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Pennsylvania Statutes Title 40 P.S. Insurance § 1600.203. Distribution of risks

Current as of January 01, 2025 | Updated by Findlaw Staff

(a) The Facility shall have the power, on behalf of its members--

(1) to direct one or more of its members to issue policies of basic property insurance to applicants;

(2) to assume reinsurance from its members; and

(3) to cede reinsurance.

(b) Any member of the Facility may cede to the Facility basic property insurance covering property in urban areas, to the extent and on the terms and conditions set forth in the plan of operation of the Facility.

(c) If the Facility has been unable to obtain basic property insurance for any property through the voluntary action of its members pursuant to section 202 above,  1 it shall promptly determine:

(1) whether the property is insurable (environmental hazard, being any hazardous condition that might give rise to loss under an insurance contract but which is beyond the control of the property owners, shall not be considered by the Facility in determining insurable condition); and

(2) whether there is any unpaid premium due from the applicant for prior insurance on the property.

If the Facility determines that the property is insurable and that no such unpaid premium is due, it shall promptly cause one or more of its members to issue a policy or policies of basic property insurance at the applicable premium rate, including approved surcharges for physical characteristics, in the full insurable value of the property, for a term of one year, subject to total reinsurance of such risk by the Facility.

1 40 P.S. § 1600.202.
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Cite this article: FindLaw.com - Pennsylvania Statutes Title 40 P.S. Insurance § 1600.203. Distribution of risks - last updated January 01, 2025 | https://codes.findlaw.com/pa/title-40-ps-insurance/pa-st-sect-40-1600-203/

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