Pennsylvania Property and Casualty Insurance

What this document is

Pennsylvania Property and Casualty Insurance - increase in premium, midterm cancellation and nonrenewal of COMMERCIAL policies (Act of July 3, 1986, P.L. 396, No. 86), complete act (40 P.S. §§ 3401-3409) is a state statute published by Pennsylvania General Assembly, Legislative Data Processing Center (legis.state.pa.us / palegis.us). It is one of the Pennsylvania documents that insurance license exam questions are written from, including pennsylvania property & casualty practice questions. This page summarizes it and points to the official version, which is the text to rely on.

Sections cited in practice questions

Each practice answer shows the exact passage it comes from. These are sections of this document that questions cite, with a short excerpt from the source text.

• Pennsylvania Commercial Property and Casualty Cancellation Act (Act of July 3, 1986, P.L. 396, No. 86), Section 3(b) (Effective notice)

  “Until an insurer issues a nonrenewal or cancellation notice that complies with the provisions set forth in this act, insurance coverage will remain in effect. However, if the insured obtains replacement coverage, the noncomplying insurer's obligation to continue coverage ceases.”

• Pennsylvania Commercial Property and Casualty Cancellation Act (Act of July 3, 1986, P.L. 396, No. 86), Section 5 (Extended reporting endorsement)

  “Insurers must provide a 60-day period, after cancellation or nonrenewal of a claims-made policy is effective, during which time the insured may purchase an extended reporting coverage endorsement, also referred to as tail coverage.”

• Pennsylvania Commercial Property and Casualty Cancellation Act (Act of July 3, 1986, P.L. 396, No. 86), Section 4(b) (Cancellation initiated by insured)

  “Unearned premium must be returned to the insured not later than 30 days after the effective date of termination where commercial property or casualty risks are canceled in midterm by the insured.”

• Pennsylvania Commercial Property and Casualty Cancellation Act (Act of July 3, 1986, P.L. 396, No. 86), Section 3(a)(3)(ii) (Notice requirements; cancellation for nonpayment of premium)

  “The insured has failed to pay a premium when due, whether the premium is payable directly to the company or its agents or indirectly under a premium finance plan or extension of credit, in which case the prescribed written notice of cancellation shall be forwarded directly to the named insured at...”

• Pennsylvania Commercial Property and Casualty Cancellation Act (Act of July 3, 1986, P.L. 396, No. 86), Section 3(a)(7) (Notice requirements; request for loss information)

  “(7) The insured's written request for loss information must be made within ten days of the insured's receipt of the midterm cancellation or nonrenewal notice. The insurer shall have 30 days from the date of receipt of the insured's written request to provide the requested information.”

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Questions about this source

More Pennsylvania sources

• 18 Pa.C.S. Chapter 41 - Forgery and Fraudulent Practices (§§ 4101 through 4121, 26 sections), including § 4117 Insurance fraudState statute
• 75 Pa.C.S. Chapter 17 - Financial Responsibility, the Pennsylvania Motor Vehicle Financial Responsibility Law (§§ 1701 through 1799.7, 75 sections)State statute
• The Casualty and Surety Rate Regulatory Act (Act of June 11, 1947, P.L. 538, No. 246), complete act (40 P.S. §§ 1181-1199)State statute
• 31 Pa. Code Chapter 113 - Miscellaneous Provisions, including Subchapter G, Increase in Premium and Midterm Cancellation or Nonrenewal of COMMERCIAL Property and Casualty Policies (complete chapter, §§ 113.51 through 113.88)Regulation
• 31 Pa. Code Chapter 145 - Elimination of Unfair Sex or Marital Status Discrimination in All Insurance Contracts (complete chapter, 5 sections, §§ 145.1 through 145.5)Regulation
• 31 Pa. Code Chapter 51 - Advertising of Insurance, General Provisions (complete chapter, 28 sections, §§ 51.1 through 51.61)Regulation
• 31 Pa. Code Chapter 59 - Cancellation and Refusal to Renew of Personal Residential Property and Personal Property Insurance (complete chapter, 14 sections, §§ 59.1 through 59.13)Regulation
• The Pennsylvania FAIR Plan Act (Act of July 31, 1968, P.L. 738, No. 233), complete act (40 P.S. §§ 1600.101-1600.103 and following)State statute