§ 1799.7. Rates.
(a) Rate filing.--All insurers and the Assigned Risk Plan must file for new private passenger motor
vehicle rates on or before May 1, 1990. These rates shall apply to all policies issued
or renewed on and after July 1, 1990.
(b) Rate reductions.--The rates charged by insurers under the filing required by subsection (a) shall be
reduced from current rates as follows:
(1) For an insured electing the limited tort option under section 1705 (relating to election
of tort options), the total premium charged for any selection of coverages and coverage
limits shall be reduced by at least 22% from the total premium for the same selection
of coverages and coverage limits in effect on December 1, 1989.
(2) For an insured bound by the full tort option under section 1705, the total premium
charged for any selection of coverages and coverage limits shall be reduced by at
least 10% from the total premium for the same selection of coverages and coverage
limits in effect on December 1, 1989.
(3) An insurer aggrieved by the rate reductions mandated by this subsection may seek relief
from the commissioner, which relief may be granted when the commissioner deems necessary
in extraordinary circumstances.
(c) Approval and disapproval of certain filings.--Any initial filing submitted by an insurer pursuant to subsection (a), which reduces
rates for all insureds from rates in effect December 1, 1989, in amounts specified
in subsection (b), shall become effective immediately for policies issued or renewed
on and after July 1, 1990, upon receipt by the department and shall be deemed to comply
with the act of June 11, 1947 (P.L.538, No.246), known as The Casualty and Surety
Rate Regulatory Act, and with Chapter 20 (relating to motor vehicle insurance rate
review procedures). Any filing so deemed may subsequently be disapproved, effective
upon seven days' written notice by the commissioner stating in what respect the filing
or part thereof fails to meet the requirements of this chapter or other applicable
law. If a deemed filing is so disapproved within 90 days after receipt by the commissioner,
the commissioner may order the insurer to pay refunds to all insureds charged inappropriate
rates under the filing. The ability to order refunds shall be in addition to other
penalties authorized by law.
(d) Immediate rate freeze.--In order to provide stability during the period of transition leading up to the effective
date of the amendments to this chapter and to assure fair and equitable treatment
of insurers and insureds, it is in the best interest of the Commonwealth to temporarily
suspend the adoption of new private passenger motor vehicle rates. Notwithstanding
any provisions of law to the contrary, all private passenger motor vehicle rates in
effect on December 1, 1989, may not be changed so as to be effective prior to July
1, 1990. Any rate requests filed with the commissioner to be effective on or after
December 1, 1989, whether or not such requests were approved by the commissioner or
by operation of law prior to, on or after December 1, 1989, are hereby disapproved
as being in conflict with this chapter.
(e) Rate freeze after implementation of tort option elections.--No insurer nor the Assigned Risk Plan may increase any private passenger motor vehicle
rates between July 1, 1990, and June 30, 1991.
(f) Rate increase justification.--All rates charged by an insurer during the period between July 1, 1991, and June 30,
1992, may not be increased over the rates in effect pursuant to subsections (b) and
(e) by an amount greater than that indicated by an increase in the Consumer Price
Index (URBAN), the cost of medical care services, the cost of automobile repairs or
other indices of cost increases affecting automobile insurance adopted by the commissioner
by publication of notice in the Pennsylvania Bulletin.
(g) Calculation of rates.--In all rate filings subsequent to the initial filing required by subsection (a), insurers
shall allocate expenses, losses and income according to the coverages which generate
such expenses, losses and income, provided that each insurer shall provide its limited
tort electors with premium savings that equal, in the aggregate, reductions in the
insurer's losses created by limited tort electors under the system of tort options
established in section 1705.
(h) Coverage reductions.--Insurers shall reduce the premium for insureds who elect to reduce or eliminate first
party benefits, uninsured or underinsured motorist coverage required prior to the
effective date of this section by the cost of such coverage.
(Feb. 7, 1990, P.L.11, No.6, eff. 60 days)
1990 Amendment. Act 6 added section 1799.7.
Notes of Decisions
Cited in
8
cases, 1990–1998 · leading case:
Donnelly v. Bauer, 720 A.2d 447 (Pa. 1998).
Donnelly v. Bauer, 720 A.2d 447 (Pa. 1998).
· cites it 2× “75 Pa.C.S. § 1799.7(b)(1) & (2). When enacting this plan to provide rate reductions, the General Assembly provided mechanisms by which consumers were to be alerted of their available options.”
Ohio Cas. Ins. v. Ins. Dep't of Commonwealth, 585 A.2d 1160 (Pa. Commw. Ct. 1991).
· cites it 4× “7 of the Motor Vehicle Financial Responsibility Law (Law), 75 Pa. C.S. § 1799.7. Section 1799.7 was added to the Law by Section 19 of the Act of February 7, 1990, P.”
Prudential Prop. & Cas. Ins. v. Dep't of Ins., 595 A.2d 649 (Pa. Commw. Ct. 1991).
“Prudential filed its request for relief pursuant to 75 Pa.C.S. § 1799.7(b)(3), which provides that an insurer aggrieved by the rate rollbacks mandated by Act 6 may seek relief from the Commissioner who is empowered to grant relief if he or she deems the same necessary in…”
Liberty Mut. Fire Ins. v. Commonwealth, 597 A.2d 235 (Pa. Commw. Ct. 1991).
· cites it 8× “75 Pa.C.S. § 1799.7(a). These new rates must be reduced from current rates by at least 22% for insureds electing a limited tort option and 10% for insureds electing a full tort option.”
