2010 Pennsylvania Code
Title 75 - VEHICLES
Chapter 17 - Financial Responsibility
1786 - Required financial responsibility.

     § 1786.  Required financial responsibility.
        (a)  General rule.--Every motor vehicle of the type required
     to be registered under this title which is operated or currently
     registered shall be covered by financial responsibility.
        (b)  Self-certification.--The Department of Transportation
     shall require that each motor vehicle registrant certify that
     the registrant is financially responsible at the time of
     registration or renewal thereof. The department shall refuse to
     register or renew the registration of a vehicle for failure to
     comply with this requirement or falsification of self-
     certification.
        (c)  Consent to produce proof of financial responsibility.--
     Upon registering a motor vehicle or renewing a motor vehicle
     registration, the owner of the motor vehicle shall be deemed to
     have given consent to produce proof, upon request, to the
     Department of Transportation or a police officer that the
     vehicle registrant has the financial responsibility required by
     this chapter.
        (d)  Suspension of registration and operating privilege.--
            (1)  The Department of Transportation shall suspend the
        registration of a vehicle for a period of three months if it
        determines the required financial responsibility was not
        secured as required by this chapter and shall suspend the
        operating privilege of the owner or registrant for a period
        of three months if the department determines that the owner
        or registrant has operated or permitted the operation of the
        vehicle without the required financial responsibility. The
        operating privilege shall not be restored until the
        restoration fee for operating privilege provided by section
        1960 (relating to reinstatement of operating privilege or
        vehicle registration) is paid.
            (2)  Whenever the department revokes or suspends the
        registration of any vehicle under this chapter, the
        department shall not restore the registration until the
        vehicle owner furnishes proof of financial responsibility in
        a manner determined by the department and submits an
        application for registration to the department, accompanied
        by the fee for restoration of registration provided by
        section 1960. This subsection shall not apply in the
        following circumstances:
                (i)  The owner or registrant proves to the
            satisfaction of the department that the lapse in
            financial responsibility coverage was for a period of
            less than 31 days and that the owner or registrant did
            not operate or permit the operation of the vehicle during
            the period of lapse in financial responsibility.
                (ii)  The owner or registrant is a member of the
            armed services of the United States, the owner or
            registrant has previously had the financial
            responsibility required by this chapter, financial
            responsibility had lapsed while the owner or registrant
            was on temporary, emergency duty and the vehicle was not
            operated during the period of lapse in financial
            responsibility. The exemption granted by this paragraph
            shall continue for 30 days after the owner or registrant
            returns from duty as long as the vehicle is not operated
            until the required financial responsibility has been
            established.
                (iii)  The insurance coverage has terminated or
            financial responsibility has lapsed simultaneously with
            or subsequent to expiration of a seasonal registration,
            as provided in section 1307(a.1) (relating to period of
            registration).
            (3)  An owner whose vehicle registration has been
        suspended under this subsection shall have the same right of
        appeal under section 1377 (relating to judicial review) as
        provided for in cases of the suspension of vehicle
        registration for other purposes. The filing of the appeal
        shall act as a supersedeas, and the suspension shall not be
        imposed until determination of the matter as provided in
        section 1377. The court's scope of review in an appeal from a
        vehicle registration suspension shall be limited to
        determining whether:
                (i)  the vehicle is registered or of a type that is
            required to be registered under this title; and
                (ii)  there has been either notice to the department
            of a lapse, termination or cancellation in the financial
            responsibility coverage as required by law for that
            vehicle or that the owner, registrant or driver was
            requested to provide proof of financial responsibility to
            the department, a police officer or another driver and
            failed to do so. Notice to the department of the lapse,
            termination or cancellation or the failure to provide the
            requested proof of financial responsibility shall create
            a presumption that the vehicle lacked the requisite
            financial responsibility. This presumption may be
            overcome by producing clear and convincing evidence that
            the vehicle was insured at all relevant times.
