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HomeMy WebLinkAbout10-5163o/ METZGER, WICKERSHAM, P.C. By: Clark DeVere, Esquire Attorney I.D. No. 68768 Andrew W. Norfleet, Esquire Attorney I.D. No. 83884 3211 North Front Street P.O. Box 5300 Harrisburg, PA 17110-0300 (717) 238-8187 Attorneys for Plaintiff Rebecca Welsh a/k/a Rebecca Ritter REBECCA WELSH a/k/a REBECCA RITTER, Plaintiff vs. THE GENERAL AUTO INSURANCE SERVICES, INC.; and PERMANENT GENERAL ASSURANCE CORPORATION, IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION NO. 10 - 51 X05 C tv t t Tents Defendants JURY TRIAL DEMANDED NOTICE TO DEFEND TO: Defendants YOU HAVE BEEN SUED IN COURT. If you wish to defend against the claims set forth in the foregoing pages, you must take action within twenty (20) days after this Complaint and notice are served by entering a written appearance personally or by attorney, and filing in writing with the Court your defenses or objections to the claims set forth against you. You are warned that if you fail to do so, the case may proceed without you and a judgment may be entered against you by the Court without further notice for any money claimed in the Complaint or for any other claim or relief requested by the Plaintiff. YOU MAY LOSE MONEY OR PROPERTY OR OTHER RIGHTS IMPORTANT TO YOU. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE OR KNOW A LAWYER, THEN YOU SHOULD GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET LEGAL HELP. Mid Penn Legal Services 401 East Louther Street 0 Carlisle, PA 17013 0a,00 PC, AT-r-/ Telephone No.: (717) 243-9400 a It -64 41017 E'M a41p 393 AVISO USTED HA SIDO DEMANDADO EN LA CORTE. Si usted desea defenderse de las quejas expuestas en las paginas siguientes, debe tomar acci6n dentro de veinte (20) dial a partir de la fecha en que recibi6 la demanda y el aviso. Usted debe presentar comparecencia esrita en persona o po abogado y presentar en la Corte por escrito sus defensas o sus objeciones a las demandas en su contra. Se le avisa que si no se defiende, el caso puede proceder sin usted y la Corte puede decidir en su contra sin mas aviso o notificaci6n por cualquier dinero reclamado en la demanda o por cualquier dinero reclamado en la demanda o po cualquier otra queja o compensaci6n reclamados por el Demandante. USTED PUEDE PERDER DINERO, O PROPIEDADES U OTROS DERECHOS IMPORTANTES PARA USTED. LLEVE ESTA DEMANDA A UN ABOGADO IIVIMEDIATAMENTE, SI USTED NO TIENE O NO CONOCE UN ABODAGO, VAYA O LLAME A LA OFICINA EN LA DIRECCION ESCRITA ABAJO PARA AVERIGUAR DONDE PUEDE OBTENER ASISTENCIA LEGAL. Mid Penn Legal Services 401 East Louther Street Carlisle, PA 17013 Telephone No.: (717) 243-9400 a')4')')z_l r? U METZGER, WICKERSHAM, P.C. By: Clark DeVere, Esquire Attorney I.D. No. 68768 Andrew W. Norfleet, Esquire Attorney I.D. No. 83884 3211 North Front Street P.O. Box 5300 Harrisburg, PA 17110-0300 (717) 238-8187 • Attorneys for Plaintiff Rebecca Welsh a/k/a Rebecca Ritter REBECCA WELSH a/k/a REBECCA RITTER, Plaintiff IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA vs. THE GENERAL AUTO INSURANCE SERVICES, INC.; and : PERMANENT GENERAL ASSURANCE CORPORATION, Defendants CIVIL, ACTION NO. JURY TRIAL DEMANDED ACTION FOR DECLARATORY JUDGMENT AND NOW comes the Plaintiff, Rebecca Welsh, a/k/a Rebecca Ritter by and through her counsel, Metzger, Wickersham, Knauss and Erb, P.C., and respectfully avers the following: 1. This is an action for declaratory judgment pursuant to 42 Pa.C.S.A. §7531, et seg., for the purpose of determining a question of actual controversy between the parties as hereinafter more fully set forth. 2. Jurisdiction is conferred upon this Court pursuant to the provisions of the Declaratory Judgment Act, 42 Pa.C.S.A. §7532. 0 3. Courts of Common Pleas have jurisdiction pursuant to Declaratory Judgments Act to decide coverage issues under insurance contracts. Erie Insurance Exchange v. Midili, 675 A.2d 1267 (Superior Court of Pennsylvania, 1996). 4. The Plaintiff, Rebecca Welsh, (hereinafter "Plaintiff"), is an adult individual who currently resides with her fiance, Roger Ritter, at 1550 Williams Grove Road, Lot 97, Mechanicsburg, Cumberland County, Pennsylvania. 5. Defendant, The General Auto Insurance Services, Inc., hereinafter ("Defendant"), is a Tennessee corporation engaged in the business of insurance in the Commonwealth of Pennsylvania. 6. Defendant, Permanent General Assurance Corporation, hereinafter ("Defendant"), is a Tennessee corporation engaged in the business of insurance in the Commonwealth of Pennsylvania. 7. Plaintiff was injured in a motor vehicle accident on April 30, 2009 in Mechanicsburg, Cumberland County, while driving a 1998 Saturn SL2 with Pennsylvania plate number GNA3848, hereinafter ("Vehicle") 8. The vehicle is owned and registered in the names of Rebecca Welsh and Roger Ritter. 9. On March 14, 2009, Defendants issued a Pennsylvania personal auto insurance policy, Policy Number 38-PN6931394, for the vehicle to Roger Ritter, hereinafter ("Policy"). A copy of the declaration page, insurance policy and accompanying endorsements is attached hereto as Exhibit "A". 429223-1 • • 10. The aforementioned policy was issued for a period covering March 14, 2009 through March 14, 2010. 11. The policy provides five thousand ($5,000.00) dollars per person for first party medical coverage. 12. Under the policy, the above mentioned first party medical benefits are provided "in accordance with and subject to the Pennsylvania Motor Vehicle Financial Responsibility Law." See Exhibit A, pg. 15, Section 4). 13. Under the policy, "subject to the limits shown on the declarations page, we will pay for medical expenses for bodily injury to an `insured' arising out of the use of a motor vehicle." An "insured", for purposes of first party coverage, is further defined in the policy as: a. You, any insured driver, or any family member. b. Any other person occupying your covered auto. (emphasis added) See Exhibit A, pg. 16, "Definitions Applicable to this Section Only." 14. Defendants have denied coverage for her medical expenses based on a Restrictive Endorsement added to the policy a year after it was written and attached hereto as Exhibit "B". 15. Pursuant to the Restrictive Endorsement, paragraph "b", relating to coverage for first party medical benefits for persons occupying a covered auto, was deleted. As a result of the Restrictive Endorsement, only the named insured(s) and family members are entitled to receive first party medical benefits under the policy. 16. A true and correct copy of the denial of coverage letter sent by Permanent General Assurance Corporation, dated May 19, 2009 is attached hereto as Exhibit "C" and incorporated herein by reference. 429223-1 • • 17. Under Title 75 Pa. C.S.A. §1713 of Pennsylvania's Motor Vehicle Financial Responsibility Law, an occupant of a motor vehicle is entitled to coverage under the policy covering that motor vehicle if the occupant is not an insured under any other motor vehicle insurance policies. 18. The policy agrees to provide first party medical benefits "in accordance with and subject to the Pennsylvania Motor Vehicle Financial Responsibility Law." 19. At the time of the accident, Plaintiff was not insured under any other motor vehicle insurance policies. 20. Plaintiff is entitled to first party benefits and the Defendants' Restrictive Endorsement is invalid on its face. Both the denial of coverage and Restrictive Endorsement violate and contradict, respectively, the Pennsylvania Motor Vehicle Financial Responsibility Law and the long-standing policy of Pennsylvania courts that uninsured occupants are entitled to first party benefits through the policy covering the vehicle they are occupying. See Frain v. Keystone Insurance Company, 640 A.2d 1352 (Superior Court of Pennsylvania, 1994). 21. An actual controversy exists between Plaintiff and Defendants within the jurisdiction of this Court and involving the rights and liabilities under a contract of insurance, which controversy may be determined by judgment of this Court without other suits. 22. To date, Defendants have not paid any of Plaintiff's medical bills related to the motor vehicle accident on April 30, 2009. 23. After denying coverage and after Plaintiffs counsel pointed out the statutory requirements, Defendants attempted to investigate the claim by scheduling the sworn statement of Plaintiff. Defendants did not do a proper investigation before they denied the claim. 429223-1 0 9 24. Plaintiff respectfully requests that this Honorable Court declare the rights and other legal relations of the parties under the aforesaid policy of insurance and indicate the scope and extent of benefits owed by the Defendants to the Plaintiff. WHEREFORE, Plaintiff request relief in the following particulars: (a) That this Court determine and adjudicate the rights and liabilities of the parties herein with respect to the policy of insurance and subsequent endorsement as attached hereto as Exhibits "A" and "B". (b) Enter a declaratory judgment that Plaintiff is entitled to first party medical benefits coverage under the existing insurance policy; (c) Enter a Declaratory Judgment declaring The General Auto Insurance Services, Inc. and Permanent General Assurance Corporation are bound to offer the coverage contained in said insurance policy to the named Plaintiff; (d) Ordering Defendants to pay for Plaintiff's accident related medical bills with interest; (e) Ordering Defendants to pay attorney fees to Plaintiff and Plaintiffs counsel for denying first party medical benefits in an unreasonable manner and without reasonable foundation. See 75 Pa.C.S.A. § 1716 and § 1798; (f) Ordering Defendants to pay treble damages to Plaintiff for wantonly denying a claim by refusing to pay the medical bills and without processing them through the peer review process. See 75 Pa.C.S.A. §1797; (g) Grant such other and further relief as may be proper. 429223-1 U Date: C? ` j 0 METZGER, WICKERSHAM, KNAUSS & ERB, P.C. B / Y Andrew W. eet, Es e Attorney I.D. No. 83894 Clark DeVere, Esquire Attorney I.D. No. 68768 P.O. Box 5300 Harrisburg, PA 17110-0300 (717) 238-8187 Attorneys for Plaintiff 429223-1 C CERTIFICATE OF SERVICE E I, Andrew W. Norfleet, Esquire, of the law firm of Metzger, Wickersham, Knauss & Erb, P.C., hereby certify that I served a true and correct copy of Action for Declaratory Judgment with reference to the foregoing action by certified mail, postage prepaid, this day of July, 2010 on the following: Permanent General Assurance Corporation 2636 Elm Hill Pike, Suite 510 Nashville, TN 37214 The General Auto Insurance Services, Inc. 2636 Elm Hill Pike, Suite 510 Nashville, TN 37214 Francesca A. Iacovangelo, Esquire Britt, Hankins & Moughan Two Penn Center Plaza 1500 John F. Kennedy Boulevard Philadelphia, Pa 19102-1888 METZGER, WICKERSHAM, KNAUSS &77C. Andrew W. Norfleet, Esquir 429223-1 0 ,& k- b, ?- A • Permanent General Assurance Corporation Automobile Insurance Application rX? POLICY NUR: 38-PN6931394 U POLICY PLOD: 03/14/09 05:56 PM CDT - 03/14/10 12:01 AM CST POLICY TERM: 12 MONTHS APPLICANT NAME, ADDRESS, PHONE, EMAIL PRODUCER CODE, NAME, ADDRESS, PHONE Name ROGER E RITTER Producer THE GENERAL AUTO INS SVCS, INC Address 1550 WILLIAMS GROVE RD LOT 97 Address P. O. BOX 305054 MECHANICSBURG, PA 17055-5348 NASHVILLE TN 37230-5054 Home Phone (717) 802-9245 , Phone (800) 280-1466 Work Phone Code 998888 Email Address REBRIT99 AIM.COM Tier P Garaging Address (if different from mailing) COVERAGE AND LIMITS OF LIABILITY Coverage applies only where premium is indicated. WARNING: The policy does not cover loss to equipment not installed by the vehicles original manufacturer unless coverage for equipment is listed below under additional equipment. Include value and description for each item. COVERAGES / LIMITS VEHICLE 1 VEHICLE 2 VEHICLE 3 VEHICLE 4 VEHICLE 5 VEHICLE 6 Bodily Injury - Property Damage Liability Per Person / Per Occurrence $254.00 $15,000/$30,000/$5,000 Uninsured Motorist Bodily Injury No Coverage Underinsured Motorist Bodily Injury No Coverage First Party Benefits Medical $5,000 $93.00 Income Loss(per month/max) No Coverage Accidental Death No Coverage Funeral No Coverage Extraordinary Medical No Coverage Rental Reimbursement No Coverage Towing Labor No Coverage Deductible No Coverage Comprehensive/Collision Premium No Coverage Coverage Amt No Coverage Additional Equipment Premium No Coverage Premium Sub-Total (per Vehicle) $347.00 Selected Payment Plan POLICY FEE $10.00 ANNUAL 12 PAYMENTS TOTAL $357.00 10% DOWNPAY + 11 MONTHLY YOUR FIRST P TOTAL DOWNPAYMENT $44.70 AYMENT OF $38.40 IS DUE BEFORE 04/14/2009. Fully earned Instalknent fee included: $10.00 Make Your Monthly Payments online at www.thegeneral.com PA-039-0808-PA n1a r?rru?.r? I wn rsCt,UMts YAK I OF YOUR INSURANCE POLICY 1 of 8 • APPLICANT NAME: ROGER E RITTER POLICY NUMBER: 38-PN6931394 DRIVERS Complete this section for all persons 14 or older living in your household and all other persons who use your vehicle on a regular basis. DRIVER NAME DOB GENDER MARITAL STATUS RELATIONSHIP TO NAMB D INSURED 1 _ NAMED INSURED 2 3 4 5 6 DRIVER LICENSE NUMBER LICENSE STATUS LICENSE STATE SOCIAL SECURITY # OCCUPATION 1 2 3 4 5 6 DRIVING HISTORY Identify all incidents. accidents. license susnpnsinns and uvnirm+inne rli u;n_ fhe oe ------ __- -•._._.._ ....,.-r..-.. - MU, 11 IV LIIU NIV„IUu, ov munms (Include out of s tate). DR # DATE DESCRIPTION PITS PA -039-0808-PA 2 of 8 • APPLICANT NAME: ROGER E RITTER VEHICLES C7 POLICY NUMBER: 38-PN6931394 VEH NO. YEAR MAKE / MODEL / STYLE IDENTIFICATION NO. (VIN) 1 1998 SATURN SL2 1G8ZK5270WZ221749 2 3 4 5 6 VEH NO. TERRITORY VEHICLE USE SYMBOL ANNUAL MILES PRIOR DAMAGE 1 127 PERSONAL A07 15000 NO 2 3 4 5 6 LIEN HOLDER(S) VEH NO. NAME •?•?WN +? - Auumunai MAILING ADDRESS interest TYPE PA-039-0808-PA 3 of 8 • APPLICANT NAME: ROGER E RITTER • POLICY NUMBER: 38-PN6931394 You may be eligible for discounts mandated by 75 Pa.C.S.A. 1791. 1J) on first party benefits coverage if, your car is equipped with a passive restraint system; ii) on comprehensive coverage if your car is equipped with a passive anti-theft device; or iii) if all named insureds are 55 or older and have successfully completed a motor vehicle driver improvement course approved by PennDOT. Contact Customer Service for details- LIMITED TORT ENDORSEMENT PASSIVE RESTRAINT 3 VEHA STAR LEVEL 25 DRV:1 GENERAL QUESTIONS 1. Are any vehicles garaged outside the State for more than 60 days a year? No 2. Are any vehicles owned by anyone other than a listed or excluded driver? No 3. Are any vehicles used for livery, taxi service, emergency service, racing, show/parade, delivery, auto related business, used commercially, and/or have a commercial license? N_ 4. Has the Applicant or Applicant's spouse been previously cancelled by PGAC for loss experience, convicted of Insurance fraud/felony in the last 10 years, and/or employed in illegal enterprise/occupations? No 5. Are any drivers in the household employees of Permanent General, independent agents or their immediate family? No 6. Are all household residents age 14 and older and all persons that may regularly or occasionally operate a vehicle listed or excluded on the application? (Example: military, college student, etc.) If "no" list them as operators or exclude. YES 7. Do you or any driver require any special equipment on your auto in order to safely operate it? NO 8. Do you or any driver have any physical or mental impairment that may prevent you from safely operating a vehicle? No 9. Do you or any driver own any other motor vehicles not insured by Permanent General? If "yes" list insurance company and policy number in notes. NO NOTES AND SUPPLEMENTS - EXPLAIN ANSWERS RT OPTION: LIMITED PA-039-0808-PA 4 of 8 • 40 APPLICANT NAME: ROGER E RITTER DRIVER EXCLUSION • POLICY NUMBER: 38-PN6931394 10 EXCLUDED DRIVER 008 GENDER RELATIONSHIP TO NAMED INSURED The undersigned agrees that such insurance as is afforded by the policy shall not apply with respect to any automobile or its use while such automobile is in the care, custody, or control of; or is being operated by any individual designated above. "You" attest that the excluded driver will maintain his/her own insurance. The named insured has herein declared that these individuals do not and will not be operating the vehicles listed on the declarations page. Any claim occurring while an auto is being operated by an excluded driver may be denied for material misrepresentation. The named insured must notify the company before an excluded driver begins operating the vehicles listed on the declarations page, so the appropriate changes can be made. I understand and agree that the excluded driver endorsement shall apply to this policy. I also understand and agree that this election applies to any renewal, reinstatement, substitute, revised, changed, or modified policy with this company, unless I revoke this election. SIGNATURE OF FIRST NOT APPLICABLE NAMED INSURED DATE 10 AUTHORIZATION FOR BANK DRAFT OR CREDIT CARD PAYMENT I, the above named customer, hereby authorize the Company to originate charges to my bank account or credit card for all payments related to this application for insurance, endorsements or renewal of the same. Either party may terminate this authorization and payment method at any time upon written notice. SIGNATURE OF FIRST NOT APPLICABLE NAMED INSURED DATE RESTRICTED POLICY ENDORSEMENT - Do not sign If Base Policy coverage is regtmted. I understand and agree that my premium has been reduced because I am purchasing an endorsement to the policy that excludes comprehensive and collision coverage when my vehicle is operated by anyone other than those persons specifically named on this application, declarations or endorsement to this policy as insured drivers. I also understand and agree that an insured driver giving permission to any other person (not listed as insured by this policy) to operate any vehicle, does not extend coverage under this policy to such a person. SIGNATURE OF FIRST ELECTRONIC SIGNATURE ACCEPTED NAMED INSURED DATE 03/14/09 05:56 PM CDT ROGER E RITTER 40 I& PA-039-0808-PA 5 of 8 • APPLICANT NAME: ROGER E RITTER POLICY NUMBER: 38-PN6931394 DOUBLE DEDUCTIBLE OPTION I understand and agree that my premium has been reduced because I have selected an option to double my comprehensive and collision deductibles. I understand that the deductible amounts requested as shown on this application and policy declarations page will be doubled for the first 45 days of the policy period. This option applies to all vehicles listed on the application where comprehensive and collision coverage has been selected and is not available to any vehicle added after inception of the policy. I also understand that this provision will not apply to any future renewals of my policy. SIGNATURE OF FIRST NAMED INSURED NOT APPLICABLE A DATE SELECTION OF UNINSURED / UNDERINSURED MOTORISTS COVERAGE I understand that the state requires that Uninsured/Underinsured Motorists insurance be offered to me under my motor vehicle coverage. ? 