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§ 991.2606. Exemption

Purdon's Pennsylvania Statutes and Consolidated StatutesTitle 40 P.S. InsuranceEffective: January 1, 2015

Purdon's Pennsylvania Statutes and Consolidated Statutes
Title 40 P.S. Insurance (Refs & Annos)
Chapter 2. Insurance Companies (Refs & Annos)
Article XXVI. Risk Management and Own Risk Solvency Assessment
Effective: January 1, 2015
40 P.S. § 991.2606
§ 991.2606. Exemption
Currentness
(a) General rule.--An insurer is exempt from the requirements of this article, if:
(1) the insurer has annual direct written and unaffiliated assumed premium, including international direct and assumed premium but excluding premiums reinsured with the Federal Crop Insurance Corporation and Federal Flood Program, less than $500,000,000; and
(2) the insurer is a member of an insurance group, the insurance group has annual direct written and unaffiliated assumed premium, including international direct and assumed premium but excluding premiums reinsured with the Federal Crop Insurance Corporation and Federal Flood Program, less than $1,000,000,000.
(b) Partial exemption for insurer.--If an insurer is exempt under subsection (a)(1), but the insurance group of which the insurer is a member is not exempt under subsection (a)(2), then the ORSA summary report must include every insurer within the insurance group. This requirement may be satisfied by the submission of more than one ORSA summary report for any combination of insurers if the reports include every insurer within the insurance group.
(c) Partial exemption for insurance group.--If an insurer is not exempt under subsection (a)(1), but the insurance group of which the insurer is a member is exempt under subsection (a)(2), then the insurer shall file the ORSA summary report applicable only to the insurer.
(d) Waiver.--An insurer that is not exempt under subsection (a) may apply to the commissioner for a waiver from the requirements of this article based upon unique circumstances. If the insurer is a member of an insurance group with insurers domiciled in more than one state, the commissioner shall coordinate with the lead state commissioner and with the other domiciliary commissioners in considering whether to grant the insurer's request for a waiver. In deciding whether to grant the insurer's request for a waiver, the commissioner may consider:
(1) The type and volume of business written.
(2) Ownership and organizational structure.
(3) Material reduction in risk or risk exposures.
(4) Any other factor the commissioner determines to be relevant to whether a waiver should be granted.
(e) Additional requirements.--Notwithstanding the exemptions under subsection (a):
(1) The commissioner may require that an insurer maintain a risk management framework, conduct an ORSA and file an ORSA summary report based on unique circumstances, including the type and volume of business written, ownership and organizational structure, Federal agency requests and international supervisor requests. If the commissioner requires an insurer to maintain a risk management framework, conduct an ORSA and file an ORSA summary report under this paragraph, the insurer shall have one year after receiving written notice to comply with the requirement.
(2) The commissioner may require that an insurer maintain a risk management framework, conduct an ORSA and file an ORSA summary report if the insurer:
(i) has risk-based capital for a company action level event as set forth in sections 506-A and 505-B of the act of May 17, 1921 (P.L. 789, No. 285),1 known as The Insurance Department Act of 1921;
(ii) meets one or more of the standards of an insurer deemed to be in hazardous financial condition as defined in 31 Pa. Code Pt. VIII Ch. 160 (relating to standards to define insurers deemed to be in hazardous financial condition); or
(iii) otherwise exhibits qualities of a troubled insurer as determined by the commissioner.
(3) If an insurer exempt under subsection (a) no longer qualifies for that exemption due to changes in premium as reflected in the insurer's most recent annual statement or in the most recent annual statements of the insurers within the insurance group of which the insurer is a member, the insurer shall have one year after the year the threshold is exceeded to comply with the requirements of this article.

Credits

1921, May 17, P.L. 682, No. 284, art. XXVI, § 2606, added 2013, Oct. 25, P.L. 656, No. 78, § 2, effective Jan. 1, 2015.

Footnotes

1
40 P.S. §§ 221.6-A, 221.5-B.
40 P.S. § 991.2606, PA ST 40 P.S. § 991.2606
Current through Act 10 of the 2024 Regular Session. Some statute sections may be more current, see credits for details.
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