for in this chapter.

Sec. 1712.      Availability of benefits.

An insurer issuing or delivering liability insurance policies covering any motor vehicle of the type required to be registered under this title, except recreational vehicles not intended for highway use, motorcycles, motor‑driven cycles or motorized pedalcycles or like type vehicles, registered and operated in this Commonwealth, shall make available for purchase first party benefits with respect to injury arising out of the maintenance or use of a motor vehicle as follows:

(1)        Medical benefit.‑‑Subject to the limitations of section 1797 (relating to customary charges for treatment), coverage to provide for reasonable and necessary medical treatment and rehabilitative services, including but not limited, to, hospital, dental, surgical, psychiatric, psychological, osteopathic, ambulance, chiropractic, licensed physical therapy, nursing services, vocational rehabilitation and occupational therapy, speech pathology and audiology, optometric services, medications, medical supplies and prosthetic devices, all without limitation as to time, provided that, within 18 months from the date of the accident causing injury, it is ascertainable with reasonable medical probability that further expenses may be incurred as a result of the injury. Benefits under this paragraph may include any nonmedical remedial care and treatment rendered in accordance with a recognized religious method of healing.

(2)        Income loss benefit.‑‑Includes the following:

(i)         Eighty percent of actual loss of gross income.

(ii)        Reasonable expenses actually incurred for hiring a substitute to perform self‑employment services thereby mitigating loss of gross income or for hiring special help thereby enabling a person to work and mitigate loss of gross income. Income loss does not include loss of expected income for any period following the death of an individual or expenses incurred for services performed following the death of an individual. Income loss shall not commence until five working days have been lost after the date of the accident.

(3)        Accidental death benefit.‑‑A death benefit paid to the personal representative of the insured, should injury resulting from a motor vehicle accident cause death within 24 months from the date of the accident.

(4)        Funeral benefit.‑‑Expenses directly related to the funeral, burial, cremation or other form of disposition of the remains of a deceased individual, incurred as a result of the death of the individual as a result of the accident and, within 24 months from the date of the accident.

(5)        Combination benefit.‑‑A combination of benefits described in paragraphs (1) through (4) as an alternative to the separate purchase of those benefits.

(6)        Extraordinary medical benefits.-‑Medical benefits, as defined in paragraph (1), which exceed $100,000.

Sec. 1713.      Source of benefits.

(a)        General rule.--Except as provided in Section 1714 (relating to ineligible claimants), a person who suffers injury arising out of the maintenance or use of a motor vehicle shall recover first party benefits against applicable insurance coverage in the following order or priority:

(1)        For a named insured, the policy on which he is the named insured.

(2)        For an insured, the policy covering the insured.

(3)        For the occupants of an insured motor vehicle, the policy on that motor vehicle.

(4)        For a person who is not the occupant of a motor vehicle, the policy on any motor vehicle involved in the accident. For the purpose of this paragraph, a parked and unoccupied motor vehicle is not a motor vehicle involved in an accident unless it was parked so as to cause unreasonable risk of injury.

(b)        Multiple sources of equal priority.-- The insurer against whom a claim is asserted first under the priorities set forth in subsection (a) shall process and pay the claim as if wholly responsible. The insurer is thereafter entitled to recover contribution pro rata from any other insurer for the benefits paid and the costs of processing the claim. If contribution is sought among insurers responsible under subsection (a)(4), proration shall be based on the number of involved, motor vehicles.

Sec. 1714.      Ineligible claimants.

An owner of a currently registered motor vehicle who does not have financial responsibility or an operator or occupant of a recreational vehicle not intended for highway use, motorcycle, motor‑driven cycle, motorized pedalcycle or like type vehicle required to be registered under this title cannot recover first party benefits.

Sec. 1715.      Availability of adequate limits.

(a)        General rule.‑‑An insurer shall make available for purchase first party benefits as follows:

(1)        For medical benefits, up to at least $100,000.

(1.1)     For extraordinary medical benefits, from $100,000 to $1,100,000., which may be offered in increments of $100,000, as limited by subsection (d).