1 select Uninsured/Underinsured Motorists BI coverage at limits lower than Liability BI limits as indicated on the front of this form. NOTE: Uninsured/Underinsured Motorist limits are not available in excess of Liability BI limits. SIGNATURE OF FIRST NAMED INSURED NOT APPLICABLE DATE 4W UNINSURED COVERAGE LIMITS By signing this waiver, I am rejecting stacked limits of uninsured motorist coverage under the policy for myself and members of my household under which the limits of coverage available would be the sum of limits for each motor vehicle insured under the policy. Instead, the limits of coverage that I am purchasing shall be reduced to the limits stated in the policy. I knowingly and voluntarily reject the stacked limits of coverage. I understand that my premiums will be reduced if I reject this coverage. SIGNATURE OF FIRST NAMED INSURED NOT APPLICABLE DATE UNDERINSURED COVERAGE LIMITS By signing this waiver, I am rejecting stacked limits of underinsured motorist coverage under the policy for myself and members of my household under which the limits of coverage available would be the sum of limits for each motor vehicle insured under the policy. Instead, the limits of coverage that I am purchasing shall be reduced to the limits stated in the policy. I knowingly and voluntarily reject the stacked limits of coverage. I understand that my premiums will be reduced if I reject this coverage. SIGNATURE OF FIRST F I NOT APPLICABLE NAMED INSURED DATE a • PA-039-0808-PA 6 of 8 APPLICANT NAME: ROGER E RITTER POLICY NUMBER: 38-PN6931394 "FRAUD WARNINGS" Any person who knowingly and with intent to defraud any insurance company or other person files an application for Insurance or statement of claim containing any materially false information or conceals for the purpose of misleading, information concerning any fact material thereto commits a fraudulent Insurance act, which is a crime and subjects such person to criminal and civil penalties. APPLICANT STATEMENT - READ BEFORE SIGNING The undersigned represents that the statements and answers recorded on this application are true and complete to the best of their knowledge and belief. The undersigned agrees that any policy issued from this application shall be null and void from inception if any of these answers are false, incomplete, or given with the intent to deceive; or, if a check presented to the company is not honored by the bank upon which it is drawn. • 1 state that all persons, age 14 or over, whether licensed or unlicensed, residing in my household and persons operating any vehicle listed in the application on a regular or occasional basis are listed on this signed application. I understand and agree that in the event of an accident involving a driver not listed on my policy, my coverage may be denied because of material misrepresentation. I also understand and agree that I will notify the company of any driver changes that occur during the policy period. • 1 certify that all vehicles listed on this policy with an indication of "Personal" in the "Vehicle Use" box are used solely for pleasure. It is my duty to notify the Company if any of these vehicles may later be used for business. I acknowledge that cancellations at my request will be cancelled short-rate, including non-payment of premium and/or fees on direct bill policies. I certify that no accident otherwise insurable under the policy requested has occurred on the date of this application. I understand the Company may order consumer reports or personal or privileged information concerning credit, personal characteristics, driving record, or loss history in connection with this application for a premium quotation or policy. It is not our policy to disclose this information except as permitted or required by law. At your request, we will provide the name and address of the consumer-reporting agency that furnished any of this information. At your request, we will provide you with more detailed information regarding our collection, use, and disclosure of personal information and your rights to access and correct such information. I acknowledge that any vehicle(s) for which comprehensive and collision coverage is requested must be inspected to ascertain prior damage. If no inspection is conducted at the time of this application, the policy will be issued with a minimum $1000 comprehensive and collision deductible. I acknowledge that losses and damages incurred prior to the receipt of down payment of premium will not be afforded coverage under the policy. I understand failing to provide information or providing false information in this application or in the course of any claim may result in this policy being null and void and/or a denial of coverage. I agree that transactions with the Company in connection with this application and any policy issued in connection herewith may be conducted wholly or in part by electronic means pursuant to the Pennsylvania Uniform Electronic Transactions Act. I understand that this application forms part of the policy and any subsequent renewal of the policy. I have been given notice of the available benefits and limits as set forth on page 8 of this application. SIGNATURE OF FIRST NAMED INSURED X I ELECTRONIC SIGNATURE ACCEPTED I DATE 03/14/09 05:56 PM CDT ROGER E RITTER X THE GENERAL AUTO INS SVCS IN 03/14/19 05-56 PM CDT SIGNATURE OF COMPANY APPROVED AGENT DATE PA-039-0808-PA 7 of 8 0 0 APPLICANT NAME: ROGER E RITTER POLICY NUMBER: 38-PN6931394 IMPORTANT NOTICE Insurance companies operating in the Commonwealth of Pennsylvania are required by law to make available for purchase the following benefits for you, your spouse or other relatives or minors in your custody or in the custody of your relatives, residing in your household, occupants of your motor vehicle or persons struck by your motor vehicle: (1) Medical benefits, up to at least $100,000. (1.1) Extraordinary medical benefits, from $100,000 to $1,100,000 which may be offered in increments of $100,000. (2) Income loss benefits, up to at least $2,500 per month up to a maximum benefit of at least $50,000. (3) Accidental death benefits, up to at least $25,000. (4) Funeral benefits, $2,500. (5) As an alternative to paragraphs (1), (2), (3), and (4), a combination benefit, up to at least $177,500 of benefits in the aggregate or benefits payable up to three years from the date of accident, whichever occurs first, subject to a limit on accidental death benefit of up to $25,000 and a limit on funeral benefit of $2,500, provided that nothing contained in this subsection shall be construed to limit, reduce, modify or change the provisions of section 1715(d) (relating to availability of adequate limits). (6) Uninsured, underinsured and bodily injury liability coverage up to at least $100,000 because of injury to one person In any one accident and up to at least $300,000 because of injury to two or more persons in any one accident or, at the option of the insurer, up to at least $300,000 in a single limit for these coverages, except for policies issued under the Assigned Risk Plan. Also, at least $5,000 for damage to property of others in any one accident. Additionally, insurers may offer higher benefit levels than those enumerated above as well as additional benefits. However, an insured may elect to purchase lower benefit levels than those enumerated above. Your signature on this notice or your payment of any renewal premium evidences your actual knowledge and understanding of the availability of these benefits and limits as well as the benefits and limits you have selected. If you have any questions or you do not understand all of the various options available to you, contact your agent or company. If you do not understand any of the provisions contained in this notice, contact your agent or company before you sign. SIGNATURE OF FIRST ELECTRONIC SIGNATURE ACCEPTED NAMED INSURED K DATE 03/14/09 05:56 PM CDT ROGER E RITTER 8 0 • • • APPLICANT NAME: ROGER E RITTER POLICY NUMBER: 38-PN6931394 NOTICE TO NAMED INSUREDS The laws of the Commonwealth of Pennsylvania, as enacted by the General Assembly, only require that you purchase liability and first-party medical benefit coverages. Any additional coverages or coverages in excess of the limits required by law are provided only at your request as enhancements to basic coverages. In compliance with 75 Pa. C.S. Section 1791.1(a), we inform you that the minimum motor vehicle insurance coverages and limits mandated by the Commonwealth are: Bodily Injury Liability - $15,000 for one person in any one accident/$30,000 for two or more persons in any one accident; Property Damage Liability - $5,000; and Medical Benefits - $5,000. The annual premium for these basic coverages are presented below. A. "Limited Tort" Option The laws of the Commonwealth of Pennsylvania give you the right to choose a form of insurance that limits your right and the right of members of your household to seek financial compensation for injuries caused by other drivers. Under this form of insurance, you and other household members covered under this policy may seek recovery for all medical and other out-of-pocket expenses, but not for pain and suffering or other nonmonetary damages unless the injuries suffered fall within the definition of "serious injury", as set forth in the policy or unless one of several other exceptions noted in the policy applies. The annual premium for basic coverage as required by law under this "limited tort" option is $ $347.00 Additional coverages under this option are available at additional cost. B. "Full Tort" Option The laws of the Commonwealth of Pennsylvania also give you the right to choose a form of insurance under which you maintain an unrestricted right for you and the members of your household to seek financial compensation for injuries caused by other drivers. Under this form of insurance, you and other household members covered under this policy may seek recovery for all medical and other out-of-pocket expenses and may also seek financial compensation for pain and suffering and other nonmonetary damages as a result of injuries caused by other drivers. The annual premium for basic coverage as required by law under this "full tort" option is $ $466.00 Additional coverages under this option are available at additional cost. C. You may contact your insurance agent, broker or company to discuss the cost of other coverages D. If you wish to choose the "limited tort" option described in paragraph A, you must sign this notice where indicated below and return it. 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. I wish to choose the "limited tort" option described in paragraph A: SIGNATURE OF FIRST XJ SIGNATURE ACCEPTED NAMED INSURED DATE 03/14/09 05:56 PM CDT E. If you wish to choose the "full tort" option described in paragraph B, you may sign this notice where indicated below and return it. However, 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. I wish to choose the "full tort" option described in paragraph B: SIGNATURE OF FIRST NAMED INSURED NOT APPLICABLE DATE 0 0 • APPLICANT NAME: ROGER E RITTER POLICY NUMBER: 38-PN6931394 REJECTION OF UNINSURED MOTORIST PROTECTION By signing this waiver I am rejecting uninsured motorist coverage under this policy, for myself and all relatives residing in my household. Uninsured coverage protects me and relatives living in my household for losses and damages suffered if injury is caused by the negligence of a driver who does not have any insurance to pay for losses and damages. I knowingly and voluntarily reject this coverage. SIGNATURE OF FIRST X ELECTRONIC SIGNATURE ACCEPTED NAMED INSURED DATE 03!14/09 05:56 PM CDT ROGER E RITTER Air APPLICANT NAME: ROGER E RITTER POLICY NUMBER: 38-PN6931394 REJECTION OF UNDERINSURED MOTORIST PROTECTION By signing this waiver I am rejecting underinsured motorist coverage under this policy, for myself and all relatives residing in my household. Underinsured coverage protects me and relatives living in my household for losses and damages suffered if injury is caused by the negligence of a driver who does not have enough insurance to pay for all losses and damages. I knowingly and voluntarily reject this coverage. SIGNATURE OF FIRST NOT AVAILABLE NAMEDINSURED DATE • • • APPLICANT NAME: ROGER E RITTER POLICY NUMBER: 38-PN6931394 Pennsylvania Surcharge Disclosure Statement In compliance with 75 Pa. C.S. Section 1793(b), we provide this surcharge disclosure plan to explain our system of driving record points. This statement provides an overview; more detailed information is available on request. Driving record points are assigned to operators for chargeable accidents and violations. All accidents and violations occurring in the 35-month period prior to policy inception are considered in developing a driver's policy premium. If a driver is added mid-term, accidents and violations will be charged for the entire 35- month period prior to the driver being added to the policy. Point surcharges follow the driver. To determine if the accident or violation took place in the chargeable period, we use the occurrence date instead of the conviction date. We charge for accidents and violations occurring while a driver is operating a private passenger automobile, commercial vehicle, motorcycle, or recreational vehicle. Accidents We assess a surcharge of approximately 23% for each at-fault accident charged to an operator. Accidents are chargeable if, as a result of the accident, the insurer incurs at least $1350 in losses in excess of any deductible for personal injury or damage to property, including the insured's. Each accumulation of $1350 in aggregate losses from incidents not otherwise charged represents an at- fault accident. If the insured can demonstrate that any of the facts of loss described in 31 Pa. Code Section 67.33 (non-chargeable accidents) apply to an accident, the accident will not be charged to the operator. Minor violations We assess a surcharge of approximately 15% for the second and each subsequent conviction of routine traffic infractions like speeding or failure to yield. Most of these infractions are listed in 75 Pa. C.S. Section 1535. Major violations We assess a surcharge of approximately 34% for each conviction of a violation which suggests the presence of a materially increased risk in a motorist. Such major violations include vehicular homicide, leaving the scene of an accident involving death or injury, or fleeing a police officer. Driving While Intoxicated We assess a surcharge of approximately 23% for each Driving While Intoxicated infraction for conviction under Section 3731 (Driving under the influence of alcohol or controlled substance), notice of Section 1534 (Acceptance of Accelerated Rehabilitative Disposition), or any similar infraction. • • PA001-0707-PA i a i s ,:Wel O Permanent General Assurance Corporation 2007 PERMANENT GENERAL ASSURANCE CORPORATION PENNSYLVANIA PERSONAL AUTO POLICY Form Number PA001-0707-PA NOTICE: IF "YOU" BUY COLLISION COVERAGE, IT DOES NOT APPLY TO RENTED VEHICLES. PN6931394 • PA001-0707-PA 11 O Permanent General Assurance Corpota0on 2007 Table Of Contents Section 1 -- Definitions and General Provisions Page Section 3 - Uninsured and Underinsured Motorists Coverage Definitions General Agreement General Provisions Entire Contract Changes Excluded Drivers Misrepresentation and Fraud Our Right to Reimbursement From Others Policy Period and Territory Cancellation and Non-renewal Transfer of "Your" Interest In this Policy Duties after an Accident Or Loss Legal Actions Against "Us" By "You" Payment to Loss Payee Constitutionality Clause Section 2 -- Liability Coverage Insuring Agreement Definitions Applicable to this Section Only Supplementary Payments Exclusions Limit of Liability Legal Actions Against "Us" Coverage Outside of Pennsylvania Financial Responsibility Other Insurance 4 Insuring Agreement - Uninsured Motorist 5 Coverage 5 Insuring Agreement - Underinsured Motorist 5 Coverage 5 Definitions Applicable to this Section Only 5 Exclusions 5 Limit of Liability - Uninsured Motorist Coverage 6 Limit of Liability - Underinsured Motorist 6 Coverage 6 Non-Stacked Limits of Liability 7 Stacked Limits of Liability 8 Limit of Liability Applicable to Stacked and 8 Non-Stacked Coverage 8 Other Insurance 8 Legal Actions Under This Section Section 4 - First Party Benefits Coverage Page 11 11 12 13 13 13 13 14 14 14 15 9 Insuring Agreement 15 9 Definitions Applicable to this Section Only 16 9 Exclusions 16 9 Limit of Liability 17 10 Other Insurance 17 11 11 Section 5 - Coverage for Damage to "Your" Auto 11 11 Insuring Agreement 18 Definitions Applicable to this Section Only 18 Exclusions 18 Limit of Liability 20 Payment of Loss 20 Other Insurance 20 Appraisal 21 PN6931394 • PA001-0707•PA SECTION 1 - DEFINITIONS AND GENERAL PROVISIONS DEFINITIONS. These words and phrases mean the following in this policy: A. "Auto accident" means a sudden, unexpected, or unforeseen event involving one or more "motor vehicles" that produces "bodily injury" or "property damage." B. "Bodily injury" means bodily harm or disease, including death, caused by an "auto accident." `Bodily injury' does not include the transmission of any communicable disease. C. "Business" includes any trade, profession, or occupation undertaken for wage, salary, or profit. D. "Car, pickup, or van" means a four-wheel "motor vehicle," except recreational vehicles not intended for highway use, which is insured by a natural person and: 1. Is a passenger car neither used as a public livery conveyance nor rented to others; or 2. Has a gross weight not exceeding 9,000 pounds and is not principally used for commercial purposes other and farming or ranching. 3. The term does not include any "motor vehicle" insured exclusively under a policy covering a garage, automobile sales agency, repair shop, service station or public parking place operations hazards. E. "Family member" means a person related to "you" by blood, marriage, or by law who permanently resides with "you" in the same household. This includes a foreign exchange student and foster child. F. "Insured driver" is a person specifically identified on the declarations page as an active driver under this policy. G. "Motor vehicle" means any vehicle designed for use principally upon streets and highways and subject to "motor vehicle" registration under the laws of Pennsylvania. H. "Occupying" means in or upon or entering into or alighting from a "motor vehicle." In no instance shall any person be deemed to be "occupying" more than one "motor vehicle" at one time. • C Permanent General Amusnoe Corporation 2007 1. "Serious Injury" means a personal injury resulting in death, serious impairment of body function or permanent serious disfigurement. J. "State" means any state, territory or possession of the United States, or any province or territory of Canada. K. "We," "us," and "our" refer to the insurer named on the declarations page of this policy. L. "You" and "your" refer to the named insured shown on the declarations page and the spouse of the named insured if the spouse permanently resides in the same household and is not an excluded driver under this policy. M. "Your covered auto" means: 1. Any "car, pickup, or van" shown on the declarations page. 2. A "car, pickup, or van" as of the date "you" become the owner or lessee provided that all of the following conditions are met: a. "You" acquire the "car, pickup, or van" during the policy period shown on the declarations page; and b. "You" ask "us" to insure it within 30 days after "you" become the owner. Coverage is limited to the lesser of 30 days from the date of acquisition or the date the policy subsequently expires or is canceled unless "we" agree in writing to a further extension of coverage; and c. No other insurance policy provides coverage for that "car, pickup, or van"; and d. If the "car, pickup, or van" is leased there is a written agreement signed by "you" and the lease is for a term of at least six months; and e. "We" insure all "cars, pickups, or vans" owned by "you"; and f. "You" have paid any additional premium required by "us"; and g. The "car, pickup, or van" is not used in the course of any "business." PN6931394 4 • PA00I.0707-PA h. If the "car, pickup, or van" "you" acquire or lease replaces any "car, pickup, or van" shown on the declarations page, it will have the same coverage as the "car, pickup, or van" it replaces. If "you" wish to continue coverage under Section 5 - Coverage for Damage to "Your" Auto, "you" must make the replacement vehicle available for inspection by "our" representative. If the "car, pickup, or van" "you" acquire or lease is in addition to any "car, pickup, or van" shown on the declarations page, it will have the broadest coverage "we" now provide for any "car, pickup, or van" then insured or as required by statute. If "you" wish to continue coverage under Section 5 - Coverage for Damage to "Your" Auto, "you" must make the additional vehicle available for inspection by "our" representative. A "car, pickup, or van" ceases to be "your covered auto": a. When it is sold (regardless of whether there is a transfer of title) to a person or entity other than "you" or any "insured driver." b. When ownership is given (regardless of whether there is a transfer of title) to a person or entity other than "you" or any "insured driver." c. 'Alen it is repossessed (regardless of whether there is a transfer of title) by a loss payee other than a loss payee shown on the declarations page of this policy. GENERAL AGREEMENT. Upon "your" payment of the specified premiums, "we" agree that this policy will provide the insurance in the types and for the policy period set forth on the declarations page. GENERAL PROVISIONS. ENTIRE CONTRACT. This policy booklet, any declarations page, any endorsement, and "your" application constitute the entire contract between "you" and "us." By acceptance of this policy "you" agree that the statements in the application are true and correct to the best of `your" knowledge, information and belief, and that this policy was issued in reliance upon the truth of such representations. CHANGES. The terms of this contract may not be changed or waived except by ,one, written agreement. If a change • C Permanent General Assurance Corporation 2007 requires a premium adjustment, "we" will adjust the premium as of the date of change. EXCLUDED DRIVERS. A. "We" may exclude a driver from coverage under this policy at "your" written request. B. The excluded driver will be named on the declarations page. C. Any insurance afforded by this policy will not apply to any "motor vehicle" or to its ownership, maintenance, or use while that "motor vehicle" is under the care, custody, or control of an excluded driver, or is being operated by an excluded driver. D. An excluded driver's permission to operate a "motor vehicle" will not extend coverage under this policy to any operator. MISREPRESENTATION AND FRAUD. A. This policy was issued in reliance upon the information provided on "your" insurance application. "We" may void this policy at any time during the first 59 days, including after the occurrence of an "auto accident" or loss, if "you," at the time of the application: 1. Made incorrect statements or representations to "us" with regard to any material fact or circumstance; 2. Concealed or misrepresented any material fact or circumstance; or 3. Engaged in fraudulent conduct: This means that "we" will not be liable for any claims or damages that would otherwise be covered. "We" may deny coverage for an "auto accident" or loss if "you" or a person seeking coverage has knowingly concealed or misrepresented any material fact or circumstance, or engaged in fraudulent conduct, at the time of application, at any time during the policy period, or in connection with the presentation or settlement of a claim. B. "We" do not provide coverage for "you" or any "insured driver," to the extent permitted by law, who, either before or after a loss: PN6931394 PA001-0707-PA Has procured this policy through material misrepresentation; 2. Has misrepresented, omitted or concealed any material fact relating to this insurance; 3. Has made false or incorrect statements in connection with the application or any request for a change for this policy; 4. Has made fraudulent statements or who has engaged in fraudulent conduct in connection with any "auto accident" or loss, or a claim arising out of arty "auto accident" or loss; or 5. Has directed to others to make fraudulent statements or engage in fraudulent conduct in connection with any "auto accident" or loss, or a claim arising out of any "auto accident" or loss. C. "We" do not provide coverage for any other person insured under this policy: 1. Who has made fraudulent statements or who has engaged in fraudulent conduct in connection with any "auto accident" or loss, or a claim arising out of any "auto accident" or loss; 2. Who has directed others to make fraudulent statements or engage in fraudulent conduct in connection with any "auto accident" or loss, or a claim arising out of any "auto accident" or loss. OUR RIGHT TO REIMBURSEMENT FROM OTHERS. A. If any person insured under this policy has been paid by "us" for "bodily injury" or "property damage" and has a right to recover these damages from another person or entity, that person shall: 1. Help "us" recover the payment so made from the other person or entity. 2. Do nothing that harms "our" right to make such a recovery. B. If any person insured under this policy has been paid by "us" for "bodily injury" or "property damage" and recovers compensation for those injuries or damages from another person or entity, the person insured shall pay "us" back the amount "we" paid. • O Pe nanent General Assurance Cotporadon 2007 C. "Our" right to reimbursement from others does not apply to coverage provided under Section 4 - First Party Benefits Coverage. POLICY PERIOD AND TERRITORY. A. This policy applies only to losses that occur during the policy period shown on the declarations page. B. This policy applies only to an "auto accident" which occurs within the policy territory. The policy territory is any "State." CANCELLATION AND NONRENEWAL. A. How "You" Can Cancel the Policy. "You" may cancel the policy by: 1. Returning this policy to "us"; or 2. Giving "us" written notice of the effective date of cancellation. 3. The policy will terminate as of 12:01 a.m. on the date "you" return the policy, the date "we" receive "your" written request, or the date specified in "your" written notice whichever is later. B. How "We" May Cancel the Policy. 1. "We" may cancel by mailing or delivering written notice of cancellation to "you" at the address shown on the declarations page or the last known address. The notice will provide: a. At least 15 days notice: (1) At any time during the policy term if cancellation is for nonpayment of premium; or (2) If "your" driver's license or "motor vehicle" registration is suspended or revoked during the policy period; or (3) For any reason if notice is mailed during the first 60 days this policy is in effect and this is not a renewal or continuation policy; or b. At least 60 days notice in all other cases. PN6931394 6 • PA001.0707•PA 2. After this policy is in effect for 60 days, or if this is a renewal or continuation policy, "we" will cancel only for the following reasons: a. Nonpayment of premium; or b. If "your" driver's license or "motor vehicle" registration has been suspended or revoked during the policy period. c. A determination that "you" have concealed a material fact, or have made a material allegation contrary to fact, or have made a misrepresentation of a material fact and that such concealment, allegation or misrepresentation was material to the acceptance of the risk by "us." Notice to Loss Payee. If this policy is cancelled, "we" will mail or deliver a notice of termination to any loss payee shown on the declarations page or the last known address. This notice may be delivered electronically. Any coverage afforded by this policy will terminate as to that loss payee, and that loss payee alone, on the date specified in such notice. C. Non-renewal. 1. "We" may refuse to renew this policy. If "we" do "we" will mail notice of non-renewal to "you" and to any loss payee shown on the declarations page at the addresses shown on the declarations page or the last known addresses. Notice will be mailed not less than 60 days before the end of the policy period. Any notice may be delivered electronically. 2. If "you" notify "us" that "you" do not wish to renew this policy, then coverage will stop in its entirety on the date of the expiration of the policy. 3. If "we" offer to renew this policy and "you" do not accept such offer by the end of the current policy period, this policy will terminate as of that date. Failure to pay the required renewal premium when due shall mean that "you" have not accepted "our" offer. D. Automatic Termination. 1. If "we" offer to renew this policy and "you" do not accept such offer by the end of the current policy • C Pemunent General Assurance Corporation 2007 period, this policy will automatically terminate as of that date. Failure to pay the required renewal premium when due shall mean that "you" have not accepted "our" offer. 2. If "you" pay the initial premium for this policy with a check or credit card charge that is dishonored by "your" bank then this policy is void from the date of the application. E. Refund of Premium. 1. Upon cancellation "you" may be entitled to a refund of unearned premium. Making a premium refund is not a condition of cancellation. 2. If "you" cancel, or if "we" cancel because of nonpayment of premium, any premium refund will be computed on a short rate basis. This does not apply to policies cancelled by a premium finance company exercising its rights under a power of attorney. 3. If "we" cancel for any reason other than nonpayment of premium, or if the policy is cancelled by a premium finance company exercising its rights under a power of attorney, any premium refund will be computed on a pro rata basis. 4. All policy fees are fully earned on the effective date of the policy. F. Other Termination Provisions. 1. Proof of mailing of any notice required under the termination provisions in this policy shall be sufficient proof of notice to "you." 2. The date of cancellation set forth in the notice shall be the end of the policy period. If "you" pay an installment premium with a check or credit card charge that is dishonored by "your" bank after "we" have provided "you" with a cancellation notice, then the policy is deemed terminated as of the date set forth in such cancellation notice. TRANSFER OF "YOUR" INTEREST IN THIS POLICY. "Your" rights and duties under this policy may not be assigned without "our" written consent. PN6931394 • PA001-0707-PA DUTIES AFTER AN ACCIDENT OR LOSS. "We" are under no duty to provide coverage under this policy unless "you" or any other person seeking coverage have fully complied with these duties: A. "You" or the person seeking coverage must give "us" notice within 24 hours or as soon as practicable of when, where, and how an "auto accident" or loss occurred. This notice must also include the names and addresses of arty other drivers involved, any persons injured, and any witnesses. B. A person seeking any coverage under this policy must: 1. Cooperate with "us" in the investigation, settlement or defense of any claim or suit, to include appearing at trial or at any other legal proceeding if "we" so request. 2. Promptly send "us" copies of any legal papers filed or received in connection with the loss. 3. Submit to physical examinations by physicians "we" select as often as "we" require. "We" will pay for these examinations. 