Pennsylvania Statutes Title 40 P.S. Insurance § 991.2007a. Coverage obligations of loaner vehicles

(a) An insurance company authorized to write private passenger automobile insurance within this Commonwealth shall provide, where purchased and within the limits of the insured's policy, primary liability coverage for third-party bodily injury and primary first-party physical damage coverage for a motor vehicle provided by a motor vehicle dealer, when an insured has custody of or is operating that motor vehicle, while a motor vehicle specifically listed or covered under the insured's motor vehicle insurance policy is being transported, serviced, repaired or inspected by the motor vehicle dealer.

(b) An insurance company authorized to do business in this Commonwealth shall provide to a motor vehicle dealer or an agent thereof with custody of or operating a customer's motor vehicle for the purpose of transporting, servicing, repairing or inspecting the vehicle, primary liability coverage for third-party bodily injury and primary first-party physical damage coverage in the amounts set forth in the customer's private passenger automobile insurance policy.

(c) This section shall apply only to the loan of a motor vehicle by a motor vehicle dealer that occurs without financial remuneration in the form of a fee, rental or lease charge paid directly by the insured operating the motor vehicle. Payments made by a third party to a motor vehicle dealer or similar reimbursements shall not be considered payments directly from the insured operating the motor vehicle.

(d) A change in the coverage of a private passenger automobile insurance policy resulting from this section shall not impact the validity of a waiver, selection of benefits or amount of benefits in that policy, beyond the coverage change as a result of this section. An insurer shall file with the Insurance Department any forms or rates revised as a result of this section, along with certification that the revisions are limited to the compliance with this section. The revisions shall be effective ten (10) days after filing.

(e) As used in this section, the term “motor vehicle dealer” shall have the same meaning as “dealer” as defined in section 2 of the act of December 22, 1983 (P.L. 306, No. 84),  1 known as the “Board of Vehicles Act.”