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PA Bulletin, Doc. No. 02-456

RULES AND REGULATIONS

Title 31--INSURANCE

INSURANCE DEPARTMENT

[31 PA. CODE CH. 65]

Charter Amendments; Financial Requirements

[32 Pa.B. 1516]

   The Insurance Department (Department) deletes Chapter 65, Subchapter C (relating to charter amendments; financial requirements) to read as set forth at 31 Pa.B. 5552 (October 6, 2001). The chapter applies to property and casualty insurers authorized to write automobile insurance coverages under section 202(c)(11) of The Insurance Company Law of 1921 (40 P. S. § 382(c)(11)) (act). The subchapter provided for the automatic amendment of existing charters and established minimum capital and surplus requirements for domestic insurers affected by the act of November 27, 1968 (P. L. 118, No. 349) (Act 349).

Purpose

   The purpose of this rulemaking is to delete Subchapter C to eliminate obsolete, unnecessary regulations. Section 202 of the act delineates the underwriting authorities of various types of insurers. Act 349 consolidated the underwriting authority to write automobile bodily injury liability and automobile property damage liability insurance coverages. The regulations were adopted May 16, 1969, to implement the provisions of Act 349 with respect to insurers writing automobile insurance coverages in this Commonwealth.

   Section 65.23 (relating to charters automatically amended) provided for the automatic amendment of the existing charters of insurers that were authorized to write both of the consolidated coverages and delineated the effect of Act 349 on the authority of insurers that had one of the two consolidated underwriting powers. The GAA Amendments Act of 1990 (15 P. S. §§ 21205--21207) updated the Commonwealth's business corporation laws relating to insurance companies. The updates included the repeal of provisions in the act requiring the Department's approval of charters for the creation of insurers. As a result of these updates, insurer charters are no longer required to specify underwriting authority. Therefore, §§ 65.21 and 65.22 (relating to definition of act; and authority for writing certain policies) and § 65.23 are outdated and no longer needed.

   Sections 65.24--65.26 (relating to minimum paid-up capital for stock insurers; minimum surplus for mutual insurers; and determining compliance) established minimum capital and surplus requirements for mutual insurers with the authority to write automobile liability insurance. The current minimum capital and surplus requirements for these insurers are now found in sections 206 and 601 of the act (40 P. S. §§ 386 and 721). Therefore, §§ 65.24--65.26 also are outdated and no longer needed.

Statutory Authority

   This final-form rulemaking is adopted under the authority of sections 206, 506, 1501 and 1502 of The Administrative Code of 1929 (71 P. S. §§ 66, 186, 411 and 412); sections 202, 206 and 601 of the act; and 15 Pa.C.S. §§ 21201--21208.

Comments

   Notice of the proposed rulemaking was published at 31 Pa.B. 5552 with a 30-day public comment period.

   No comments were received from the public or the standing committees. On December 6, 2001, the Independent Regulatory Review Commission (IRRC) notified the Department that IRRC had no objections, comments or suggestions to offer on the proposed rulemaking.

Fiscal Impact

   There is no fiscal impact as a result of the deletion of the subchapter.

Paperwork

   The deletion of the subchapter would impose no additional paperwork requirements on the Department or insurers.

Persons Regulated

   The deletion of the subchapter affects property and casualty insurers authorized to write automobile insurance coverages in this Commonwealth.

Contact Person

   Questions regarding the final-form rulemaking may be addressed in writing to Peter J. Salvatore, Regulatory Coordinator, Office of Special Projects, 1326 Strawberry Square, Harrisburg, PA 17120. Questions also may be e-mailed to psalvatore@state.pa.us or faxed to (717) 772-1969.

Regulatory Review

   Under section 5(a) of the Regulatory Review Act (71 P. S. § 745.5(a)), on September 26, 2001, the Department submitted a copy of the notice of proposed rulemaking published at 31 Pa.B. 5552 to IRRC and to the Chairpersons of the Senate Banking and Insurance Committee and the House Committee on Insurance for review and comment.

   Under section 5(c) of the Regulatory Review Act, IRRC and the Committees were provided with copies of the comments received during the public comment period, as well as other documents when requested. In preparing this final-form rulemaking, the Department has considered the comments received from IRRC, the Committees and the public.

   Under section 5.1(d) of the Regulatory Review Act (71 P. S. § 745.5a(d)), on February 12, 2002, this final-form rulemaking was deemed approved by the House and Senate Committees. Under section 5(g) of the Regulatory Review Act. The final-form rulemaking was deemed approved by IRRC effective February 13, 2002.

Findings

   The Commissioner finds that:

   (1)  Public notice of intention to adopt these final-form regulations 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 final-form rulemaking in the manner provided in this order is necessary and appropriate for the administration and enforcement of the authorizing statutes.

Order

   The Commissioner, acting under the authorizing statutes, orders that:

   (1)  The regulations of the Department, 31 Pa. Code Chapter 65, are amended by deleting §§ 65.21--65.26 to read as set forth at 31 Pa.B. 5552.

   (2)  The Commissioner shall submit this order and 31 Pa.B. 5552 to the Office of General Counsel and Office of Attorney General for approval as to form and legality as required by law.

   (3)  The Commissioner shall certify this order and 31 Pa.B. 5552 and deposit them with the Legislative Reference Bureau as required by law.

   (4)  This order shall take effect 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 32 Pa.B. 1362 (March 9, 2002).)

   Fiscal Note: Fiscal Note 11-211 remains valid for the final adoption of the subject regulations.

[Pa.B. Doc. No. 02-456. Filed for public inspection March 22, 2002, 9:00 a.m.]


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