4. Submit to examinations under oath and recorded statements in connection with any "auto accident" or loss. "We" may require that these examinations or statements be signed. 5. Authorize "us" to obtain medical records and reports, employment records, and other pertinent records. 6. Grant "us" access to any on-board computer or recoding device contained in "your covered auto." 7. Submit sworn proofs of loss if "we" so require. C. A person seeking coverage under Section 5 -- Coverage for Damage to "Your" Auto must also: 1. Take reasonable steps after a loss to protect "your covered auto" and its equipment from further loss. "We" will pay reasonable expenses incurred to do this. Loss resulting from failure to protect "your covered auto" shall not be recoverable under this policy. Take all reasonable steps after a loss to prevent unnecessary charges, to include without limitation storage fees: impound fees, and parking fees. • O Permanent General Assurance Corporation 2007 3. Promptly notify the police if "your covered auto" is stolen or involved in a hit-and-run "auto accident." LEGAL ACTION AGAINST "US" BY "YOU." Except as otherwise provided in this policy no legal action may be filed against "us" unless as a condition precedent "you" have fully complied with all the terms and conditions of this policy. PAYMENT TO LOSS PAYEE. A. In the event "you" are entitled to payment for "property damage" under Section 5 -- Coverage for Damage to "Your" Auto, any payment due under this policy for such "property damage" shall be paid to "you" and the loss payee shown on the declarations page as its interest may appear. B. If "your covered auto" is repossessed by the loss payee after having sustained a loss covered under Section 5 -- Coverage for Damage to "Your" Auto, payment to the loss payee shall be subject to a deductible of the lesser of $500.00 or the deductible shown on the declarations page. C. The interest of the loss payee shall not become invalid because of the intentional acts or omissions of the owner of the vehicle. However, "we" reserve the right to cancel this policy in accordance with its terms and such cancellation shall prospectively terminate the interest of any loss payee. When "we" pay the loss payee pursuant to this paragraph "we" shall assume the right of recovery against "you" as to the loss payee's rights of recovery to the extent of the payment made. CONSTITUTIONALITY CLAUSE. The premium for, and the coverages of, this policy have been established in reliance upon the provisions of the Pennsylvania Motor Vehicle Financial Responsibility Law. In the event a court, from which there is no appeal, declares or enters a judgment the effect of which is to render the provisions of such statute invalid or unenforceable in whole or in part, "we" will have the right to re-compute the premium payable for the policy and void or amend the provisions of the policy, subject to the approval of the Insurance Commissioner. The remainder of this contract not so affected will remain in force and in effect and be binding on all parties. PN6931394 8 • . PA001-0707-PA SECTION 2 -- LIABILITY COVERAGE INSURING AGREEMENT. A. "We" will pay for "bodily injury" and property damage that "you", any "insured driver," or "family member" becomes legally obligated to pay because of an "auto accident." B. "Our" payment is subject to the limits of liability shown on the declarations page. C. "We" will decide whether to settle or defend any claim for these damages. If "we" defend, "we" will select an attorney to represent any "insured" against whom a suit is filed. "We" will pay all defense costs that "we" incur. "Our" duty to settle or defend ends when the applicable limits of liability for this coverage have been exhausted by payment of judgments or settlements. "We" have no duty to defend any suit or settle any claim for "bodily injury" or "property damage" not covered under this policy. D. Bankruptcy of an "insured" shall not relieve "us" from "our" obligations. DEFINITIONS APPLICABLE TO THIS SECTION ONLY. A. "Insured" as used in this Section means: 1. "You" or any "insured driver" for the ownership, maintenance or use of any "car, pickup, or van," or any trailer being towed by such "car, pickup, or van." 2. Any person for the ownership or maintenance of "your covered auto," or any person using "your covered auto" or any trailer being towed by such "your covered auto" with express or implied permission from the owner and within the scope of the permission given. B. "Property damage" means accidental damage, destruction, or loss of use of personal or real property. SUPPLEMENTARY PAYMENTS. In addition to "our" limit of liability, "we" will pay to or on behalf of an "insured": A. All expenses incurred by "us" or at "our" request in the settlement or trial of any claim or suit. O Permanent General Assurance Corporation 2007 B. Post judgment interest on that part of the judgment "we" pay. "Our" obligation to pay post judgment interest ends when "we" offer to pay the lesser of the amount of the judgment or the applicable limit of liability for this coverage. C. Loss of earnings sustained by an "insured" for work missed because of attendance at "bur" request at depositions, mediations, arbitrations, hearings, or trials. The limit of "our" liability shall be the lesser of the "insured's" actual lost earnings or $250.00 per day, subject to a maximum payment of $500.00 for any one "auto accident." In the event that it is necessary for an "insured" to travel to a deposition, mediation, arbitration, hearing, or trial, "we" will pay all reasonable travel expenses. D. Court costs, to include discretionary costs, awarded as damages. E. Prejudgment interest on that part of the judgment "we" pay. Any pre judgment interest awarded is subject to the applicable Pennsylvania Rules of Civil Procedure. EXCLUSIONS. "We" do not provide coverage under this Section for any person: A. For "bodily injury" or "property damage" caused intentionally by or at the direction of such person regardless of whether or not the result was intended. B. For damage to personal or real property owned by, rented to, used by, being transported by, or in the care of that person. A "motor vehicle" being operated by an "insured" or a trailer being towed by such "motor vehicle" shall be considered to be property in the care of that person. C. Who is racing, or engaged in a speed or performance contest of any sort, or preparing for same, regardless of whether such activity is organized or unorganized. D. For that person's liability arising out of the ownership, maintenance, or use of a "motor vehicle" in the course of any "business" unless an additional premium for "business" use is shown on the declarations page. Ownership, maintenance, or use of a "motor vehicle" in the course of any "business" includes but is not limited to: PN6931394 • PA001-0707-PA 1. Wholesale or retail deliveries. 2. Operating any vehicle displaying advertising. 3. Operating any vehicle containing permanently installed mechanical equipment. 4. Selling, servicing, parking, repairing, storing, leasing, delivering, testing, or maintaining any vehicle other than "your covered auto"; or 5. Snow Removal E. Using a "car, pickup, or van" without the express or implied permission from the owner or outside the scope of any permission given. F. For the ownership, maintenance, or use of. 1. Any vehicle other than a "car, pickup, or van." 2. Any "car, pickup, or van," other than "your covered auto," which is owned by or furnished or made available for the regular use of "you," any "insured driver," any "family member," or any resident of "your" household. G. For that person's liability arising out of the ownership, maintenance, or use of any "car, pickup, or van" being used as an emergency vehicle, whether volunteer or otherwise. H. For that person's liability arising out of the ownership, maintenance, or use of any "car, pickup, or van" while such "car, pickup, or van" is fleeing or eluding, or attempting to flee or elude, the police or other governmental authority carrying out or attempting to carry out a governmental function, or while that person is engaged in any illegal activity, illegal trade, or illegal transportation. 1. For any loss: 1. Caused by any radioactive substance. 2. Caused by the dumping, discharge, or escape of any irritants, pollutants, or other contaminants other than those substances necessary for the operation of a "car, pickup, or van." 3. Caused by explosives or explosive substances, other than those substances necessary for the operation of a "car, pickup, or van." • O Permanent General Assurance Corporation 2007 J. Who is not legally licensed to operate a "car, pickup, or van," or who has a limited or temporary license and is operating a "car, pickup, or van" outside the scope of such limited or temporary license. This exclusion shall not apply to "you" or any "insured driver." K. For "bodily injury" to "you," an "insured," any "insured driver," or any "family member." L. For "bodily injury" to an employee or co-employee of that person arising during the course and scope of employment. M. For liability assumed under a contract or agreement. N. For punitive or exemplary damages. 0. Carrying persons or property for a fee including rental of "your covered auto" to others regardless of whether "you" have purchased a "business" endorsement. This does not apply to a share-the-expense car pool. LIMIT OF LIABILITY. A. The limits of liability for "bodily injury" and "property damage" are shown on the declarations page. B. The limit of "bodily injury" liability shown for each person is the most "we" will pay for all damages due to "bodily injury" to any one person in an "auto accident." This includes all injuries and damages sustained by others resulting from "bodily injury" to that person. C. Subject to this limit for each person, the limit of liability shown for each "auto accident" for "bodily injury" is the most "we" will pay for all damages for "bodily injury" resulting from any one "auto accident." D. The limit of liability shown on the declarations page for each "auto accident" for "property damage" liability is "our" maximum limit of liability for all "property damage" resulting from any one "auto accident." E. These limits of liability are the most "we" will pay in connection with any one "auto accident" regardless of the number of insureds, the number of persons injured, the number of claims made, the number of vehicles insured, or the number of vehicles involved in the "auto accident." F. Any amounts payable under this Section to or on behalf of any person for "bodily injury" will be reduced by any PN6931394 10 0 • PA001-0707-PA amounts paid to or on behalf of such person for the same damages under Section 3 - Uninsured and Underinsured Motorists Coverage or Section 4 - Medical Payments Coverage. LEGAL ACTION AGAINST "US." No legal action may be brought against "us" under this Section unless the "insured" has fully complied with all the terms and conditions of this policy and: A. "We" agree in writing that the "insured" is legally obligated for damages because of an "auto accident"; or O Permanent General Assurance Corporation 2007 an "insured" is legally entitled to recover from the owner or operator of an "uninsured motor vehicle" because of "bodily Injury": A. Sustained by an "insured"; B. Caused by an "auto accident"; and C. Arising out of the ownership, maintenance, or use of an "uninsured motor vehicle." INSURING AGREEMENT - UNDERINSURED MOTORIST COVERAGE. B. A judgment has been entered finding the "insured" is legally obligated for damages because of an "auto accident." C. Nothing contained in this policy shall give any person or organization any right to join "us" as a co-defendant in any action against the "insured" to determine the insured's liability. COVERAGE OUTSIDE OF PENNSYLVANIA. This Section applies to an "auto accident" which occurs outside of Pennsylvania so long as it occurs within a "State." If the "State" in which the "auto accident" occurs has a financial responsibility law specifying limits for "bodily injury" or "property damage" higher than the limits shown on the declarations page, then this policy will provide the limits specified by such law for that "auto accident." FINANCIAL RESPONSIBILITY. If this policy is certified as future proof of financial responsibility, this policy shall conform to the minimum requirements of such law. "You" will reimburse "us" for any payment that "we" would not otherwise have been obligated to make under the terms of this policy but for the requirements of such law. OTHER INSURANCE. If there is any other applicable liability insurance or bond, "we" will pay only "our" share of the damages. "Our" share is the proportion that "our" limit of liability bears to the total of all applicable limits. However, any insurance "we" provide for a vehicle or trailer, other than "your covered auto," will be excess over any other collectible insurance, self-insurance, or bond. SECTION 3 - UNINSURED AND UNDERINSURED MOTORISTS COVERAGE INSURING AGREEMENT - UNINSURED MOTORIST COVERAGE. If the declarations page shows "you" have purchased uninsured motorist insurance, "we" will pay for damages that If the declarations page shows "you" have purchased underinsured motorist insurance, "we" will pay for damages that an "insured" is legally entitled to recover from the owner or operator of an "underinsured motor vehicle" because of "bodily injury": A. Sustained by an "insured; B. Caused by an "auto accident"; and C. Arising out of the ownership, maintenance, or use of an "underinsured motor vehicle." An "insured" must notify "us" in writing at least 30 days before entering into any settlement with the owner or operator of an "uninsured motor vehicle" or "underinsured motor vehicle," of any liability insurer. In order to preserve "our" right of subrogation, "we" may elect to pay any sum offered in settlement by, or on behalf of, the owner or operator of an "uninsured motor vehicle" or "underinsured motor vehicle." If "we" do this, the "insured" shall assign to "us" all rights that "insured" has against the owner or operator of the "uninsured motor vehicle" or "underinsured motor vehicle," to the extent of "our" payment. No judgment or settlement for damages arising out of a lawsuit brought against an owner or operator of an "uninsured motor vehicle" or "underinsured motor vehicle" shall be binding on "us" unless "we" have: A. Received reasonable notice of the filing of the lawsuit resulting in the judgment; and B. Had a reasonable opportunity to protect "our" interests in the lawsuit. PN6931394 11 • PAom -0707-PA DEFINITIONS APPLICABLE TO THIS SECTION ONLY. A. "Insured" as used in this Section means: 1. "You," any "insured driver", or any "family member." 