SB 578 — An Act 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.

PRINTER'S NO.    586

                     THE GENERAL ASSEMBLY OF PENNSYLVANIA



                        SENATE BILL
                        No. 578
                                               Session of
                                                 2025

     INTRODUCED BY GEBHARD, LAUGHLIN, PHILLIPS-HILL AND ROTHMAN,
        APRIL 9, 2025

     REFERRED TO BANKING AND INSURANCE, APRIL 9, 2025


                                    AN ACT
 1   Amending Title 75 (Vehicles) of the Pennsylvania Consolidated
 2      Statutes, in financial responsibility, further providing for
 3      availability, scope and amount of coverage, repealing
 4      provisions relating to request for lower limits of coverage,
 5      providing for offer of lower limits of coverage, repealing
 6      provisions relating to coverages in excess of required
 7      amounts and to stacking of uninsured and underinsured
 8      benefits and option to waive, providing for stacking of
 9      uninsured and underinsured benefits prohibited and further
10      providing for notice of available benefits and limits and for
11      availability of uninsured, underinsured, bodily injury
12      liability and property damage coverages and mandatory
13      deductibles.
14      The General Assembly of the Commonwealth of Pennsylvania
15   hereby enacts as follows:
16      Section 1.    Section 1731(a) of Title 75 of the Pennsylvania
17   Consolidated Statutes is amended to read:
18   § 1731.   Availability, scope and amount of coverage.
19      (a)    Mandatory offering.--No motor vehicle liability
20   insurance policy shall be delivered or issued for delivery in
21   this Commonwealth, with respect to any motor vehicle registered
22   or principally garaged in this Commonwealth, unless uninsured
23   motorist and underinsured motorist coverages are offered therein
 1   or supplemental thereto in amounts as provided in section [1734
 2   (relating to request for lower limits of coverage). Purchase]
 3   1734.1 (relating to offer of lower limits of coverage). The
 4   election of uninsured motorist and underinsured motorist
 5   coverages is optional.
 6      * * *
 7      Section 2.      Section 1734 of Title 75 is repealed:
 8   [§ 1734.    Request for lower limits of coverage.
 9      A named insured may request in writing the issuance of
10   coverages under section 1731 (relating to availability, scope
11   and amount of coverage) in amounts equal to or less than the
12   limits of liability for bodily injury.]
13      Section 3.      Title 75 is amended by adding a section to read:
14   § 1734.1.      Offer of lower limits of coverage.
15      (a)     Stacking prohibited.--An insurer may not stack uninsured
16   and underinsured motorist coverage in a motor vehicle liability
17   insurance policy delivered or issued for delivery in this
18   Commonwealth to determine the limit of the coverage available to
19   an insured for injuries sustained in an accident.
20      (b)     New policies.--
21            (1)    On an initial application, an insurer that issues to
22      a named insured a motor vehicle liability insurance policy
23      delivered or issued for delivery in this Commonwealth shall
24      offer uninsured and underinsured motorist coverage in an
25      amount equal to the bodily injury liability limits elected.
26      An insurer shall make available and a named insured may
27      select amounts of uninsured and underinsured motorist
28      coverage lower than the bodily injury liability limits
29      elected. An insurer may make available amounts of uninsured
30      and underinsured motorist coverage higher than the bodily

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 1      injury liability limits elected.
 2            (2)   On an initial application, a named insured shall be
 3      conclusively presumed to have elected uninsured and
 4      underinsured motorist coverage equivalent to that elected by
 5      a named insured for bodily injury unless the uninsured and
 6      underinsured motorist coverage was rejected on the policy in
 7      accordance with section 1731 (relating to availability, scope
 8      and amount of coverage) or elected in a different amount by a
 9      named insured.
10      (c)   Renewed policies.--
11            (1)   Unless another amount is selected in writing by a
12      named insured or otherwise provided in accordance with this
13      chapter, for a policy renewing on or after one year from the
14      effective date of this paragraph an insurer shall renew the
15      policy to include equivalent amounts of uninsured and
16      underinsured motorist coverage, if any, as elected by the
17      named insured in the policy being superseded.
18            (2)   Subject to paragraph (1), a rejection or reduction
19      of uninsured or underinsured benefits on a policy by a named
20      insured before the effective date of this paragraph shall
21      remain valid.
22            (3)   For the purposes of paragraph (1), equivalent
23      amounts of uninsured and underinsured motorist coverage shall
24      not include coverage limits under more than one policy.
25      (d)   Elections.--An election made or deemed to be made on
26   initial application or at a renewal shall remain in effect
27   throughout the lifetime of the policy until affirmatively
28   changed by the named insured.
29      (e)   Notice of coverage.--
30            (1)   No later than the initial issuance or initial

