40 Pa. Stat. § 991.1602

Current through Pa Acts 2024-53, 2024-56 through 2024-111
Section 991.1602 - Definitions

As used in this article the following words and phrases shall have the meanings given to them in this section:

"Admitted insurer." An insurer licensed to do an insurance business in this Commonwealth.

"Affiliate." With respect to an insured, any entity that controls, is controlled by or is under common control with the insured.

"Affiliated group." Any group of entities that are all affiliated.

"Business entity." A corporation, a partnership, a limited liability company, a limited liability partnership, a business trust or any other entity doing business other than as a natural person.

"Capital." The term, as used in the financial requirements of section 1605, means funds paid for stock or other evidence of ownership.

"Commissioner." The Insurance Commissioner of the Commonwealth.

"Control." An entity has control over another entity if:

(1) the entity directly or indirectly or acting through one or more other persons owns, controls or has the power to vote twenty-five per centum (25%) or more of any class of voting securities of the other entity; or
(2) the entity controls in any manner the election of a majority of the directors or trustees of the other entity.

"Department." The Insurance Department of the Commonwealth.

"Eligible surplus lines insurer." A nonadmitted insurer with which a surplus lines licensee may place surplus lines insurance under section 1604.

"Export." To place surplus lines insurance with either a nonadmitted insurer or an eligible surplus lines insurer in accordance with this article.

"Home state."

(1) Except as provided under paragraph (2), with respect to an insured:
(i) the state in which an insured maintains its principal place of business or, in the case of an individual, the individual's principal residence; or
(ii) if one hundred per centum (100%) of the insured risk is located out of the state referred to under subparagraph (i), the state to which the greatest percentage of the insured's taxable premium for that insurance contract is allocated.
(2) If more than one insured from an affiliated group are named insureds on a single nonadmitted insurance contract, the term means the home state, as determined under paragraph (1), of the member of the affiliated group that has the largest percentage of premium attributed to it under the insurance contract.
(3) This definition shall not apply to section 1615(g).

"Independently procured insurance." Any insurance directly procured by an insured from a nonadmitted insurer.

"Insurance producer." A person that is licensed to sell, solicit or negotiate contracts of insurance with admitted insurers.

"Kind of insurance." One of the types of insurance required to be reported in the annual statement which must be filed with the department by admitted insurers.

"Nonadmitted insurer." An insurer not authorized and not licensed to do an insurance business in this Commonwealth. The term includes insurance exchanges as authorized under the laws of various states. The term does not include a risk retention group.

"Person." A natural person or business entity.

"Purchasing group." An entity formed to purchase liability insurance under the Risk Retention Amendments of 1986 ( Public Law 99-563, 100 Stat. 3170).

"Risk retention group." An insurer organized to do business under the Risk Retention Amendments of 1986 ( Public Law 99-563, 100 Stat. 3170).

"State." Any state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, Guam, the Northern Mariana Islands, the Virgin Islands and American Samoa.

"Surplus." The term, as used in the financial requirements of section 1605, means funds over and above liabilities and capital of the company for the protection of its policyholders.

"Surplus lines insurance." Any insurance permitted to be placed through a surplus lines licensee with a nonadmitted insurer eligible to accept such insurance, other than reinsurance, wet marine and transportation insurance, independently procured insurance, life insurance and annuities and coverage obtained from risk retention groups under the Risk Retention Amendments of 1986 ( Public Law 99-563, 100 Stat. 3170).

"Surplus lines licensee." A person licensed as a surplus lines producer under section 1615 to place surplus lines insurance with nonadmitted insurers eligible to accept such insurance.

"Type of insurance." Coverage afforded under the particular policy that is being placed.

"Wet marine and transportation insurance." Any of the following:

(1) Insurance upon vessels, crafts or hulls and of interests therein or with relation thereto.
(2) Insurance of marine builder's risks, marine war risks and contracts of marine protection and indemnity insurance.
(3) Insurance of freights and disbursements pertaining to a subject of insurance coming within this definition.
(4) Insurance of personal property and interest therein, in the course of exportation from or importation into any country, or in the course of transportation coastwise or on inland waters, including transportation by land, water or air from point of origin to final destination, in connection with any and all risks or perils of navigation, transit or transportation, and while being prepared for and while awaiting shipment, and during any delays, transshipment or reshipment. Insurance of personal property and interests therein shall not be considered wet marine and transportation insurance if:
(i) the property has been transported solely by land;
(ii) the property has reached its final destination as specified in the bill of lading or other shipping document; or
(iii) the insured no longer has an insurable interest in the property.
(5) Any insurance associated with transportation of property listed under this definition.

"Writing producer." The insurance producer which brings about or negotiates contracts of insurance directly on behalf of the consumer seeking insurance.

40 P.S. § 991.1602

1921, May 17, P.L. 682, No. 284, art. XVI, § 1602, added 1992, Dec. 18, P.L. 1519, No. 178, § 19, effective in 120 days. Amended 2002, July 10, P.L. 749, No. 110, § 5, effective in 60 days; 2010, March 22, P.L. 147, No. 14, §3, effective in 180 days [ 9/20/2010]; 2011, June 30, P.L. 194, No. 28, § 2, imd. effective.