The Pennsylvania Insurance Department (PID) has released Unknown Risk Classification Filing Guidance that applies to personal lines rate and rule filings made on or after February 4, 2026.
Among other provisions, the guidance states that a rating variable should not be filed if 40% or more of the exposures written in Pennsylvania for the specific product using that rating variable would be assigned to an unknown risk classification. The PID will not raise any objections to the use of an unknown risk classification for a particular rating variable if the unknown risk classification is used for 10% or fewer of the exposures written. The guidance provides information that should be submitted for each unknown risk classification in the filed rate/rule manual.
Please see the Unknown Risk Classification Filing Guidance for more information. For any questions regarding the guidance, please contact Michael McKenney, Director of Property and Casualty Rate and Policy Form Review, at mmckenney@pa.gov or 717-705-0166.