Erie Insurance Exchange v. Commonwealth

CRAIG, Judge.

Erie Insurance Exchange (Erie) appeals an order of the Insurance Commissioner of the Commonwealth of Pennsylvania affirming a determination by the Department of Insurance that Erie’s cancellation of Frank S. Piehl, Jr.’s homeowners insurance policy violated the Unfair Insurance Practices Act.1

The undisputed facts are that, on June 21, 1988, Erie cancelled Piehl’s policy, initially issued on April 28, 1986, and twice renewed annually, because Erie concluded that a “substantial increase in hazard—moral hazard” occurred when Piehl pleaded guilty on May 5, 1988, to possession with…