Pa. Department Concludes Market Conduct Examination

Pennsylvania Insurance Commissioner Diane Koken, in her capacity as the state regulator for the industry, released the results of the Private Passenger Automobile Underwriting Guidelines review conducted by the Department’s Market Conduct Division.

“On August 16, 2002, the Market Conduct Division began an industry-wide review of private passenger automobile underwriting guidelines in place for Pennsylvania business during the first six months of 2002,” Koken said. “The underwriting guidelines were reviewed primarily for compliance with specific underwriting criteria which may not be used to cancel or refuse to write or renew a policy of automobile insurance.”

Companies identified with prohibited criteria in their underwriting guidelines were issued a consent order. The consent orders identify the prohibited criteria and require the company to cease and desist from engaging in the activities, revise and reissue their underwriting guidelines within 30 days of the date of the order, and pay a monetary penalty. Penalty assessments vary by the nature, type and specificity of the prohibited criteria identified in the company’s underwriting guidelines.

A brief summary of the actions that were concluded during the month of April, include:

Date/Company/Penalty
4/24 Providence Washington Insurance Company, Providence, R.I. $ 2,500
4/24 Providence Washington Insurance Company of New York $10,000
4/24 Motorists Mutual Insurance Company, Columbus, Ohio $5,000
4/24 Dairyland Insurance Company, Stevens Point, Wis. $5,000
4/24 Lebanon Mutual Insurance Company, Cleona, Pa. $5,000
4/24 Agway Insurance Company, Dewitt, N.Y. $10,000
4/24 EMCASCO/Employers Mutual Casualty Company, Pottstown $15,000
4/24 Goodville Mutual Casualty Company, New Holland, Pa. $ 7,500
4/24 Safe Auto Insurance Company, Columbus, Ohio $10,000
4/24 National Grange Mutual/Main Street America Assurance Co
Keene, N.H. $20,000
4/28 United Farm Family Insurance Company, Glenmont, N.Y. $17,500
4/28 Mutual Benefit Insurance Company, Huntingdon $7,500
4/28 American National General Insurance Company, Springfield, Mo. $10,000
4/28 American National Property and Casualty Insurance Co.,
Springfield, Mo. $10,000