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Election of tort options - 75 Pa. Cons. Stat. § 1705Legal Research Home > Pennsylvania Statutes Sponsored Links
§ 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 right 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 or 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; or
(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.
(Feb. 7, 1990, P.L.11, No.6, eff. imd.)
1990 Amendment. Act 6 added section 1705.
References in Text. The act of June 5, 1968 (P.L.140,
No.78), referred to as the Automobile Insurance Policy Act,
referred to in subsec. (e), was repealed by the act of June 17,
1998, P.L.464, No.68. The subject matter is now contained in
Article XX of the act of May 17, 1921 (P.L.682, No.284), known
as The Insurance Company Law of 1921.
Cross References. Section 1705 is referred to in sections
1731, 1791.1, 1799.7 of this title.
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Last modified: November 27, 2007 |