PROPOSED RULEMAKING
INSURANCE DEPARTMENT
[31 PA. CODE CH. 113]
Certificates of Insurance
[27 Pa.B. 1564] The Insurance Department (Department) proposes to delete Chapter 113, Subchapter C (relating to certificates of insurance) as set forth in Annex A, under the authority of sections 206, 506, 1501 and 1502 of The Administrative Code of 1929 (71 P. S. §§ 66, 186, 411 and 412); and The Insurance Company Law of 1921 (act) (40 P. S. §§ 361--991).
Purpose
The purpose of this rulemaking is to delete §§ 113.31 and 113.32, to eliminate redundant regulations. The Department adopted the regulations over 20 years ago to caution and advise insurers and their representatives that many noninsurance entities require the submission of certificates of insurance by their insurance carrier, which may vary from the basic insurance policy. The regulations simply reiterate that section 354 of the act (40 P. S. § 477b) prohibits the use of policy forms and documents that have not been approved by the Department, including certificates of insurance. As the provisions of these regulations are sufficiently addressed in the act, and the regulations in no manner enhance the authorizing statute, they are found to be redundant. Therefore, it is no longer necessary to continue these sections within the Department regulations.
Affected Parties
The deletion of the regulations affects insurance companies licensed to do business in this Commonwealth.
Fiscal Impact
There is no fiscal impact as a result of the deletion of these sections because of the redundant nature of the regulations to the statute. The regulatory provisions remain in effect under the statute.
Paperwork
There is no impact on paperwork as a result of the deletion of these regulations.
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
Questions or comments regarding this proposed rulemaking may be addressed in writing to Carolyn Montgomery, Director, Bureau of Consumer Services, 1321 Strawberry Square, Harrisburg, PA 17120 (717) 783-2153, within 30 days of its publication in the Pennsylvania Bulletin.
Regulatory Review
Under section 5(a) of the Regulatory Review Act (71 P. S. § 745.5(a)), on March 14, 1997, the Department submitted a copy of this proposal to the Independent Regulatory Review Commission (IRRC) and the Chairpersons of the House Insurance Committee and the Senate Banking and Insurance Committee. In addition to submitting the proposal, 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. A copy of the material is available to the public upon request.
If IRRC has objections to any portion of this proposal, it will notify the Department within 30 days of the close of the public comment period. The notification shall specify the regulatory review criteria that have not been met by that portion. The Regulatory Review Act specifies detailed procedures for the Department, the Governor and the General Assembly to review these objections before final publication of the proposal.
LINDA S. KAISER,
Insurance CommissionerFiscal Note: 11-142. No fiscal impact; (8) recommends adoption.
Annex A
TITLE 31. INSURANCE
PART VII. PROPERTY, FIRE AND CASUALTY INSURANCE
CHAPTER 113. MISCELLANEOUS PROVISIONS
Subchapter C. [CERTIFICATES OF INSURANCE] (Reserved) § 113.31. [General] (Reserved).
[(a) Property and casualty insurance companies are cautioned that many noninsurance entities require the submission of Certificates of Insurance by their insurance carrier which enlarge or vary the terms of the underlying policy of insurance. The use of Certificates of Insurance may violate the insurance laws of the Commonwealth.
(b) Section 354 of The Insurance Company Law of 1921 (40 P. S. § 477b) prohibits the use in this Commonwealth of policy forms and related documents which have not first been formally approved by the Insurance Department.]
§ 113.32. [Required statement] (Reserved).
[Certificates of Insurance shall contain either the following or substantially equivalent language:
''This Certificate of Insurance does not amend, extend, or otherwise alter the terms and conditions of insurance coverage contained in Policy No(s). __issued by ____(Name of insurer).'']
[Pa.B. Doc. No. 97-476. Filed for public inspection March 28, 1997, 9:00 a.m.]
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