Pennsylvania Code › Title 31 - INSURANCE › Part VII - Property, Fire and Casualty Insurance › Chapter 113 - MISCELLANEOUS PROVISIONS › Subchapter G - INCREASE IN PREMIUM AND MIDTERM CANCELLATION OR NONRENEWAL OF COMMERCIAL PROPERTY AND CASUALTY POLICIES › Section 113.81 - Definitions

Current through Register Vol. 54, No. 28, July 13, 2024
The following words and terms, when used in this
					 subchapter, have the following meanings unless the context clearly indicates
					 otherwise:
Act
-The act of July 3, 1986 (P. L. 396,
					 No. 86) (40 P. S. §§
											3401-3409).
Affiliated insurer
-An insurer who,
					 directly or indirectly, through one or more intermediaries, controls, or is
					 controlled by, or is under common control with another insurer.
Agent
-An individual, partnership or
					 corporation, licensed by the Department, who contracts with an insurer to sell
					 insurance on behalf of the insurer. With respect to policies of insurance
					 covering commercial property and casualty risks issued by eligible surplus
					 lines insurers, the term means a surplus lines licensee as defined in section
					 1602 of The Insurance Company Law of 1921 (40 P. S. §
											991.1602).
Commercial property and casualty risk
					 insurance
-Insurance within the scope of this chapter which is not
					 personal risk insurance. The term includes insurance issued for commercial
					 auto, farmowner's, business, professional or other commercial risks, such as
					 businessowner's and commercial multiperil policies, aviation, credit, mortgage
					 guaranty, and worker's compensation risks, except title insurance, fidelity and
					 surety bonds, ocean marine risks, and workers compensation insurance covering
					 employes subject to the Jones Act (40 U.S.C.A. §§
											731,
					 733a,
					 734,
					 737,
					 741a,
					 742,
					 745,
					 747-749,
					 751,
					 752,
					 863-865,
					 868,
					 870-872,
					 874 and
					 891-893), and Federal
					 employes.
Insurer
-An insurer authorized by the
					 Department to transact business in this Commonwealth or designated as an
					 eligible surplus lines insurer as defined in section 1602 of The Insurance
					 Company Law of 1921.
Named insured
-The insureds named on the
					 declaration page of the insurance policy.
Nonrenewal
-The failure by an insurer to
					 issue and deliver a policy superseding at the end of the policy period one
					 previously issued and delivered by the same insurer or affiliated insurer,
					 where the renewal policy provides types and limits of coverage substantially
					 equivalent to those contained in the policy being superseded. The term also
					 includes the failure to issue and deliver a certificate or notice extending the
					 term of a policy beyond its policy period or term with types and limits of
					 coverage substantially equivalent to those contained in the policy being
					 extended. The term does not include coverage provided under a policy of
					 insurance that is renewed by the insurer under a new policy form approved by
					 the Department if an appropriate disclosure notice is forwarded to the first
					 named insured.
Personal risk insurance
-Property or
					 casualty insurance issued for personal, family or household purposes. Examples
					 of policies of insurance issued for personal, family or household purposes
					 are:
(i) Policies used solely to
				  provide homeowner's insurance, dwelling fire insurance on one to four family
				  units if owner-occupied, or individual fire insurance on dwelling
				  contents.
(ii) Policies principally
				  used to provide primary insurance on private passenger automobiles which are
				  individually owned and used for personal or family needs.
(iii) Policies of personal inland marine,
				  personal theft, residence glass, personal liability insurance and personal
				  excess.
(iv) Policies on pleasure
				  watercraft which are used for personal, or family needs.
Policy of insurance
-A policy, certificate
					 or binder issued or delivered in this Commonwealth by an insurer or agent
					 covering commercial property or casualty risks. A policy with a policy period
					 or term of less than 12 months or a policy period with no fixed expiration date
					 is considered as written for successive policy periods of 12 months.