Pennsylvania insurance laws
Insurance regulations, rate filing requirements, department info, and recent bulletins for Pennsylvania. Updated Apr 1, 2026.
Department of Insurance
Pennsylvania operates under a prior approval rate system where insurers must obtain approval from the Insurance Department before implementing rate changes. The state has a mixed regulatory approach, being a 'choice no-fault' state for auto insurance, with expanded Medicaid coverage since 2015, and a competitive workers' compensation market. Pennsylvania actively regulates pharmacy benefit managers and has implemented a reinsurance program through a federal 1332 waiver to stabilize individual health insurance markets.
Auto Insurance
Notable Laws
- 75 Pa.C.S. § 1786 - Required Financial Responsibility: Mandates all registered motor vehicles maintain liability insurance
- 75 Pa.C.S. § 1711 - Required Benefits: Requires minimum $5,000 first-party medical benefits (PIP) coverage
- 75 Pa.C.S. § 1705 - Tort Options: Provides choice between full tort and limited tort coverage affecting right to sue for pain and suffering
- 40 P.S. § 991.2003 - Prohibited Cancellation Reasons: Prohibits insurers from canceling or refusing coverage based on age, residence, or claims history alone
- 40 P.S. § 991.2004 - Cancellation Grounds: Limits policy cancellation to specific reasons including nonpayment, license suspension, or fraud
Homeowners Insurance
Notable Laws
- 40 P.S. §§ 1600.101-1600.305 - Pennsylvania Fair Plan Act: Provides basic property insurance for high-risk properties unable to obtain coverage in voluntary market
- 40 Pa.C.S. § 3403 - Cancellation/Nonrenewal Notice: Requires 60-day notice for nonrenewal and 30-day notice for midterm cancellation
- 31 Pa. Code Chapter 59 - Cancellation Reasons: Limits permissible reasons for cancellation and nonrenewal of homeowners policies
- 40 P.S. § 638 - Fire Loss Settlements: Regulates payment of fire damage claims when mortgagee interest exists
- 31 Pa. Code § 146.7 - Replacement Cost Coverage: Establishes standards for replacement cost valuation and actual cash value
Recent Bulletins
Increase in the Accident Surcharge Dollar Threshold (Cap) to $2,350
The Pennsylvania Insurance Department is increasing the accident surcharge threshold for private passenger automobile insurance to $2,350, effective July 1, 2026. Insurers cannot penalize policyholders through surcharges if their aggregate claim cost over a 3-year period does not exceed this cap.
View bulletinPer Diem Charges for Financial Examinations Conducted by the Insurance Department
Notice of updated per diem charges for financial examinations of insurance companies conducted by the Insurance Department.
View bulletinPer Diem Charges for Market Conduct Examinations Conducted by the Insurance Department
Notice of updated per diem charges for market conduct examinations of insurance companies conducted by the Insurance Department.
View bulletin1332 Waiver Reinsurance Program—Extension Application Approved—Public Comment Period Open
Notice announcing the approval of an extension application for Pennsylvania's 1332 Waiver Reinsurance Program and the opening of a public comment period with scheduled public forum.
View bulletinIncrease in the Accident Surcharge Dollar Threshold (Cap) to $2,250
The Pennsylvania Insurance Department is increasing the accident surcharge threshold for private passenger automobile insurance to $2,250, effective July 1, 2025. Insurers cannot penalize policyholders through surcharges if their aggregate claim cost over a 3-year period does not exceed this cap.
View bulletinRecent Law Changes
Pharmacy Benefit Reform Act (Act 77 of 2024)
Expands the Pennsylvania Insurance Department's authority and regulatory powers over pharmacy benefit managers (PBMs), including enhanced oversight of pharmacy audits, transparency requirements, and patient protection provisions.
Health insurers and pharmacy benefit managers must comply with enhanced transparency and audit requirements; improves pharmacy access and patient protections.
Effective: 2024-11-14
Rebates and Inducements Reform (Act 62 of 2024)
Amends Title 40 to increase the cap on value-added products that may be offered as a rebate or inducement by insurance providers to consumers from $100 to $125, providing greater flexibility to insurers and producers.
Insurers and insurance producers can offer increased value-added incentives to policyholders, enhancing consumer benefits and competitive offerings.
Effective: 2025-01-12
Speech Therapy for Stuttering Coverage (Act 104 of 2024)
Requires health insurance policies in Pennsylvania to provide coverage for both habilitative and rehabilitative speech therapy treatment for childhood stuttering, ensuring access to specialized speech-language pathology services.
Children with stuttering disorders gain mandated insurance coverage for comprehensive speech therapy services, improving access to early intervention.
Effective: 2025-01-14
Biomarker Testing Coverage (Act 39 of 2024)
Requires public and private insurers to cover biomarker testing for personalized treatment following diagnoses of cancer and other specific diseases, enabling precision medicine approaches.
Cancer patients and those with other diseases gain mandated insurance coverage for biomarker testing, improving access to targeted and personalized treatment options.
Effective: 2024-08-04
Mental Health Parity Enforcement
Strengthens Pennsylvania's enforcement of federal mental health parity laws by imposing state-level compliance requirements, enhanced reporting, and stricter oversight of health insurers' mental health and substance use disorder coverage.
Health insurers must demonstrate compliance with mental health parity requirements through enhanced documentation and reporting, improving access to behavioral health services.
Effective: 2024-01-01
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