As used in this article, the following words and phrases shall have the meanings given to them in this section:

“Association.” Individuals, partnerships or associations of individuals authorized to engage in the business of insurance on the Lloyds plan.

“Classification.” The process of grouping risks with similar risk characteristics so that differences in costs may be recognized.

“Commissioner.” The Insurance Commissioner of the Commonwealth.

“Company.” The term includes insurance companies as defined in section 101¹ and title insurance companies, whether incorporated under the laws of this Commonwealth or any other state, territory or district or under the laws of any foreign country.

“Department.” The Insurance Department of the Commonwealth.

“Exchange.” The term includes individuals, partnerships and corporations authorized to exchange with each other interinsurance or reciprocal insurance contracts.

“Expenses.” The portion of a rate attributable to acquisition, field supervision, collection expenses, general expenses, taxes, licenses and fees.

“Filing.” A form or rate filing required by section 505-A.²

“Form.” A policy, contract, certificate, evidence of coverage, application, rider or endorsement affording insurance coverage or benefit against loss.

“Insurer.” A licensed company, exchange or association as defined in section 101 or a rating organization licensed under section 512-A.³

“Joint underwriting.” A voluntary agreement established to provide insurance coverage for a risk in which two (2) or more insurers jointly contract with the insured at a price and under policy terms agreed upon by the insurers.

“Large commercial risk.” A risk of a commercial entity, that is not a personal risk, whose aggregate annual property and casualty premiums on all policies, excluding workers' compensation, total at least twenty-five thousand dollars ($25,000) or which has at least twenty-five (25) full-time employes at the time the policy is written or renewed, and for which the entity uses an employe acting as an insurance manager or buyer or a retained qualified insurance consultant or risk manager provided the insurance is procured in accordance with the laws of this Commonwealth.

“Loss adjustment expense.” The expenses incurred by the insurer in the course of settling claims.

“Marine and inland marine insurance.” Insurance defined by general custom of the business as inland marine insurance or as otherwise defined by law or ruling of the Insurance Commissioner.

“Personal risks.” Personal automobile risks as defined in the act of June 5, 1968 (P.L. 140, No. 78),⁴ entitled “An act regulating the writing, cancellation of or refusal to renew policies of automobile insurance; and imposing powers and duties on the Insurance Commissioner therefor,” and personal property risks described in the act of July 22, 1974 (P.L. 589, No. 205),⁵ known as the “Unfair Insurance Practices Act.”

“Rate.” The cost of insurance per exposure unit, whether expressed as a single number or as a prospective loss cost, with an adjustment to account for the treatment of expenses, profit and individual insurer variation in loss experience prior to any application of individual risk variations based on loss or expense considerations. The term does not include minimum premium. The term also includes supplementary rating information.

“Small commercial risks.” A risk of a commercial entity which does not qualify as a large commercial risk.

“Statistical plan.” The plan, system or arrangement used in collecting data.

“Supplementary rating information.” A manual or plan of rates, classification, rating schedule, minimum premium, policy fee, rating rule and other similar information necessary to determine an applicable rate.