P&CPennsylvaniahard
Under 40 P.S. § 710-1 et seq. and Act 6, when a PA personal auto insurer proposes a rate increase exceeding statutory thresholds, what additional procedural protection applies beyond the § 1183 review?
The Commissioner may hold a public hearing and apply prior-approval review before the rate may be used
BThe filing becomes effective immediately upon submission to the department, and no public hearing or prior-approval review is required before the increased rate is applied to policyholders
CThe increase requires legislative approval by the General Assembly
DThe increase must be approved by the PCRB
Why this is the answer
While most commercial casualty filings in PA are file-and-use, private passenger auto rate filings are subject to enhanced PID oversight under 40 P.S. § 710-1 et seq. and Act 6. Filings exceeding statutory thresholds (often tied to percentage increase) are reviewed under prior approval and may require a public hearing before the rate becomes effective. The PCRB does not regulate auto rates.
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