Pennsylvania Unfair Insurance Practices Act (Act of July 22, 1974, P.L. 589, No. 205), complete act (40 P.S. §§ 1171.1-1171.15)

What this document is

Pennsylvania Unfair Insurance Practices Act (Act of July 22, 1974, P.L. 589, No. 205), complete act (40 P.S. §§ 1171.1-1171.15) 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, pennsylvania personal lines 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 Unfair Insurance Practices Act, Section 5(a)(10)(xv)

  “(xv) Refusing payment of a claim solely on the basis of an insured's request to do so unless: (A) the insured claims sovereign, eleemosynary, diplomatic, military service, or other immunity from suit or liability with respect to such claim; (B) the insured is granted the right under the policy of...”

• Unfair Insurance Practices Act, Section 5(a)(1) (Unfair Methods of Competition and Unfair or Deceptive Acts or Practices Defined)

  “(1) Making, publishing, issuing or circulating any estimate, illustration, circular, statement, sales presentation, omission comparison which: (i) misrepresents the benefits, advantages, conditions or terms of any insurance policy; (ii) misrepresents the premium overcharge commonly called dividends...”

• Pennsylvania Unfair Insurance Practices Act (Act of July 22, 1974, P.L. 589, No. 205), Section 5(a)(7)(iii) (Unfair discrimination; underwriting standards and eligibility)

  “making or permitting any unfair discrimination between individuals of the same class and essentially the same hazard with regard to underwriting standards and practices or eligibility requirements by reason of race, religion, nationality or ethnic group, age, sex, family size, occupation, place of...”

• Pennsylvania Unfair Insurance Practices Act (Act of July 22, 1974, P.L. 589, No. 205), Section 5(a)(8) (Rebates and inducements not specified in the contract)

  “Except as otherwise expressly provided by law, knowingly permitting or offering to make or making any contract of insurance, or agreement as to such contract other than as plainly expressed in the insurance contract issued thereon, or paying or allowing, or giving or offering to pay, allow or give...”

• Pennsylvania Unfair Insurance Practices Act (Act of July 22, 1974, P.L. 589, No. 205), Section 5(a)(10)(x) (Unfair claim settlement practices; payments without a coverage statement)

  “Making claims payments to insureds or beneficiaries not accompanied by a statement setting forth the coverage under which payments are being made.”

• Pennsylvania Unfair Insurance Practices Act (Act of July 22, 1974, P.L. 589, No. 205), Section 11(2) (Civil Penalties; unknowing violation)

  “In addition to any penalties imposed pursuant to this act, the court may, in an action filed by the commissioner, impose the following civil penalties: (1) for each method of competition, act or practice defined in section 5 of this act and in violation of this act which the person knew or...”

• Pennsylvania Unfair Insurance Practices Act (Act of July 22, 1974, P.L. 589, No. 205), Section 9 (Administrative Penalty)

  “Section 9. Administrative Penalty.--Upon a determination by hearing that this act has been violated, the commissioner may issue an order requiring the person to cease and desist from engaging in such violation or, if such violation is a method of competition, act or practice defined in section 5 of...”

• Pennsylvania Unfair Insurance Practices Act (Act of July 22, 1974, P.L. 589, No. 205), Section 5(a)(3) (Unfair or deceptive acts; false or derogatory statements about financial condition)

  “(3) Making, issuing, publishing or circulating any oral or written statement which is false or maliciously critical of or derogatory to the financial condition of any person, and which is calculated to injure such person.”

• Pennsylvania Unfair Insurance Practices Act (Act of July 22, 1974, P.L. 589, No. 205), Section 5(a)(10) (Unfair claim settlement practices; business-practice frequency)

  “(10) Any of the following acts if committed or performed with such frequency as to indicate a business practice shall constitute unfair claim settlement or compromise practices:”

• Pennsylvania Unfair Insurance Practices Act (Act of July 22, 1974, P.L. 589, No. 205), Section 11(1) (Civil Penalties; knowing violation)

  “(1) for each method of competition, act or practice defined in section 5 of this act and in violation of this act which the person knew or reasonably should have known was such a violation, a penalty of not more than five thousand dollars ($5,000) for each violation but not to exceed an aggregate...”

• Pennsylvania Unfair Insurance Practices Act (Act of July 22, 1974, P.L. 589, No. 205), Section 5(a)(4) (Unfair methods of competition; boycott, coercion or intimidation)

  “(4) Entering into any agreement to commit, or by any concerted action committing, any act of boycott, coercion or intimidation resulting in or tending to result in unreasonable restraint of, or monopoly in, the business of insurance.”

• Pennsylvania Unfair Insurance Practices Act (Act of July 22, 1974, P.L. 589, No. 205), Section 5(c)(3) (Cancellation of residential property policies; policies in effect less than sixty days)

  “(3) To any policy of insurance which has been in effect less than sixty days, including any notice of termination period, unless it is a renewal policy.”

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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
• 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)State statute