Questions and Answers About Plans of Withdrawal/Transition


Question: What is a withdrawal/transition?
Answer: "Withdraw" or  "withdrawal" is defined as the nonrenewal, cancellation or termination of policies or the surrender of authority to transact the business of insurance in this state.  A transition includes any insurer action that is equivalent to a withdrawal of business such as the elimination of a policy form; elimination of a product or line of business; reductions in personal lines coverage at renewal; offer/transfer of coverage to an affiliated or non-affiliated insurer; or transfer of business to another insurer pursuant to an assumption agreement or assignment.

Question:  What is "nonrenewal"?
Answer:  Nonrenewal is defined as the discontinuance of use of an entire insurance policy within the Commonwealth including discontinuances of a policy by the replacement of such policy with a new policy that contains types and limits of coverage that are not equal to the discontinued policy at such policy's end.

Question:  What information needs to be provided to the Pennsylvania Insurance Department for the withdrawal of a product or line of insurance?
Answer:  The Insurance Department has prepared a document that provides the
Guidelines for Preparing a Plan of Withdrawal. Please note that all questions may not apply to every situation. However, the form should be used to the extent that it is applicable.  This document may be obtained on-line or by contacting the Department at the email or mailing address below.  You also may request a copy by fax or phone.

Question:  Is filing a plan of withdrawal limited to a specific line of business?
Answer:  No. All insurers contemplating any type of withdrawing activity are encouraged to file a plan of withdrawal.  Withdrawal activity is not limited to pulling out of the state. It includes the transitioning of policyholders/certificateholders from a specific insurer, coverage etc. to another at renewal.

Question:  When should the plan be submitted to the Insurance Department and when should feedback be expected?
Answer:  There is no specific time frame for submitting the plan to the Department; however, it should be submitted well in advance of the insurer's action. The Department will complete its review as soon as it possibly can.

Question:  Should a company submit a withdrawal plan if arrangements have been made with an affiliate or other insurer to offer replacement coverage?
Answer:  Yes, certain lines of business require the issuance of nonrenewal notices even if an offer will be made by an affiliate insurer; therefore, to ensure that the proposed transaction complies with applicable statutes, it would be a advisable to prepare and submit a plan of withdrawal.

Question:  Should a company submit a withdrawal plan if it was purchased/acquired by another insurer?
Answer:  Yes, if the company intends to make changes to the policy (i.e. name, coverage) as a result of a purchase/acquisition, a plan of withdrawal/transition should be submitted to ensure that the transition is accomplished in accordance with the applicable statutory provisions.


All inquiries should be referred to or you can call 717-783-2153.

Plans of Withdrawal should be mailed to:

Carolyn Morris, Director
Bureau of Consumer Services
1321 Strawberry Square
Harrisburg, PA 17120

Plans of Withdrawal may also be faxed to the Department at (717) 787-8585.