PROPOSED RULEMAKING
INSURANCE DEPARTMENT
[31 PA. CODE CH. 67]
Evidence of Financial Responsibility
[27 Pa.B. 6227] The Insurance Department (Department) proposes to amend Chapter 67, Subchapter B (relating to evidence of financial responsibility) to read as set forth in Annex A. The Department is publishing the amendments as proposed rulemaking. The Department proposes the amendments under the authority of 75 Pa.C.S. § 1782(d) (relating to manner of providing proof of financial responsibility). Subchapter B sets forth the requirements of providing proof of financial responsibility for all owners and operators of motor vehicles in this Commonwealth. Additionally, the form and content of identification cards that insurers are required to issue and motorists are required to possess is also contained within this subchapter.
Purpose
The purpose of this rulemaking is to amend Subchapter B to provide additional detail for clarity, delete unenforceable and outdated provisions, and bring the regulation into conformance with 75 Pa.C.S. §§ 1701--1798 (relating to Motor Vehicle Financial Responsibility Law).
In the definitions section, the reference to Department is proposed to be deleted as it is contained in another regulation and the definition of ''NAIC company code number'' is proposed to be modified slightly for clarity.
Under § 67.23(a) and (b) (relating to I. D. cards), references to the original dates of these requirements in 1984 are proposed to be deleted, as they are outdated and no longer necessary.
Section 67.24(a) (relating to form and content of I. D. cards) is proposed to be amended to delete reference to no-fault insurance and pre-1985 requirement dates. Section 67.24(b)(8) is proposed to be modified to conform with 75 Pa.C.S. § 1782(d) by requiring that the I. D. cards disclose the period for which coverage has been paid by the insured. Additionally, in § 67.24(c), the warning language is proposed to be amended because it was confusing as written.
Instructions accompanying I. D. cards, § 67.25 (relating to instructions accompanying I. D. cards), is proposed to be amended to allow insurers flexibility, without mandating specific language.
Section 67.26 relating to multiple vehicle situations is proposed to be renamed to ''I. D. cards issued by an insurer to fleets or dealers,'' as it is more concise and accurate. Language requiring the insurance company to advise a dealer that an I. D. card cannot be used to register a specific vehicle has been amended. The language that an I. D. card be placed in each vehicle while it is being driven under the dealer's policy with the dealer's plate is proposed to be deleted, as the Department cannot enforce this requirement.
Section 67.27 entitled ''Binder'' is proposed to be renamed, ''Temporary Identification Cards,'' for clarity. Subsection (a) is proposed to be modified to require the issuance of a temporary I. D. card rather than a copy of the binder, as the Department feels the use of temporary I. D. cards may become more widespread as insurance companies change over to electronic application transmissions. Also, a requirement of what specific information a temporary I. D. card must contain is listed, such as the statement that the I. D. card is temporary, and that it is not valid for more than 60 days from the date of issuance. Subsection (b) is proposed to be modified to indicate exactly what information must be contained on the assigned risk application for it to be used as a temporary I. D. card. A copy of a valid application is still acceptable, and must state that a certified producer is not permitted to issue a temporary I. D. card for assigned risk applications.
Section 67.28 regarding other evidence of financial responsibility is proposed to be deleted in its entirety as the Department of Transportation will have to determine what is acceptable evidence of financial responsibility.
External Comments
The Insurance Federation of Pennsylvania, Inc., and the Department of Transportation, Bureau of Motor Vehicles, were contacted regarding these proposed amendments. The Department has incorporated their comments into these proposed amendments. Specifically, the Department has retained the warning language required on the I. D. cards by § 67.24 because it informs the insureds that there are penalties for failing to maintain liability insurance. The Department's proposed change that ''I. D. cards shall contain a statement similar to the following'' was made because the warning is confusing as presently written, implying that if insureds allow their insurance to lapse, there would not be a problem so long as they do not drive the vehicle.
Fiscal Impact
The proposed amendments should not have any substantial impact on costs associated with the Department, insurance companies, political subdivisions or the general public.
Paperwork
The proposed amendments should not impose additional paperwork requirements on the Department, insurers or the general public.
Persons Regulated
The proposed amendments apply to insurance companies who transact insurance business and owners and operators of motor vehicles in this Commonwealth.
