Section 3801.508 - Disapproval after useChapter 5 of the Accident and Health filing Reform Act [40 P.S. §§ 3801.501 to 3801.514] effective upon publication of notice under 40 P.S. § 3801.5103.
(a) General rule.--Any form or rate filed and used after the expiration of the appropriate review period under this chapter may be subsequently disapproved. The department shall notify the insurer or HMO in writing and provide the opportunity for a hearing as provided in 2 Pa.C.S. Chs. 5 Subch. A (relating to practice and procedure of Commonwealth agencies) and 7 Subch. A (relating to judicial review of Commonwealth agency action).(b) Discontinuance of form.--If, following a hearing, the commissioner finds that a form in use should be disapproved, the commissioner shall order its use to be discontinued for any policy issued after a date specified in the order.(c) Discontinuance of rate.--If, following a hearing, the commissioner finds that a rate in use should be disapproved, the commissioner shall order its use to be discontinued prospectively for any policy issued or renewed after a date specified in the order.(d) Suspension of forms.--Pending a hearing, the commissioner may order the suspension of use of a form filed if the commissioner has reasonable cause to believe that: (1) The form is contrary to applicable law, regulation or statement of policy.(2) Unless a suspension order is issued, insureds will suffer substantial harm.(3) The harm insureds will suffer outweighs any hardship the insurer will suffer by the suspension of the use of the form.(4) The suspension order will result in no harm to the public.(e) Suspension of rates.--Pending a hearing, the commissioner may order the suspension of use of a rate filed and reinstate the last previous rate in effect if the commissioner has reasonable cause to believe that: (1) The rate is excessive, inadequate or unfairly discriminatory under section 504(b) . (2) Unless a suspension order is issued, insureds will suffer substantial harm.(3) The harm insureds will suffer outweighs any hardship the insurer will suffer by the suspension of the use of the form.(4) The suspension order will result in no harm to the public.1996, Dec. 18, P.L. 1066, No. 159, § 508, added 2011, Dec. 22, P.L. 615, No. 134, § 7.