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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| HOUSE BILL |
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| INTRODUCED BY DeLUCA, BELFANTI, BRENNAN, COHEN, DALEY, DONATUCCI, FAIRCHILD, GOODMAN, W. KELLER, KORTZ, KOTIK, MANDERINO, MANN, MELIO, MILLARD, MILLER, MOUL, READSHAW, SIPTROTH, THOMAS, VULAKOVICH, WALKO AND YOUNGBLOOD, FEBRUARY 19, 2009 |
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| REFERRED TO COMMITTEE ON INSURANCE, FEBRUARY 19, 2009 |
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| AN ACT |
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1 | Amending the act of September 2, 1961 (P.L.1232, No.540), |
2 | entitled "An act providing for the regulation of credit life |
3 | insurance and credit accident and health insurance; |
4 | conferring powers and imposing duties on the Insurance |
5 | Commissioner and prescribing penalties," further providing |
6 | for premiums and refunds. |
7 | The General Assembly of the Commonwealth of Pennsylvania |
8 | hereby enacts as follows: |
9 | Section 1. Section 8(b) of the act of September 2, 1961 |
10 | (P.L.1232, No.540), known as the Model Act for the Regulation of |
11 | Credit Life Insurance and Credit Accident and Health Insurance, |
12 | is amended to read: |
13 | Section 8. Premiums and Refunds.--* * * |
14 | (b) The following shall apply: |
15 | (1) Each individual policy or group certificate shall |
16 | provide a notice that in the event of termination of the |
17 | insurance, including by renewing or refinancing the covered |
18 | indebtedness, prior to the [scheduled maturity date of the |
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1 | indebtedness any refund of an amount paid by the debtor for |
2 | insurance] original expiration date of that insurance coverage: |
3 | (i) that the debtor may be entitled to a refund of unearned |
4 | premium; |
5 | (ii) that the person who is the holder of the underlying |
6 | debt instrument on the date the debt terminates shall provide |
7 | notice to the insurer of the termination of the debt no later |
8 | than sixty days after the termination, which notice shall |
9 | include the name of the debtor and the payoff date of the |
10 | underlying debt and any relevant contact information for the |
11 | debtor known to the holder; and |
12 | (iii) that any refund of an amount paid by the debtor for |
13 | insurance shall be paid or credited promptly to the person |
14 | entitled thereto after receipt of the notice required under |
15 | paragraph (1)(ii): Provided, however, That [the commissioner |
16 | shall prescribe a minimum refund and] no refund [which would be] |
17 | less than [such minimum] five dollars ($5) need be made. The |
18 | formula to be used in computing such refund shall be filed with |
19 | and approved by the commissioner. |
20 | (2) In any claim or action asserted by an insured against an |
21 | insurer for failure to refund any unearned premium in accordance |
22 | with this section, the insurer shall be entitled to indemnity |
23 | from a holder of a debt instrument who failed to provide the |
24 | notice required under paragraph (1)(ii). |
25 | * * * |
26 | Section 2. The amendment of section 8(b) of the act shall |
27 | apply to individual policies or group certificates of credit |
28 | insurance delivered, issued for delivery or renewed no more than |
29 | 120 days after the effective date of this act. |
30 | Section 3. This act shall take effect January 1, 2010. |
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