Pennsylvania Act 1963-433 — MOTOR VEHICLE INSURANCE - UNINSURED DRIVER PROVISIONS

Act text

MOTOR VEHICLE INSURANCE - UNINSURED DRIVER PROVISIONS
                 Act of Aug. 14, 1963, P.L. 909, No. 433              Cl. 40
                                  AN ACT

     Requiring, with limitations, that insurance policies insuring
        against loss occurring in connection with motor vehicles
        provide protection against certain uninsured motorists.

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

        Section 1.  (a)  No motor vehicle liability policy of
     insurance insuring against loss resulting from liability imposed
     by law for bodily injury or death suffered by any person arising
     out of the ownership, maintenance or use of a motor vehicle
     shall be delivered or issued for delivery in this State with
     respect to any motor vehicle registered or principally garaged
     in this State, unless coverage is provided therein or
     supplemental thereto in limits for bodily injury or death as are
     fixed from time to time by the General Assembly in section 1421
     of article XIV. of "The Vehicle Code," act of April 29, 1959
     (P.L.58), under provisions approved by the Insurance
     Commissioner, for the protection of persons insured thereunder
     who are legally entitled to recover damages from owners or
     operators of uninsured motor vehicles because of bodily injury,
     sickness or disease, including death resulting therefrom,
     Provided, That:
        (1)  An owner or operator of (i) any motor vehicle designed
     for carrying freight or merchandise or, (ii) any motor vehicle
     operated for the carriage of passengers for hire or
     compensation, having in either instance been granted a
     certificate of public convenience or a permit by the
     Pennsylvania Public Utility Commission or been issued a
     certificate of public convenience and necessity or a permit by
     the Interstate Commerce Commission, and
        (2)  An owner or operator of any other motor vehicle designed
     for carrying freight or merchandise or operated for the carriage
     of passengers for hire whose employes are insured under the
     provisions of "The Pennsylvania Workmen's Compensation Act," act
     of June 2, 1915 (P.L.736), as amended, shall have the right to
     reject such coverage in writing in which event, such coverage
     need not be provided in or supplemental to a renewal policy
     where such insured had rejected the coverage in connection with
     a policy previously issued to him by the same insurer.
        (b)  For the purpose of this coverage the term "uninsured
     motor vehicle" shall be deemed to include an insured motor
     vehicle where the liability insurer thereof is unable to make
     payment with respect to the legal liability of its insured
     within the limits specified therein because of insolvency.
        (c)  An insured's insolvency protection shall be applicable
     only to accidents occurring during a policy period in which its
     insured's uninsured motorist coverage is in effect where the
     liability insurer of the tort-feasor becomes insolvent within
     six years after such an accident.
        (d)  In the event of payment to any person under the coverage
     required by this section, the insurer making such payment shall,
     to the extent thereof, be entitled to the proceeds of any
     settlement or judgment resulting from the exercise of any rights
     of recovery of such person against any person or organization
     legally responsible for the bodily injury for which such payment
     is made, including the proceeds recoverable from the assets of
     the insolvent insurer. Whenever an insurer shall make payment
     under the coverage required by this section, which payment is
     occasioned by an insolvency, such insurer's right of recovery or
     reimbursement shall not include any rights against the insured
     of said insolvent insurer, but such paying insurer shall have
     the right to proceed directly against the insolvent insurer or
     its receiver, and in pursuance of such right such paying insurer
     shall possess any rights which the insured of the insolvent
     insurer might have had if the insured of the insolvent insurer
     had personally made the payment.
        (e)  The coverage required by this section does not apply:
        (1)  To property damage sustained by the insured.
        (2)  To bodily injury sustained by the insured with respect
     to which the insured or his representative shall, without the
     written consent of the insurer, make any settlement with or
     prosecute to judgment any action against any person who may be
     legally liable therefor.
        (3)  In any instance where it would inure directly or
     indirectly to the benefit of any workmen's compensation carrier
     or to any person qualified as a self-insurer under any workmen's
     compensation law.
        (f)  Nothing herein contained shall be construed to prevent
     any insurer from affording the coverage required by this section
     under terms and conditions more favorable to its insured than
     are provided herein.
        (1 amended Dec. 19, 1968, P.L.1254, No.397)
        Section 2.  This act shall take effect January 1, 1964.