(2)        For income loss benefits, up to at least $2,500 per month up to a maximum benefit of at least $50,000.

(3)        For accidental death benefits, up to at least $25,000.

(4)        For funeral benefits, $2,500.

(5)        For combination of benefits enumerated in paragraphs (1), (2),(3) and (4) and subject to a limit on the accidental death benefit of up to $25,000 and a limit on the funeral benefit of $2,500, up to at least $177,500 of benefits in the aggregate or benefits payable up to three years from the date of the accident, whichever occurs first, provided that nothing contained in this subsection shall be construed to limit, reduce, modify or change the provisions of subsection (d).

(b)        Higher or lower limits and additional benefits.‑‑Insurers may make available higher or lower limits or benefits in addition to those enumerated in subsection (a).

(c)        Restriction on providing first party benefits.‑‑An insurer shall not issue or deliver a policy providing first party benefits in accordance with this subchapter unless the policy also contains coverage for liability in amounts at least equal to the limits required for financial responsibility.

(d)        Limitations.--The maximum medical benefit which shall be paid on behalf of any one eligible claimant under subsection (a)(l.l) shall be $50,000 per year and $1,000,000 lifetime aggregate of reasonable and necessary expenses only for medical treatment and rehabilitative services which, as described in section 1712(1) (relating to availability of benefits), exceed $100,000. During the first 18 months of eligibility, the insurer shall approve payments on behalf of a claimant without regard to the $50,000 per year limit but subject to the $1,000,000 lifetime aggregate.

(e)        Other extraordinary medical benefits.‑‑Notwithstanding the requirement of subsection (a)(1.1), an insured may obtain the extraordinary medical benefits described in that subsection through any insurance contract, program or group arrangement.

(f)         Determining adverse experience of an agent.‑‑For purposes of determining adverse experience of an agent, experience generated from extraordinary medical benefit coverage described in subsection (a)(l.1) shall be excluded.

(g)        Voluntary pooling.‑‑Notwithstanding any other provisions of this act or the act of June 11, 1947 (L.538, No. 246), known as The Casualty and Surety Rate Regulatory Act, two or more insurers may enter into an arrangement or agreement to provide for the availability of an extraordinary medical benefit pursuant to the provisions of this chapter. All such arrangements or agreements entered into by an insurer shall be subject to the prior approval of the Insurance Commissioner. (As amended by Section 3 of Act of February 12, 1984, P.L. 53, No. 12, effective October 1, 1984; amended by Section 4 of Act of April 26, 1989, P.L. 13, No. 4, effective June 1, 1989.)

Sec. 1716.      Payment of benefits.

Benefits are overdue if not paid within 30 days after the insurer receives reasonable proof of the amount of the benefits. If reasonable proof is not supplied as to all benefits, the portion supported by reasonable proof is overdue if not paid within 30 days after the proof is received by the insurer. Overdue benefits shall bear interest at the rate of 12% per annum from the date the benefits become due. In the event that the insurer is found to have acted in an unreasonable manner in refusing to pay the benefits when due, the insurer shall pay, in addition to the benefits owed and the interest thereon, a reasonable attorney fee based upon actual time expended.

Sec. 1717.      Stacking of benefits.

First party benefits shall not be increased by stacking the limits of coverage of:

(1)        multiple motor vehicles covered under the same policy of insurance; or

(2)        multiple motor vehicle policies covering the individual for the same loss.

Sec. 1718.      Exclusion from benefits.

(a)        General rule.‑‑An insurer shall exclude from benefits any insured, or his personal representative, under a policy enumerated in section 1711 (relating to required benefits) or 1712 (relating to availability of benefits), when the conduct of the insured contributed to the injury sustained by the insured in any of the following ways:

(1)        While intentionally injuring himself or another or attempting to intentionally injure himself or another.

(2)        While committing a felony.

(3)        While seeking to elude lawful apprehension or arrest by a law enforcement official.

(b)        Conversion of a vehicle.‑‑‑A person who knowingly converts a motor vehicle is ineligible to receive first party benefits from any source other than a policy of insurance under which he is an insured for any injury arising out of the maintenance or use of the converted vehicle.

