Financial Responsibility, the Pennsylvania Motor Vehicle Financial Responsibility Law

What this document is

75 Pa.C.S. Chapter 17 - Financial Responsibility, the Pennsylvania Motor Vehicle Financial Responsibility Law (§§ 1701 through 1799.7, 75 sections) is a state statute published by Pennsylvania General Assembly, Legislative Data Processing Center (legis.state.pa.us / palegis.us). It is one of the Pennsylvania documents that insurance license exam questions are written from, including pennsylvania property & casualty, pennsylvania personal lines practice questions. This page summarizes it and points to the official version, which is the text to rely on.

Sections cited in practice questions

Each practice answer shows the exact passage it comes from. These are sections of this document that questions cite, with a short excerpt from the source text.

• 75 Pa.C.S. Section 1702 (Definitions -- "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...”

• 75 Pa.C.S. Section 1731(c.1) (Availability, scope and amount of coverage -- Form of waiver)

  “Any rejection form that does not specifically comply with this section is void. If the insurer fails to produce a valid rejection form, uninsured or underinsured coverage, or both, as the case may be, under that policy shall be equal to the bodily injury liability limits.”

• 75 Pa.C.S. Section 1713(a)(1) (Source of benefits -- General rule)

  “a person who suffers injury arising out of the maintenance or use of a motor vehicle shall recover first party benefits against applicable insurance coverage in the following order of priority: (1) For a named insured, the policy on which he is the named insured.”

• 75 Pa.C.S. Section 1705(a)(1) (Election of tort options -- Notice to named insureds, paragraph D)

  “If you do not sign and return this notice, you will be considered to have chosen the "full tort" coverage as described in paragraph B and you will be charged the "full tort" premium.”

• 75 Pa.C.S. Section 1718(c) (Exclusion from benefits -- Named driver exclusion)

  “(c) Named driver exclusion.--An insurer or the first named insured may exclude any person or his personal representative from benefits under a policy enumerated in section 1711 or 1712 when any of the following apply: (1) The person is excluded from coverage while operating a motor vehicle in...”

• 75 Pa.C.S. Section 1742(4) (Scope of plan -- effective date and time of coverage)

  “(4) Provide rules to specify the effective date and time of coverage, provided that applicants may only obtain coverage effective as of the date and time of the application if the agent or broker of record uses electronic mail binding procedures specified in the rules.”

• 75 Pa.C.S. Section 1784 (Proof of financial responsibility following violation)

  “A defendant who is convicted of a traffic offense, other than a parking offense, that requires a court appearance shall be required to show proof of financial responsibility covering the operation of the vehicle at the time of the offense. If the defendant fails to show proof of financial...”

• 75 Pa.C.S. Section 1733(a) (Priority of recovery -- General rule)

  “(a) General rule.--Where multiple policies apply, payment shall be made in the following order of priority: (1) A policy covering a motor vehicle occupied by the injured person at the time of the accident. (2) A policy covering a motor vehicle not involved in the accident with respect to which the...”

• 75 Pa.C.S. Section 1752(a) (Eligible claimants -- General rule)

  “(a) General rule.--A person is eligible to recover benefits from the Assigned Claims Plan if the person meets the following requirements: (1) Is a resident of this Commonwealth. (2) Is injured as the result of a motor vehicle accident occurring in this Commonwealth. (3) Is not an owner of a motor...”

• 75 Pa.C.S. Section 1782(d) (Manner of providing proof of financial responsibility -- Financial responsibility identification cards)

  “(d) Financial responsibility identification cards.--Insurers shall provide financial responsibility identification cards to insureds which shall be valid only for the period for which coverage has been paid by the insured.”

• 75 Pa.C.S. Section 1715(d) (Availability of adequate limits -- Limitations)

  “(d) Limitations.--The maximum medical benefit which shall be paid on behalf of any one eligible claimant under subsection (a)(1.1) shall be $50,000 per year and $1,000,000 lifetime aggregate of reasonable and necessary expenses only for medical treatment and rehabilitative services which, as...”

• 75 Pa.C.S. Section 1792(b)(1) (Physical damage deductibles; collision deductible offered)

  “(1) Every private passenger automobile insurance policy providing collision coverage issued or renewed on and after the effective date of this subsection shall offer a deductible in an amount of $500 for collision coverage and may offer a deductible in a greater or lesser amount or a zero deductible.”

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Questions about this source

More Pennsylvania sources

• 18 Pa.C.S. Chapter 41 - Forgery and Fraudulent Practices (§§ 4101 through 4121, 26 sections), including § 4117 Insurance fraudState statute
• The Casualty and Surety Rate Regulatory Act (Act of June 11, 1947, P.L. 538, No. 246), complete act (40 P.S. §§ 1181-1199)State statute
• 31 Pa. Code Chapter 113 - Miscellaneous Provisions, including Subchapter G, Increase in Premium and Midterm Cancellation or Nonrenewal of COMMERCIAL Property and Casualty Policies (complete chapter, §§ 113.51 through 113.88)Regulation
• 31 Pa. Code Chapter 145 - Elimination of Unfair Sex or Marital Status Discrimination in All Insurance Contracts (complete chapter, 5 sections, §§ 145.1 through 145.5)Regulation
• 31 Pa. Code Chapter 51 - Advertising of Insurance, General Provisions (complete chapter, 28 sections, §§ 51.1 through 51.61)Regulation
• 31 Pa. Code Chapter 59 - Cancellation and Refusal to Renew of Personal Residential Property and Personal Property Insurance (complete chapter, 14 sections, §§ 59.1 through 59.13)Regulation
• Pennsylvania Property and Casualty Insurance - increase in premium, midterm cancellation and nonrenewal of COMMERCIAL policies (Act of July 3, 1986, P.L. 396, No. 86), complete act (40 P.S. §§ 3401-3409)State statute
• The Pennsylvania FAIR Plan Act (Act of July 31, 1968, P.L. 738, No. 233), complete act (40 P.S. §§ 1600.101-1600.103 and following)State statute