The "other" property and casualty areas of Pennsylvania's Property, P&C and Personal Lines outlines include two Pennsylvania-specific topics. The Pennsylvania FAIR Plan is the state's residual market for basic property insurance. Pet insurance is regulated by its own chapter, 40 Pa.C.S. Chapter 47. Flood (NFIP), inland marine, mobile homes, umbrellas and the other specialty coverages are covered in the national guides.

The Pennsylvania FAIR Plan (Fair Plan Act, 40 P.S. 1600.101 et seq.)

What it is

• A residual market that provides basic property insurance to owners who can't get it in the voluntary market, often because of the property's location (1600.101-1600.103).
• It operates through an industry placement facility.

What it covers

• Direct loss to real or tangible personal property at a fixed location, from standard fire policy perils plus approved extended coverage perils (1600.103).
• It is not auto or liability coverage.

Inspection

• Before coverage is written, the property is generally inspected. The written inspection report is used to decide insurability and any required improvements (1600.202).

Producer protection

• An insurer that penalizes a producer for sending applications to the FAIR Plan violates the Fair Plan Act (1600.202(8)).

Appeals

• An applicant aggrieved by a FAIR Plan ruling may appeal to the Commissioner within 30 days (1600.208).

Link to homeowners rules

• Homeowners cancellation and nonrenewal notices must tell the insured about possible FAIR Plan eligibility (31 Pa. Code 59.6).
• An insurer may cancel a non-farm homeowners policy if the property would not meet FAIR Plan eligibility rules (59.4a).

Pet insurance (40 Pa.C.S. Chapter 47)

• Free look: a dissatisfied buyer may return the policy within 30 days of receiving it, for a full premium refund (4704). Standard homeowners and personal auto policies have no statutory free look.
• Waiting periods: a waiting period for accident coverage is prohibited (4706(b)).
• Wellness programs:
  • A noninsurance pet wellness program can't be required as a condition of buying the pet insurance (4708).
  • It must be optional, separately priced, under separate terms, and disclosed as not insurance.
• Producer training: before selling pet insurance, a licensed producer completes training (4709). Topics include:
  • Preexisting conditions and waiting periods.
  • Insurance vs. noninsurance wellness programs.
  • Hereditary and chronic conditions.
  • Rating and renewal.

Flood

• Producers with property and casualty authority must include 2 hours of flood insurance in each 24-hour CE cycle (40 P.S. 310.8(b)(3)).
• A surplus lines flood placement still follows the surplus lines law. The Pennsylvania surplus lines premium tax is 3% (40 P.S. 991.1621).

Common exam traps

• The FAIR Plan writes basic property insurance (fire and extended coverage) after an inspection. It doesn't write auto or liability.
• FAIR Plan appeals go to the Commissioner within 30 days.
• Insurers can't penalize producers for placing business with the FAIR Plan.
• Pet insurance: 30-day free look, no accident waiting period, required producer training, and wellness plans that can't be tied to the sale.