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 1    renewal of a motor vehicle liability insurance policy, in the
 2    first year 180 days after the effective date of this
 3    paragraph, an insurer shall provide in writing to the named
 4    insured under the policy the following notice with respect to
 5    the election of uninsured and underinsured motorist coverage:
 6                  Uninsured and underinsured motorist coverage is
 7             available to provide compensation for injuries caused
 8             by persons who either have no automobile insurance or
 9             do not have enough automobile insurance to compensate
10             you and your family for your injuries. This coverage
11             is important to provide protection for you.
12                  Previously, you were able to purchase stacking of
13             uninsured and underinsured motorist coverage.
14             Stacking increases your uninsured and underinsured
15             motorist coverage by adding the limits of this
16             coverage for each vehicle for which the injured
17             person is an insured.
18                  While stacking has been eliminated by law, you
19             still have the right to elect uninsured and
20             underinsured motorist coverage for motor vehicle
21             liability insurance policies delivered or issued for
22             delivery in this Commonwealth as a named insured in
23             an amount equal to the amount of your bodily injury
24             liability coverage limits. Insurers may, but are not
25             required to, make available amounts of uninsured and
26             underinsured motorist coverage higher than the bodily
27             injury liability limits elected.
28                  You also retain the right to elect uninsured and
29             underinsured motorist coverage less than the amount
30             of your liability coverage or to reject such

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 1                   coverage.
 2                       Your insurer shall renew all policies delivered
 3                   or issued for delivery in this Commonwealth to
 4                   include equivalent amounts of uninsured and
 5                   underinsured motorist coverage, if any, as elected
 6                   under the policy being superseded unless you respond
 7                   to this notice and affirmatively elect a different
 8                   amount of uninsured and underinsured motorist
 9                   coverage to be issued at your next renewal.
10             (2)   An insurer shall certify to the Insurance Department
11      that the insurer has complied with the notice requirement
12      under paragraph (1). An insurer's failure to certify
13      compliance with the notice requirement shall be subject to
14      the commissioner's review and enforcement under the act of
15      July 22, 1974 (P.L.589, No.205), known as the Unfair
16      Insurance Practices Act.
17      Section 4.      Sections 1736 and 1738 of Title 75 are repealed:
18   [§ 1736.    Coverages in excess of required amounts.
19      The coverages provided under this subchapter may be offered
20   by insurers in amounts higher than those required by this
21   chapter but may not be greater than the limits of liability
22   specified in the bodily injury liability provisions of the
23   insured's policy.
24   § 1738.    Stacking of uninsured and underinsured benefits and
25                   option to waive.
26      (a)     Limit for each vehicle.--When more than one vehicle is
27   insured under one or more policies providing uninsured or
28   underinsured motorist coverage, the stated limit for uninsured
29   or underinsured coverage shall apply separately to each vehicle
30   so insured. The limits of coverages available under this

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 1   subchapter for an insured shall be the sum of the limits for
 2   each motor vehicle as to which the injured person is an insured.
 3      (b)   Waiver.--Notwithstanding the provisions of subsection
 4   (a), a named insured may waive coverage providing stacking of
 5   uninsured or underinsured coverages in which case the limits of
 6   coverage available under the policy for an insured shall be the
 7   stated limits for the motor vehicle as to which the injured
 8   person is an insured.
 9      (c)   More than one vehicle.--Each named insured purchasing
10   uninsured or underinsured motorist coverage for more than one
11   vehicle under a policy shall be provided the opportunity to
12   waive the stacked limits of coverage and instead purchase
13   coverage as described in subsection (b). The premiums for an
14   insured who exercises such waiver shall be reduced to reflect
15   the different cost of such coverage.
16      (d)   Forms.--
17            (1)   The named insured shall be informed that he may
18      exercise the waiver of the stacked limits of uninsured
19      motorist coverage by signing the following written rejection
20      form:
21                          UNINSURED COVERAGE LIMITS
22                  By signing this waiver, I am rejecting stacked limits
23            of uninsured motorist coverage under the policy for
24            myself and members of my household under which the limits
25            of coverage available would be the sum of limits for each
26            motor vehicle insured under the policy. Instead, the
27            limits of coverage that I am purchasing shall be reduced
28            to the limits stated in the policy. I knowingly and
29            voluntarily reject the stacked limits of coverage. I
30            understand that my premiums will be reduced if I reject