            (4)  Where an owner or registrant's operating privilege
        has been suspended under this subsection, the owner or
        registrant shall have the same right of appeal under section
        1550 (relating to judicial review) as provided for in cases
        of suspension for other reason. The court's scope of review
        in an appeal from an operating privilege suspension shall be
        limited to determining whether:
                (i)  the vehicle was registered or of a type required
            to be registered under this title; and
                (ii)  the owner or registrant operated or permitted
            the operation of the same vehicle when it was not covered
            by financial responsibility. The fact that an owner,
            registrant or operator of the motor vehicle failed to
            provide competent evidence of insurance or the fact that
            the department received notice of a lapse, termination or
            cancellation of insurance for the vehicle shall create a
            presumption that the vehicle lacked the requisite
            financial responsibility. This presumption may be
            overcome by producing clear and convincing evidence that
            the vehicle was insured at the time that it was driven.
            (5)  An alleged lapse, cancellation or termination of a
        policy of insurance by an insurer may only be challenged by
        requesting review by the Insurance Commissioner pursuant to
        Article XX of the act of May 17, 1921 (P.L.682, No.284),
        known as The Insurance Company Law of 1921. Proof that a
        timely request has been made to the Insurance Commissioner
        for such a review shall act as a supersedeas, staying the
        suspension of registration or operating privilege under this
        section pending a determination pursuant to section 2009(a)
        of The Insurance Company Law of 1921 or, in the event that
        further review at a hearing is requested by either party, a
        final order pursuant to section 2009(i) of The Insurance
        Company Law of 1921.
        (e)  Obligations upon lapse, termination or cancellation of
     financial responsibility.--
            (1)  An owner of a motor vehicle who ceases to maintain
        financial responsibility on a registered vehicle shall not
        operate or permit operation of the vehicle in this
        Commonwealth until proof of the required financial
        responsibility has been provided to the Department of
        Transportation.
            (2)  An insurer who has issued a contract of motor
        vehicle liability insurance, or any approved self-insurance
        entity, shall notify the department in a timely manner and in
        a method prescribed by the department's regulations. Upon
        request of an owner or registrant in the case of an appeal
        brought by an owner or registrant for suspension under this
        section, an insurer shall provide a copy of the notice of
        cancellation or a copy of the insurer's filing procedures
        with proof that the notice was written in the normal course
        of business and placed in the normal course of mailing. The
        department shall not be required to produce such copy or any
        other proof that notice of termination, lapse or cancellation
        was provided to the owner or registrant in order to satisfy
        the burden of proof in a proceeding under this section.
            (3)  An insurer who has issued a contract of motor
        vehicle liability insurance and knows or has reason to
        believe that the contract is only for the purpose of
        providing proof of financial responsibility shall notify the
        department if the insurance has been canceled or terminated
        by the insured or by the insurer. The insurer shall notify
        the department not later than ten days following the
        effective date of the cancellation or termination.
            (4)  A person who, after maintaining financial
        responsibility on the vehicle of another person, ceases to
        maintain such financial responsibility shall immediately
        notify the vehicle's owner who shall not operate, or permit
        operation of, the vehicle in this Commonwealth.
            (5)  In the case of a person who leases any motor vehicle
        from a person engaged in the business of leasing motor
        vehicles, the lessee shall sign a statement indicating that
        the required financial responsibility has been provided
        through the lessor or through the lessee's motor vehicle
        liability insurance policy coverage. The lessee shall submit
        the statement to the lessor.
        (f)  Operation of a motor vehicle without required financial
     responsibility.--Any owner of a motor vehicle for which the
     existence of financial responsibility is a requirement for its
     legal operation shall not operate the motor vehicle or permit it
     to be operated upon a highway of this Commonwealth without the
     financial responsibility required by this chapter. In addition
     to the penalties provided by subsection (d), any person who
     fails to comply with this subsection commits a summary offense
     and shall, upon conviction, be sentenced to pay a fine of $300.
