Key Takeaways
- The Pennsylvania Insurance Department regulates all P&C insurance activities under Title 40 of the Pennsylvania Consolidated Statutes
- The Insurance Commissioner is appointed by the Governor and confirmed by the State Senate
- Pennsylvania uses a prior approval system for most P&C insurance rates
- The Department handles licensing, rate review, market conduct examinations, and consumer complaints
- Pennsylvania requires background checks for all insurance license applicants
Pennsylvania Insurance Department
Important: This study guide covers Pennsylvania state-specific Property & Casualty insurance content only. You should complete the national Property & Casualty exam preparation first, as it covers the foundational insurance concepts tested on your exam.
The Pennsylvania Insurance Department is the state agency responsible for regulating the Property & Casualty insurance industry in Pennsylvania. Unlike some states with elected commissioners, Pennsylvania's Insurance Commissioner is appointed.
The Insurance Commissioner
The Insurance Commissioner is:
- Appointed by the Governor
- Confirmed by the State Senate
- Responsible for enforcing Title 40 of the Pennsylvania Consolidated Statutes
- Authorized to adopt regulations, review rates, investigate violations, and discipline licensees
Commissioner Powers for P&C Insurance
| Power | Description |
|---|---|
| Licensing | Issue, suspend, and revoke producer licenses |
| Rate Review | Approve or disapprove P&C insurance rates |
| Market Conduct | Examine insurer business practices |
| Enforcement | Investigate and prosecute violations |
| Consumer Protection | Handle complaints and protect policyholders |
| Rulemaking | Adopt regulations interpreting insurance law |
Pennsylvania Insurance Law
Pennsylvania insurance is governed primarily by:
Title 40 - Insurance
- Contains the Insurance Company Law of 1921
- Insurance Department Act
- Producer licensing requirements
- Unfair trade practices act
- Claims handling regulations
Regulatory Philosophy
Pennsylvania uses a combination of regulatory approaches:
| Line of Insurance | Rate Regulation |
|---|---|
| Personal Auto | Prior approval |
| Homeowners | Prior approval |
| Workers' Compensation | Rate filed with PA Rating Bureau |
| Commercial Lines | Varies by line |
Exam Tip: Remember that Pennsylvania's Insurance Commissioner is appointed by the Governor and confirmed by the State Senate—not elected like in some other states.
Department Organization
The Pennsylvania Insurance Department operates through several bureaus:
- Bureau of Licensing and Compliance - Handles producer licensing
- Bureau of Market Conduct - Examines insurer practices
- Bureau of Consumer Services - Handles complaints
- Bureau of Property and Casualty - Reviews P&C rates and forms
- Office of Corporate and Financial Regulation - Monitors insurer solvency
How is the Pennsylvania Insurance Commissioner selected?
Which statute contains the primary Pennsylvania insurance laws?