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§ 991.1610. Exempt risks

Purdon's Pennsylvania Statutes and Consolidated StatutesTitle 40 P.S. InsuranceEffective: June 30, 2011

Purdon's Pennsylvania Statutes and Consolidated Statutes
Title 40 P.S. Insurance (Refs & Annos)
Chapter 2. Insurance Companies (Refs & Annos)
Article XVI. Surplus Lines (Refs & Annos)
Effective: June 30, 2011
40 P.S. § 991.1610
§ 991.1610. Exempt risks
Currentness
(a) Deleted by 2011, June 30, P.L. 194, No. 28, § 3, imd. effective.
(a.1) The diligent search requirements of section 1604(2),1 the reporting requirements of section 1609(a)2 and the twenty-five per centum (25%) limitation of section 16063 shall not apply to placements of insurance with nonadmitted insurers for an exempt commercial purchaser if:
(1) the surplus lines licensee procuring or placing the surplus lines insurance has disclosed to the exempt commercial purchaser that the insurance may be available from the admitted market that may provide greater protection with more regulatory oversight; and
(2) the exempt commercial purchaser has subsequently requested in writing the surplus lines licensee to procure or place the insurance from a nonadmitted insurer.
(b)(1) The diligent search requirement of section 1604(2) and the reporting requirements of section 1609(a) are not applicable to placements of insurance with eligible surplus lines insurers for:
(i) Risks of members of a purchasing group established under the Risk Retention Amendments of 1986 (Public Law 99-563, 100 Stat. 3170) if all of the insured members of the purchasing group are covered under its group policy or if the members are additional named insureds under the group's policy.
(ii) Risks of members of a risk retention group established under the Risk Retention Amendments of 1986.
(2) Within forty-five (45) days after insurance has been placed with an eligible surplus lines insurer for members of a purchasing group or risk retention groups by a surplus lines licensee, the licensee shall file with the department his written declaration, reporting the transaction on a form prescribed by the department.
(c) The following words and phrases when used in this section shall have the meanings given to them in this subsection unless the context clearly indicates otherwise:
“Exempt commercial purchaser.” Any person purchasing commercial insurance that, at the time of placement, meets the following requirements:
(1) The person employs or retains a qualified risk manager to negotiate insurance coverage.
(2) The person has paid aggregate nationwide commercial property and casualty insurance premiums in excess of one hundred thousand ($100,000) dollars in the immediately preceding twelve (12) months.
(3)(i) The person meets at least one of the following criteria:
(A) The person possesses a net worth in excess of twenty million ($20,000,000) dollars, as adjusted under subparagraph (ii).
(B) The person generates annual revenues in excess of fifty million ($50,000,000) dollars, as adjusted under subparagraph (ii).
(C) The person employs more than five hundred (500) full-time or full-time equivalent employees per individual insured or is a member of an affiliated group employing more than one thousand (1,000) employees in the aggregate.
(D) The person is a not-for-profit organization or public entity generating annual budgeted expenditures of at least thirty million ($30,000,000) dollars, as adjusted under subparagraph (ii).
(E) The person is a municipality with a population in excess of fifty thousand (50,000) persons.
(ii) Beginning January 1, 2015 and every five (5) years thereafter, the amounts under clauses (A), (B) and (D) shall be adjusted to reflect the percentage change for the five-year (5) period in the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics of the Department of Labor and Industry.
“Qualified risk manager.” With respect to a policyholder of commercial insurance, a person who meets all of the following requirements:
(1) The person is an employee of or third-party consultant retained by the commercial policyholder.
(2) The person provides skilled services in loss prevention, loss reduction or risk and insurance coverage analysis and purchase of insurance.
(3) The person:
(i)(A) has a bachelor's degree or higher from an accredited college or university in risk management, business administration, finance, economics or any other field determined by the commissioner to demonstrate minimum competence in risk management; and
(B)(I) has three (3) years of experience in risk financing, claims administration, loss prevention, risk and insurance analysis or purchasing commercial lines of insurance; or
(II) has:
(a) a designation as a Chartered Property and Casualty Underwriter issued by the American Institute for Chartered Property and Casualty Underwriter and Insurance Institute of America;
(b) a designation as an Associate in Risk Management issued by the American Institute for Chartered Property and Casualty Underwriter and Insurance Institute of America;
(c) a designation as Certified Risk Manager issued by the National Alliance for Insurance Education & Research;
(d) a designation as a RIMS Fellow issued by the Global Risk Management Institute; or
(e) any other designation, certification or license determined by the commissioner to demonstrate minimum competency in risk management;
(ii)(A) has at least seven (7) years of experience in risk financing, claims administration, loss prevention, risk and insurance coverage analysis or purchasing commercial lines of insurance; and
(B) has any one of the designations specified under clauses (a), (b), (c), (d) and (e);
(iii) has at least ten (10) years of experience in risk financing, claims administration, loss prevention, risk and insurance coverage analysis or purchasing commercial lines of insurance; or
(iv) has a graduate degree from an accredited college or university in risk management, business administration, finance, economics or any other field determined by the commissioner to demonstrate minimum competence in risk management.

Credits

1921, May 17, P.L. 682, No. 284, art. XVI, § 1610, added 1992, Dec. 18, P.L. 1519, No. 178, § 19, effective in 120 days. Amended 2011, June 30, P.L. 194, No. 28, § 3, imd. effective.

Footnotes

1
40 P.S. § 991.1604(2).
2
40 P.S. § 991.1609(a).
3
40 P.S. § 991.1606.
40 P.S. § 991.1610, PA ST 40 P.S. § 991.1610
Current through Act 10 of the 2024 Regular Session. Some statute sections may be more current, see credits for details.
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