(c)        Named driver exclusion.‑‑An insurer or the first named insured may exclude any person or his personal representative from benefits under a policy enumerated in section 1711 or 1712 when any of the following apply:

(1)        The person is excluded from coverage while operating a motor vehicle in accordance with the act of June 5, 1968 (P.L. 140, No.78), relating to the writing, cancellation of or refusal to renew policies of automobile insurance.

(2)        The first named insured has requested that the person be excluded from coverage while operating a motor vehicle. This paragraph shall only apply if the excluded person is insured on another policy of motor vehicle liability insurance.

Sec. 1719.      Coordination of benefits.

(a)        General rule.‑‑Except for workers’ compensation, a policy of insurance issued or delivered pursuant to this subchapter shall be primary. Any program, group contract or other arrangement for payment of benefits such as described in section 1711 (relating to required benefits), 1712(1) and (2) (relating to availability of benefits), or 1715 (relating to availability of adequate limits), shall be construed to contain a provision that all benefits provided therein shall be in excess of and not in duplication of any valid and collectible first party benefits provided in section 1711, 1712, or 1715 or workers’ compensation.

(b)        Definition.‑‑As used in this section, the term “Program, group contract, or other arrangement” includes, but is not limited to, benefits payable by a hospital plan corporation or a professional health service corporation subject to 40 Pa. C.S. Chapter 61 (relating to hospital plan corporations) or 63 (relating to professional health services plan corporations).

Sec. 1720.      Subrogation.

In actions arising out of the maintenance or use of a motor vehicle, there shall be no right of subrogation or reimbursement from a claimant’s tort recovery with respect to workers’ compensation benefits, benefits available under section 1711 (relating to required benefits), 1712 (relating to availability of benefits) or 1715 (relating to availability of adequate limits) or benefits paid or payable by a program, group contract or other arrangement whether primary or excess under section 1719 (relating to coordination of benefits).

(NOTE: EFFECTIVE 8/31/93, REFERENCE TO WORKERS’ COMPENSATION BENEFITS IS DELETED).

Sec. 1721.      Statute of limitations.

(a)        General rule.‑‑If benefits have not been paid, an action for first party benefits shall be commenced within four years from the date of the accident giving rise to the claim. If first party benefits have been paid, an action for further benefits shall be commenced within four years from the date of the last payment;

(b)        Minors.‑‑For minors entitled to benefits described in section 1711 (relating to required benefits) or 1712 (relating to availability of benefits), an action for benefits shall be commenced within four years from the date on which the injured minor attains 18 years of age.

(c)        Definition.‑‑As used in this section, the term “further benefits” means expenses incurred not earlier than four years preceding the date an action is commenced.

Sec. 1722.      Preclusion of recovering required benefits.

In any action for damages against a tortfeasor, or in an uninsured or underinsured motorist proceeding, arising out of the maintenance or use of a motor vehicle, a person who is eligible to receive benefits under the coverages set forth in this subchapter, or workers’ compensation, or any program, group contract or other arrangement for payment of benefits as defined in section 1719 (relating to coordination of benefits) shall be precluded from recovering the amount of benefits paid or payable under this subchapter, or workers’ compensation or any program, group contract or other arrangement for payment of benefits as defined in section 1719.

(NOTE: EFFECTIVE 8/31/93, REFERENCE TO WORKERS’ COMPENSATION IS DELETED).

Sec. 1723.      Reporting requirements.

Beginning December 31, 1986, and each year thereafter, each insurance company writing automobile insurance in this Commonwealth shall file with the Insurance Department the number of its insureds, the number of its insureds who have purchased first party medical benefits in excess of the minimum required by section 1711 (relating to required benefits) and the number of insureds who have purchased first party medical benefits in the amount of $100,000. The Insurance Department shall furnish this information to the General Assembly annually.

Sec. 1724.      Certain nonexcludable conditions.

