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The Pennsylvania Code website reflects the Pennsylvania Code changes effective through 53 Pa.B. 6142 (September 30, 2023).

31 Pa. Code § 11.7. Salvage and subrogation recovery expenses.

§ 11.7. Salvage and subrogation recovery expenses.

 (a)  This section prescribes accounting practices for the classification and allocation of salvage and subrogation recovery expenses in financial statements filed with the Insurance Commissioner under sections 1 and 2 of the act of May 9, 1949 (P. L. 1025, No. 298)(40 P. S. § §  1261—1264) and section 320 of The Insurance Company Law of 1921 (40 P. S. §  443).

 (b)  This section applies to all stock or mutual insurance companies, associations, exchanges, employees mutual liability associations and organizations, including The State Workmen’s Insurance Fund, which are subject to the Casualty and Surety Rate Regulatory Act (40 P. S. § §  1181—1199); The Fire, Marine and Inland Marine Rate Regulatory Act (40 P. S. § §  1221—1238); or section 654 (Workmen’s Compensation Insurance) of The Insurance Company Law of 1921 (40 P. S. §  814). This section does not apply to insurers authorized to write title insurance.

 (c)  If attention is given to salvage or subrogation matters at the same time as the adjustment of the loss is proceeding, no attempt need be made to allocate any portion of the time of the adjuster to salvage or subrogation expense.

 (d)  If the salvage or subrogation activity follows the adjustment of the loss, such additional time as may be required shall be treated as salvage expense.

 (e)  Any items of outside service, such as advertising, expenses of outside organizations, or rewards, shall be treated as salvage expense.

 (f)  The cost of recovering stolen goods when incurred by the insurer shall be treated as salvage expense.

 (g)  If salvage is handled by outside agencies, their billing shall be made directly to the companies and sufficient information given for proper classification of the related expenses.


   The provisions of this §  11.7 amended under sections 206, 506, 1501 and 1502 of The Administrative Code of 1929 (71 P. S. § §  66, 186, 411 and 412); sections 1 and 2 of the act of May 9, 1949 (P. L. 1025, No. 289)(40 P. S. § §  1261 and 1262); and section 320(a) of The Insurance Company Law of 1921 (40 P. S. §  443(a)).


   The provisions of this §  11.7 adopted October 21, 1949; amended through July 7, 1970; amended April 13, 2001, effective April 14, 2001, 31 Pa.B. 2001. Immediately preceding text appears at serial pages (246893) to (246894).

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