Current through Register Vol. 54, No. 52, December 28, 2024
Section 37a.20 - [Effective 2/12/2025] Representation of insurer or consumer(a) When an insurance producer acting as the representative of the consumer is authorized by the client to secure insurance, the producer shall be considered the legal agent of the client.(b) For purposes of section 671-A of the act (40 P.S. § 310.71) and where a determination is otherwise required under the act, whether an insurance producer is acting on behalf of or representing an insurer is based upon the facts and circumstances of the particular transaction. Factors to be considered include all of the following:(1) Whether the insurance producer receives a commission from the insurer.(2) The nature and existence of any agreement between the insurance producer and the insurer including any reference to: (i) An appointment of the producer.(ii) The provision of binding authority.(iii) Selling, soliciting or conducting insurance business for or on behalf of the insurer.(iv) Representation of the insurer.(3) Whether the insurance producer has researched or obtained quotes for the policy from multiple insurers and whether the insurance producer is appointed with each of these carriers.(4) Whether the insurance producer is given authority to do more than the mere authorization to submit proposals or applications for consideration by the insurer.(c) Except as provided by section 674-A of the act (40 P.S. § 310.74(a)) or otherwise provided by law, an insurance producer may not receive both a commission from an insurer and a fee from a consumer in a particular transaction.Adopted by Pennsylvania Bulletin, Vol 54, No. 50. December 14, 2024, effective 2/12/2025