(a)        General rule.‑‑Insurance benefits may not be denied solely because the driver of the insured motor vehicle is determined to be under the influence of drugs or intoxicating beverages at the time of the accident for which benefits are sought.

(b)        Contract exclusions.‑‑Provisions of an insurance policy which exclude insurance benefits if the insured causes a vehicular accident while under the influence of drugs or intoxicating beverages at the time of the accident are void.

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SUBCHAPTER C

UNINSURED AND UNDERINSURED MOTORIST COVERAGE

Sec.

1731.  Availability, Scope and amount of coverage.

1732.  Limits of coverage. (Repealed)

1733.  Priority of recovery.

1734.  Request for lower limits of coverage.

1735.  Coverages unaffected by workers’ compensation.

1736.  Coverages in excess of required amounts.

1737.  Workers’ compensation benefits not a bar to uninsured

and underinsured motorist benefits.

1738.  Stacking of uninsured and underinsured benefits and

option to waive.

Sec. 1731.      Availability, scope and amount of coverage.

(a)        Mandatory offering.‑‑No motor vehicle liability insurance policy shall be delivered or issued for delivery in this Commonwealth, with respect to any motor vehicle registered or principally garaged in this Commonwealth, unless uninsured motorist and underinsured motorist coverages are offered therein or supplemental thereto in amounts as provided in section 1734 (relating to request for lower limits of coverage). Purchase of uninsured motorist and underinsured motorist coverages is optional.

(b)        Uninsured motorist coverage.‑‑Uninsured motorist coverage shall provide protection for persons who suffer injury arising out of the maintenance or use of a motor vehicle and are legally entitled to recover damages therefor from owners or operators of uninsured motor vehicles. The named insured shall be informed that he may reject uninsured motorist coverage by signing the following written rejection form.

REJECTION OF UNINSURED MOTORIST PROTECTION

By signing this waiver I am rejecting uninsured motorist coverage under this policy, for myself and all relatives residing in my household. Uninsured coverage protects me and relatives living in my household for losses and damages suffered if injury is caused by the negligence of a driver who does not have any insurance to pay for losses and damages. I knowingly and voluntarily reject this coverage.

_____________________________________

SIGNATURE OF FIRST NAMED INSURED

_____________________________________

DATE

(b.1)     Limitation of rejection.‑‑Uninsured motorist protection may be rejected for the driver and passengers for rental or lease vehicles which are not otherwise common carriers by motor vehicle, but such coverage may only be rejected if the rental or lease agreement is signed by the person renting or leasing the vehicle and contains the following rejection language:

                                  REJECTION OF UNINSURED MOTORIST PROTECTION

I am rejecting uninsured motorist coverage under this rental or lease agreement, and any policy of insurance or self‑insurance issued under this agreement, for myself and all other passengers of this vehicle. Uninsured coverage protects me and other passengers in this vehicle for losses and damages suffered if injury is caused by the negligence of a driver who does not have any insurance to pay for losses and damages.

(b.2)     Rejection language change.‑‑The rejection language of subsection (b.l) may only be changed grammatically to reflect a difference in tense in the rental agreement or lease agreement.

(b.3)     Vehicle rental services.‑‑The requirements of subsection (b.1) may be met in connection withan expedited vehicle rental service, which service by agreement of the renter does not require the renter’s signature for each rental, if a master enrollment or rental agreement contains the rejection language of subsection (b.l) and such agreement is signed by the renter.

(c)        Underinsured motorist coverage.-‑Underinsured motorist coverage shall provide protection for persons who suffer injury arising out of the maintenance or use of a motor vehicle and are legally entitled to recover damages therefor from owners or operators of underinsured motor vehicles. The named insured shall be informed that he may reject underinsured motorist coverage by signing the following written rejection form.

                              REJECTION OF UNDERINSURED MOTORIST PROTECTION

By signing this waiver I am rejecting underinsured motorist coverage under this policy, for myself and all relatives residing in my household. Underinsured coverage protects me and relatives living in my household for losses and damages suffered if injury is caused.by the negligence of a

driver who does not have enough insurance to pay for all losses and damages. I knowingly and voluntarily reject this coverage.

