P&CPennsylvaniamedium
40 P.S. § 382 enumerates the kinds of insurance that Pennsylvania insurance companies may be formed to write. The classification system primarily exists to:
ASet the maximum commission a producer may earn on every policy sold in this Commonwealth
BEstablish federal tax brackets for insurer earnings reported to the IRS
Define the kinds of insurance an insurer may write under its certificate of authority
DDetermine which insurers must join the surplus lines stamping office
Why this is the answer
40 P.S. § 382 enumerates the kinds of insurance a company may be incorporated to write: life and annuities, accident and health, fire and marine, and casualty lines such as auto, liability, fidelity, surety, and credit. An insurer's certificate of authority specifies which of these kinds it is permitted to transact. Commission limits, federal tax brackets, and stamping-office membership are governed by other regimes and statutes.
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