P&CPennsylvaniamedium
If the Pennsylvania Insurance Commissioner finds that an insurer's filed rate violates 40 P.S. § 1183, what action may the Commissioner take?
AImmediately revoke the insurer's certificate of authority without any prior hearing
BRefer the matter exclusively to the Attorney General for criminal prosecution
COrder all PA insurers to adopt a uniform rate
Issue an order disapproving the rate after notice and an opportunity for a hearing
Why this is the answer
Under the Casualty and Surety Rate Regulatory Act and PA administrative procedure (2 Pa.C.S. § 504), the Insurance Commissioner who finds a rate excessive, inadequate, or unfairly discriminatory issues a disapproval order after notice and an opportunity for hearing. The insurer may appeal to the Commonwealth Court. Revocation of authority and criminal prosecution are not the rate-regulatory remedies.
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