§ 145.1. Purpose.
This chapter prohibits insurers from denying benefits or coverage to individuals on the basis of unfair sex or marital status discrimination in the terms or conditions of insurance contracts and in the underwriting criteria of insurers. This chapter does not prohibit insurers from differentiating in premium rates between sexes where there is sound actuarial justification.
Notes of Decisions The language in 31 Pa. Code § 145.1 is not an authorization in establishing rates to use sex classification based on actuarial justification, but is phrased merely as not being a prohibition. The provision applies only to the regulation of trade practices and not to the promulgation of rates. Hartford Accident and Indemnity Co. v. Insurance Commissioner, 442 A.2d 382 (Pa. Cmwlth. 1982); affirmed 482 A.2d 542 (Pa. 1984).
In dissenting to the majority’s finding that gender-based automobile insurance rates are constitutionally violative, Justice McDermott noted that on numerous occasions, the Legislature had an opportunity to abolish gender-based rates but failed to do so, and that Insurance Commission regulations specifically did not prohibit gender-based rate classification where there is sound actuarial discretion. Hartford Accident and Indemnity Co. v. Insurance Commissioner, 482 A.2d 542 (Pa. 1984).
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