(a) Applicability.--This section shall apply to members of the Pennsylvania National Guard who are called or ordered to active duty with the armed forces of the United States, other than active duty for training, or to State active duty under this title, and members of other reserve components who are called or ordered to active duty with the armed forces of the United States, other than active duty for training, when the period of active duty or State active duty is 30 consecutive days or more.

(b) Deferral of coverage.--A member of the Pennsylvania National Guard or other reserve component of the armed forces of the United States, as described in subsection (a), may defer without cost or penalty motor vehicle insurance coverage during the period of active duty on one or more vehicles owned by the member, either individually or jointly with another person, provided the member certifies to the insurer the vehicle will not be operated during his absence on active duty, and, if a motor vehicle serves as collateral for a loan, the member shall continue to insure it against the risks of property damage and theft as required by the lender.

(c) Limited exemption.--Any person described in subsection (a) shall have the same limited exemption from financial responsibility requirements as established in 75 Pa.C.S. § 1786(d)(2) (relating to required financial responsibility).

(d) Refund or crediting of prepaid premiums.--The insurer shall, at the election of the member, refund premiums paid for coverage during the period of deferral or credit such premiums to coverage in effect after the end of the deferral period.

(e) Reinstatement of deferred coverage.--Upon the member's release or discharge from active duty, the insurer shall, upon notice, reinstate the member's coverage at the rates then in effect.

(f) Actions prohibited.--No insurer shall, because of the deferral of insurance coverage provided under this section, cancel, nonrenew, impose a surcharge or a rate penalty or remove any premium discount on any insurance coverage upon reinstatement of the member's coverage.

(g) Intent.--It is the specific intent of the General Assembly to treat individuals subject to this section as if no deferral of insurance coverage occurred and insurance coverage was not interrupted.