Deregulation of Certain Commercial Lines Property and Casualty Forms; Notice No. 2014-10
[44 Pa.B. 6176]
[Saturday, September 27, 2014]
TO: All Property and Casualty Insurance Companies in the Commonwealth of Pennsylvania
FROM: Randolph L. Rohrbaugh, Executive Deputy Insurance Commissioner
The Pennsylvania Insurance Commissioner (''Commissioner''), through his duly authorized representative, hereby deregulates certain commercial lines policy forms from filing requirements as set forth in Annex A pursuant to the authority granted by Section 354 of the Insurance Company Law of 1921 (40 P. S. § 477b).
Insurance Department Notice 1995-09 deregulated occurrence-based policy forms from filing requirements for certain types of commercial property and casualty insurance. Insurance Department Notice 2014-10 expands the deregulation provisions found in Insurance Department Notice 1995-09 to also apply to claims-made policy forms for the same types of commercial property and casualty insurance listed in Department Notice 1995-09. This Notice also clarifies its interaction with the deregulation of large commercial risk forms from filing requirements pursuant to Section 505-A of the Property and Casualty Filing Reform Act (40 P. S. § 710-5).
Section 354 of the Insurance Company Law of 1921 (40 P. S. § 477b) requires that all policy forms for commercial property and casualty insurance, and other lines of business, be submitted to the Commissioner for prior approval before issuance to any consumer in the Commonwealth. However, this section gives the Commissioner express authority to exempt forms from the ''prior approval'' requirement.
Section 505-A of the Property and Casualty Filing Reform Act (40 P. S. § 710-5) deregulated policy forms for large commercial risks, as such risks are defined in Section 503-A (40 P. S. § 710-3), from filing requirements. Section 505-A also changed the ''prior approval'' requirement for forms issued to small commercial risks, as defined in Section 503-A, to a ''file and use'' requirement.
Forms that are Not Deregulated
This notice applies only to those commercial property and casualty lines of business identified in Annex A. The Commissioner has not deregulated any policy forms used in the personal lines market.
Further, the Commissioner has not deregulated all types of commercial lines policies. Specifically, the Commissioner's action does not include the deregulation of the following lines of insurance: workers' compensation; medical malpractice; title insurance; environmental impairment liability (EIL); and forms issued to municipalities and other local government entities.
Such forms must continue to be submitted to the Insurance Department under either the ''prior approval'' requirement found in Section 354 of the Insurance Company Law of 1921 or the ''file and use'' requirement found in Section 505-A of the Property and Casualty Filing Reform Act.
Forms which include both regulated and deregulated lines of business must continue to be submitted to the Insurance Department in accordance with the filing standard (prior approval or file and use) for the regulated line(s) of business.
Interaction with the Property and Casualty Filing Reform Act (Act 150 of 1998)
Forms for large commercial risks, as defined in Section 503-A of the Property and Casualty Filing Reform Act, are not required to be filed pursuant to Section 505-A of the Property and Casualty Filing Reform Act. Forms for small commercial risks, as defined in Section 503-A, are required to be filed prior to use pursuant to Section 505-A, unless deregulated by this Notice.
Refer to Section 504-A of the Property and Casualty Filing Reform Act (40 P. S. § 710-4) for the act's applicability.
Continuing Authority of the Commissioner
Notwithstanding the implementation of this notice, the Commissioner retains full authority to be provided, upon request, with a copy of any form being issued in this Commonwealth, as provided by Section 905 of the Insurance Department Act of 1921 (40 P. S. § 323.3).
The Commissioner also retains authority to re-assume regulatory authority of the types of forms deregulated hereunder at his discretion.
Notwithstanding the deregulation of the forms specified herein, all such forms must continue to comply with applicable Pennsylvania law including, but not limited to, The Unfair Insurance Practices Act (40 P. S. §§ 1171.1—1171.15) (prohibiting unfair methods of competition and unfair or deceptive acts or practices).
This deregulation action is effective October 1, 2014.
Any questions concerning this Notice may be directed to Mark Lersch, Director, Property and Casualty Bureau, 1311 Strawberry Square, Harrisburg, PA 17120, 717-783-2103 or email@example.com.
PENNSYLVANIA INSURANCE DEPARTMENT
DEREGULATION OF COMMERCIAL LINES PROPERTY AND CASUALTY FORMS
Pursuant to the authority granted by Section 354 of the Insurance Company Law of 1921 (40 P. S. § 477b), the Pennsylvania Insurance Commissioner, through his duly authorized representative, hereby deregulates from filing requirements commercial property and casualty forms for the following lines of business effective October 1, 2014:
Lines of Business
Aircraft hull and aviation liability
Excess of loss policy in an amount of at least $10,000 from any one event issued to self-insureds
Manuscript policies and endorsements issued to not more than three (3) insureds in Pennsylvania
Following form commercial excess and umbrella
Commercial excess and umbrella policies if the underlying policy provides limits of at least $1 million
Kidnap and ransom
Crop and hail
Fidelity and surety
Boiler and machinery
Financial guaranty products
Highly protective risk policies
MICHAEL F. CONSEDINE,
[Pa.B. Doc. No. 14-2039. Filed for public inspection September 26, 2014, 9:00 a.m.]
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