RULES AND REGULATIONS
Title 31--INSURANCE
INSURANCE DEPARTMENT
[31 PA. CODE CH. 131]
Deductible Program
[28 Pa.B. 1314] The Insurance Department (Department) hereby deletes Chapter 131 (relating to deductible program) under the authority of sections 206, 506, 1501 and 1502 of The Administrative Code of 1929 (71 P. S. §§ 66, 186, 411 and 412). Chapter 131 was previously promulgated under section 13(d) of the Casualty and Surety Rate Regulatory Act (40 P. S. § 1193) and section 13(d) of the Fire, Marine and Inland Marine Rate Regulatory Act (40 P. S. § 1233) (acts).
Purpose
The purpose of this deletion of Chapter 131 is to eliminate redundant and obsolete regulations. The regulations, adopted in 1973, imposed several requirements on insurance companies licensed to do business in this Commonwealth with respect to deductibles used for property or casualty policies. The regulations authorized insurance companies to offer previously prohibited small deductible or full coverage programs, overruling an Insurance Commissioner order issued in 1971. The regulations instructed insurance companies offering the expanded deductible choices to consumers to first file their revised rates with the Department. Finally, the regulations announced that a company would be in violation of the Insurance Unfair Practices Act (40 P. S. §§ 1151--1162) (Repealed) if it implemented lowered deductibles without the insured's consent, or otherwise failed to fully disclose and explain all available options to consumers.
The Department has determined that the regulations are redundant and unnecessary. The provisions of these regulations are sufficiently within the acts, and the regulations in no manner enhance the authorizing statutes. Additionally, the Department, through its market conduct activities, monitors insurers to ensure compliance with statutory requirements for filing and approval of rates and forms. Therefore, the Department deletes Chapter 131 in its entirety.
Statutory Authority
The regulations are being deleted under the authority of sections 206, 506, 1501 and 1502 of The Administrative Code of 1929. Chapter 131 was previously promulgated under the acts.
Comments
Notice of this deletion was published at 27 Pa.B. 1941 (April 19, 1997) as a proposed rulemaking with a 30-day public comment period.
No comments were received from the standing committees and no comments were received from the public during the 30-day comment period.
Fiscal Impact
There will be no fiscal impact as a result of the deletion of these regulations.
Paperwork
There will be no impact on paperwork as a result of the deletion of these regulations.
Affected Parties
The deletion of these sections will affect all licensed property and casualty insurers in this Commonwealth.
Effectiveness/Sunset Date
The rulemaking will become effective upon final publication in the Pennsylvania Bulletin. Because the rulemaking proposes to delete obsolete regulations, no sunset date has been assigned.
Contact Person
For information on this matter, contact Randy Rohrbaugh, Director, Bureau of Property and Casualty, Insurance Department, 1311 Strawberry Square, Harrisburg, PA 17120, (717) 787-4192.
Regulatory Review
Under section 5(a) of the Regulatory Review Act (71 P. S. § 745.5(a)), the Department submitted a copy of this rulemaking on March 28, 1997, to the Independent Regulatory Review Commission (IRRC), the Chairpersons of the House Insurance Committee and the Senate Banking and Insurance Committee. In addition, the Department has provided IRRC and the Committees with a copy of a detailed Regulatory Analysis Form prepared by the Department in compliance with Executive Order 1996-1, ''Regulatory Review and Promulgation.'' A copy of the material is available to the public upon request.
These final-form regulations were deemed approved by the House and Senate Committees on November 10, 1997, in accordance with section 5.1(d) of the Regulatory Review Act. IRRC met on November 20, 1997. The deletions were deemed approved in accordance with section 5.1(e) of the Regulatory Review Act.
Findings
The Insurance Commissioner finds that:
(1) Public notice of intention to adopt this rulemaking as amended by this order has been given under sections 201 and 202 of the act of July 31, 1968 (P. L. 769, No. 240) (45 P. S. §§ 1201 and 1202) and the regulations thereunder, 1 Pa. Code, §§ 7.1 and 7.2.
(2) The adoption of this rulemaking in the manner provided in this order is necessary and appropriate for the administration and enforcement of the authorizing statutes.
Order
The Insurance Commissioner, acting under the authorizing statutes, orders that:
(a) The regulations of the Insurance Department, 31 Pa. Code Chapter 131, are amended by deleting §§ 131.1--131.7 to read as set forth at 27 Pa.B. 1941 (April 19, 1997).
(b) The Commissioner shall submit this order and 27 Pa.B. 1941 to the Office of General Counsel and Office of Attorney General for approval as to form and legality as required by law.
(c) The Commissioner shall certify this order and 27 Pa.B. 1941 and deposit them with the Legislative Reference Bureau as required by law.
(d) This order shall be abolished upon publication in the Pennsylvania Bulletin.
M. DIANE KOKEN,
Insurance Commissioner(Editor's Note: For the text of the order of the Independent Regulatory Review Commission relating to this document, see 27 Pa.B. 6385 (December 6, 1997).)
Fiscal Note: Fiscal Note 11-143 remains valid for the final adoption of the subject regulations.
[Pa.B. Doc. No. 98-410. Filed for public inspection March 13, 1998, 9:00 a.m.]
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