Pennsylvania Laws and Regulations (Applicable to Property Insurance Only) with complete solutions 2024

Pennsylvania Laws and Regulations (Applicable to Property Insurance Only)Rate Regulation - correct answer -Insurance rates must not be excessive, inadequate, or unfairly discriminatory -Insurers must file every manual, minimum, class rate, rating schedule or rating plan with Commissioner (Filing must state Proposed effective date) Standard Fire Policy - correct answer Insurers issuing fire insurance policies must use the Standard Fire Insurance Policy of the State of Pennsylvania, which sets forth certain standard policy provisions for fire insurance contracts. Binders - correct answer Binders for temporary fire insurance -Can be made orally or in writing -Are for up to 30 days -Contain all provisions and endorsements of permanent insurance policy Insurance Consultation Services - correct answer It is in the public interest: -For Insurers to provide consultation services to insureds for an effort to reduce injury, death or loss, and -To limit civil liability for insurers for such activity Insurance consultation Service: means any consultation, inspection, or related services performed by an insurer, its agents, employees, or service contractors incidental to an insurance application or policy for a purpose of reducing the likelihood of injury, death or loss. Exemption from civil liability: -An insurer, its agents employees or service contractors are not liable for damages from injury, death, or loss occurring as a result of any act or omission in the course of insurance consultation services incidental to an insurance policy Insurance Consultation Services (II) - correct answer This civil liability does not apply of: -the loss occurred during actual performance of consultation services , and a proximate cause was the negligence of the insurer, its agent, employees or service contractors -the consultation services were required under a service contract not incidental to an insurance policy or -the actions or omissions of the insurer, its agents, employees or service contractors were a crime, actual malice, or gross negligence -The insurer must provide written notice of this exemption at the time the policy is issued and each subsequent renewal. -The exemption applies to property and casualty insurance FAIR Plan - correct answer The intent of the Fair Plan is to provide property owners with fire, extended coverages, vandalism, and malicious mischief coverage when insurance is unable to be purchased in normal or standard market -Also known as Insurance Property Facility of Pennsylvania -All Insurers authorized to solicit fire insurance must participate in the FAIR plan. Fair Plan (Underwriting Plan) - correct answer Underwriting guidelines include: -property must be inspected first -policy will be issued after inspection is complete and approved and premium is paid -if property in uninsurable, facility must provide written notice as to what it make uninsurable and what, if anything, can be done to make property insurable -written notice of cancellation is at least 20 days prior to cancellation of refusal to renew, except of nonpayment of premium or evidence of incendiarism TRIA (Terrorism Risk Insurance Program Reauthorization Act) - correct answer -Act was signed into law in 2015 (extension of previous act of 2002 and 2007) -The definition of a certified act of terrorism was revised to eliminate requirement that the persons act on behalf of foreign person or foreign interest. -A clear and conspicuous noice must be given to policy holders of the existence of $100 billion cap -The U.S. Treasury will promulgate regulations for determining pro rata shares on insured losses under the program when insured losses exceed $100 billion