(a) Basis for reasonable fee.--No attorney's fee for representing a claimant in connection with a claim for first party benefits provided under Subchapter B (relating to motor vehicle liability insurance first party benefits) or a claim for catastrophic loss benefits under Subchapter F (relating to Catastrophic Loss Trust Fund) shall be calculated, determined or paid on a contingent fee basis, nor shall any attorney's fees be deducted from the benefits enumerated in this subsection which are otherwise due such claimant. An attorney may charge a claimant a reasonable fee based upon actual time expended.
(b) Unreasonable refusal to pay benefits.--In the event an insurer is found to have acted with no reasonable foundation in refusing to pay the benefits enumerated in subsection (a) when due, the insurer shall pay, in addition to the benefits owed and the interest thereon, a reasonable attorney fee based upon actual time expended.
(c) Payment by fund.--The Catastrophic Loss Trust Fund may award the claimant's attorney a reasonable fee based upon actual time expended because a claimant is unable to otherwise pay the fees and costs.
(d) Fraudulent or excessive claims.--If, in any action by a claimant to recover benefits under this chapter, the court determines that the claim, or a significant part thereof, is fraudulent or so excessive as to have no reasonable foundation, the court may award the insurer's attorney a reasonable fee based upon actual time expended. The court, in such case, may direct that the fee shall be paid by the claimant or that the fee may be treated in whole or in part as an offset against any benefits due or to become due the claimant.
(Feb. 12, 1984, P.L.53, No.12, eff. Oct. 1, 1984)
1984 Amendment. Act 12 added section 1798.
References in Text. Subchapter F, referred to in this section, is repealed.
Structure Pennsylvania Consolidated & Unconsolidated Statutes
Pennsylvania Consolidated & Unconsolidated Statutes
Chapter 17 - Financial Responsibility
Section 1701 - Short title of chapter
Section 1703 - Application of chapter
Section 1704 - Administration of chapter
Section 1705 - Election of tort options
Section 1711 - Required benefits
Section 1712 - Availability of benefits
Section 1713 - Source of benefits
Section 1714 - Ineligible claimants
Section 1715 - Availability of adequate limits
Section 1716 - Payment of benefits
Section 1717 - Stacking of benefits
Section 1718 - Exclusion from benefits
Section 1719 - Coordination of benefits
Section 1721 - Statute of limitations
Section 1722 - Preclusion of recovering required benefits
Section 1723 - Reporting requirements
Section 1724 - Certain nonexcludable conditions
Section 1725 - Rental vehicles
Section 1731 - Availability, scope and amount of coverage
Section 1732 - Limits of coverage (Repealed)
Section 1733 - Priority of recovery
Section 1734 - Request for lower limits of coverage
Section 1735 - Coverages unaffected by workers' compensation benefits (Repealed)
Section 1736 - Coverages in excess of required amounts
Section 1738 - Stacking of uninsured and underinsured benefits and option to waive
Section 1744 - Termination of policies
Section 1752 - Eligible claimants
Section 1753 - Benefits available
Section 1754 - Additional coverage
Section 1755 - Coordination of benefits
Section 1757 - Statute of limitations
Section 1771 - Court reports on nonpayment of judgments
Section 1772 - Suspension for nonpayment of judgments
Section 1773 - Continuation of suspension until judgments paid and proof given
Section 1774 - Payments sufficient to satisfy judgments
Section 1775 - Installment payment of judgments
Section 1781 - Notice of sanction for not evidencing financial responsibility
Section 1782 - Manner of providing proof of financial responsibility
Section 1784 - Proof of financial responsibility following violation
Section 1785 - Proof of financial responsibility following accident
Section 1786 - Required financial responsibility
Section 1788 - Neighborhood electric vehicles
Section 1791 - Notice of available benefits and limits
Section 1791.1 - Disclosure of premium charges and tort options
Section 1791.2 - Motorcycle marshals
Section 1793 - Special provisions relating to premiums
Section 1794 - Compulsory judicial arbitration jurisdiction
Section 1795 - Insurance fraud reporting immunity
Section 1796 - Mental or physical examination of person
Section 1797 - Customary charges for treatment
Section 1798 - Attorney fees and costs
Section 1798.1 - Extraordinary medical benefit rate
Section 1798.3 - Unfunded liability report
Section 1798.4 - Catastrophic Loss Benefits Continuation Fund
Section 1799 - Restraint system
Section 1799.1 - Antitheft devices
Section 1799.2 - Driver improvement course discounts
Section 1799.4 - Examination of vehicle repairs
Section 1799.5 - Conduct of market study