§ 67a.2. Consumer protections.
(a) A producer may submit an application to the Assigned Risk Plan and may deliver the policy of the company to which the risk is assigned.
(b) A producer may submit an application to the Assigned Risk Plan only after having been unable to obtain coverage for the applicant, in the voluntary market, within the time frame established by the Assigned Risk Plan rules.
(c) Upon completion of the original application, premium moneys from the applicant to the producer of record shall be in the form of a money order, cashiers check, certified check, personal check or other method approved by the Insurance Commissioner, made payable to the Pennsylvania Assigned Risk Plan. The producer of record may not accept cash.
(d) Upon receipt of the premium moneys for an original application, the producer of record shall issue a receipt showing the amount received, and the date and time that the money was received. The receipt shall also contain the applicants name and address, the signature of the producer of record and a statement indicating that it was received for the Pennsylvania Assigned Risk Plan. The electronic mail reference number shall be included, if applicable.
(e) A producer of record shall maintain appropriate records of original applications, including the electronic mail reference number, noting the date and time of coverage. The producer of record shall make available for inspection these records to the Assigned Risk Plan, a representative of the assigned company or the Department.
(f) If the applicant produces reasonable documentation of payment of the required premium to the producer of record in accordance with subsection (c) and a completed application for insurance under the Assigned Risk Plan, payment to the producer of record shall be deemed payment to the Assigned Risk Plan in accordance with the Assigned Risk Plan rules. Coverage shall be effective as of the date and time specified in the application in accordance with the Assigned Risk Plan rules. See 75 Pa.C.S. § 1742(4) (relating to scope of plan).
(g) A producer may not charge referral fees or other fees for placing or servicing any coverage in the Assigned Risk Plan. A producers remuneration shall be limited to the method of compensation established by the Assigned Risk Plan rules.
(h) Producers shall comply with the Assigned Risk Plan rules. Violation of the Assigned Risk Plan rules may be construed to be a violation of section 604 of The Insurance Department Act of 1921 (40 P. S. § 234).
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