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Bill > SB578
PA SB578
In financial responsibility, further providing for availability, scope and amount of coverage, repealing provisions relating to request for lower limits of coverage, providing for offer of lower limits of coverage, repealing provisions relating to coverages in excess of required amounts and to stacking of uninsured and underinsured benefits and option to waive, providing for stacking of uninsured and underinsured benefits prohibited and further providing for notice of available benefits and limi
summary
Introduced
04/09/2025
04/09/2025
In Committee
04/09/2025
04/09/2025
Crossed Over
Passed
Dead
Introduced Session
2025-2026 Regular Session
Bill Summary
Amending Title 75 (Vehicles) of the Pennsylvania Consolidated Statutes, in financial responsibility, further providing for availability, scope and amount of coverage, repealing provisions relating to request for lower limits of coverage, providing for offer of lower limits of coverage, repealing provisions relating to coverages in excess of required amounts and to stacking of uninsured and underinsured benefits and option to waive, providing for stacking of uninsured and underinsured benefits prohibited and further providing for notice of available benefits and limits and for availability of uninsured, underinsured, bodily injury liability and property damage coverages and mandatory deductibles.
AI Summary
This bill makes significant changes to motor vehicle insurance coverage in Pennsylvania, primarily focusing on uninsured and underinsured motorist (UM/UIM) coverage. The legislation prohibits "stacking" of UM/UIM coverage, which previously allowed insureds to combine coverage limits from multiple vehicles. Under the new law, insurers must offer UM/UIM coverage equal to the policyholder's bodily injury liability limits, but policyholders can now choose lower limits or potentially higher limits. Insurers are required to provide written notice to policyholders explaining these changes, including the elimination of stacking and the available coverage options. The bill repeals previous provisions that allowed for stacking and provides new rules for how UM/UIM coverage will be applied in various scenarios, such as accidents involving insured vehicles or pedestrian incidents. When an insured is injured, they can now only recover UM/UIM coverage from the policy covering the vehicle they were in at the time of the accident, with some limited exceptions. These changes will apply to motor vehicle liability insurance policies delivered, issued, or renewed one year after the act's effective date, and are designed to clarify and potentially reduce insurance coverage complexities for Pennsylvania drivers.
Committee Categories
Business and Industry
Sponsors (4)
Last Action
Referred to BANKING AND INSURANCE (on 04/09/2025)
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