PRINTER'S NO. 474
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
505
Session of
2023
INTRODUCED BY GUENST, SANCHEZ, CERRATO, MADDEN, CIRESI, HILL-
EVANS, HOHENSTEIN, PARKER, KIM, DELLOSO, FREEMAN, N. NELSON
AND KHAN, MARCH 17, 2023
REFERRED TO COMMITTEE ON INSURANCE, MARCH 17, 2023
AN ACT
Providing for fair assistance insurance responsibility, for
investigations occurring from a disaster and for
applicability.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Short title.
This act shall be known and may be cited as the Fair
Assistance Insurance Responsibility (FAIR) Act.
Section 2. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Department." The Insurance Department of the Commonwealth.
"Disaster." Any of the following:
(1) A natural catastrophe, regardless of cause, a fire,
flood or explosion, in any part of the United States that, in
the determination of the President of the United States,
causes damage of sufficient severity and magnitude to warrant
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assistance under 42 U.S.C. Ch. 68 (relating to disaster
relief) to supplement the efforts and available resources of
States, local governments and disaster relief organizations
in alleviating the damage, loss, hardship or suffering.
(2) A hurricane, tornado, storm, flood, high water,
wind-driven water, tidal wave, earthquake, landslide,
mudslide, snowstorm, drought, fire, explosion or other
catastrophe resulting in substantial property damage,
hardship, suffering or possible loss of life and results in
the Governor requesting that the President of the United
States declare a major disaster declaration or emergency
declaration as warranted under 42 U.S.C. Ch. 68.
"Insurer." An entity licensed or authorized to conduct the
business of insurance that is governed under the act of May 17,
1921 (P.L.628, No.284), known as The Insurance Company Law of
1921.
"Investigation." As defined under 31 Pa. Code ยง 146.2
(relating to definitions).
Section 3. Investigations occurring from a disaster.
The following apply:
(1) When a policyholder files a homeowners' insurance
claim for damages arising from a disaster, the policyholder
must inform the insurer of the contact information for either
the policyholder or the policyholder's designated point of
contact.
(2) Upon receipt of the claim, an insurer shall notify a
policyholder of:
(i) The consumer complaint process for
unsatisfactory service and regulatory violations provided
by the department.
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(ii) Information concerning how to access the
complaint process.
(3) The notification under paragraph (2) must occur
within 10 business days.
(4) An extension afforded to an insurer for a claim
investigation is null and void when responding to a
homeowners' insurance claim for damages arising from a
disaster.
Section 4. Applicability.
This act applies to the claims filed on or after the
effective date of this section.
Section 5. Effective date.
This act shall take effect in 60 days.
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