_____________________________________

SIGNATURE OF FIRST NAMED INSURED

_____________________________________

DATE

(c.l)      Form of waiver.‑‑Insurers shall print the rejection forms required by subsections (b) and (c) on separate sheets in prominent type and location. The forms must be signed by the first named insured and dated to be valid. The signatures on the forms may be witnessed by an insurance agent or broker. Any rejection form that does not specifically comply with this section is void.  If the insurer fails to produce a valid rejection form, uninsured or underinsured coverage, or both, as the case may be, under that policy shall be equal to the bodily injury liability limits. On policies in which either uninsured or underinsured coverage has been rejected, the policy renewals must contain notice in prominent type that the policy does notÆ provide protection against damages caused by uninsured or underinsured motorists. Any person who executes a waiver under subsection (b) or (c) shall be precluded from claiming liability of any person based upon inadequate information.

(d)        Limitation on recovery.‑‑

(1)        A person who recovers damages under uninsured motorist coverage or coverages cannot recover damages under underinsured motorist coverage or coverages for the same accident.

(2)        A person precluded from maintaining an action for noneconomic damages under section 1705 (relating to election of tort options) may not recover from uninsured motorist coverage or underinsured motorist coverage for noneconomic damages.

Sec. 1732.      Limits of coverage (Repealed effective 7/1/90).

Sec. 1733.      Priority of recovery.

(a)        General rule.‑‑ Where multiple policies apply, payment shall be made in the following order or priority:

(1)        A policy covering a motor vehicle occupied by the injured person at the time of the accident.

(2)        A policy covering a motor vehicle not involved in the accident with respect to which the injured person is an, insured.

(b)        Multiple sources of equal priority.‑‑The Insurer against whom a claim is asserted first under the priorities set forth in subsection (a) shall process and pay the claim as if wholly responsible. The insurer is thereafter entitled to recover contribution pro rata from any other insurer for the benefits paid and the costs of processing the claim.

Sec. 1734.      Request for lower limits of coverage.

A named insured may request in writing the issuance of coverages under section 1731 (relating to availability, scope and amount of coverage) in amounts equal to or less than the limits of liability for bodily injury.

Sec. 1735.      Coverages unaffected by workers’ compensation benefits. (Repealed effective 7/2/93)

Sec. 1736.      Coverages in excess of required amounts.

The coverages provided under this subchapter may be offered by insurers in amounts higher than those required by this chapter, but may not be greater than the limits, of liability specified in the bodily injury liability provisions of the insured’s policy.

Sec. 1737.      Workers’ compensation benefits not a bar to uninsured and underinsured motorist benefits. (Sec. repealed effective 7/2/93)

Sec. 1738.      Stacking of uninsured and underinsured benefits and option to waive.

(a)        Limit for each vehicle.‑‑When more than one vehicle is insured under one or more policies providing uninsured or underinsured motorist coverage, the stated limit for uninsured or underinsured motorist coverage shall apply separately to each vehicle so insured. The limits of coverages available under this subchapter for an insured shall be the sum of the limits for each motor vehicle as to which the injured person is an insured.

(b)        Waiver.‑‑Notwithstanding the provisions of subsection (a), a named insured may waive coverage providing stacking of uninsured or underinsured coverages in which case the limits of coverage available under the policy for an insured shall be the stated limits for the motor vehicle as to which the injuredperson is an insured. .

(c)        More than one vehicle.‑‑Each named insured purchasing uninsured or underinsured motorist coverage for more than one vehicle under a policy shall be provided ‑the opportunity to waive the stacked limits of coverage and instead purchase coverage as described in subsection (b). The premiums for an insured who exercises such waiver shall be reduced to reflect the different cost of such coverage.

(d)        Forms.‑-

(1)        The named insured shall be informed that he may exercise the waiver of the stacked limits of uninsured motorist coverage by signing the following written rejection form:

                                                    UNINSURED COVERAGE LIMITS

By signing this waiver, I am rejecting stacked limits of uninsured motorist coverage under the policy for myself and members of my household under which the limits of coverage available would be the sum of limits for each motor vehicle insured under the policy. Instead the limits of coverage that I am purchasing shall be reduced to the limits stated in the policy. I knowingly and voluntarily reject the stacked limits of coverage. I understand that my premiums will be reduced if I reject this coverage.

