DEFINITIONS AND PURPOSE
§ 37.1. Definitions.
The following words and terms, when used in this chapter, have the following meanings, unless the context clearly indicates otherwise:
Act—The Insurance Department Act of 1921 (40 P. S. § § 1—297.4).
Active officer—An officer of a corporation who holds either a current certificate as an agent or a license as a broker. If the corporation’s insurance authority is limited to only restricted lines, as listed in § 37.39 (relating to lines of authority), an employe who holds a certificate as an agent is considered to be an active officer for purposes of licensing the corporation.
Active partner—A partner of a partnership who holds a current certificate as an agent or a license as a broker. If the partnership’s authority is limited to only restricted lines, as listed in § 37.39, an employe who holds a certificate as an agent is considered to be an active partner for purposes of licensing the partnership.
Agent—(i) Inclusions. Means one or more of the following:
(A) A person authorized in writing by an entity to do one of the following:
(I) Solicit risks and collect premiums and to issue or countersign policies in its behalf.
(II) Solicit risks and collect premiums in its behalf.
(B) A person, not a licensed insurance broker, who, whether or not for compensation does one of the following:
(I) Solicits insurance on behalf of an entity.
(II) Transmits for a person other than himself an application for a policy of insurance to or from the entity.
(III) Offers or assumes to act in the negotiation of this insurance.
(IV) Aids in transacting the insurance business of an entity by negotiating for or placing risks or delivering policies or collecting premiums for the entity.
(ii) Exclusions. The term does not include:
(A) Nonresident salaried employes of foreign reciprocal exchanges which do not maintain offices in this Commonwealth and do not pay commissions to these employes.
(B) Officers or salaried employes of an insurance entity authorized to transact business in this Commonwealth who do not solicit, negotiate or place risks.
(C) Employes of agents or agencies who exclusively provide clerical support.
(D) Title insurance agents. See § 37.13 (relating to title agents).
Appointment—A written agreement between an agent and an entity under which the agent may solicit, negotiate, make or procure insurance policies, for compensation, which are issued by the appointing entity.
Broker—A person, partnership or corporation, not an officer nor appointed as an agent of an entity, who, for compensation, acts or aids in obtaining insurance for a person other than oneself.
CIC—Certified Insurance Counselor.
CLU—Chartered Life Underwriter.
CPCU—Chartered Property and Casualty Underwriter.
Certificate—A Certificate of Qualification issued by the Department attesting that a person has met the standards to act as an agent set forth under section 603 of the act (40 P. S. § 233) and this chapter.
Clerical support—Includes activities such as: discussing insurance matters in general, so long as no recommendation is made with respect to specific coverages, products or rates; receiving requests for coverage for transmittal to a certified agent; assisting with the completion of applications on the agency premises; passing on to the certified agent insurance inquiries of a particular nature; receiving payments delivered to the agency premises for coverage and issuing receipts on behalf of the agent or agency; arranging or making meeting appointments for a certified agent; collecting expiration date information from clients or potential clients.
Commissioner—The Insurance Commissioner of the Commonwealth.
Department—The Insurance Department of the Commonwealth.
Entity—A person doing the business of insurance, including one or more of the following:(i) The issuance or delivery of contracts or certificates of insurance to persons residing in this Commonwealth.
(ii) The solicitation of applications for contracts or other negotiations preliminary to the execution of the contracts.
(iii) The collection of premiums, membership fees, assessments or other consideration for the contracts.
(iv) The transaction of matters subsequent to execution of the contracts arising out of them, whether or not the person has obtained a Certificate of Authority, license or certificate.
License—A document issued by the Department authorizing the named recipient to do business as an insurance broker in this Commonwealth.
Nonresident—A person whose business address and legal residence is outside this Commonwealth.
Part-time agent or broker—An agent or broker who does not maintain an insurance office open during regular daily business hours.
Person—An individual, corporation, association, partnership, reciprocal exchange, inter-insurer, Lloyds insurer, fraternal benefit society, beneficial association and any other legal entities engaged in the business of insurance, including agents, brokers and adjusters. The term also includes health care plans as defined in 40 Pa.C.S. Chapters 61, 63, 65 and 67 and the Health Maintenance Organization Act (40 P. S. § § 1551—1568). For purposes of this chapter, health care plans, fraternal benefit societies and beneficial societies will be deemed to be engaged in the business of insurance.
Qualifying active officer—One active officer (an individual) of a corporation, who holds a current certificate or license for the line of authority for which the corporation is applying, and is designated for appointments relative to that line of authority.
Qualifying active partner—One active partner (an individual) of a partnership, who holds a current certificate or license for the line of authority for which the partnership is applying, and is designated for all appointments relative to that line of authority.
Resident—A person whose business address or legal residence is located in this Commonwealth.
Title agent—An individual, firm, association, corporation, cooperative or joint stock company located in this Commonwealth which is authorized in writing by a title insurance company to solicit risks and collect premiums, and to issue or countersign policies on its behalf or to solicit risks and collect premiums on its behalf. If the title agent is other than an individual, the certification and licensing requirements under § 37.37 (relating to corporation or partnership certificate/license) apply.
Transition date—The date of the Department’s initial issuance of certificates.
Cross References This section cited in 31 Pa. Code § 37.12 (relating to employe and officer activities requiring a certificate or license); and 31 Pa. Code § 37.17 (relating to collection of premiums requires certificate or license).
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