2. Any person "occupying" "your covered auto." 3. Any person who has sustained damage on account of injury to "you," any "insured driver," any "family member," or any person "occupying" "your covered auto." B. "Uninsured motor vehicle" means a land "motor vehicle" or trailer of any type: 1. To which no "bodily injury" liability bond or policy applies at the time of the "auto accident"; 2. To which a "bodily injury" liability bond or policy applies at the time of the "auto accident," but the bonding or insuring company: a. Denies coverage; or b. Is insolvent, or becomes insolvent within six years after the "auto accident" occurs; 3. To which a "bodily injury" liability bond or policy applies at the time of the "auto accident," but its limit of liability for "bodily injury" is less than the minimum limit of liability for "bodily injury" specified by the financial responsibility law of the "State" in which "your covered auto" is principally garaged; or 4. Whose owner or operator cannot be identified and that causes an "auto accident" resulting in "bodily injury" to an "insured," provided that the "insured" or someone on his or her behalf: a. Reports the "auto accident" to the police or civil authority within 24 hours or as soon as practicable after the "auto accident"; and b. Notifies "us" within 30 days, or as soon as practicable thereafter, that the "insured" has a cause of action arising out of such "auto accident" for damages against a person or persons whose identity is unascertainable, and sets forth the facts in support thereof. • O Permanent General Assurance Corporation 7007 An "uninsured motor vehicle" does not include any vehicle or equipment: a. Owned by "you" or a "family member" or furnished or available for the regular use of "you" or a "family member"; b. Owned or operated by a self-insurer under any applicable "motor vehicle" law, except a self- insurer that is or becomes insolvent; c. Operated on rails or crawler treads; d. Designed mainly for use off public roads, while not on public roads; e. While located for use as a residence or premises and not a vehicle; f. That is "your covered auto"; or g. That is an "underinsured motor vehicle." C. "Underinsured motor vehicle" means a land "motor vehicle" or trailer of any type to which "bodily injury' liability bond or policy applies at the time of the "auto accident," but the sum of all applicable limits of liability for "bodily injury' is less than the damages that the "insured" is entitled to recover from the owner or operator of the "motor vehicle" because of "bodily injury." An "underinsured motor vehicle" does not include any vehicle or equipment: 1. Owned by "you" or a "family member" or furnished or available for the regular use of "you" or a "family member"; 2. Operated on rails or crawler treads; 3. Designed mainly for use off public roads, while not on public roads; 4. While used as a residence or premises and not a vehicle; 5. That is "your covered auto"; or 6. That is an "uninsured motor vehicle." PN6931394 12 1 7_? PA001-0707-PA EXCLUSIONS. Coverage under this Section 3 will not apply: A. To "bodily injury" sustained by any person while using or "occupying": 1. "Your covered auto" while being used to carry persons or property for compensation or a fee, including, but not limited to, pickup or delivery of magazines, newspapers, food, or any other products. This exclusion does not apply to shared-expense car pools; or 2. A "motor vehicle" that is owned by or available for the regular use of "you" or a "family member." This exclusion does not apply to "your covered auto" that is insured under this Section 3. B. To "bodily injury" sustained by "you" or a "family member" while using any vehicle, other than "your covered auto," without the permission of the owner of the vehicle or the person in lawful possession of the vehicle; C. Directly or indirectly to benefit any insurer or self-insurer under any of the following or similar laws; 1. Workers' compensation law; or 2. Disability benefits law; D. To any punitive or exemplary damages; or E. To "bodily injury" sustained by any person if that person or the legal representative of that person settles without "our" written consent. LIMIT OF LIABILITY - UNINSURED MOTORIST COVERAGE. The limit of liability shown on the declarations page for Uninsured Motorist Coverage is the most "we" will pay for any one accident regardless of the number of- A. Claims made; B. "Your covered autos," unless "you" have selected stacked coverage; C. "Insureds"; D. Lawsuits brought; • C Permanent General Assurance Corporation 2007 E. Vehicles involved in the "auto accident"; or F. Premiums paid. LIMIT OF LIABILITY - UNDERINSURED MOTORIST COVERAGE. The limit of liability shown on the declarations page for Underinsured Motorist Coverage is the most "we" will pay for any one accident regardless of the number of: A. Claims made; B. "Your covered autos," unless "you" have selected stacked coverage; C. "Insureds"; D. Lawsuits brought; E. Vehicles involved in the "auto accident"; or F. Premiums paid. NON-STACKED LIMITS OF LIABILITY A. If "you" have selected non-stacked coverage under this Section 3, the following shall also apply: 1. The declarations page will show a split limit: a. The amount shown for each person is the most "we" will pay for all damages due to "bodily injury" to one person; and b. Subject to the each person limit, the amount shown for each accident is the most "we" will pay for all damages due to "bodily injury" sustained by two or more persons in any one "auto accident." B. The each person limit of liability includes the total of all claims made for "bodily injury" to an "insured" and all claims of others derived from such "bodily injury," including, but not limited to, emotional injury or mental anguish resulting from the "bodily injury" of another or from witnessing the "bodily injury" to another, loss of society, loss of companionship, loss of services, loss of consortium, and wrongful death. PN6931394 13 • PA001-0707-PA STACKED LIMITS OF LIABILITY. A. If "you" have selected stacked coverage under this Section 3, the following shall also apply to "bodily injury" sustained by `you" or a "family member": 1. If "you" or a "family member" sustain "bodily injury" while "occupying" "your covered auto," the limit of liability shall be the limit available under Non-stacked Limits of Liability described above at the limit shown on the declarations page multiplied by the number of "your covered autos" that are not involved in the "auto accident." 2. If "you" or a "family member" sustain "bodily injury" while not "occupying" "your covered auto," the limit of liability shall be the limit shown on the declarations page multiplied by the number of "your covered autos." B. Stacked Limits of Liability shall not increase the limit of liability applicable to any "insured" other than "you" or a "family member." The non-stacked limits of liability will apply to any "insured" other than "you" or a "family member." C. The each person stacked limit of liability includes the total of all claims made for `bodily injury" to an "insured" and all claims of others derived from such `bodily injury," including, but not limited to, emotional injury or mental anguish resulting from the "bodily injury" of another or from witnessing the "bodily injury" to another, loss of society, loss of companionship, loss of services, loss of consortium, and wrongful death. LIMITS OF LIABILITY APPLICABLE TO STACKED AND NON-STACKED COVERAGE A. In determining the amount payable under this Section 3, the amount of damages that an "insured" is entitled to recover for "bodily injury" will be reduced by all sums: Paid because of "bodily injury" by or on behalf of any persons or organizations that may be legally responsible; and 2. Paid or payable because of "bodily injury" under any of the following or similar laws: a. Workers' compensation law; or b. Disability benefits law. • O Permanent General Assurance Corporation 2007 B. If an "insured" enters into a settlement agreement for an amount less than the sum of the limits of liability under all applicable "bodily injury" liability bonds and policies, "our" limit of liability for Underinsured Motorists Coverage shall not exceed the difference between the damages sustained by the "insured" and the sum of the applicable "bodily injury" liability limits. C. The limits of liability under this Section 3 shall be reduced by all sums paid under Section 2 - Liability Coverage. D. No one will be entitled to duplicate payments for the same elements of damages. E. If multiple auto policies issued by "us" are in effect for "you," "we" will pay no more than the highest limit of liability for this coverage available under any one policy. OTHER INSURANCE. A. If there is other applicable similar insurance available under more than one policy or provision of coverage, the following priorities of recovery apply: 1. The uninsured or underinsured motorist coverage applicable to the "motor vehicle" the "insured" was "occupying" at the time of the "auto accident." 2. Any other policy affording uninsured or underinsured motorist coverage to the "insured." B. If two or more policies have equal priority, the insurer against whom the claim is first made shall process and pay the claim as if wholly responsible. The insurer is thereafter entitled to recover contribution on a pro rata basis from any other insurer for the benefits paid and the costs of processing the claim. C. If non-stacked coverage is shown on the declarations page, the following additional provisions apply: When there is insurance available under the first priority: a. The limit of liability applicable to the "motor vehicle" the "insured" was "occupying" under the first priority, shall first be exhausted; and PN6931394 14 • PAOOI.0707-PA b. The maximum recovery under all policies in the second priority shall not exceed the amount by which the highest limit for any one "motor vehicle" under any one policy in the second priority exceeds the limit applicable under the policy in the first priority; and 2. When there is no applicable insurance available under the first priority, the maximum recovery under all policies in the second priority shall not exceed the highest applicable limit for any one "motor vehicle" under any one policy. LEGAL ACTIONS UNDER THIS SECTION. A. No legal action may be brought against "us" under this Section until there has been full compliance with all the terms of the policy. B. Any judgment obtained against the owner or operator of an uninsured or underinsured "motor vehicle" shall not be binding upon "us." SECTION 4 - FIRST PARTY BENEFITS COVERAGE INSURING AGREEMENT. The coverages under this part are provided in accordance with and subject to the Pennsylvania Motor Vehicle Financial Responsibility Law. A. Medical Payments. Subject to the limits shown on the declarations page, "we" will pay for "medical expenses" for "bodily injury" to an "insured" arising out of the use of a "motor vehicle." "Medical expenses" will be paid: 1. If incurred within 18 months from the date of the "auto accident" causing the "bodily injury"; or 2. Without limitation as to time, provided that, within 18 months from the date of the "auto accident" causing the "bodily injury" it can be determined with reasonable medical probability that further expenses may be incurred as a result of the "bodily injury." B. Income Loss. "We" will provide the insurance described under this option only if income loss coverage is indicated on the declarations page and the appropriate premium is paid. "We" will pay "income loss benefits" for "bodily injury" to an "insured" arising out of the use of a "motor vehicle." Income loss benefits are: • O Permanent General Assurance Corporation 2007 1. 80% of the "insured's" actual loss of gross income from work the "insured" would have performed except for the "bodily injury." 2. Reasonable expenses actually incurred for: a. Hiring a substitute to perform self-employment services to reduce loss of gross income; or b. Hiring special help thereby enabling the "insured" to work and reduce loss of gross income. 3. Income loss benefits do not include: a. Loss of unexpected income for any period following the death of an "insured"; b. Expenses incurred for services performed following the death of an "insured"; or c. Any loss of income during the first five working days the "insured" did not work after the "auto accident" because of the "bodily injury." C. Accidental Death. "We" will provide the insurance described under this option only if accidental death coverage is indicated on the declarations page and the appropriate premium is paid. "We" will pay accidental death benefits for the death of an "insured" arising out of the use of a "motor vehicle." The death must be the direct result of the "auto accident" and not due to any other cause. "We" will pay accidental death benefits to the executor or administrator of the "insured's" estate. If there is no executor or administrator, the benefit shall be paid to: 1. The deceased "insured's" surviving spouse; or 2. If there is no surviving spouse, the deceased "insured's" surviving children; or 3. If there is no surviving spouse or children, to the deceased "insured's" estate. D. Funeral Expenses. "We" will provide the insurance described under this option only if funeral expenses coverage is indicated on the declarations page and the appropriate premium is paid. "We" will pay funeral PN6931394 15 • PA001-0707-PA expense benefits for funeral expenses directly related to the funeral, burial, cremation or other form of disposition of the remains of an "insured" if "bodily injury" causes the "insured's" death within 24 months from the date of the "auto accident." E. Combination Benefits. "We" will provide the insurance described under this option only if combination benefits coverage is indicated on the declarations page and the appropriate premium is paid. Subject to the limits shown on the declarations page, for "bodily injury" to an "insured" arising out of the use of a "motor vehicle," "we" will pay: 1. Medical payments as described in paragraph (A) above; 2. Income loss as described in paragraph (B) above; 3. Accidental death as described in paragraph (C) above; and 4. Funeral expenses as described paragraph (D) above. F. Extraordinary Medical Benefits. "We" will provide the insurance provided under this option only if "extraordinary medical benefits" is indicated on the declarations page and the appropriate premium is paid. Subject to the limits shown on the declarations page, "we" will pay for those reasonable "medical expenses" which exceed $100,000. The "medical expense" must be for "bodily injury" to an "insured" caused by an "auto accident" arising out of the use of a "motor vehicle." "Medical expenses" will be paid: 1. If incurred within 18 months from the date of the "auto accident" causing the "bodily injury"; or 2. Without limitation as to time, provided that, within 18 months from the date of the "auto accident" causing the "bodily injury" it can be determined with reasonable medical probability that further expenses may be incurred as a result of the "bodily injury." The most "we" will pay in any 12 month period beginning 18 months after the date the "insured's" reasonable "medical expenses" exceed $100,000 as a result of the "bodily injury" is $50,000. These "medical expenses" must be for an "insured's" care, recovery, or rehabilitation. This includes remedial 0 C Permanent General Assurance Corporation 2007 care and treatment rendered in accordance with a recognized method of healing. The amount "we" pay for "medical expenses" is subject to the limitations of Title 75 of the Pennsylvania Consolidated Statutes. DEFINITIONS APPLICABLE TO THIS SECTION ONLY. "Insured" as used in this Section means: A. "You," any "insured driver", or any "family member." B. Any other person "occupying" "your covered auto." C. "Bodily injury" means accidental bodily harm to a person and that person's resulting illness, disease or death. D. "Extraordinary medical benefit" means "medical expenses" that exceed $100,000. E. "Medical expenses" means expenses incurred for reasonable and necessary medical treatment and rehabilitation services. This includes expenses for: 1. Hospital, dental, surgical, psychiatric, psychological, osteopathic, ambulance, chiropractic, nursing and optometric services; 2. Licensed physical therapy, vocational rehabilitation, occupational therapy, speech pathology and audiology; 3. Medications, medical supplies and prosthetic devices; and 4. Non-medical remedial care and treatment rendered in accordance with a recognized religious method of healing. EXCLUSIONS. "We" do not provide coverage under this Section for any person for "bodily injury": A. Sustained while "occupying" "your covered auto" when it is being used to carry persons or property for compensation or a fee including rental of "your covered auto" to others regardless of whether "you" have purchased a "business" endorsement. This does not apply to a share-the-expense car pool. PN6931394 16 • PA001-0707-PA B. Sustained while "occupying" any "motor vehicle" being used as a residence or premises. C. Sustained during the course of employment if workers' compensation benefits are required or available for the "bodily injury." D. Sustained while "occupying," or when struck by, any "motor vehicle" other than "your covered auto" which is owned by or furnished or available for the regular use of "you," any "insured driver," or any "family member," or any resident of "your" household. E. Sustained while "occupying" a "motor vehicle" without the express or implied permission from its owner or beyond the scope of any permission given. F. Sustained while "occupying" a "car, pickup, or van" while engaged in the course of any "business" unless an additional premium for "business" use is shown on the declarations page. G. Caused by or as a consequence of war whether declared or undeclared, civil war, insurrection, rebellion, or revolution. H. Sustained while racing or engaged in a speed contest of any sort, or preparing for same, regardless of whether such activity is organized or unorganized. Caused by or as a consequence of exposure to nuclear radiation, radioactive contamination, or any irritant, pollutant, or other contaminant, or mold or fungus. Sustained while "occupying" a "motor vehicle" being operated by a person who lacks a driver's license, or whose driver's license is suspended or revoked, or who has a restricted driver's license and is using the "motor vehicle" outside the scope of the restriction. This exclusion shall not apply to a vehicle being operated by "you" or any "insured driver." K. Sustained while "occupying" a "motor vehicle" being used as an emergency vehicle, whether volunteer or otherwise. L. For "extraordinary medical benefits" for the first $100,000 of "medical expenses." • C Permanent General Assurance Corporation 2007 LIMIT OF LIABILITY. A. The limit of liability shown in the declarations for this coverage is "our" maximum limit of liability for each "insured" for any one "auto accident." B. This is the most "we" will pay regardless of the number of insureds, the number of claims made, the number of vehicles insured, or the number of vehicles involved in the "auto accident." C. Any amounts otherwise payable for expenses under this coverage shall be reduced by any amounts paid or payable under this policy for the same expenses under Section 2 -- Liability Coverage or Section 2 - Liability Coverage or Section 3 - Uninsured and Underinsured Motorist Coverage. D. Any amounts paid under this coverage shall reduce any amounts otherwise payable under this policy for the same damages for "bodily injury" under Section 2 -- Liability Coverage or Section 3 - Uninsured and Underinsured Motorist Coverage of this policy. OTHER INSURANCE. A. "We" will pay First Party Benefits in accordance with the following order of priority. "We" will not pay if there is another insurer at a higher level of priority. The priority order is: 1. The insurer providing benefits to the "insured" on a policy on which he or she is a named insured. 