Pennsylvania-Specific Insurance Laws, Rules and Regulations
Regulator and producers
The Pennsylvania Insurance Department is headed by a Commissioner appointed by the Governor. Producers must complete approved prelicensing education, pass the licensing exam, be licensed for each line, be appointed by the insurer, and complete continuing education (including ethics hours) each renewal cycle. Premiums are held in a fiduciary capacity; rebating and twisting are prohibited.
Pennsylvania Motor Vehicle Financial Responsibility Law
Minimum liability limits are 15/30/5 ($15,000 per person, $30,000 per accident bodily injury; $5,000 property damage). Insurers must provide first-party benefits (PIP) with a $5,000 minimum medical benefit, plus income loss, funeral, and accidental death benefits, and must offer uninsured/underinsured motorist coverage at limits equal to liability unless the insured rejects it in writing. Stacking rules apply to multiple vehicles.
Tort options
Pennsylvania is a choice no-fault state. Full tort preserves the right to sue for non-economic damages. Limited tort - which must be affirmatively elected - bars recovery for pain and suffering unless the injury is a "serious injury" (death, serious impairment of body function, permanent serious disfigurement). Limited tort does not restrict claims for economic loss or for punitive damages in DUI cases.
Other Pennsylvania rules
Study the Pennsylvania Property and Casualty Insurance Guaranty Association, the FAIR Plan for basic property insurance, the assigned claims plan, unfair trade practice and unfair claims settlement rules, statutory bad faith, interest on overdue first-party benefits, notice requirements for cancellation and nonrenewal, and the Insurance Fraud Prevention Authority.
Rule of thumb: when a question gives a Pennsylvania statutory number, 15/30/5 and the $5,000 PIP medical minimum are the most frequently tested.