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 1            this coverage.
 2                                 ................................................
 3                                 Signature of First Named Insured
 4                                 ................................................
 5                                 Date
 6            (2)    The named insured shall be informed that he may
 7      exercise the waiver of the stacked limits of underinsured
 8      motorist coverage by signing the following written rejection
 9      form:
10                         UNDERINSURED COVERAGE LIMITS
11                  By signing this waiver, I am rejecting stacked limits
12            of underinsured motorist coverage under the policy for
13            myself and members of my household under which the limits
14            of coverage available would be the sum of limits for each
15            motor vehicle insured under the policy. Instead, the
16            limits of coverage that I am purchasing shall be reduced
17            to the limits stated in the policy. I knowingly and
18            voluntarily reject the stacked limits of coverage. I
19            understand that my premiums will be reduced if I reject
20            this coverage.
21                                 ................................................
22                                 Signature of First Named Insured
23                                 ................................................
24                                 Date
25      (e)   Signature and date.--The forms described in subsection
26   (d) must be signed by the first named insured and dated to be
27   valid. Any rejection form that does not comply with this section
28   is void.]
29      Section 5.      Title 75 is amended by adding a section to read:
30   § 1738.1.      Stacking of uninsured and underinsured benefits

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 1                  prohibited.
 2      (a)   Prohibition.--The limit of liability for uninsured and
 3   underinsured motorist coverage applicable to two or more motor
 4   vehicles covered under one or more policies delivered or issued
 5   for delivery in this Commonwealth shall not be added together to
 6   determine the limit of the coverage available to an insured for
 7   injuries sustained in an accident.
 8      (b)   Insureds in noncovered vehicles.--If an insured is
 9   injured as an occupant of a motor vehicle not covered by the
10   policy under which the person is a named insured or, if residing
11   in the household of the named insured, a spouse or other
12   relative of the named insured, the insured may recover the
13   following, unless the coverage is otherwise excluded:
14            (1)   Benefits in accordance with section 1733(a)(1)
15      (relating to priority of recovery). For the purposes of this
16      subsection, the maximum recovery of uninsured or underinsured
17      motorist coverage available from a policy under section
18      1733(a)(1) shall be the lesser of the policy's bodily injury
19      or uninsured or underinsured motorist coverage limit.
20      Recovery shall not be available under this paragraph from a
21      policy under section 1733(a)(1) unless that policy maintains
22      uninsured and underinsured motorist coverage.
23            (2)   Benefits in accordance with section 1733(a)(2) if
24      the maximum total recovery under all policies providing
25      benefits in accordance with section 1733(a)(2) is the
26      single-highest limit under any one policy for which the
27      person is an insured.
28      (c)   Insureds in covered vehicles.--If an insured is injured
29   as an occupant of a motor vehicle covered by the policy under
30   which the person is a named insured or, if residing in the

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 1   household of the named insured, a spouse or other relative of
 2   the named insured, unless the coverage is otherwise excluded,
 3   the insured may recover only the uninsured or underinsured
 4   motorist coverage afforded by the policy covering the vehicle
 5   occupied by the insured at the time of the accident.
 6      (d)     Pedestrians.--If an insured is injured as a pedestrian,
 7   the maximum total recovery under all policies providing benefits
 8   in accordance with section 1733(a)(2) shall be the single-
 9   highest limit under any one policy for which the person is an
10   insured.
11      Section 6.       Sections 1791 and 1792 heading and (a) of Title
12   75 are amended to read:
13   § 1791.    Notice of available benefits and limits.
14      [It] Except as otherwise provided by the laws of this
15   Commonwealth, it shall be presumed that the insured has been
16   advised of the benefits and limits available under this chapter
17   provided the following notice in bold print of at least ten-
18   point type is given to the applicant at the time of application
19   for original coverage, and no other notice, offer or rejection
20   shall be required:
21                                IMPORTANT NOTICE
22             Insurance companies operating in the Commonwealth of
23             Pennsylvania are required by law to make available for
24             purchase the following benefits for you, your spouse or
25             other relatives or minors in your custody or in the
26             custody of your relatives, residing in your household,
27             occupants of your motor vehicle or persons struck by your
28             motor vehicle:
29                 (1)    Medical benefits, up to at least $100,000.
30                 (1.1)    Extraordinary medical benefits, from $100,000

