PRINTER'S NO. 2666
No. 1988 Session of 1984
INTRODUCED BY HOEFFEL, KUKOVICH, LINTON, AFFLERBACH, COWELL,
OLIVER, GALLAGHER, PRATT, DALEY, HALUSKA, HARPER, TIGUE,
PISTELLA, FISCHER, MICHLOVIC, BALDWIN, WACHOB, BELFANTI,
LLOYD, GAMBLE, DEAL, WOZNIAK, O'DONNELL AND J. L. WRIGHT,
MARCH 19, 1984
REFERRED TO COMMITTEE ON INSURANCE, MARCH 19, 1984
AN ACT
1 Providing for the reporting of certain losses and other
2 information by property and casualty insurers; and providing
3 penalties.
4 The General Assembly of the Commonwealth of Pennsylvania
5 hereby enacts as follows:
6 Section 1. Short title.
7 This act shall be known and may be cited as the Property and
8 Casualty Insurer Loss Reporting Act.
9 Section 2. Definitions.
10 The following words and phrases when used in this act shall
11 have the meanings given to them in this section unless the
12 context clearly indicates otherwise:
13 "Department." The Insurance Department.
14 "Insurer." An insurer licensed to write property or casualty
15 insurance within the Commonwealth.
16 Section 3. Required reports.
17 Every insurer shall record and report its loss and expense
1 experience and other data as may be necessary to determine
2 whether rates are fair and appropriate. These reports shall be
3 made to the department. All reports shall be stated in untrended
4 dollars. The department may designate one or more rate service
5 organizations or advisory organizations to gather and compile
6 such experience and data. Every insurer is required, as a
7 supplement to schedule T of its annual statement, to submit a
8 report, on a form furnished by the department, showing its
9 direct writings in this Commonwealth and the United States.
10 Section 4. Content of reports.
11 (a) Information required.--Reports required by section 3
12 shall include, but not be limited to, the following types of
13 insurance written by each insurer:
14 (1) Motor vehicle bodily injury liability insurance.
15 (2) Products liability insurance.
16 (3) Medical malpractice insurance.
17 (4) Attorneys' malpractice insurance.
18 (5) Architects and engineers malpractice insurance.
19 (6) Motor vehicle personal injury protection insurance.
20 (7) Motor vehicle property liability insurance.
21 (8) Motor vehicle medical payment insurance.
22 (9) Uninsured motorist insurance.
23 (10) Underinsured motorist insurance.
24 (b) Additional data.--Reports shall also include the
25 following data by the type of insurance for the previous year
26 ending on December 31:
27 (1) Direct premiums written.
28 (2) Direct premiums earned.
29 (3) Net investment income, including net realized
30 capital gains and losses, using appropriate estimates where
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1 necessary.
2 (4) Incurred claims, developed as the sum of the
3 following:
4 (i) dollar amount of claims closed with payment;
5 plus
6 (ii) reserves for reported claims at the end of the
7 previous year; plus
8 (iii) reserves for incurred but not reported claims
9 at the end of the current year; minus
10 (iv) reserves for incurred but not reported claims
11 at the end of the previous year; plus
12 (v) reserves for loss adjustment expense at the end
13 of the current year; minus
14 (vi) reserves for loss adjustment expense at the end
15 of the previous year.
16 (5) Actual incurred expenses allocated separately to
17 loss adjustment, commissions, other acquisition costs,
18 advertising, general office expenses, taxes, licenses, fees
19 and all other expenses.
20 (6) Net underwriting gain or loss.
21 (7) Net operation gain or loss, including net investment
22 income.
23 (8) The number and dollar amount of claims closed with
24 payment, by year incurred and the amount reserved for them.
25 (9) The number of claims closed without payment and the
26 dollar amount reserved for those claims.
27 (10) Any other information requested by the department.
28 (c) First year data.--For the first year only in which an
29 insurer is required to file a report, the data required by
30 subsection (b)(1) through (7) shall include the previous
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1 calendar year and each of the preceding four calendar years.
2 Section 5. Review and publication.
3 It shall be the duty of the department to annually compile
4 and review all reports submitted by insurers pursuant to this
5 act to determine the appropriateness of premium rates for
6 property and casualty insurance in this Commonwealth. The
7 department's findings and the filings shall be published in the
8 Pennsylvania Bulletin, provided to each member of the General
9 Assembly, and made available to any interested insured or
10 citizen. If the department finds at any time that any rate is no
11 longer fair or appropriate, it shall issue an order withdrawing
12 its approval. The order shall specify reasons for withdrawal of
13 approval and shall be furnished to each affected insurer and
14 rating organization, and shall be effective in not less than 30
15 days from its issuance unless an affected insurer meets the
16 burden of showing that the rate is in fact fair and appropriate.
17 Section 6. Condition of doing business.
18 Each insurance company shall file all of the information
19 required under this act with the department, the Senate Banking
20 and Insurance Committee and the House Insurance Committee as a
21 prerequisite to obtaining permission to write coverage, to
22 continue to do business or to file for rate increases.
23 Section 7. Penalty.
24 An insurer who fails to comply with this act shall pay to the
25 department a civil penalty of $10,000 and thereafter a fine of
26 $200 daily until compliance with this act is accomplished.
27 Section 8. Rules and regulations.
28 The department may, in the manner provided by law, promulgate
29 the rules and regulations necessary to carry out this act.
30 Section 9. Effective date.
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1 This act shall take effect January 1, 1985.
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