Current through Register Vol. 54, No. 50, December 14, 2024
(a) Failure to comply with this chapter, after an administrative hearing as provided by statute, may subject an agent or broker to penalties provided in section 639 of The Insurance Department Act of one thousand nine hundred and twenty-one (40 P. S. § 279). Failure to comply shall be considered a separate and distinct violation and may not prevent or be considered in lieu of a proceeding against an agent or broker for violation of section 637 or section 638 of The Insurance Department Act of one thousand nine hundred and twenty-one (40 P. S. § 277 or § 278). Failure to comply may, for purposes of section 639 of The Insurance Department Act of one thousand nine hundred and twenty-one, be considered as conduct that would disqualify an agent or broker from initial issuance of a license under section 603 and 622 of The Insurance Department Act of one thousand nine hundred and twenty-one (40 P. S. §§ 233 and 252).(b) Failure to comply with this chapter, after an administrative hearing as provided by statute, may subject an insurance company, association or exchange, its members, officers, directors or attorney-in-fact, to penalties provided in section 350 of The Insurance Company Law of 1921 (40 P. S. § 475). Failure to comply shall be considered a separate and distinct violation and may not prevent or be considered in lieu of a proceeding against an insurance company, association or exchange, its members, officers, directors or attorney-in-fact for violation of section 347, 348 or 349 of The Insurance Company Law of 1921 (40 P. S. § 472, § 473 or § 474).(c) In addition to subsections (a) and (b), failure to make the disclosure outlined in this chapter may be considered a violation of the Unfair Insurance Practices Act (40 P. S. §§ 1171.1-1171.15).(d) A policyholder has the right to replace an existing policy after indicating on the application that replacement is not by intention. Patterns of replacement by policyholders of the same agent, broker or company shall be considered prima facie evidence of the knowledge of the agent, broker or company that replacement was intended in connection with the transaction. Patterns of replacement shall be considered violations of this chapter.