PRIOR PRINTER'S NO. 753 PRINTER'S NO. 1906
No. 685 Session of 1989
INTRODUCED BY LaGROTTA, COLAFELLA, O'DONNELL, MORRIS, JAROLIN,
DeLUCA, KOSINSKI, PERZEL, FOX, GAMBLE, WESTON, MAIALE, HASAY,
TIGUE, TANGRETTI, OLASZ, HALUSKA, BELFANTI, CIVERA, KUKOVICH,
BILLOW, CAWLEY, PISTELLA, BELARDI, LAUGHLIN, DALEY,
J. TAYLOR, MELIO, HAGARTY, HAYDEN, GIGLIOTTI, LUCYK,
RICHARDSON, HARPER AND HOWLETT, MARCH 7, 1989
AS REPORTED FROM COMMITTEE ON INSURANCE, HOUSE OF
REPRESENTATIVES, AS AMENDED, MAY 31, 1989
AN ACT
1 Amending the act of June 11, 1947 (P.L.538, No.246), entitled
2 "An act relating to the regulation of rates for insurance
3 which may be written by stock or mutual casualty insurance
4 companies, associations or exchanges, including fidelity,
5 surety and guaranty bonds and all other forms of motor
6 vehicle insurance, and title insurance; to rating and
7 advisory organizations; conferring on the Insurance
8 Commissioner the power and duty of supervising and regulating
9 persons, associations, companies and corporations, and of
10 enforcing the provisions of this act; prescribing and
11 regulating the practice and procedure before the
12 commissioner, and procedure for review by the courts; giving
13 the Court of Common Pleas of Dauphin County exclusive
14 jurisdiction over certain proceedings; prescribing penalties
15 and providing for enforcement thereof, and repealing
16 inconsistent acts," imposing a 180-day restriction CERTAIN <--
17 RESTRICTIONS on increases in motor vehicle insurance
18 premiums.
19 The General Assembly of the Commonwealth of Pennsylvania
20 hereby enacts as follows:
21 Section 1. The act of June 11, 1947 (P.L.538, No.246), known
22 as The Casualty and Surety Rate Regulatory Act, is amended by
23 adding a section to read:
1 Section 3.1. Limited Restriction on Premium Increases.--In <--
2 order to permit the General Assembly of the Commonwealth of
3 Pennsylvania time to examine proposed changes in the laws
4 governing the requirements, writing and rates of motor vehicle
5 insurance and notwithstanding any other law to the contrary, the
6 Insurance Commission shall not, for a period of 180 days
7 following the effective date of this section, approve any
8 requests or filings for increases in the rate of motor vehicle
9 insurance premiums. THE INSURANCE COMMISSIONER SHALL NOT APPROVE <--
10 ANY INCREASE IN PREMIUMS FOR AUTOMOBILE INSURANCE FINANCIAL
11 RESPONSIBILITY AS DEFINED IN 75 PA.C.S. § 1702 (RELATING TO
12 DEFINITIONS), THAT WAS FILED AFTER MAY 1, 1989, AND BEFORE MAY
13 1, 1993. THIS PROHIBITION SHALL NOT APPLY IF THE INSURANCE
14 COMMISSIONER FINDS THE GRANTING OF AN INCREASE IN PREMIUMS IS
15 NECESSARY TO PREVENT THE FINANCIAL INSOLVENCY OF AN INSURANCE
16 COMPANY.
17 Section 2. This act shall take effect immediately.
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