§ 113.81. Definitions.

 The following words and terms, when used in this subchapter, have the following meanings unless the context clearly indicates otherwise:

   Act—The act of July 3, 1986 (P. L. 396, No. 86) (40 P. S. § §  3401—3409).

   Affiliated insurer—An insurer who, directly or indirectly, through one or more intermediaries, controls, or is controlled by, or is under common control with another insurer.

   Agent—An individual, partnership or corporation, licensed by the Department, who contracts with an insurer to sell insurance on behalf of the insurer. With respect to policies of insurance covering commercial property and casualty risks issued by eligible surplus lines insurers, the term means a surplus lines licensee as defined in section 1602 of The Insurance Company Law of 1921 (40 P. S. §  991.1602).

   Commercial property and casualty risk insurance—Insurance within the scope of this chapter which is not personal risk insurance. The term includes insurance issued for commercial auto, farmowner’s, business, professional or other commercial risks, such as businessowner’s and commercial multiperil policies, aviation, credit, mortgage guaranty, and worker’s compensation risks, except title insurance, fidelity and surety bonds, ocean marine risks, and workers compensation insurance covering employes subject to the Jones Act (40 U.S.C.A. § §  731, 733a, 734, 737, 741a, 742, 745, 747—749, 751, 752, 863—865, 868, 870—872, 874 and 891—893), and Federal employes.

   Insurer—An insurer authorized by the Department to transact business in this Commonwealth or designated as an eligible surplus lines insurer as defined in section 1602 of The Insurance Company Law of 1921.

   Named insured—The insureds named on the declaration page of the insurance policy.

   Nonrenewal—The failure by an insurer to issue and deliver a policy superseding at the end of the policy period one previously issued and delivered by the same insurer or affiliated insurer, where the renewal policy provides types and limits of coverage substantially equivalent to those contained in the policy being superseded. The term also includes the failure to issue and deliver a certificate or notice extending the term of a policy beyond its policy period or term with types and limits of coverage substantially equivalent to those contained in the policy being extended. The term does not include coverage provided under a policy of insurance that is renewed by the insurer under a new policy form approved by the Department if an appropriate disclosure notice is forwarded to the first named insured.

   Personal risk insurance—Property or casualty insurance issued for personal, family or household purposes. Examples of policies of insurance issued for personal, family or household purposes are:

     (i)   Policies used solely to provide homeowner’s insurance, dwelling fire insurance on one to four family units if owner-occupied, or individual fire insurance on dwelling contents.

     (ii)   Policies principally used to provide primary insurance on private passenger automobiles which are individually owned and used for personal or family needs.

     (iii)   Policies of personal inland marine, personal theft, residence glass, personal liability insurance and personal excess.

     (iv)   Policies on pleasure watercraft which are used for personal, or family needs.

   Policy of insurance—A policy, certificate or binder issued or delivered in this Commonwealth by an insurer or agent covering commercial property or casualty risks. A policy with a policy period or term of less than 12 months or a policy period with no fixed expiration date is considered as written for successive policy periods of 12 months.


   The provisions of this §  113.81 amended March 27, 1998, effective March 28, 1998, 28 Pa.B. 1518. Immediately preceding text appears at serial pages (231811) to (231812).

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