_____________________________________

SIGNATURE OF FIRST NAMED INSURED

_____________________________________

DATE

(2)        The named insured shall be informed that he may exercise the waiver of the stacked limits of underinsured motorist coverage by signing the following written rejection form:

                                                UNDERINSURED COVERAGE LIMITS

By signing this waiver, I am rejecting stacked limits of underinsured motorist coverage under the policy for myself and members of my household under which the limits of coverage available would be the sum of limits for each motor vehicle insured under the policy. Instead the limits of coverage that I am purchasing shall be reduced to the limits stated in the policy. I knowingly and voluntarily reject the stacked limits of coverage. I understand that my premiums will be reduced if I reject this coverage.

_____________________________________

SIGNATURE OF FIRST NAMED INSURED

_____________________________________

DATE

(e)        Signature and date.‑‑The forms described in subsection (d) must be signed by the first named insured and dated to be valid. Any rejection form that does not comply with this section is void.

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SUBCHAPTER D

ASSIGNED RISK PLAN

Sec.

1741.  Establishment.

1742.  Scope of Plan.

1743.  Rates.

1744.  Termination of policies.

Sec. 1741.      Establishment.

The Insurance Department shall, after consultation with the insurers licensed to write motor vehicle liability insurance in this Commonwealth, adopt a reasonable Assigned Risk Plan for the equitable apportionment among those insurers of applicants for motor vehicle liability insurance who are entitled to, but are unable to, procure insurance through ordinary methods. When the plan has been adopted, all motor vehicle liability insurers shall subscribe thereto and shall participate in the plan. The plan may provide reasonable means for the transfer of individuals insured thereunder into the ordinary market, at the same or lower rates, pursuant to regulations established by the department.

Sec. 1742.      Scope of plan.

The Assigned Risk Plan shall:

(1)        Include rules for the classification of risks and rates therefor.

(2)        Provide for the installment payment of premiums subject to customary terms and conditions.

(3)        Provide rules for the equitable apportionment among participating insurers of clean risks who shall be eligible to receive the insurer’s voluntary rate.

(4)        Provide rules to specify the effective date and time of coverage, provided that applicants may only obtain coverage effective as of the date and time of the application if the agent or broker of record uses electronic mail binding procedures specified in the rules.

Sec. 1743.      Rates.

All rates for the Assigned Risk Plan shall be subject to the act of June 11, 1947 (P.L.538, No. 246), known as The Casualty and Surety Rate Regulatory Act, and shall not be inadequate, excessive or unfairly discriminatory.

Sec. 1744.      Termination of policies.

Cancellation, refusal to renew and other termination of policies issued under the Assigned Risk Plan shall be in accordance with the rules of the plan.

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SUBCHAPTER E

ASSIGNED CLAIMS PLAN

Sec.

1751.  Organization

1752.  Eligible claimants.

1753.  Benefits available.

1754.  Additional coverage.

1755.  Coordination of benefits.

1756.  Subrogation.

1757.  Statute of limitations.

Sec. 1751.      Organization.

Insurers providing financial responsibility as required by law shall organize and maintain, subject to the approval and regulation of the Insurance Department, an Assigned Claims Plan and adopt rules for the operation and for the assessment of costs on a fair and equitable basis.

Sec. 1752.      Eligible claimants.

(a)        General rule.‑‑A person is eligible to recover benefits from the Assigned Claims Plan if the person meets the following requirements:

(1)        Is a resident of this Commonwealth.

(2)        Is injured as the result of a motor vehicle accident occurring in this Commonwealth.

(3)        Is not an owner of a motor vehicle required to be registered under Chapter 13 (relating to registration of vehicles).

(4)        Is not the operator or occupant of a motor vehicle owned by the Federal Government or any of its agencies, departments or authorities.

