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PA Bulletin, Doc. No. 02-60


Limit on Cancellations, Refusals to Renew, Refusals to Write, Surcharges, Rate Penalties and Point Assignments; Notice No. 2002-01

[32 Pa.B. 291]

   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 three-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 (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 Department has measured the changes and determined the cap shall be increased to $1,050 effective July 1, 2002. The last adjustment to the cap was effective July 1, 1999, when the cap increased to $950.

   Each individual insurer, ISO and AIPSO should file the previous change for prior approval by April 1, 2002, and specify an effective date of no later than July 1, 2002.

   Questions regarding this notice may be directed to Michael Burkett, Actuarial Review Division, Insurance Department, 1311 Strawberry Square, Harrisburg, PA 17120, (717) 787-3935, or e-mail at

Insurance Commissioner

[Pa.B. Doc. No. 02-60. Filed for public inspection January 11, 2002, 9:00 a.m.]

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