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ROCKWOOD INSURANCE COMPANY v. PENNSYLVANIA AUTOMOBILE INSURANCE PLAN AND JOHN R. MURPHY (05/05/86)

decided: May 5, 1986.

ROCKWOOD INSURANCE COMPANY, PLAINTIFF
v.
PENNSYLVANIA AUTOMOBILE INSURANCE PLAN AND JOHN R. MURPHY, C/O PENNSYLVANIA AUTOMOBILE INSURANCE PLAN, DEFENDANTS



Original jurisdiction in the case of Rockwood Insurance Company v. Pennsylvania Automobile Insurance Plan and John R. Murphy, c/o Pennsylvania Plan and Pennsylvania Insurance Department.

COUNSEL

Alfred Sarowitz, for plaintiff.

M. Hannah Leavitt, Chief of Litigation, with her, Paul Laskow, Chief Counsel, for intervening defendant, Pennsylvania Insurance Department.

Judges MacPhail, Doyle and Colins, sitting as a panel of three. Opinion by Judge MacPhail.

Author: Macphail

[ 97 Pa. Commw. Page 9]

Rockwood Insurance Company (Rockwood) has filed a petition for review in the nature of an amended complaint challenging the Pennsylvania Automobile Insurance Plan's (Plan) alleged overassignment to it of automobile insurance applications of persons who cannot otherwise obtain insurance. The Pennsylvania Insurance Department (Department) intervened as an additional defendant. See Rockwood Insurance Co. v. Pennsylvania Automobile Insurance Plan, 50 Pa. Commonwealth Ct. 194, 412 A.2d 669 (1980). Presently before us for disposition are the Department's preliminary objections in the nature of a demurrer or, in the alternative, raising a question of jurisdiction. We will sustain the Department's preliminary objections in the nature of a demurrer.

Section 105(a) of the Pennsylvania No-Fault Motor Vehicle Act (No Fault Act)*fn1 provided:

[ 97 Pa. Commw. Page 10]

(1) The Commissioner shall establish and implement or approve and supervise a plan assuring that any no-fault benefits and tort liability coverages for motor vehicles will be conveniently and expeditiously available, subject only to payment or provisions for payment of the premium, to each individual who cannot conveniently obtain insurance through ordinary methods. . . .

(3) All insurers writing no-fault benefits and tort liability coverages in this Commonwealth shall participate in the plan. The plan shall provide for equitable apportionment, among all participating insurers writing any insurance coverage required under the plan, of the financial burdens of insurance provided to applicants under the plan and the costs of operation of the plan.

(5) To carry out the objectives of this subsection, the commission may adopt rules, make orders, enter into agreements with other governmental and private entities and individuals, and form and operate or authorize the formation and operation of bureaus and other legal entities.

The amended complaint alleges*fn2 that Rockwood has at all times been licensed to write motor vehicle insurance in Pennsylvania but discontinued writing private ...


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