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 1        to $1,100,000 which may be offered in increments of
 2        $100,000.
 3             (2)    Income loss benefits, up to at least $2,500 per
 4        month up to a maximum benefit of at least $50,000.
 5             (3)    Accidental death benefits, up to at least
 6        $25,000.
 7             (4)    Funeral benefits, $2,500.
 8             (5)    As an alternative to paragraphs (1), (2), (3)
 9        and (4), a combination benefit, up to at least $177,500
10        of benefits in the aggregate or benefits payable up to
11        three years from the date of the accident, whichever
12        occurs first, subject to a limit on accidental death
13        benefit of up to $25,000 and a limit on funeral benefit
14        of $2,500, provided that nothing contained in this
15        subsection shall be construed to limit, reduce, modify or
16        change the provisions of section 1715(d) (relating to
17        availability of adequate limits).
18             (6)    [Uninsured, underinsured and bodily] Bodily
19        injury liability coverage up to at least $100,000 because
20        of injury to one person in any one accident and up to at
21        least $300,000 because of injury to two or more persons
22        in any one accident or, at the option of the insurer, up
23        to at least $300,000 in a single limit for these
24        coverages, except for policies issued under the Assigned
25        Risk Plan. Also, at least $5,000 for damage to property
26        of others in any one accident.
27        [Additionally, insurers] (7)      Uninsured and underinsured
28        motorist coverage under motor vehicle liability insurance
29        policies delivered or issued for delivery in this
30        Commonwealth to a named insured in an amount equal

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 1             to your bodily injury liability coverage limits. An
 2             insurer shall make available and a named insured may
 3             select amounts of uninsured and underinsured motorist
 4             coverage lower than the bodily injury liability limits
 5             elected. Insurers may make available amounts of uninsured
 6             and underinsured motorist coverage higher than the bodily
 7             injury liability limits elected.
 8                   (8)   Insurers may offer higher benefit levels than
 9             those enumerated above as well as additional benefits.
10             However, an insured may elect to purchase lower benefit
11             levels than those enumerated above.
12             Your signature on this notice or your payment of any
13             [renewal] policy premium evidences your actual knowledge
14             and understanding of the availability of these benefits
15             and limits as well as the benefits and limits you have
16             selected.
17             If you have any questions or you do not understand all of
18             the various options available to you, contact your agent
19             or company.
20             If you do not understand any of the provisions contained
21             in this notice, contact your agent or company before you
22             sign.
23   § 1792.    Availability of uninsured, underinsured, bodily injury
24                   liability and property damage coverages and
25                   [mandatory] deductibles.
26      (a)    Availability of coverages and deductibles.--
27             (1)     Except for policies issued under Subchapter D
28      (relating to Assigned Risk Plan)[, an]:
29                   (i)   An insurer delivering or issuing for delivery a
30             policy of bodily injury liability coverage pursuant to

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 1          this chapter shall make available for purchase [higher]
 2          limits of [uninsured, underinsured and] bodily injury
 3          liability coverages up to at least $100,000 because of
 4          injury to one person in any one accident and up to at
 5          least $300,000 because of injury to two or more persons
 6          in any one accident or, at the option of the insurer, up
 7          to at least $300,000 in a single limit for these
 8          coverages.
 9                (ii)   An insurer delivering or issuing for delivery a
10          policy of uninsured and underinsured coverage pursuant to
11          this chapter shall make available for purchase limits of
12          uninsured and underinsured motorist coverage to a named
13          insured equal to the amount of the named insured's bodily
14          injury liability coverage limits. An insurer shall make
15          available and a named insured may select amounts of
16          uninsured and underinsured motorist coverage lower than
17          the bodily injury liability limits elected. An insurer
18          may make available amounts of uninsured and underinsured
19          motorist coverage higher than the bodily injury liability
20          limits elected.
21          (2)   Additionally, an insurer shall make available for
22      purchase at least $5,000 because of damage to property of
23      others in any one accident. However, the exclusion of
24      availability relating to the Assigned Risk Plan shall not
25      apply to damage to property of others in any one accident.
26      * * *
27      Section 7.   A change in coverage of a motor vehicle liability
28   insurance policy delivered or issued for delivery or renewed in
29   this Commonwealth resulting from the amendment or addition of 75
30   Pa.C.S. §§ 1731(a) and 1734.1 shall not impact the validity of

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 1   any waiver, rejection, selection of benefits or amount of
 2   benefits in the policy beyond the coverage amounts as a result
 3   of the amendment or addition of 75 Pa.C.S. §§ 1731(a) and 1734.1
 4   or require that new forms be signed by the named insured in the
 5   policy.
 6      Section 8.   The amendment or addition of 75 Pa.C.S. §§
 7   1731(a), 1734.1, 1738.1, 1791 and 1792(a) shall apply to a
 8   motor vehicle liability insurance policy delivered or issued for
 9   delivery or renewed in this Commonwealth on or after one year
10   from the effective date of this section. Nothing in the
11   amendment or addition of 75 Pa.C.S. §§ 1731(a), 1734.1, 1738.1,
12   1791 and 1792(a) shall be construed to alter the election of
13   tort options in a motor vehicle liability insurance policy
14   delivered or issued for delivery or renewed in this Commonwealth
15   on or after one year from the effective date of this section.
16      Section 9.   This act shall take effect in one year.




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