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Pennsylvania House of Representatives
05/20/2024 06:16 PM
Pennsylvania House of Representatives
https://www.legis.state.pa.us/cfdocs/Legis/CSM/showMemoPublic.cfm?SPick=20130&chamber=H&cosponId=12048
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House Co-Sponsorship Memoranda

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House of Representatives
Session of 2013 - 2014 Regular Session

MEMORANDUM

Posted: March 8, 2013 03:26 PM
From: Representative Steven J. Santarsiero
To: All House members
Subject: Santarsiero-Reintroduction of HB 1308 of 2011-Small Face Amount Life Insurance Policies Act
 

In the near future, I will reintroduce former HB 1308 of 2011 that will establish the Consumer Education in Small Face Amount Life Insurance Policies Act. The purpose of this act is to establish rules that ensure meaningful information is provided to the purchasers of small face amount policies.

The act defines a small face amount policy as a life insurance policy or certificate with an initial face amount of $15,000 or less. The small face amount applies to group and individual life insurance policies and certificates except: (1) variable life insurance; (2) individual and group annuity contracts; (3) credit life insurance; (4) policies and certificates where an illustration has been provided; (5) group or individual policies of life insurance issued to members of an employer group or other permitted group under certain circumstances.

Insurers who issue a policy where over the term of the policy, premiums may exceed the face amount of the policy will perform the following duties:

  1. Clearly and prominently disclose this pertinent information on the face of the policy.
  2. Clearly and prominently disclose available premium payment plan and product alternatives. If there are no alternatives, the insurers will disclose this information.
  3. Provide, clearly and prominently disclose a 10 day free look with no penalty period.

Under my legislation, insurers and producers (i.e. insurance agents or brokers) will be required to provide information to policyholders or certificate holders that ask questions about the disclosure statement.
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Introduced as HB1320