2010 Pennsylvania Code
Title 75 - VEHICLES
Chapter 17 - Financial Responsibility
1702 - Definitions.

     § 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 penalties
        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
     because of injury to one person in any one accident, in the
     amount of $30,000 because of injury to two or more persons in
     any one accident and in the amount of $5,000 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 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 purpose 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 place 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.
     (Feb. 12, 1984, P.L.53, No.12, eff. Oct. 1, 1984; Feb. 7, 1990,
     P.L.11, No.6, eff. imd.)

        1990 Amendment.  Act 6 added the defs. of "Assigned Risk
     Plan," "Automobile Insurance Policy Act," "clean risk,"
     "commissioner," "necessary medical treatment and rehabilitative
     services," "noneconomic loss," "Peer Review Organization" or
     "PRO," "private passenger motor vehicle," "serious injury" and
     "voluntary rate."
        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 the defs. of "Automobile Insurance Policy Act"
     and "clean risk," 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 1702 is referred to in sections
     1161, 1798.3 of this title.