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PA Bulletin, Doc. No. 99-25

NOTICES

Limit on Cancellations, Refusals to Renew, Refusals to Write, Surcharges, Rate Penalties and Point Assignments; No. 1999-01

[29 Pa.B. 81]

   This notice is to inform all insurers writing private passenger automobile insurance in Pennsylvania that section 1799.3(a) of Act 6 of 1990 states, ''No insurer shall cancel or refuse to renew a policy or apply any surcharge, rate penalty or driver record point assignment where, during the preceding 3-year period, the aggregate cost to the insurer for any person injured or property damaged is determined to be less than $650 in excess of any self-insured retention or deductible applicable to the named insured.''

   Section 1799.3(e) further provides that the Insurance Department, at least once every 3 years, shall adjust the $650 cap or limit relative to changes in the seasonally adjusted medical care and automobile maintenance and repair costs components of the Consumer Price Index (Urban).

   The Insurance Department has measured the changes and determined the cap shall be increased to $950 effective July 1, 1999. The last adjustment to the cap was effective July 1, 1996, when the cap increased to $850.

   Each individual insurer, ISO and AIPSO should file the above change for prior approval by April 1, 1999, and specify an effective date of no later than July 1, 1999.

   Questions regarding this notice may be directed to Randy Rohrbaugh, Director, Property & Casualty Bureau, Insurance Department, 1311 Strawberry Square, Harrisburg, PA 17120, (717) 787-3044, or e-mail at rrohrbau@ins.state.pa.us.

M. DIANE KOKEN,   
Insurance Commissioner

[Pa.B. Doc. No. 99-25. Filed for public inspection December 31, 1999, 9:00 a.m.]



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