        (g)  Defenses.--
            (1)  No person shall be convicted of failing to produce
        proof of financial responsibility under this subchapter or
        section 3743 (relating to accidents involving damage to
        attended vehicle or property) or 6308 (relating to
        investigation by police officers) if the person produces, at
        the office of the issuing authority within five days of the
        date of the violation, proof that he possessed the required
        financial responsibility at the time of the violation.
            (2)  No person shall be penalized for maintaining a
        registered motor vehicle without financial responsibility
        under subsection (d) if, at the time insurance coverage
        terminated or financial responsibility lapsed, the
        registration plate and card were voluntarily surrendered to
        the department, a full agent designated by the department to
        accept voluntarily surrendered registration plates and cards
        pursuant to regulations promulgated by the department or a
        decentralized service agent appointed by the department. If a
        seasonal registration, as provided in section 1307(a.1), has
        been issued for the vehicle, return of the registration plate
        and card shall be required only if the insurance coverage
        terminates or financial responsibility lapses prior to the
        expiration of the seasonal registration. The department, a
        full agent or the decentralized service agent, as the case
        may be, shall issue a receipt showing the date that the
        registration plate and card were received. The designated
        full agent or the decentralized service agent shall return
        the registration plate and card to the department accompanied
        by a copy of the receipt.
        (h)  Reinstatement of voluntarily surrendered registration
     plate and card.--
            (1)  Except as provided in paragraph (2), the original
        registration plate and card shall be canceled by the
        department and destroyed. Any person who voluntarily
        surrendered a registration plate and card pursuant to the
        provisions of subsection (g)(2) may obtain a substitute
        registration plate and card bearing a registration number
        other than that originally issued from the department, a
        designated full agent or a decentralized service agent, as
        the case may be. Proof of financial responsibility in a form
        approved by the department shall be submitted together with
        the receipt showing the registration plate and card were
        voluntarily surrendered.
            (2)  Any registration plate issued under sections 1340
        (relating to antique and classic plates) and 1341 (relating
        to personal plate) shall be returned by the department to the
        owner of the motor vehicle upon receipt of proof of financial
        responsibility.
            (3)  A full agent designated by the department to issue
        substitute temporary registration cards and plates following
        a voluntary surrender of registration cards and plates
        pursuant to regulations promulgated by the department or a
        decentralized service agent appointed by the department may
        be authorized to issue substitute temporary registration
        plates provided proof of financial responsibility and a copy
        of the receipt showing the original registration plate and
        card were voluntarily surrendered are furnished. The fees
        provided pursuant to sections 1929 (relating to replacement
        registration plates) and 1932 (relating to duplicate
        registration cards) shall not be charged if the original
        registration plate and card were canceled pursuant to
        paragraph (1).
     (Feb. 7, 1990, P.L.11, No.6, eff. July 1, 1990; Dec. 7, 1990,
     P.L.635, No.164, eff. imd.; Apr. 16, 1992, P.L.169, No.31, eff.
     120 days; Dec. 16, 1992, P.L.1247, No.165, eff. 60 days; July 2,
     1993, P.L.408, No.58, eff. imd.; Feb. 10, 1994, P.L.10, No.2,
     eff. imd.; Dec. 7, 1994, P.L.820, No.115, eff. imd.; July 11,
     1996, P.L.660, No.115, eff. 60 days; Dec. 9, 2002, P.L.1278,
     No.152, eff. 60 days)

        2002 Amendment.  Act 152 amended subsecs. (d) and (e)(2).
        1996 Amendment.  Act 115 amended subsec. (g)(2) and added
     subsec. (d)(3).
        1994 Amendment.  Act 115 amended subsecs. (g) and (h).
        Cross References.  Section 1786 is referred to in sections
     1377, 1553, 1960, 6309.1 of this title; section 7317 of Title 51
     (Military Affairs).