Section 1600.202 - Fair planThe Fair Plan shall contain provision that:
(1) Any person having an insurable interest in real or tangible personal property at a fixed location in an urban area, his representative, an insurance agent or broker, or an insurer, may request the Facility for an inspection of the property by representatives of the Inspection Bureau, such inspection to be without cost to the applicant for insurance. The request for such inspection need not be made in writing. No such risk shall be written at surcharged rates or be denied insurance coverage for basic property insurance by an insurer unless such an inspection has first been made.(2) The plan of operation of the Inspection Bureau, the manner and scope of the inspection, and the form of the inspection report, which shall include, but need not be limited to, pertinent structural and occupancy features as well as the general condition of the building and surrounding structures, shall be prescribed by the Industry Placement Facility subject to the approval of the commissioner.(3) Promptly after the request for inspection is received by the Facility, if no policy has been issued, the inspection shall be made, a written inspection report prepared, and such report filed with the insurer or insurers, if any, designated by the applicant; a copy thereof shall be made available to the applicant or to his representative upon request. If no insurer has been designated by the applicant, the Facility shall proceed as in clause (7) below.(4) After the inspection report is received by an insurer, it shall promptly determine if the risk meets reasonable underwriting standards at the applicable premium rate, including approved surcharges for physical characteristics, and shall promptly return to the Industry Placement Facility the inspection report and provide an action report setting forth:(i) the amount of coverage it agrees to write, and if the insurer agrees to write the coverage with an approved surcharge, the improvements necessary before it will provide coverage at an unsurcharged premium rate;(ii) the amount of coverage it agrees to write if certain improvements to the property specified in the action report are made; or(iii) the specific reasons for which it declines to write coverage. The inspection report and the action report shall be kept on file with the Facility. If the insurer declines the risk or agrees to write it on condition that the property be improved as specified, the insurer shall, at the time of returning the inspection and action reports to the Facility, send a copy of both reports to the applicant for insurance. The insurer shall advise the applicant at the time of sending the reports to him of his right to appeal such determination to the commissioner and shall advise the applicant of the means by which to initiate such an appeal.
The inspection bureau shall submit to the commissioner periodic reports setting forth information by individual insurers including the number of risks inspected under the plan, the number of risks accepted, the number of risks conditionally accepted and reinspections made, the number of risks declined, and such other information as the commissioner may request.
(5) All policies written pursuant to the Fair Plan shall be promptly written after inspection or reinspection and shall be separately coded so that appropriate records may be compiled for purposes of rate-making, performing loss prevention and other studies of the operation of the Fair Plan.(6) If any single insurer will underwrite only a portion of the full insurable value of the property, the Industry Placement Facility shall assist the owner and his agent or broker in obtaining the remaining coverage from other members of the Facility, except to the extent that deductibles, percentage participation clauses, and other accepted underwriting devices are needed to meet special problems of insurability.(7) If no insurer to which an inspection report has been forwarded pursuant to clause (3) above agrees promptly to provide basic property insurance for the property in question, or if no insurer has been designated by the applicant, the Facility shall take appropriate action to ascertain whether any member of the Facility will provide basic property insurance for the subject property at the applicable premium rate, including approved surcharges for physical characteristics.(8)(i) No insurer shall direct any agent or broker or other producer not to solicit business through the Fair Plan, and no agent, broker or other producer shall be penalized in any way by an insurer for submitting applications for insurance to it under the Fair Plan.(ii) Records of insurance procured under the Fair Plan shall be maintained separate from other records of an agent's or broker's business conducted with an insurer.(9) Written notice will be given to any policyholder at least twenty days prior to the cancellation or nonrenewal of any risk eligible under the Fair Plan (except in the case of nonpayment of premium or evidence of incendiarism), and the insurer shall, in the notice of cancellation or nonrenewal, explain to the policyholder the procedures for obtaining an inspection under the Plan.(10) No agent or broker shall be permitted to refuse an application for basic property insurance within an urban area if he is licensed to write and is actively engaged in writing such insurance.(11) A cooperative and continuing public education program shall be undertaken by the Pennsylvania Insurance Department, the Industry Placement Facility, and the members of the Facility to assure that the Fair Plan is given adequate publicity.1968, July 31, P.L. 738, No. 233, art. II, § 202.