(5)        Is not the operator or occupant of a motor ævehicle owned by a self‑insurer or by an individual or entity who or which is immune from liability for, or is not required to provide, benefits or uninsured and underinsured motorist coverage.

(6)        Is otherwise not entitled to receive any first party benefits under Section 1711 (relating to required benefits) or 1712 (relating to availability of benefits) applicable to the injury arising from the accident.

(7)        Is not the operator or occupant of a recreational vehicle not intended for highway use, motorcycle, motor‑driven cycle or motorized pedalcycle or other like type vehicle required to be registered under this title and involved in the accident.

(b)        Grounds for ineligibility.--A person otherwise qualifying as an eligible claimant under subsection (a) shall nevertheless be ineligible to recover benefits from the Assigned Claims Plan if that person contributed to his own injury in any of the following ways:

(1)        While intentionally injuring himself or another or attempting to intentionally injure himself or another.

(2)        While committing a felony.

(3)        While seeking to elude lawful apprehension or arrest by a law enforcement official.

(4)        While knowingly converting a motor vehicle.

Sec. 1753.      Benefits available.

An eligible claimant may recover medical benefits, as described in section 1712(1) (relating to availability of benefits), up to,a maximum of $5,000. No income loss benefit or accidental death benefit shall be payable under this subchapter.

Sec. 1754.      Additional coverage. 

An eligible claimant who has no other source of applicable uninsured motorist coverage and is otherwise entitled to recover in an action in tort against a party who has failed to comply with this chapter may recover for losses or damages suffered as a result of the injury up to $15,000. subject to an aggregate limit for all claims arising out of any one motor vehicle accident of $30,000. If a claimant recovers medical benefits under section 1753 (relating to benefits available), the amount of medical benefits recovered or recoverable up to $5,000 shall be set off against any amounts recoverable in this section.

Sec. 1755.      Coordination of benefits.

(a)        Workers’ compensation.‑‑All benefits (less reasonably incurred collection costs) that an eligible claimant receives or is entitled to receive from workers’ compensation and from any other like source under local, state, or Federal law shall be subtracted from any benefits available in section 1753 (relating to benefits available) unless the law authorizing or providing for those benefits makes them excess or secondary to the benefits in accordance with this subchapter.

(b)        Accident and health benefits.‑‑All benefits an eligible claimant receives or is entitled to receive as a result of injury from any available source of accident and health benefits shall be subtracted from those benefits available in section 1753.

Sec. 1756.      Subrogation.

The Assigned Claims Plan or its assignee is entitled to recover, in accordance with the tort liability law of this Commonwealth, reimbursement for benefits or coverages paid, loss adjustment costs and any other sums paid to an eligible claimant under this subchapter.

Sec. 1757. Statute of limitations.

(a)        General rule.‑‑An action by an eligible claimant to recover benefits or coverages from the Assigned Claims Plan shall be commenced within four years from the ædate of the accident.

(b)        Minors.‑‑For minors entitled to benefits described in section 1753 (relating to benefits available) or 1754 (relating to additional coverage), an action to recover these benefits or coverages shall be commenced within four years from the date on which the injured minor attains 18 years of age.

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SUBCHAPTER F

CATASTROPHIC LOSS FUND

(Repealed effective 12/12/88)

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SUBCHAPTER G

NONPAYMENT OF JUDGMENTS

Sec.

1771. Court reports on nonpayment of judgments.

1772. Suspension for nonpayment of judgments.

1773. Continuation of suspension until judgments paid and proof given.

1774. Payments sufficient to satisfy judgments.

1775. Installment payment of judgments.

Sec. 1771.      Court reports on nonpayment of judgments.

(a)        General rule.‑‑ Whenever any person fails within 60 days to satisfy any judgment arising from a motor vehicle accident, the judgment creditor may forward to the department a certified copy of the judgment.

(b)        Notice to state of nonresident defendant.‑‑If the defendant named in any certified copy of a judgment reported to the Department is a nonresident, the department shall transmit a certified copy of the judgment to the official in charge of the issuance of licenses and registration certificates of the state of which the defendant is a resident.

