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87 40 pa. cons. stat. § 991.1803(a)

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  • 7/30/2019 87 40 PA. CONS. STAT. 991.1803(a)

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    991.1803.Pennsylvaniapropertyandcasualtyinsuranceguarantyassociation(a)EveryinsurershallparticipateinthePennsylvaniaPropertyandCasualtyInsuranceGuarantyAssociation,ashereinafterdescribed,asaconditionofits

    authoritytowritepropertyandcasualtyinsurancepolicieswithinthisCommonwealth.(b)Theassociationshallhavethefollowingpowersandduties:(1)(i)Tobeobligatedtopaycoveredclaimsexistingpriorthedeterminationoftheinsolvency,arisingwithinthirty(30)daysafterthedeterminationofinsolvencyorbeforethepolicyexpirationdateiflessthanthirty(30)daysafterthedeterminationofinsolvencyorbeforetheinsuredreplacesthepolicyorcausesitscancellationifhedoessowithinthirty(30)daysofthedetermination.Anyobligation

    oftheassociationtodefendaninsuredshallceaseupontheassociation'spaymentortenderofanamountequaltothelesseroftheassociation'scoveredclaimobligationortheapplicablepolicylimit.Suchobligationshallbesatisfiedbypayingtotheclaimantanamountasfollows:(A)Anamountnotexceedingtenthousand($10,000)dollarsperpolicyforacoveredclaimforthereturnofunearnedpremium.(B)Anamountnotexceedingthreehundredthousand($300,000)dollarsperclaimantforallothercoveredclaims.

    (ii)Innoeventshalltheassociationbeobligatedtopayaclaimantanamountinexcessoftheobligationoftheinsolventinsurerunderthepolicyorcoveragefromwhichtheclaimarises.Notwithstandinganyotherprovisionsofthisarticle,acoveredclaimshallnotincludeanyclaimfiledwiththeassociationafterthefinaldatesetbythecourtforthefilingofclaimsagainsttheliquidatororreceiverofaninsolventinsurer.(2)Tobedeemedtheinsurertotheextentofitsobligationonthecoveredclaimsand,tosuchextent,shallhaveallrights,dutiesand

    obligationsoftheinsolventinsurerasifthatinsurerhadnotbecomeinsolvent.(3)Toassessmemberinsurersinaccordancewithsections1808through1811theamountsnecessarytopaytheobligationsoftheassociationunderparagraph(1),theexpensesofhandlingcoveredclaims,thecostofexaminationsundersections1805and1812(a)(3)andotherexpensesauthorizedbythisarticle.


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