Fed. Kemper Ins. v. Ins. Dep't of the Commonwealth, 600 A.2d 244 (Pa. Commw. Ct. 1991).
· cites it 2× “See 75 Pa.C.S. § 1799.7. Further, the Rate Act does not mandate a contingency provision, but provides only that “due consideration shall be given to .”
Nationwide Mut. Ins. v. Ins. Dep't, 582 A.2d 93 (Pa. Commw. Ct. 1990).
“…of law prior to, on or after December 1, 1989, are hereby disapproved as being in conflict with this chapter. 75 Pa.C.S. § 1799.7(d).”
Nationwide Mut. Ins. v. Ins. Dep't of the Commonwealth, 583 A.2d 507 (Pa. Commw. Ct. 1990).
“The department relies on the language of section 7(d) of Act 6, 75 Pa.C.S. § 1799.7(d) 6 . However, we recently held this section unconstitutional in State Farm Mutual Automobile Insurance Co.”
— 75 Pa. Cons. Stat. § 1799.7(a) — 1 case
Liberty Mut. Fire Ins. v. Commonwealth, 597 A.2d 235 (Pa. Commw. Ct. 1991).
“75 Pa.C.S. § 1799.7(a). These new rates must be reduced from current rates by at least 22% for insureds electing a limited tort option and 10% for insureds electing a full tort option.”
— 75 Pa. Cons. Stat. § 1799.7(b) — 1 case
Liberty Mut. Fire Ins. v. Commonwealth, 597 A.2d 235 (Pa. Commw. Ct. 1991).
“75 Pa.C.S. § 1799.7(a). These new rates must be reduced from current rates by at least 22% for insureds electing a limited tort option and 10% for insureds electing a full tort option.”
— 75 Pa. Cons. Stat. § 1799.7(b)(1) — 2 cases
Donnelly v. Bauer, 720 A.2d 447 (Pa. 1998).
“75 Pa.C.S. § 1799.7(b)(1) & (2). When enacting this plan to provide rate reductions, the General Assembly provided mechanisms by which consumers were to be alerted of their available options.”
Ohio Cas. Ins. v. Ins. Dep't of Commonwealth, 585 A.2d 1160 (Pa. Commw. Ct. 1991).
“7 of the Motor Vehicle Financial Responsibility Law (Law), 75 Pa. C.S. § 1799.7. Section 1799.7 was added to the Law by Section 19 of the Act of February 7, 1990, P.”
— 75 Pa. Cons. Stat. § 1799.7(b)(3) — 4 cases
Prudential Prop. & Cas. Ins. v. Dep't of Ins., 595 A.2d 649 (Pa. Commw. Ct. 1991).
“Prudential filed its request for relief pursuant to 75 Pa.C.S. § 1799.7(b)(3), which provides that an insurer aggrieved by the rate rollbacks mandated by Act 6 may seek relief from the Commissioner who is empowered to grant relief if he or she deems the same necessary in…”
Ohio Cas. Ins. v. Ins. Dep't of Commonwealth, 585 A.2d 1160 (Pa. Commw. Ct. 1991).
“7 of the Motor Vehicle Financial Responsibility Law (Law), 75 Pa. C.S. § 1799.7. Section 1799.7 was added to the Law by Section 19 of the Act of February 7, 1990, P.”
Liberty Mut. Fire Ins. v. Commonwealth, 597 A.2d 235 (Pa. Commw. Ct. 1991).
“75 Pa.C.S. § 1799.7(a). These new rates must be reduced from current rates by at least 22% for insureds electing a limited tort option and 10% for insureds electing a full tort option.”
— 75 Pa. Cons. Stat. § 1799.7(c) — 1 case
Liberty Mut. Fire Ins. v. Commonwealth, 597 A.2d 235 (Pa. Commw. Ct. 1991).
“75 Pa.C.S. § 1799.7(a). These new rates must be reduced from current rates by at least 22% for insureds electing a limited tort option and 10% for insureds electing a full tort option.”
— 75 Pa. Cons. Stat. § 1799.7(d) — 3 cases
Nationwide Mut. Ins. v. Ins. Dep't, 582 A.2d 93 (Pa. Commw. Ct. 1990).
“…of law prior to, on or after December 1, 1989, are hereby disapproved as being in conflict with this chapter. 75 Pa.C.S. § 1799.7(d).”
Nationwide Mut. Ins. v. Ins. Dep't of the Commonwealth, 583 A.2d 507 (Pa. Commw. Ct. 1990).
“The department relies on the language of section 7(d) of Act 6, 75 Pa.C.S. § 1799.7(d) 6 . However, we recently held this section unconstitutional in State Farm Mutual Automobile Insurance Co.”
— 75 Pa. Cons. Stat. § 1799.7(e) — 1 case
Liberty Mut. Fire Ins. v. Commonwealth, 597 A.2d 235 (Pa. Commw. Ct. 1991).
“75 Pa.C.S. § 1799.7(a). These new rates must be reduced from current rates by at least 22% for insureds electing a limited tort option and 10% for insureds electing a full tort option.”
— 75 Pa. Cons. Stat. § 1799.7(f) — 1 case
Liberty Mut. Fire Ins. v. Commonwealth, 597 A.2d 235 (Pa. Commw. Ct. 1991).
“75 Pa.C.S. § 1799.7(a). These new rates must be reduced from current rates by at least 22% for insureds electing a limited tort option and 10% for insureds electing a full tort option.”
Annotations are extracted automatically from the opinions in the
Syfert caselaw corpus and ranked by authority, recency, and
treatment. Dots show Syfertize treatment of the citing case itself.