Sec. 1772.      Suspension for nonpayment of judgments.

(a)        General rule.‑‑The department, upon receipt of a certified copy of a judgment, shall suspend the operating privilege of each person against whom the judgment was rendered except as otherwise provided in this section and in section 1775 (relating to installment payment of judgments).

(b)        Nonsuspension with consent of judgment creditor.‑‑If the judgment creditor consents in writing, in such form as the department may prescribe that the judgment debtor’s operating privilege be retained or restored, the department shall not suspend or shall restore until the consent is revoked in writing, notwithstanding default in the payment of the judgment, or of any installment thereof prescribed in section 1775, provided the judgment debtor furnishes proof of financial responsibility.

(c)        Financial responsibility in effect at time of accident.-‑Any person whose operating privilege has been suspended, or is about to be suspended or become subject to suspension under this chapter shall be relieved from the effect of the judgment as prescribed in this chapter if the person files evidence satisfactory to the department that financial responsibility was in force and effect at the time, of the accident resulting in the judgment and is or should be available for the satisfaction of the judgment. If insurance already obtained is not available because the insurance company has gone into receivership or bankruptcy, the person shall only be required to present to or file with the department proper evidence that an insurance, policy was in force and effect at the time of the accident.

Sec. 1773.      Continuation of suspension until judgments paid and proof given.

A person’s operating privilege shall remain suspended and shall not be renewed in the name of that person unless and until every judgment is stayed, satisfied in full or to the extent provided in this subchapter, and until the person furnishes proof of financial responsibility as required.

Sec. 1774.      Payments sufficient to satisfy judgments.

(a)        General rule.‑-For the purpose of this chapter only, judgments shall be deemed satisfied upon the occurrence of one of the following:

(1)        When $15,000. has been credited upon any judgment or judgments rendered in excess of that amount because of injury to one person as the result of any one accident.

(2)        When $30,000. has been credited upon any judgment or judgments rendered in excess of that amount because of injury to two or more persons as the result of any one accident.

(3)        When $5,000. has been credited upon any judgment or judgments rendered in excess of that amount because of damage to property of others as the result of any one accident.

(b)        Credit for payment under settlement.‑‑Payments made in settlement of any claims because of bodily injury or property damage arising from a motor vehicle accident shall be credited in reduction of the amounts provided for in this section.

(c)        Escrow deposit by judgment debtor.‑‑When the judgment creditor can not be found, the judgment debtor may deposit in escrow with the prothonotary of the court where the judgment was entered in an amount equal to the amount of the judgment, subject to the limits set forth in subsection (a), interest to date and record costs, whereupon the prothonotary shall notify the department and the judgment shall be deemed satisfied. The amount deposited shall be retained by the prothonotary for a period of five years from the date of the deposit, after which, if it has not been claimed by the judgment creditor, it shall be returned to the judgment debtor. When the deposit is made, the prothonotary shall notify the judgment creditor and his counsel, if any, by certified or registered mail at his last known address. No interest shall run on any judgment with respect to the amount deposited with the prothonotary under the terms of this subsection.

Sec. 1775.      Installment payment of judgments.

(a)        Order authorizing installment payment.‑‑A judgment debtor, upon due notice to the judgment creditor, may apply to the court in which the judgment was rendered for the privilege of paying the judgment in installments and the court, in its discretion and without prejudice to any other legal remedies which the judgment creditor may have, may so order and fix the amounts and times of payment of the installments.

(b)        Suspension prohibited during compliance with order.‑‑The department shall not suspend a driver’s operating privilege and shall restore any operating privilege suspended following nonpayment of a judgment when the judgment debtor obtains an order permitting payment of the judgment in installments and while the payment of any installment is not in default, provided that the judgment debtor furnishes proof of financial responsibility.

(c)        Suspension for default in payment.‑‑In the event the judgment debtor fails to pay any installment as specified by the order, then, upon notice of the default, the department shall suspend the operating privilege of the judgment debtor until the judgment is satisfied as provided in this chapter.

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SUBCHAPTER H