An Overview of § 1723 under the Pennsylvania Motor Vehicle Financial Responsibility Law (MVFRL)

The "Reporting Requirements" specified in § 1723 of the Pennsylvania Motor Vehicle Financial Responsibility Law mandates annual reporting by automobile insurance companies to the Insurance Department pertaining to their number of insureds, coverage extent, and buyer demographics.
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Statutory Text

§ 1723. Reporting requirements.

Beginning December 31, 1986, and each year thereafter, each insurance company writing automobile insurance in this Commonwealth shall file with the Insurance Department the number of its insureds, the number of its insureds who have purchased first party medical benefits in excess of the minimum required by section 1711 (relating to required benefits) and the number of insureds who have purchased first party medical benefits under section 1715(a)(1) and (1.1) (relating to availability of adequate limits). The Insurance Department shall furnish this information to the General Assembly annually.

Key Terms:

"First Party Medical Benefits"

These benefits are paid to insureds who suffered bodily injury in an auto accident, regardless of fault.

"Section 1711"

This section in MVFRL outlines the required minimum first-party benefits to be offered by insurance providers.

"Section 1715(a)(1) and (1.1)"

It stipulates on the availability of insurance coverage above the minimum limits.

Importance for Pennsylvanian Drivers:

This section assures transparency, accuracy, and oversight in the way automobile insurance is operated in Pennsylvania, ensuring that drivers have a full-fledged understanding of their insurance policy's extent, benefits, and limits. It empowers them to make informed decisions about purchasing or upgrading insurance coverage.

Importance for Pennsylvania Attorneys:

For attorneys dealing with automobile insurance, the data resulting from the reports mandated by this section provides valuable insights into the marketplace, policy trends, and the behavior of insurance companies. This understanding aids them in advocating effectively for their clients in litigation and advising on insurance policy issues.

Advanced Analysis of the Language:

An understanding of the specific language used in this section is crucial. The inclusion of dates and years signifies the accountabilities that have remained unchanged since their incorporation into the law in 1984 and thereafter. "Writing automobile insurance" denotes the insurer's active engagement in issuing policies, and "in this Commonwealth" underlines the geographic jurisdiction of Pennsylvania.

"First party medical benefits in excess of the minimum required” brings into play the insurer’s obligation to offer and the policyholder's right to buy more than just the minimum coverage. This, along with the phrase "purchased under section 1715 (a)(1) and (1.1)," underlines the focus of the law on protecting the policyholder's interests.

Lastly, the mandate for the Insurance Department to "furnish this information to the General Assembly annually" emphasizes the function of the law as a mechanism for legislative oversight, keeping auto insurance practices in the state well-regulated and accountable to the state legislature.

Section 1723 is an essential segment of the Pennsylvania Motor Vehicle Financial Responsibility Law, fulfilling dual objectives of ensuring transparency among insurance providers and allowing for strategically informed decision-making from policyholders.

About the author
Von Wooding

Von Wooding

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