Contact Person
Questions or comments regarding the proposed rulemaking may be addressed in writing to Peter J. Salvatore, Regulatory Coordinator, 1326 Strawberry Square, Harrisburg, PA 17120, (717) 787-4429, within 30 days of the publication of this notice in the Pennsylvania Bulletin.
Regulatory Review
Under section 5(a) of the Regulatory Review Act (71 P. S. § 745.5(a)), on November 13, 1997, the Department submitted a copy of this proposed rulemaking to the Independent Regulatory Review Commission (IRRC) and to the Chairpersons of the House Insurance Committee and the Senate Banking and Insurance Committee. In addition to the submitted proposed rulemaking, the Department has provided IRRC and the Committees with a copy of a detailed Regulatory Analysis Form prepared by the Department in compliance with Executive Order 1996-1, ''Regulatory Review and Promulgation.'' A copy of that material is available to the public upon request.
If the Committees have objections to any portion of the proposed amendments, they will notify the Department within 20 days of the close of the public comment period. If IRRC has objections to any portion of the proposed amendments, it will notify the Department within 10 days of the close of the Committees' comment period. The notification shall specify the regulatory review criteria which have not been met by that portion. The Regulatory Review Act specifies detailed procedures for review, prior to final publication of the regulations by the Department, the General Assembly and the Governor of objections raised.
M. DIANE KOKEN,
Acting Insurance CommissionerFiscal Note: 11-165. No fiscal impact; (8) recommends adoption.
Annex A
TITLE 31. INSURANCE
PART II. AUTOMOBILE INSURANCE
CHAPTER 67. MOTOR VEHICLE FINANCIAL RESPONSIBILITY LAW
SUBCHAPTER B. EVIDENCE OF FINANCIAL RESPONSIBILITY. § 67.22. Definitions.
The following words and terms, when used in this subchapter, have the following meanings, unless the context clearly indicates otherwise:
* * * * * [Department--The Insurance Department of the Commonwealth.]
* * * * * NAIC company code number--The unique number which is assigned by the National Association of Insurance Commissioners [Central Office to identify that insurer].
* * * * * § 67.23. I. D. cards.
(a) Insurers. [On or after October 1, 1984, at the inception or renewal of a policy, the] The insurer shall issue to each named insured one I. D. card as specified in this subchapter for each vehicle which it insures. Upon the addition or substitution of a vehicle covered in the policy, the insurer shall issue an I. D. card for that vehicle. Replacement of I. D. cards for the purpose of change of address shall be optional at the discretion of the insurer.
(b) Self-insurers. [On or after October 1, 1984, the]The self-insurer shall issue an I. D. card as specified in this subchapter for each vehicle for which satisfaction of the requirements of the act is accomplished through self-insurance. Upon the addition or substitution of a vehicle, the self-insurer shall issue an I. D. card for that vehicle. Replacement of I. D. cards for the purpose of change of address shall be optional at the discretion of the self-insurer.
* * * * * § 67.24. Form and content of I. D. cards.
(a) Form of financial responsibility cards. [The insurer and self-insurer may in their discretion choose to satisfy the requirements of this subchapter by continuing to use the existing no-fault identification card until January 1, 1985. After January 1, 1985, the] The insurer and self-insurer shall [use a new] issue an I. D. card containing information required in this section or another card as may be approved by the Department.
(b) Contents. Each I. D. card shall contain the following information on the front of the card:
* * * * * (6) Policy number [where applicable].
(7) Effective date: month, day[,] and year [of the policy must be shown].
(8) [The following inscription below the effective date: NOT VALID MORE THAN 1 YEAR FROM EFFECTIVE DATE.] Expiration date: month, day, and year.
(c) Statement. Each I. D. card shall contain [the following] a statement [on the back of the card] similar to the following:
This card must be carried for production upon demand. It is suggested that you carry this card in the insured vehicle.
WARNING: Any owner or registrant of a motor vehicle who drives or permits a motor vehicle to be driven in this State without the required financial responsibility may have [his] the registration suspended or revoked.
NOTE: THIS CARD IS REQUIRED WHEN:
(1) You are involved in an auto accident.
(2) [Your] You are convicted of a traffic offense other than a parking offense that requires a court appearance.
(3) You are stopped for violating any provision of 75 Pa.C.S. (relating to the Vehicle Code) and requested to produce it by a police officer.
You must provide a copy of this card to the Department of Transportation when you request restoration of your operating privilege [and/or] or registration privilege, or both, which has been previously suspended or revoked.
