P&CPennsylvaniamedium
Under 40 P.S. § 753, certain policy provisions must appear in any policy of insurance issued in Pennsylvania. The principal purpose of these statutorily required provisions is to:
AAllow the insurer maximum flexibility to draft policy language without any statutory floor of protections
BEliminate the need for any policy filings with the Department
CAuthorize the use of unfiled forms in commercial lines
Establish minimum protections for the insured that cannot be eroded by contract language
Why this is the answer
40 P.S. § 753 prescribes provisions that every policy issued in Pennsylvania must contain. The purpose is to guarantee a floor of insured protections — covering items such as entire-contract clauses, grace periods, reinstatement, time limits on certain defenses, and notice procedures — that carriers may not eliminate or weaken by drafting. Carriers retain freedom to add favorable provisions, but they may not contract around the statutory minimums. Filing requirements and form approval are separate regimes.
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