An Overview of § 1743 under the Pennsylvania Motor Vehicle Financial Responsibility Law (MVFRL)

Key Terms from Section 1743

The "Assigned Risk Plan"

A mechanism in Pennsylvania that ensures all drivers can secure auto insurance, even those deemed to be at high risk. It provides coverage to drivers who due to their risk profile, would be denied traditional policy coverage.

"The Casualty and Surety Rate Regulatory Act"

Refers to fiduciary obligations and regulations that insurance companies must meet when setting prices for covering risk. The requirements under this act stipulate that insurance rates must not be "inadequate," "excessive," nor "unfairly discriminatory."

Impact For Pennsylvanian Drivers

Section 1743 matters for Pennsylvanian drivers because it ensures their automobile insurance rates are fairly calculated, taking into account their risk profile under the Assigned Risk Plan. The section safeguards against the potential for insurance companies to take advantage of their customers by setting insurance rates that are too high or too low or unfairly discriminatory.

Relevance For Pennsylvania Attorneys

For Pennsylvania attorneys, understanding Section 1743 is vital as it frames how insurance policies, particularly those under the Assigned Risk Plan, should be priced. The section provides a blueprint to litigate cases regarding discriminatory or excessive insurance rates, bringing justice and balance to the mechanics of car insurance pricing in Pennsylvania.

The specific language used in Section 1743 underscores the strict regulatory measures governing the determination of auto insurance rates, and enforcing fair pricing. The use of the terms "inadequate," "excessive,” and "unfairly discriminatory," distributes the emphasis equally across all possible scenarios; rates cannot be too low nor too high and they cannot discriminate unfairly.

Advanced analysis

The interaction between Section 1743 and the Assigned Risk Plan and The Casualty and Surety Rate Regulatory Act emphasizes the checks and balances existing in Pennsylvania's auto insurance laws. This provision ensures the delicate balance in the insurance industry isn't upset, and that all drivers have a fair opportunity to secure the auto insurance they need.

The phrase "shall be subject to" demonstrates the obligatory nature of the law, highlighting that all Assigned Risk Plan rates must align with the rules specified in The Casualty and Surety Rate Regulatory Act. Knowing this, attorneys must scrutinize their clients' Assigned Risk Plan policies to ensure they're charged appropriately under the provisions of Section 1743.

In summary, Section 1743 of the MVFRL ensures an equilibrium, leveling the playing field for insurers and policy holders alike, making sure auto insurance rates are just, without being inadequate, excessive, or unfairly discriminatory.