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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 § 160.4. Commissioner’s authority.

§ 160.4. Commissioner’s authority.

 For the purpose of making a determination of an insurer’s financial condition under this chapter, the Commissioner may restate the value of assets and liabilities to conform to statutory accounting practices, including the following:

   (1)  Disregarding a credit or amount receivable resulting from transactions with a reinsurer which is insolvent, impaired or otherwise subject to a delinquency proceeding.

   (2)  Making appropriate adjustments to asset values attributable to investments in or transactions with controlling persons, subsidiaries or affiliates.

   (3)  Refusing to recognize the stated value of accounts receivable if the ability to collect receivables is highly speculative in view of the age of the account or the financial condition of the debtor.

   (4)  Increasing the insurer’s liability in an amount equal to a contingent liability, pledge or guarantee not otherwise included if there is a substantial risk that the insurer will be called upon to meet the obligation undertaken within the next 12-month period.

   (5)  Making appropriate adjustments to liability values attributable to losses and loss adjustment expenses due to considerations, such as those elaborated in the ‘‘Statement of Principles Regarding Property and Casualty Loss and Loss Adjustment Expense Reserves’’ which is promulgated by the Casualty Actuarial Society.

   (6)  Making appropriate adjustments to liability values due to considerations elaborated in the accident and health reserve standards in sections 301.1 and 311.1 of the act (40 P. S. § §  71.1 and 93).

   (7)  Making appropriate adjustments to liability values in accordance with the life insurance reserve standards in section 301 of the act.


   The provisions of this §  160.4 amended under sections 206, 506, 1501 and 1502 of The Administrative Code of 1929 (71 P. S. § §  66, 186, 411 and 412); sections 5.1 and 10 of the Health Maintenance Organization Act (40 P. S. § §  1555.1 and 1560); and sections 2456 and 2457 of The Insurance Company Law of 1921 (40 P. S. § §  991.2456 and 991.2457).


   The provisions of this §  160.4 amended November 19, 2010, effective November 20, 2010, 40 Pa.B. 6661. Immediately preceding text appears at serial page (249809).

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