Notice of Comments Issued
[31 Pa.B. 1292]
Section 5(d) and (g) of the Regulatory Review Act (71 P. S. § 745.5(d) and (g)) provide that the designated standing committees may issue comments within 20 days of the close of the public comment period, and the Independent Regulatory Review Commission (Commission) may issue comments within 10 days of the close of the committees' comment period. The Commission's comments are based upon the criteria contained in sections 5.1(h) and (i) of the act (75 P. S. § 745.5a(h)(i)).
The Commission issued comments on the following proposed regulation. The agency must consider these comments in preparing the final-form regulation. The final-form regulation must be submitted by the date indicated.
Final-Form Submission Reg. No. Agency/Title Issued Deadline 11-197 Insurance Department 02/15/01 11/20/02 Discounting Medical
Insurance Department Regulation No. 11-197
Discounting Medical Malpractice Loss Reserves
February 15, 2001
We submit for consideration the following objections and recommendations regarding this regulation. Each objection or recommendation includes a reference to the criteria in the Regulatory Review Act (71 P. S. § 745.5a(h) and (i)) which have not been met. The Insurance Department must respond to these comments when it submits the final-form regulation. If the final-form regulation is not delivered by November 20, 2002, the regulation will be deemed withdrawn.
Section 118.3. Restrictions on discounting loss reserves.--Reasonableness; Implementation procedure.
Paragraph (4) states, ''An insurer may not discount loss reserves or loss adjustment expense reserves for policies with an effective date on or after January 1, 2001.'' We understand that the date of January 1, 2001, is consistent with the standards of the National Association of Insurance Commissioners. However, as this regulation is still in proposed form, it could not have taken effect on that date. We recommend that Paragraph (4) be revised to apply prospectively to policies that become effective after the date of final publication of the regulation.
JOHN R. MCGINLEY Jr.,
[Pa.B. Doc. No. 01-369. Filed for public inspection March 2, 2001, 9:00 a.m.]
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