PA auto insurance plan-PAARP.

§ 33.29 [Pennsylvania Automobile Insurance Plan (assigned risk)].

[(a) An agent who submits an application to the assigned risk plan through the company for which he is a licensed agent is not required to be licensed as an insurance broker in order to handle the delivery of the policy of the company to which the risk is assigned.

(b) Commissions earned on the transaction shall be considered as having been earned in the normal business of the agent with the company for which he holds an agent’s license.

(c) An agent or broker through whom an assigned risk was placed is obligated to return, on a pro rata basis, his unearned commission to the insurance company to which the risk was assigned upon cancellation of a policy by the company. An agent or broker through whom an assigned risk was placed is obligated to return, on a short rate basis, as provided in the policy, his unearned commission to the insurance company to which the risk was assigned upon cancellation of a policy by an insured. In the absence of an explanation satisfactory to the Insurance Department, an agent or broker failing to return unearned commissions as provided in this subsection shall be deemed in violation of sections 633 and 639 of the Insurance Department Act of one thousand nine hundred and twenty-one (40 P. S. §§ 273 and 279) and other applicable laws and shall be subject to penalties as specified therein.

(d) Upon original applications, premium monies to the producer of record shall be in the form of a postal money order, cashier’s check, certified check or personal check made payable to the ”Pennsylvania Automobile Insurance Plan.” The producer of record shall speedily remit such payment in conformance with the rules of the Plan. Upon receipt of such premium monies, the producer of record shall issue a receipt, certifying the date–day, month and year–and time–hour, a.m. or p.m., the applicant’s name and address, the signature of the producer, and the following statement:

”Received for the Pennsylvania Automobile Insurance Plan.”

The producer of record shall maintain appropriate records of original applications, noting the time and date of coverage and shall make available for inspection or photocopying such records by the Plan or by a company representative or the Insurance Department. A copy of such receipt will be sent to the Plan along with other forms in conformance with the rules of the Plan.

(e) If the applicant produces reasonable documentation of payment of the required premium to the producer of record and completion of an application for insurance under the Plan, payment to the producer of record shall be deemed payment to the Plan for the purposes of this subsection. Coverage shall be deemed effective as of the date and time specified in the application and according to sections 11, 12 and 14 of the Plan.

(f) An agent or broker failing to remit premium monies received under subsection (d) violates sections 633, 633.1 and 639 of The Insurance Department Act of one thousand nine hundred and twenty-one (40 P. S. §§ 273, 273.1 and 279) and other applicable laws and are subject to penalties as specified therein.]