1799.3 - Limit on cancellations, refusals to renew, refusals to write, surcharges, rate penalties and point assignments.

     § 1799.3.  Limit on cancellations, refusals to renew, refusals                to write, surcharges, rate penalties and point                assignments.        (a)  Damage claims.--No insurer shall cancel or refuse to     renew a policy or apply any surcharge, rate penalty or driver     record point assignment where, during the preceding three-year     period, the aggregate cost to the insurer for any person injured     or property damaged is determined to be less than $650 in excess     of any self-insured retention or deductible applicable to the     named insured.        (b)  Reimbursements.--A surcharge, rate penalty or driver     record point assignment shall not be made if the insurer is     reimbursed by or on behalf of the named insured or other     resident operator for at least 60% of the total amount of the     paid claim received through subrogation or from a settlement or     judgment against the individual responsible for the accident.        (c)  First party medical claims.--No surcharge, rate penalty     or driver record point assignment shall be made as a result of     an insurer paying a first party medical claim.        (d)  Notice to insured.--If an insurer makes a determination     to impose a surcharge, rate penalty or driver record point     assignment, the insurer shall inform the named insured of the     determination and shall specify the manner in which the     surcharge, rate penalty or driver record point assignment was     made and clearly identify the amount of the surcharge or rate     penalty on the premium notice for as long as the surcharge or     rate penalty is in effect.        (e)  Adjustment of cap.--The Insurance Department, at least     once every three years, shall adjust the $650 cap or limit     relative to changes in the components of the Consumer Price     Index (Urban) to measure seasonally adjusted changes in medical     care and automobile maintenance and repair costs and shall make     such adjustments to the cap or limit as shall be necessary to     maintain the same rate of change in the cap or limit as has     occurred in the Consumer Price Index (Urban). Such adjustments     may be rounded off to the nearest $50 figure.        (f)  Notice of refusal to write.--If requested by the     applicant, an agent for an insurer shall submit an application     for automobile insurance to the insurer or provide the applicant     written notice of the reasons for refusal to write on a form     supplied by the insurer and approved by the commissioner. An     applicant receiving a notice of reasons under this subsection     may obtain review by the commissioner pursuant to the Automobile     Insurance Policy Act. If either the applicant or insurer is     aggrieved by the commissioner's review, the commissioner may, in     his discretion and for cause shown, hold a hearing pursuant to     the Automobile Insurance Policy Act. No insurer shall take any     action, overt or otherwise, against any agent or broker for     complying with this subsection.        (g)  Conflict with other law.--The limitations imposed on     cancellations, refusals to renew, surcharges, rate penalties and     point assignments by this section shall be in addition to any     other limitations imposed by other laws. Where any conflict     exists between this section and the provisions of any other law,     this section shall be applied so as to supersede such other laws     to the extent of the conflict.     (Feb. 7, 1990, P.L.11, No.6, eff. July 1, 1990)        1990 Amendment.  Act 6 added section 1799.3.        References in Text.  The act of June 5, 1968 (P.L.140,     No.78), referred to as the Automobile Insurance Policy Act,     referred to in subsec. (f), was repealed by the act of June 17,     1998 (P.L.464, No.68). The subject matter is now contained in     Article XX of the act of May 17, 1921 (P.L.682, No.284), known     as The Insurance Company Law of 1921.        Cross References.  Section 1799.3 is referred to in section     1702 of this title.