Title 31--INSURANCE INSURANCE DEPARTMENT [31 PA. CODE CH. 101] Investments of Fire and Casualty Companies [27 Pa.B. 3054] The Insurance Department (Department) deletes Chapter 101 (relating to investments of fire and casualty companies) to read as set forth in Annex A, under the authority of sections 206, 506, 1501 and 1502 of The Administrative Code of 1929 (71 P. S. §§ 66, 186, 411 and 412); and sections 802.1 and 803.1 of The Insurance Company Law of 1921 (40 P. S. §§ 912.1 and 913.1). Chapter 101 was previously promulgated under sections 517, 602 and 802 of The Insurance Company Law of 1921 (40 P. S. §§ 652, 722 and 912) (now repealed). Notice of proposed rulemaking is omitted in accordance with section 204(3) of the act of July 31, 1968 (P. L. 769, No. 240) (45 P. S. § 1204(3)) (CDL). The regulations prescribe that the investments of mutual fire and mutual casualty insurance companies are subject to investment laws that have been repealed.
Purpose
The purpose of this final-omitted rulemaking is to eliminate obsolete, unnecessary regulations. The regulations were adopted October 1, 1958, under the authority of sections 517, 602 and 802 of The Insurance Company Law of 1921 which related to the investment of capital by stock fire, stock casualty and mutual insurance companies. The regulations subject mutual fire insurance companies and mutual casualty insurance companies to the investment laws applicable to stock fire insurance companies and stock casualty insurance companies. Sections 517, 602 and 802 of The Insurance Company Law of 1921 were repealed by sections 1, 4 and 9 of the act of December 22, 1989 (P. L. 755, No. 106) (Act 106). Act 106 enacted the investment requirements that are currently effective for mutual fire and mutual casualty insurance companies and are found at sections 802.1 and 803.1 of The Insurance Company Law of 1921. Therefore, Chapter 101 of the regulations has been superseded by sections 802.1 and 803.1 of The Insurance Company Law of 1921. Because Chapter 101 implements a statute that is no longer in existence, the regulations are no longer needed.
Under section 204(3) of the CDL, notice of proposed rulemaking may be omitted if the agency finds that the notice procedures are impracticable and unnecessary. The deletion of Chapter 101 eliminates regulations made obsolete by amendments to The Insurance Company Law of 1921. Furthermore, public comments cannot change the obsolete status of the regulations. Accordingly, the Insurance Commissioner finds that the proposed rulemaking procedures in sections 201 and 202 of the CDL (45 P. S. §§ 1201 and 1202) are impracticable and unnecessary in this situation.
Affected Parties
There are no parties affected by the deletion of the regulations because the regulations are obsolete.
Fiscal Impact
The deletion of the regulations has no fiscal impact.
Paperwork
The deletion of the regulations has no impact on paperwork.
Effectiveness/Sunset Date
This order is effective upon publication in the Pennsylvania Bulletin. No sunset date had been assigned because the order deletes obsolete regulations.
Contact Person
The person to contact for information on the deletion of these regulations is Stephen Johnson, Director, Bureau of Examinations, 1345 Strawberry Square, Harrisburg, PA 17120 (717) 783-4312.
Regulatory Review
Under section 5(f) of the Regulatory Review Act (71 P. S. § 745.5(f)), on June 15, 1997, the Department submitted a copy of the rulemaking with proposed rulemaking omitted to the Independent Regulatory Review Commission (IRRC) and the Chairpersons of the Senate Banking and Insurance Committee and the House Insurance Committee. On the same date, the rulemaking was submitted to the Office of Attorney General for review and approval under the Commonwealth Attorneys Act (71 P. S. §§ 732-101--732-506). In accordance with section 5(c) of the Regulatory Review Act, the rulemaking was deemed approved by the Senate and House Committees on June 4, 1997. IRRC met on June 5, 1997, and approved the regulations.
Findings
The Insurance Commissioner finds that:
(1) There is good cause to delete the regulations effective upon publication. Deferral of the effective date of the deletion of the regulations is impractical or contrary to the public interest under section 204 of the CDL because no purpose is served by deferring the effective date, and an immediate effective date best serves the public interest by deleting unnecessary regulations.
(2) There is good cause to forego public notice of the intention to delete Chapter 101 because public notice of the deletion is unnecessary and impractical, for the following reasons:
(i) Deletion of the regulations eliminates a rulemaking that is obsolete and no longer applicable to investments of mutual fire and mutual casualty insurance companies.
(ii) Public comment cannot change the fact that the regulations are obsolete.
Order
The Insurance Commissioner, acting under the statutory authority, orders that:
(a) The regulations of the Department, 31 Pa. Code Chapter 101, are amended by deleting §§ 101.1 and 101.2 to read as set forth in Annex A.
(b) The Department shall submit this order and Annex A to the Office of the Attorney General and the Office of General Counsel for approval as to form and legality as required by law.
(c) The Department shall certify this order and Annex A and deposit them with the Legislative Reference Bureau as required by law.
(d) This order shall take effect upon its publication in the Pennsylvania Bulletin.
LINDA S. KAISER,
Insurance Commissioner(Editor's Note: For the text of the order of the Independent Regulatory Review Commission relating to this document, see 27 Pa.B. 3000 (June 21, 1997).)
Fiscal Note: 11-156. No fiscal impact; (8) recommends adoption.
Annex A TITLE 31. INSURANCE PART VI. MUTUAL INSURANCE CHAPTER 101. (Reserved) §§ 101.1 and 101.2. (Reserved).
[Pa.B. Doc. No. 97-1025. Filed for public inspection June 27, 1997, 9:00 a.m.]
