On April 5, 2021, House Bill No. 1083 was introduced in the General Assembly of Pennsylvania, which seeks to amend significant portions of the Pennsylvania Motor Vehicle Financial Responsibility Law (MVFRL) related to uninsured/underinsured (“UM/UIM”) motorist benefits.
Currently, the MVFRL requires that insurance companies offer UM/UIM coverage to insureds in an amount that equals the liability coverage purchased on a policy pursuant to 75 Pa.C.SA. §1731. A consumer may elect a lower amount of UM/UIM coverage on a policy pursuant to 75 Pa.C.SA. §1734 via written request, but may not insure vehicles for higher amounts of UM/UIM coverage than liability coverage. If UM/UIM is purchased, 75 Pa.C.SA. §1738 permits insureds to pay an additional premium to aggregate the UM/UIM coverage limits across all vehicles insured under that policy, as well as the available limits across any other policy under which a claimant is a named insured or resident relative. This concept is commonly referred to as “stacking,” and has been recognized in Pennsylvania common law even before the passage of the MVFRL.
House Bill No. 1083 effectively eliminates the concept of “stacking” as a whole, substantially amending 75 Pa.C.SA. §1738 to expressly prohibit aggregation of coverage. Instead, the bill proposes amending 75 Pa.C.SA. §1734 to allow consumers to purchase UM/UIM coverage at any level or amount for a given vehicle, including in amounts exceeding the liability coverage on a given policy. The proposed bill is sponsored by nineteen Republican Representatives and is currently being reviewed by the Committee on Insurance.
A copy of House Bill No. 1083 can be found here.
Status updates on the review of House Bill No. 1083 are available here.
For additional questions, please contact Elizabeth Hines, Esq., Glen Shikunov, Esq. and/or Scott Tredwell, Esq..
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