2. The insurer providing benefits to the "insured" as a "family member" who is not a named insured under another policy providing coverage under the Pennsylvania Motor Vehicle Financial Responsibility Law. 3. The insurer of the "motor vehicle" which the "insured" is "occupying" at the time of the "auto accident." 4. The insurer providing benefits on any "motor vehicle" involved in the "auto accident" if the person is not: a. "occupying" a "motor vehicle"; and b. Provided coverage under any other policy. PN6931394 17 • PA001-0707-PA The first category listed above is the highest level of priority; the fourth category listed above is the lowest level of priority. B. If two or more policies have equal priority: The insurer against which the claim is first made shall process and pay the claim as if wholly responsible. 2. If "we" are the insurer against whom the claim is first made, "bur" payment to or for an insured shall not exceed the applicable limit of liability for First Party Benefits Coverage shown on the declarations page. 3. The maximum recovery under all policies will not exceed the amount payable under the policy with the highest limits of liability. C. No one will be entitled to recover duplicate payments for the same elements of loss under this or any other similar insurance including self insurance. SECTION 5 - COVERAGE FOR DAMAGE TO YOUR AUTO INSURING AGREEMENT. A. The declarations page will show if "you" have purchased this coverage. If "you" have, "we"'till pay for direct and accidental loss to "your covered auto" caused by "collision," or from "comprehensive" causes. B. Direct and accidental loss does not include any claim for "diminution in value" of "your covered auto" in the event it is repaired, or loss of its use. DEFINITIONS APPLICABLE TO THIS SECTION ONLY. A. "After market parts" means automotive replacement parts manufactured by a company other than the original equipment manufacturer. B. "Collision" means the upset of "your covered auto" or its impact with another vehicle or object other than those defined as "Comprehensive" losses. C. "Comprehensive" losses are damages to "your covered auto" caused by the following: 1. Missiles, falling objects, or thrown objects. • C Permanent General Assurance Coryoration 2007 2. Fire or explosion, unless the fire or explosion is the direct consequence of a "collision." 3. Theft or larceny, including upset of "your covered auto" or its impact with another vehicle or object prior to recovery. 4. Earthquake. 5. Windstorm, snow, ice, hail, rain, water, or flood. 6. Malicious mischief or vandalism. 7. Contact with a bird or animal. D. "Diminution in value" means the actual or perceived loss in market or resale value of "your covered auto" resulting from an "auto accident." E. "Factory installed" means installed by the manufacturer of the automobile at the time the vehicle is fabricated or assembled. F. "OEM parts" means automotive replacement parts manufactured by the original equipment manufacturer. G. "Recycled parts" means automotive replacement parts obtained from another vehicle which may be new, refurbished, restored, or used. EXCLUSIONS. "We" will not pay for: A. Loss to "your covered auto" which occurs while it is used to carry persons or property for a fee including rental of "your covered auto" to others. This does not apply to a share-the-expense car pool. B. Damages due and confined to normal wear and tear, freezing, mechanical or electrical breakdown or failure, loss due to lack of lubricant or coolant, loss resulting from seepage of water or mold infestation, faulty workmanship, or road damage to tires. C. Loss or damage to equipment designed for the reproduction of sound unless the equipment is permanently installed in "your covered auto" in the opening used by the manufacturer of the automobile for a "factory installed" radio. Unless the declarations page indicates that a separate premium has been paid to insure additional equipment, "our" liability for loss or damage PN6931394 18 • PA001.0707-PA to equipment designed for the reproduction of sound is limited to the lesser of the actual cost to repair or replace or $500. This limitation does not apply if the equipment is "factory installed" in "your covered auto." D. Loss or damage to audiotapes, records, compact discs, or devices used for the reproduction of sound. E. Loss or damage to any item of personal property not permanently attached to "your covered auto." F. Loss or damage intentionally caused by or at the direction of "you," any "insured driver," any "family member," or any other resident of "your" household. G. Loss or damage to camper bodies or other equipment designed to create additional living or storage facilities unless the declarations page indicates that a separate premium has been paid to insure such equipment. H. Loss or damage to any television, television antenna, citizens band radio, two-way mobile radio, telephone, or any scanning monitor or receiver unless the declarations page indicates that a separate premium has been paid to insure such equipment. I. Loss or damage to any custom furnishings or equipment in or upon "your covered auto." 1. Custom furnishings or equipment include but are not limited to: a. Special carpeting, insulation, furniture, or bars. b. Facilities for cooking and sleeping. c. Height extending roofs. d. Equipment designed for the accommodation of persons with a disability or a handicap. e. Custom murals, paintings, striping, or other decals or graphics. f Custom wheels, tires, instruments, spoilers, ground effects, or front-end protectors. g. Any other equipment that was not "factory installed" by the manufacturer of "your covered auto" that mechanically or structurally alters the auto or results in any change in function or appearance. 0 O Petmenent General Assurance Corporation 7007 This exclusion does not apply if the declarations page indicates that a separate premium has been paid for such custom furnishings or equipment. J. Loss to equipment designed or used for the detection or location of radar or lasers. K. Loss occurring while "your covered auto" is being used as a residence or premises. L. Loss occurring while "your covered auto" is being used by "you," any "insured driver," any "family member," or any person using "your covered auto" with "your" express or implied permission for racing or is engaged in a speed contest of any sort, or preparing for same, regardless of whether such activity is organized or unorganized. M. Loss caused by or as a consequence of exposure to nuclear radiation, radioactive contamination, or any irritant, pollutant, or other contaminant. N. Loss occurring while "your covered auto" is being operated by a person who lacks a "State" driver's license, or whose "State" driver's license is suspended or revoked, or who has a "State" restricted driver's license and is using the "your covered auto" outside the scope of the restriction unless the loss is a consequence of the theft of "your covered auto." This exclusion shall not apply to a vehicle being operated by "you" or any "insured driver," nor does it apply in the event of its theft. 0. Loss occurring while "your covered auto" is being used as an emergency vehicle, whether volunteer or otherwise. P. Indirect or consequential losses, to include without limitation loss due to diminution in value to "your covered auto" if it is repaired, or to loss resulting from loss of use of "your covered auto." Q. Loss due to confiscation by governmental authorities for any reason. R. Loss occurring while "your covered auto" is being used in the course of any "business" unless an additional premium for "business" use is shown on the declarations page. S. Loss caused by or as a consequence of war whether declared or undeclared, civil war, insurrection, rebellion, or revolution. PN6931394 19 PA001-0707-PA T. Loss occurring while "your covered auto" is being used in any illegal activity. This exclusion does not apply in the event of the theft of "your covered auto." U. Loss resulting from the purchase of "your covered auto" from any person or organization other than its rightful owner, or repossession of "your covered auto" by the rightful owner. V. Loss due to theft, embezzlement or other unlawful conversion of "your covered auto" if it has been entrusted to another party for the purpose of sublease, lease or sale, whether under a consignment agreement or not. This exclusion will apply whether the theft, embezzlement or unlawful conversion of "your covered auto" was committed by the person to whom it was entrusted or by any other person. W. Any obligation assumed by "you" for estimating fees, teardown charges, handling fees, negotiating charges, administrative fees, or any other charges which are not part of the necessary cost of repairing "your covered auto." "We" shall not be liable for storage charges incurred after "we" ask "you" to move "your covered auto" to a storage facility of "our" choosing. X. Loss due to theft or conversion by "you," any "insured driver," any "family member," or any resident of "your" household. LIMIT OF LIABILITY. "Our" limit of liability for loss under this Section will be the lesser of the: A. Actual cash value of the stolen or damaged property. An adjustment for depreciation will be made in determining actual cash value at the time of loss. If "you" retain the property after "we" have paid the actual cash value, "we" will also make an adjustment for the value of the salvage; or B. Amount reasonably necessary to replace the property, less depreciation; or C. Amount necessary to repair the property. In the event the property is repairable, "we" will prepare a repair estimate that will set forth the amount necessary to repair the property. 2. The amount of the repair estimate will be calculated based on the use of "OEM parts," "recycled parts," or "after market parts," or a mixture thereof, as "we" see fit. The repair estimate will specify which parts E O Permanent General Assurance corporation 2007 are "OEM parts," "recycled parts," or "after market parts If as of the date of loss "your covered auto" is a current year model, or is an immediate prior year model, then "you" have the right to select the parts used in its repair. These may be "OEM parts," "recycled parts," or "after market parts." "We" will provide these parts at "our" sole expense. 4. If as of the date of loss "your covered auto" is older than the immediate prior year model, then "you" may select parts other than those specified in the repair estimate, but any excess cost incurred because of "your" election will be at "your" sole expense. PAYMENT OF LOSS. A. "We" may pay for the loss in money or repair or replace the damaged or stolen property at "our" expense. "We" may, at "our" expense, return any stolen property to "you" at the address shown on the declarations page. In the event that the actual cash value of the property is paid, or the property is replaced, "we" may keep all or part of the damaged property. B. Payments under this section will be less the deductible shown on the declarations page. If the loss to "your covered auto" is the result of more than one "auto accident," a separate deductible shall apply to the loss resulting from each such "auto accident." "Your" deductible will not be reduced by the deductible charged any loss payee. OTHER INSURANCE. If other insurance also covers the loss "we" will pay only "our" share of the loss. "Our" share is the proportion that "our" limit of liability bears to the total of all applicable limits. However, any insurance "we" provide with regard to "your covered auto" which is not owned by "you" or an "insured driver" shall be excess over any other collectible insurance. If there is other applicable insurance "we" will pay only "our" share of the loss. "Our" share is the proportion that `bur" limit of liability bears to the total of all applicable limits. Any insurance that "we" provide for the use of "your covered auto" by a person other than "you" or an "insured driver" will be excess over any other collectible insurance, self-insurance or bond. PN6931394 20 • PA00I-0707-PA APPRAISAL. A. if "we" and "you" do not agree on the amount of the loss, then either may demand an appraisal of the loss. Such demand will be in writing. B. Each party will select a competent appraiser. The two appraisers shall select a third appraiser. The three appraisers shall inspect the loss and shall determine the amount to be paid under this coverage. An amount agreed upon by two of the three appraisers shall be binding on the parties. C. Each party shall pay the costs of their appraiser and shall pay in equal share the cost of the third appraiser. D. "We" do not waive any of "our" rights under the policy by agreeing to an appraisal. PRESIDENT RANDY PARKER ASSISTANT SECRETARY BRIAN M. DONOVAN • O Permanent General Assurance Corporation 2007 PN6931394 21 0 0 PA099-0608-PA c Permanent General Assurance Corporation 2008 Permanent General Assurance Corporation RESTRICTIVE ENDORSEMENT THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. Section 4 - First Party Benefits Coverage - Definitions Applicable to this Section Only. Paragraph A. and B. are deleted and replaced with the following: "Insured as used in this Section means "you", any "insured driver," or any "family member." Section 5 -- Coverage for Damage to Your Auto - Exclusions. The following paragraph is added: Y. Loss or damage occurring while "your covered auto" is being operated by or is under the care, custody, or control of any person other than "you" or any "insured driver." This exclusion shall not apply if the loss is the consequence of the theft of "your covered auto," other than a theft perpetrated by "you," an "insured driver," or a "family member." PN6931394 0 a • Permanent theral Assurance Corp. ^ Claims Service ' `?„/ P.O. Box 305195 Nashville, TN, 37230-5195 ry PHONE 1-800-280-1466 May 19, 2009 Roger Ritter 1550 Williams Grove Rd. Mechanicsburg, PA 17055 Re: Date of Loss: 04/30/2009 Claim No: PA0000442498 Our Insured: Roger Ritter Dear Mr. Ritter: Based on the information obtained to date, there is no coverage under policy PN 0006931394 with Permanent General Assurance Corporation due to Rebecca Welsh operating the vehicle on a restricted policy and does not qualify as an "insured" for 1St party coverage. We refer you to your policy: RESTRICTIVE ENDORSEMENT Section 4 - First Party Benefits Coverage - Definitions Applicable to this Section Only. Paragraph A. and B. are deleted and replaced with the following: "Insured" as used in this Section means "you", any "insured driver," or any "family member." Section 5 - Coverage for Damage to Your Auto - Exclusions. The following paragraph is added: Y. Loss or damage occurring while "your covered auto" is being operated by or is under the care, custody, or control of any person other than "you" or any "insured driver." This exclusion shall not apply if the loss is the consequence of the theft of "your covered auto," other than a theft perpetrated by "you," an "insured driver," or a "family member." SECTION 1 -- DEFINITIONS AND GENERAL PROVISIONS DEFINITIONS. These words and phrases mean the following in this policy: • Permanent Peneral Assurance Corp. C Claims Service P.O. Box 305195 ry Nashville, TN, 37230-5195 PHONE 1-800-280-1466 F. "Insured driver" is a person specifically identified on the declarations page as an active driver under this policy. The driver on the above loss is not listed on your policy. In absence of coverage, we cannot make payment for any damages or injuries sustained. If you have any questions, or can present documents that may alter our decision, please contact me 800-829-2933, ext. 3351. Sincerely, Tina Schultz Claims Representative 800-280-1466-3351 METZGER, WICKERSHAM, P.C. By: Andrew W. Norfleet, Esquire Attorney I.D. No. 83894 By: Clark DeVere, Esquire Attorney I.D. No. 68768 3211 North Front Street P.O. Box 5300 Harrisburg, PA 17110-0300 (717) 238-8187 r 25 PM 3% 43 Ct1M`-?