§ 67.25. Instructions accompanying I. D. cards.
[At the time the insurer issues an I. D. card to a policyholder, it shall also issue a statement explaining I. D. card requirements, including display to law enforcement officers, use for registering vehicles, and action that must be taken in the event a card is lost or a card is in error. The following language will be acceptable to the Department in satisfaction of this requirement:] The insurance company shall advise the policyholder of I. D. card requirements as outlined in § 67.24(c) (relating to form and content of I. D. cards), including display to law enforcement officers, action that shall be taken in the event a card is lost or contains incorrect information and use for registering vehicles. The following language is provided as an example of language which meets these requirements:
IMPORTANT NOTICE Regarding your Financial Responsibility Insurance Identification Card.
The _____ Insurance Company is required by Pennsylvania law to send you an I. D. card. The card shows that an insurance policy has been issued for the vehicle(s) described in satisfying the financial responsibility requirements of the law.
If you lose the card, or if the card contains incorrect information, contact your insurance company or agent for a replacement.
The I. D. card information may be used for vehicle registration and replacing license plates. If your liability insurance policy is not in effect, the I. D. card is no longer valid.
You are required to maintain financial responsibility on your vehicle. It is against Pennsylvania law to use the I. D. card fraudulently such as using the card as proof of financial responsibility after the insurance policy is terminated.
§ 67.26. I. D. cards issued [to fleets, dealers, transporters; and temporary registrations] by an insurer to fleets or dealers.
* * * * * (b) An I. D. card issued to a dealer may show either ''garage liability hazard number 1 policy'' or ''all owned and nonowned vehicles--comprehensive auto liability policy'' instead of a specific vehicle description. One I. D. card must be issued for each set of dealer plates assigned to the dealer and insured under such a policy. [An I. D. card issued to a dealer] The insurance company shall advise that an I. D. card issued to a dealer cannot be used to register a specific vehicle. [An I. D. card must be placed in each vehicle while it is being driven under the dealer's policy with the dealer's plate.]
§ 67.27. [Binder] Temporary identification cards.
(a) [Prior to receiving an I. D. card from an insurer, a copy of a valid binder which contains the information required in § 67.24(b)(1)-(7) (relating to form and content of I. D. cards) excluding the policy number can be used as evidence of financial responsibility.] An agent may issue a temporary I. D. card, which can be used as evidence of financial responsibility until the permanent I. D. card is issued by the insurance company. The temporary I. D. card shall contain the following information:
TITLE OF CARD--TEMPORARY FINANCIAL RESPONSIBILITY IDENTIFICATION CARD
NOTE: THIS CARD IS NOT VALID FOR MORE THAN 60 DAYS FROM THE DATE OF ISSUANCE
NAME OF INSURANCE GROUP
NAME, ADDRESS, AND SIGNATURE OF ISSUING AGENT
DESCRIPTION OF VEHICLE--YEAR, MAKE AND VEHICLE IDENTIFICATION NUMBER
EFFECTIVE DATE OF COVERAGE--MONTH, DAY AND YEAR
(b) [Prior to receiving an I. D. card from an assigned company of the Pennsylvania Automobile Insurance Plan (Plan), a copy of an application to the Plan can be used in place of an I. D. card, if the application contains the information required in § 67.24(b)(1)--(7) excluding the policy number and is signed by a licensed insurance agent or broker.] A Pennsylvania Assigned Risk Plan application may be used as evidence of financial responsibility prior to receipt of an I. D. card from the assigned insurance company. The application shall contain the following information:
NAME, ADDRESS AND SIGNATURE OF CERTIFIED PRODUCER
DESCRIPTION OF VEHICLE--YEAR, MAKE AND VEHICLE IDENTIFICATION NUMBER
ELECTRONIC MAIL REFERENCE NUMBER, IF APPLICABLE
NOTE: A CERTIFIED PRODUCER IS NOT PERMITTED TO ISSUE A TEMPORARY ID CARD FOR ASSIGNED RISK APPLICATIONS
§ 67.28. [Other evidence of financial responsibility] (Reserved).
[Where the I. D. card is not held sufficient by the court, the Department of Transportation or other law enforcement agency to demonstrate financial responsibility, an insurer shall provide in writing other evidence that the policyholder is financially responsible.]
[Pa.B. Doc. No. 97-1909. Filed for public inspection November 28, 1997, 9:00 a.m.]
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