`N1Y Attorneys for Plaintiff Rebecca Welsh a/k/a Rebecca Ritter REBECCA WELSH a/k/a REBECCA RITTER vs. Plaintiff THE GENERAL AUTO INSURANCE SERVICES, INC.; and PERMANENT GENERAL ASSURANCE CORPORATION, Defendants IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 2010-CV-5163-CV CIVIL ACTION - LAW JURY TRIAL DEMANDED AFFIDAVIT OF SERVICE FOR DEFENDANTS THE GENERAL AUTO INSURANCE CORPORATION, INC. and PERMANENT GENERAL ASSURANCE CORPORATION I, Andrew W. Norfleet, Esquire, counsel for Plaintiff in the above captioned action, hereby certify that a true and correct copy of the Declaratory Action Complaint was served upon the Defendants in the above-captioned action as follows: August 17, 2010 at 11:40 a.m17, 2010 at 11:40 a.m.: The General Auto Insurance Services, Inc. Permanent General Assurance Corporation The Defendants were served in the manner set forth in the Affidavits of Service prepared by Wayne Harrison of Triple A Process Serviers which are attached hereto and incorporated herein by reference as Exhibit "A". 450460-1 This Affidavit is made subject to the penalties of 18 Pa. C.S. §4904 relating to unsworn falsification to authorities. f Date: August 010 METZGER, WIK?,RSHAM, KNAUSS & ERB, P.C. By Andrew . Norfleet, Es re 1. D. No. 83 4 Clark DeVere, Esquire I.D. No. 68768 3211 North Front Street P.O. Box 5300 Harrisburg, PA 17110-0300 (717) 238-8187 Attorneys for Plaintiff 450460-! METZGER, WICKERSHAM, P.C. By: Andrew W. Norfleet, Esquire Attorney I.D. No. 83894 By: Clark DeVere, Esquire Attorney I.D. No. 68768 3211 North Front Street P.O. Box 5300 Harrisburg, PA 17110-0300 (717) 238-8187 REBECCA WELSH a/k/a REBECCA RITTER Vs. Plaintiff Attorneys for Plaintiff Rebecca Welsh a/k/a Rebecca Ritter IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 2010-CV-5163-CV CIVIL ACTION - LAW THE GENERAL AUTO INSURANCE SERVICES, INC.; and PERMANENT GENERAL ASSURANCE CORPORATION, Defendants JURY TRIAL DEMANDED AFFIDAVIT OF SERVICE FOR DEFENDANT PERMANENT GENERAL ASSURANCE CORPORATION I, Wayne Harrison, of Triple A Process Servers hereby certify that a true and correct copy of the Declaratory Judgment Complaint was served upon Defendant, Permanent General Assurance Corporation on the /-7 of August, 2010 at/Jjv ,ft by delivering thereat a true copy of each to /Wk-if ,57 deponent knew the person so served to be theA?) of the corporation, and authorized to accept service on behalf of the corporation. This Affidavit is made subject to the penalties of 18 Pa. C.S. §4904 relating to unsworn falsification to authorities. Wa e Harrison Triple A Process Servers 3866 Dickerson Pike Nashville, TN 37207 (615) 865-9106 METZGER, WICKERSHAM, P.C. By: Andrew W. Norfleet, Esquire Attorney I.D. No. 83894 By: Clark DeVere, Esquire Attorney I.D. No. 68768 3211 North Front Street P.O. Box 5300 Harrisburg, PA 17110-0300 (717) 238-8187 REBECCA WELSH a/k/a REBECCA RITTER vs. Plaintiff Attorneys for Plaintiff Rebecca Welsh a/k/a Rebecca Ritter IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 2010-CV'-5163-CV CIVIL ACTION - LAW THE GENERAL AUTO INSURANCE SERVICES, INC.; and PERMANENT GENERAL ASSURANCE CORPORATION, Defendants JURY TRIAL DEMANDED AFFIDAVIT OF SERVICE FOR DEFENDANT THE GENERAL AUTO INSURANCE SERVICES, INC. I, Wayne Harrison, of Triple A Process Servers hereby certify that a true and correct copy of the Declaratory Judgment Complaint was served upon Defendant, The General Auto Insurance Services, Inc. on the _'7 of August, 2010 at /,' p by delivering thereat a true copy of each to personally, deponent knew the person so served to be the of the (7 d7- corporation, and authorized to accept service on behalf of the corporation. This Affidavit is made subject to the penalties of 18 Pa. C.S. §4904 relating to unsworn falsification to authorities. Wa e Harrison Triple A Process Servers 3866 Dickerson Pike Nashville, TN 37207 (615) 865-9106 BRITT, HANKINS & MOUGHAN BY: James T. Moughan, Esquire Atty. I.D. No.: 33045 BY: Lise Luborsky, Esquire Atty. I.D. No.: 22099 Two Penn Center Plaza, Suite 515 Philadelphia, PA 19102-1888 215-569-6936/6918 ~" ~~~~'~ TARY QF ~H ~O SEP -2 PM 1~ 13 CUMBEri~Y1.Vi4N1A N1Y Attorneys for: Defe~s REBECCA WELSH a/k/a COURT OF COMMON PLEAS REBECCA BITTER CUMBERLAND COUNTY, PA Plaintiff v. THE GENERAL AUTO INSURANCE CIVIL ACTION SERVICES, INC. and NO.: 10-5163 PERMANENT GENERAL ASSURANCE CORPORATION ENTRY OF APPEARANCE TO THE PROTHONOTARY: Kindly enter our appearance on behalf of defendants, THE GENERAL AUTO INSURANCE SERVICES, INC. AND PERMANENT GENERAL ASSURANCE CORPORATION, in the above captioned matter. BRITT, HANHINS & MOUGHAN BY: James oughan Lise Luborsky Attorneys for Defendants Dated: ~ ~ ~ ~ ~ JURY TRIAL DEMANDED FILL * .A tG Y <C? tRN' ra f 7 r`? 7 {4t : fit.} Il 1 ?1 ?.i 3 rp #?.,. BRITT, HANKINS & MOUGHAN BY: James T. Moughan, Esquire Atty. I.D. No.: 33045 BY: Lise Luborsky, Esquire Atty. I.D. No.: 22099 Two Penn Center Plaza, Suite 515 Philadelphia, PA 19102-1888 215-569-6936/6918 NOTICE TO PLEAD To: Plaintiff You are hereby noticed to plead to the within New Matter within twenty (20) days of service hereof or a judgment may be entered against you. Attorndys.Mr Defendants Attorneys for: Defendants REBECCA WELSH a/k/a COURT OF COMMON PLEAS REBECCA RITTER CUMBERLAND COUNTY, PA Plaintiff V. THE GENERAL AUTO INSURANCE CIVIL ACTION SERVICES, INC. and NO.: 10-5163 PERMANENT GENERAL ASSURANCE CORPORATION ANSWER AND NEW MATTER OF DEFENDANTS TO ACTION FOR DECLARATORY JUDGMENT 1-3. Admitted. 4. Admitted upon information and belief. 5. Denied. Defendant The General Auto Insurance Services, Inc. is a California corporation. 6. Admitted. 7. Denied. Defendants are without knowledge or information sufficient to form a belief as to the truth of the averments set forth in this paragraph of the Complaint and accordingly, deny these averments and demand strict proof thereof, if relevant, at the time of trial. 8-13. Admitted. By way of further response, the policy documents referenced in these paragraphs are writings, the contents of which will speak for themselves. 14. Denied. The Restrictive Endorsement was not added to the policy a year after it was written, contrary to the averments set forth in this paragraph. Instead, the Restrictive Endorsement was electronically signed by the insured, Roger Ritter, on March 14, 2009, as part of the insurance application. By way of further response, defendants advised plaintiff that an additional reason for questioning coverage was that plaintiff may be an ineligible claimant under § 1714 of the MVFRL. Defendants, through counsel, requested an opportunity to take an examination under oath from plaintiff to investigate this issue, but were denied this request. See correspondence dated October 14, 2009, attached hereto as Exhibit "A". 15-16. Denied as stated. The documents referenced in these paragraphs of the Complaint are writings, the contents of which speak for themselves. 17-18. Denied. The averments set forth in these paragraphs constitute conclusions of law to which no response is required and also reference writings, the contents of which speak for themselves. 19. Admitted upon information and belief. 20. Denied. On the contrary, it is defendants' contention that plaintiff is an ineligible claimant under the MVFRL. See correspondence dated October 14, 2009 to plaintiff's counsel attached hereto as Exhibit "A". 21-22. Admitted. 23. Denied. It is denied that defendants did not do a proper investigation as alleged in this paragraph. To the contrary, defendants attempted to investigate the matter by repeatedly requesting an examination under oath from the plaintiff, as is required and provided for in the insurance policy in question, but this request was denied and/or ignored. See Exhibit "A", attached hereto. See also, correspondence dated October 7, 2009 and November 17, 2009, attached as Exhibits "B" and "C". Defense counsel also called plaintiff's counsel on October 27, 2009 and left a voice mail message for Attorney Norfleet but the call was never returned. 24. It is admitted that plaintiff makes a request as set forth in this paragraph. NEW MATTER 25. Defendants incorporate their responses to paragraphs 1-24, above. 26. Defendants assert all defenses available under the Pennsylvania Motor Vehicle Financial Responsibility Law ("MVFRL"), 75 Pa. C.S. §§ 1701 et seq., as amended, and aver that plaintiff's remedies are limited exclusively thereto. 27. The claims of plaintiff for products, services, testing, professional medical treatment and/or durable medical equipment are not recoverable from defendants under the provisions of the MVFRL or the policy provisions. 28. Plaintiff's Complaint fails to state a claim against defendants upon which relief can be granted. 29. Plaintiff's claims are barred and/or limited by the terms and conditions of the insurance policy at issue. 34. Plaintiff's Complaint states claims for payment of benefits for which plaintiff has not submitted reasonable proof of the amounts of same. 31. At all time relevant hereto defendants were acting in good faith and with reasonable cause in the investigation of plaintiff's claim for benefits and the denial of same. 32. Upon information and belief the treatment at issue which was allegedly provided was not reasonable or necessary and is not compensable under the MVFRL. 33. Plaintiff lacks standing to bring the suit for recovery of medical bills and associated claims, for attorney fees and interest. 34. Plaintiff is not entitled to recover any damages in this matter if plaintiff did not comply with the terms and conditions of the insurance policy and/or applicable insurance laws. 35. The charges at issue in this case are unreasonable and unnecessary. 36. The Permanent General Assurance Corporation policy ("the policy"), provides, in the Insuring Agreement for First Party Benefits coverage: The coverages under this part are provided in accordance with and subject to the Pennsylvania Motor Vehicle Financial Responsibility Law. See the policy attached as Exhibit A to the Complaint. 37. The MVFRL provides, at 75 Pa.C.S. § 1714, titled "Ineligible claimants": An owner of a currently registered motor vehicle who does not have financial responsibility or an operator or occupant of a recreational vehicle not intended for highway use, motorcycle, motor-driven cycle, motorized pedalcycle or like type vehicle required to be registered under this title cannot recover first party benefits. 38. Plaintiff was an owner of the motor vehicle she was driving at the time of the accident of April 30, 2009, a 1998 Saturn SL2 ("the vehicle"). 39. The vehicle was registered in Pennsylvania at the time of the accident of April 30, 2009 ("the accident") 40. At the time of the accident, Roger E. Ritter was the named insured under the policy. 41. At the time of the accident, plaintiff was not the spouse of Roger E. Ritter. 42. At the time of the accident, plaintiff did not have financial responsibility. 43. Plaintiff cannot rely on "the financial responsibility of others to circumvent the preclusion set forth in Section 1714." Swords v. Harleysville Insurance Cos., 584 Pa. 382, 393, 883 A.2d 562, 569 (2005). 44. At the time of the accident, plaintiff was an ineligible claimant pursuant to 75 Pa.C.S. § 1714 and is not entitled to first party benefits. 45. Defendant The General Auto Insurance Services, Inc. is the agent, not the insurer, under the policy. 46. Defendant The General Auto Insurance Services, Inc. is not obligated to pay benefits under the policy or the MVFRL. BRITT, HANKINS & MOUGHAN BY: L,-- James T. Moughan Attorneys for Defendant Date: I,? o VERIFICATION Suzanne Shea-Pierce hereby states that she is a representative of Defendants in this action and verifies that the statements made in the foregoing Answer and New Matter to Plaintiff's Complaint are true and correct to the best of her knowledge, information and belief The undersigned understands that the statements therein are made subject to the penalties of 18 Pa. C.S.A. §4904 relating to unsworn falsification to authorities. SU SHEA-PIERCE Bate: 'q' BRITT, HANKINS & MOUGHAN ATTORNEYS AT LAW SUITE 515 TWO PENN CENTER PLAZA 1500 JOHN F. KENNEDY BOULEVARD PHILADELPHIA, PA 19102-1888 (215) 569-6900 FAX: (215) 569-3711 DIRECT DIAL: (215) 569-6936 E-MAIL:JMOUGHAN'i BRITTHANKINS.COM October 14, 2009 VIA FAX AND REGULAR MAIL Andrew W. Norfleet, Esquire Metzger, Wickersham, Nauss & Erb, P.C. 3211 North Front Street P.O. Box 5300 Harrisburg, PA 17110-0300 Re: Your Client: Rebecca Welsh Claim No. PA 0000442498 D/Loss: April 30, 2009 Our Insured: Roger Ritter Our File No. 1368-0016 Dear Mr. Norfleet: 11 EAST AIRY STREET NORRISTOWN,PA 19401-4815 (610)277-9611 FAX (610) 277-9614 ONE GREENTREE CENTRE 10,000 LINCOLN DRIVE EAST-SUITE 201 MARLTON, NI 08053-3105 (856) 988-5474 FAX (856) 988-8359 I am enclosing a copy of your partner, Clark DeVere's correspondence to my associate, Francesca lacovangelo, dated October 8, 2009. I also enclose my associate's earlier letter of October 7, setting forth the policy provisions which we believe entitled us to a statement under oath under these circumstances. I will tell you that we are requesting the statement under oath to ascertain whether Ms. Welsh was a co-owner of the insured vehicle. It is our opinion that a co-owner of an insured vehicle, who is not named as an insured in the policy, is an ineligible claimant who is not entitled to first party benefits. While there are no cases specifically addressing the issue of whether a co-owner of an insured vehicle who is not listed as an insured in the policy is an ineligible claimant not entitled to first party benefits, based on analogous cases concerning the limited tort option and the reasoning of a Supreme Court case concerning first party benefits, we are of the opinion that a co-owner not named in the policy is an ineligible claimant for Andrew W. Norfleet, Esquil? October 14, 2009 Page 2 purposes of first party benefits. We direct your attention to Swords v. Harleysville Insurance Cos., 584 Pa. 382, 883 A.2d 562 (2005), and Schwartzberg v. Greco, 793 A.2d 945 (Pa. Super. 2002). Reading Swords v. Harleysville Insurance Cos. consistently with Schwartzberg v. Greco, we are of the opinion that a co-owner cannot rely on the insurance obtained by the other owner to establish financial responsibility for purposes of eligibility for first party benefits. Ms. Welsh, if she was in fact a co-owner, does not have financial responsibility because she was not named in the policy. We understand that Ms. Welsh advised the carrier that she was the girlfriend of the named insured, that she has always lived with him, and that she, in fact, was a co-owner of the vehicle. We were requesting the statement under oath to explore that issue. Please advise whether you will reconsider your position regarding our right to pursue the statement under oath now that we have advised you as to what we believe to be a very legitimate coverage question. Sincerely, \? James T. Moughan For BRITT, HANKINS & MOUGHAN JTM/eh Enclosures cc: Clark DeVere, Esquire (w/encl.) (via fax and regular mail) :1 BRITT, HANKINS & MOUGHAN ATTORNEYS AT LAW SUITE 515 TWO PENN CENTER PLAZA 1500 JOHN F. KENNEDY BOULEVARD PHILADELPHIA,PA 19102-1888 (215) 569-6900 FAX: (215) 569-3711 DIRECT DIAL: (215) 569-6908 AAIL:FIACO V ANGELO@BRITTHANKINS.COM October 7, 2009 VIA FACSIMILE & REGULAR MAIL (717) 234-9478 Clark DeVere, Esquire Metzger, Wickersham, Nauss & Erb, P.C. 3211 North Front Street P.O. Box 5300 Harrisburg, PA 17110-0300 Re: Your Client: Rebecca Welsh Claim No. PA 0000442498 D/Loss: April 30, 2009 Our Insured: Roger Ritter Our File No. 1368-0016 Dear Mr. DeVere: 11 EAST AIRY STREET NORRISTOWN, PA 194014815 (610) 277-9611 FAX (610) 277-9614 ONE GREENTREE CENTRE 10,000 LINCOLN DRIVE EAST-SUITE 201 MARLTON, N7 08053-3105 (856) 988-5474 FAX (856) 988-8359 Please be advised that we have been retained by Permanent General Assurance Corporation to handle the above-referenced first party claim by your client, Rebecca Welsh. Please allow this correspondence to serve as a follow up to our telephone conversation in which we attempted to schedule Ms. Welsh's examination under oath in order to address the coverage issues in this matter, which you refused. Pursuant to Section 1, Page 8 of Mr. Ritter's policy, "A person seeking any coverage under this policy must: 4. Submit to examinations under oath and recorded statements in connection with any `auto accident' or loss." We have attached Page 8 of Mr. Ritter's policy to this correspondence for your review. In light of this policy provision, we suggest you reconsider your decision. Clark DeVere, Esquire October 7, 2009 Page 2 We are willing to come to your office for this purpose and we do not believe this would take more than 30-60 minutes to accomplish. If you would like to discuss this matter further, please do not hesitate to contact us at any time. Sincerely, James T. Moughan Francesca A. Iacovangelo For Britt, Hankins & Moughan FI:kh Enclosures PA001.0707.PA DUTIES AFTER AN ACCIDENT OR LOSS. "We" are under no duh, to provide coverage under this policy unless "you" or any other person seeking coverage have fully complied with these duties: A. "You" or the person seeking coverage must give "us" notice within 24 hours or as soon as practicable of when, where. and how an "auto accident" or loss occurred. This notice trust also include the names and addresses of any other drivers involved any persons injured, and any witnesses. B. A person seeking any coverage under this policy must: I. Cooperate with "us" in We investigation, settlement or defense of any claim or suit. to include appearing at trial or at any other legal proceeding if "wc" so request. 2. Promptly send "us" copies of any legal papers filed or received in connection with the loss. 3. Submit to physical examinations by physicians " wc" select as often as "we" inquire. "We" will pay for these examinations- 4. Submit to c.,mminations under oath and recorded statements in connection %vith any "auto accident" or loss. "We" may require that these examinations or statements be signed. 5, Authorize "us" to obtain medical records and reports, employment records, and other pertinent records. 6. Grant "us" access to any on-board computer or recoding device contained in "your covered auto." 7. Submit s%hvorn proofs of loss if "We" so require. C. A person seeking coverage under Section 5 - Coverage for Damage to "Your" Auto must also: I. Take reasonable steps after a loss to protect "}bur covered auto" and its equipment from further loss. "We" will pay reasonable expenses incurred to do this. Loss resulting from failure to protect "your covered auto' shall not be recoverable under this policy. 2. Take all reasonable steps after a loss to prevent unnecessary charges. to include without limitation storage fees. impound fees, and parking fees. C Pe ell Ce ff.0 A6WmM COPMD" 700% 3. Promptly notify the police if "your covered auto" is stolen or involved in a hit-and-run "auto accident." LEGAL ACTION AGAINST "US" BY "YOU-11 Except as otherwise provided in this policy no legal action may be filed against "us" unless as a condition precedent. "You" have fully complied with all the terms and conditions of this policy. PAYMENT TO LOSS PAYEE. A. In the event "vou' are entitled to payment for "property damage" under Section 5 -- Coverage for Damage to "Your Auto, any, payment due under this policy for such "property damage" shall be paid to "vou" and the loss payee shown on the declarations page as its interest may appear. B. If "your covered auto" is repossessed by the loss payee after having sustained a loss covered under Section 5 - Coverage for Damage to "Your" Auto; payment to the loss payee shall be subject to a deductible of file lesser of $500.00 or the deductible shown on the declarations page. C. The interest of the loss payee shall not become invalid because of the intentional acts or omissions of the owner of the vehicle. However; "we" reserve the right to cancel this policy in accordance with its terms and such cancellation shall prospectively tern-inatc the interest of any loss payee. When "we" pay the loss payee pursuant to tlus paragraph "we" shall assume the right of recovery against "you" as to the loss payee's rights of recovery to the extent of the payment made. CONSTITUTIONALITY CLAUSE. The premium for, and the coverages of. this policy have been established in reliance upon the provisions of tine Pennsylvania Motor Vehicle Financial Responsibility Law. In the event a court, from which there is no appeal, declares or enters a judgment the effect of which is to render the provisions of such statute invalid or unenforceable in whole or in part, "we" will have the Tight to rye-compute the premium payable for the policy and void or amend the provisions of the policy, subject to the approval of the Insurance Cotntnissioner. The remainder of this contract not so affected will rcnWn in force and in effect and be binding on all parties. PN6931394 Q? 0 Permanent General Assurance Corp. PHONE 1-800-280-1466 Claims Service WWW.PGAC.COM 4c P.O. Box 305195 Nashville, TN, 37230-5195 P.rm.mnr Gtlnwal Aasuri m Larpar.rion November 17, 2009 Andrew W. Norfleet, Esquire Metzger, Wickersham, Nauss & Erb, P.C. 3211 North Front Street P.O. Box 5300 Harrisburg, PA 17110-0300 Re: Your Client: Rebecca Welsh Claim No. PA 0000442498 D/Loss: April 30, 2009 Our Insured: Roger Ritter Dear Mr. Norfleet: Please be advised that I am following up Mr. Moughan's letter to your attention dated October 14, 2009, regarding the above-referenced matter. As set forth in that letter, there is a question as to whether there would be any first party benefits available to your client under policy number PA6931394, which policy was issued by Permanent General Assurance Corporation to Roger E. Ritter. If Ms. Welsh was a co-owner of the insured vehicle, then she may be an ineligible claimant not entitled to any first party benefits under the provisions of the MVFRL and pertinent case law. We reserve our right to assert this and any other potential defenses to coverage under policy number PA6931394, including those coverage defenses set forth in our prior, and Mr. Moughan's prior correspondence. No action heretofore or hereinafter taken by us in connection with the claim of Rebecca Welsh shall be construed as a waiver of PGAC's right to deny first party benefits coverage. Once again, in an effort to clarify these issues relating to this coverage question we previously requested, and again request, that you consider having your client submit to a statement under oath so that we may complete our investigation into the facts and circumstances surrounding this claim for first party coverage. As set forth in prior correspondence, we will not consider the extension of first party benefits coverage until such time as that statement under oath has taken place. Permanent General Assurance Corp. Claims Service P.O. Box 305195 Nashville, TN. 37230-5195 PHONE 1-800-280-1466 WWW.PGAC.COM If you have any comments, questions or objections concerning the position outlined in this letter, please contact the undersigned or Mr. Moughan. Sincerely, Tina Schultz cc: James T. Moughan, Esquire CERTIFICATE OF SERVICE I certify that a copy of Defendants' Answer and New Matter to Plaintiff's Declaratory Judgment Complaint was mailed this day by regular U.S. mail to the below listed counsel: Clark DeVere, Esquire Andrew W. Norfleet, Esquire Metzger, Wickersham, P.C. 3211 North Front Street P. O. Box 5300 Harrisburg, PA 17110-0300 James T. Moughan Attorneys for Defendants Date: METZGER, WICI~ERSHAM, P.C. By: Andrew W. Norfleet, Esquire Attorney I.D. No. 83894 Clark DeVere, Esquire Attorney I.D. No. 68768 3211 North Front Street P.O. Box 5300 Harrisburg, PA 17110-0300 (717) 238-8187 FILED-OFFlCE OF THE F~POTNO>NOTARY 2410 QCT 15 P~ 3~ 36 CUF4BERLAI~O COtfItidTY PEFdIySYLVANIA Attorneys for Plaintiff Rebecca Welsh a/k/a Rebecca Ritter REBECCA WELSH a/kla IN THE COURT OF COMMON PLEAS REBECCA BITTER, OF CUMBERLAND COUNTY, PENNSYLVANIA Plaintiff vs. THE GENERAL AUTO INSURANCE CIVIL ACTION N0.2010-CV-5163 SERVICES, INC.; and PERMANENT GENERAL ASSURANCE CORPORATION, Defendants JURY TRIAL DEMANDED PLAINTIFF REBECCA WEL5H a/kfa REBECCA RITTER'S REPLY TO DEFENDANTS THE GENERAL AUTO INSURANCE SERVICES, INC. and PERMANENT GENERAL ASSURANCE CORPORATION'S NEW MATTER 25. Paragraph 25 is an incorporation Paragraph and no reply required. To the extent a reply is required, Defendants' Answer is admitted to the extent that it admits the allegations contained in Plaintiff s Complaint. Defendants' Answer is denied to the extent that it denies the allegations contained in Plaintiff's Complaint. 26. Conclusions of law, no reply required. If a reply is required, the averments are specifically denied and denied pursuant to Pa.R.C.P. No. 1029(e). Byway of further reply, the Defendants have failed to identify the defenses allegedly available to them pursuant to the Pennsylvania Motor Vehicle Financial Responsibility Law and, as a result, Plaintiff cannot more 452881-1 specifically reply to Paragraph 26 of Defendants' New Matter. Byway of further reply, Plaintiff is not barred by any provision of the Pennsylvania Motor Vehicle Financial Responsibility Law and Defendants are not provided any defenses to any of the claims raised in Plaintiff's Complaint which is incorporated herein by reference. Strict proof of the same is demanded. 27. Conclusions of law, no reply required. If a reply is required, the averments are specifically denied and denied pursuant to Pa.R.C.P. No. 1029(e). Byway of further reply, Plaintiff s claimed medical expenses are recoverable from Defendants pursuant to the Motor Vehicle Financial Responsibility Law and Defendants have failed to comply with or follow the MVFRL. Defendants cannot claim Plaintiff's claims are barred by the MVFRL when they did not follow the MVFRL in processing the bills. 28. Conclusions of law, no reply required. If a reply is required, the averments are specifically denied and denied pursuant to Pa.R.C.P. No. 1029(e). Byway of further reply, Plaintiff, in her Complaint, has stated a cause of action upon which relief can be granted and Defendants have not filed any preliminary objections to the Complaint, which is incorporated herein by reference. 29. Conclusions of law, no reply required. If a reply is required, the averments are specifically denied and denied pursuant to Pa.R.C.P. No. 1029(e). By way of further reply, the Defendants have failed to identify the limitations under the terms and conditions of the insurance policy that they believe bars Plaintiff and Plaintiff cannot further respond. Further, the language and intent of the Pennsylvania Motor Vehicle Financial Responsibility Law is clear and free from ambiguity. Under 75 Pa. C.S.A. 1713, "a person who suffers (an) 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:... (3) For the occupants of an insured motor vehicle, the policy on that motor vehicle." (emphasis added} To the extent the policy language conflicts with or 452881-1 contradicts the MVFRL, it is invalid, void and unenforceable. 30. Denied. Conclusions of law, no reply required. If a reply is required, the averments are specifically denied and denied pursuant to Pa.R.C.P. No. 1029(e). The averments in paragraph 30 are also denied as overly broad, vague and ambiguous. By way of further reply,. Plaintiff has provided and/or will provide the required proof concerning her medical bills. 31. Conclusions of law, no reply required. If a reply is required, the averments are specifically denied and denied pursuant to Pa. R.C.P. No. 1029(e). By way of further reply, the Defendants did not act in good faith in this matter nor had reasonable cause as noted in the Complaint. 32. Denied. The averments contained in paragraph 32 are denied. By way of further reply, Defendants have not specified what treatment was not reasonable or necessary. Defendants cannot claim Plaintiff s bills are not reasonable or necessary when they fail to follow the process under the MVFRL. 33. Conclusions of law, no reply required. If a reply is required, the averments are specifically denied and denied pursuant to Pa.R.C.P. No. 1029(e). Plaintiff is the one whose medical bills are not being paid and whose rights under the MVFRL are not being protected. 34. Conclusions of law, no reply required. If a reply is required, the averments are specifically denied and denied pursuant to Pa. R.C.P. No. 1029(e). By way of further reply, the Defendant has failed to identify specifically what terms and conditions of the insurance policy in question and/or any applicable insurance laws Plaintiff failed to follow. However, to the extent the policy language conflicts with or contradicts the MVFRL, it is invalid, void and unenforceable. Strict proof of the same is demanded. 35. Denied. Byway of further reply, Defendants have failed to identify how the charges 452881-1 at issue in this matter are unreasonable or unnecessary. Defendants cannot claim the charges are unreasonable and unnecessary when they failed to follow the process under the MVFRL to determine if reasonable or necessary. Strict proof of the same is demanded. 36. No response required. The policy speaks for itself. 37. Admitted. 75 Pa. C.S. §1714 speaks for itself. 38. Admitted in part; denied in part. Plaintiff was co-owner of the motor vehicle she was driving at the time of the accident. 39. Admitted. 40. Admitted. 41. Admitted. 42. Denied. Byway of further answer, Plaintiff is entitled to benefits under the Pennsylvania Motor Vehicle Financial Responsibility Law, particularly 75 Pa. C.S. §1713.: 43. Conclusions of law, no reply required. If a reply is required, the averments are specifically denied and denied pursuant to Pa.R.C.P. No. 1029(e). Byway of further reply, Plaintiff is entitled to benefits under the Pennsylvania Motor Vehicle Financial Responsibility Law; particularly 75 Pa. C.S. § 1713. 44. Conclusions of law, no reply required. If a reply is required, the averments are specifically denied and denied pursuant to Pa.R.C.P. No. 1029(e}. Byway of further reply, Plaintiff is entitled to benefits under the Pennsylvania Motor Vehicle Financial Responsibility Law, particularly 75 Pa. C.S. § 1713. 45. Conclusions of law, no reply required. Byway of further reply, after reasonable investigation, Plaintiff is without knowledge or information sufficient to form a belief as to the truth of the averments. 452881-1 46. Conclusions of law, no reply required. If a reply is required, the averments are specifically denied and denied pursuant to Pa.R.C.P. No. 1029(e). WHEREFORE, Plaintiff Rebecca Welsh a!k/a Rebecca Ritter respectfully requests that Defendants' New Matter be dismissed and that judgment be entered in her favor and against the Defendants as requested in the Complaint filed in this action. METZGER, WICKERSHAM, KNAUSS & ERB, P.C. By: Andrew W. Norfleet, squire Attorney I.D. No. 83894 P.O. Box 5300 Harrisburg, PA 17110-0300 (717) 238-8187 Dated: 1 b - /~ , 2010 Attorneys for Plaintiff 452881-1 VERIFICATION I, Rebecca Welsh a/k/a Rebecca Ritter, hereby certify that the following is correct: The facts set forth in the foregoing Reply to New Matter are based upon information which I have furnished to counsel, as well as upon information which has been gathered by counsel and/or others acting on my behalf in this matter. The language of the Reply to New Matter is that of counsel and not my own. I have read the Reply to New Matter, and to the extent that it is based upon information which I have given to counsel, it is true and correct to the best of my knowledge, information, and belief. To the extent that the content of the Reply to New Matter is that of counsel, I have relied upon such counsel in making this Verification. I hereby acknowledge that the facts set forth in the aforesaid Reply to New Matter are made subject to the penalties of 18 Pa. C.S.A. §4904 relating to unsworn falsification to authorities. ~~~ ~~ Rebecca Welsh a/k/a Rebecca Ritter Dated: ~` ~ l 5 , ( 0 45288]-1 CERTIFICATE OF SERVICE I, Andrew W. Norfleet, Esquire, of the law firm of Metzger, Wickersham, Knauss & Erb, P.C., hereby certify that I served a true and correct copy of a Plaintiffls Reply to Defendants' New Matter Addressed to Plaintiff with reference to the foregoing action by first class mail, postage prepaid, this day of ~c~G-~•`, 2010 on the following: Defendants The General Auto Insurance Services, Inc, and Permanent General Assurance Corporation c/o James T. Moughan, Esquire BRITT, HANKINS & MOUGHAN Two Penn Center Plaza, Suite 515 Philadelphia, PA 19102-1888 METZGER, WICKERSHAM, KNAUSS & ERB, P.C. Andrew W. Norfleet, Esq 're 452881-1 i t1FEB2 ?' : ',`* METZGER, WICKERSHAM, P.C. By: Andrew W. Norfleet, Esquire Attorney I.D. No. 83894 By: Clark DeVere, Esquire Attorney I.D. No. 68768 3211 North Front Street P.O. Box 5300 Harrisburg, PA 17110-0300 (717) 238-8187 Attorneys for Plaintiff Rebecca Welsh a/k/a Rebecca Ritter REBECCA WELSH a/k/a REBECCA RITTER VS. Plaintiff THE GENERAL AUTO INSURANCE SERVICES, INC.; and PERMANENT GENERAL ASSURANCE CORPORATION, Defendants IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 2010-CV-5163-CV CIVIL ACTION - LAW JURY TRIAL DEMANDED PRAECIPE TO SETTLE, DISCONTINUE AND END TO THE PROTHONOTARY: Kindly mark the above captioned matter settled, discontinued and ended. Date: Februar? , 2011 METZGER, WICKER/", KNAUSS ERB, P. By drew W Norfleet, E uir - I.D. No. 83894 3211 North Front Street P.O. Box 5300 Harrisburg, PA 17110-0300 (717) 238-8187 Attorney for Plaintiff 461574-1