PRINTER'S NO. 574
No. 550 Session of 1999
INTRODUCED BY BARD, NICKOL, E. Z. TAYLOR, DeLUCA, LEDERER,
BAKER, BARRAR, BELARDI, BROWNE, CLARK, L. I. COHEN, M. COHEN,
CURRY, DALEY, FAIRCHILD, GEIST, HARHAI, LAUGHLIN, MAHER,
McNAUGHTON, S. MILLER, ORIE, ROSS, RUBLEY, SEMMEL, SERAFINI,
SEYFERT, STABACK, STEELMAN, THOMAS, TIGUE, TRELLO, VAN HORNE,
WILLIAMS AND YOUNGBLOOD, FEBRUARY 10, 1999
REFERRED TO COMMITTEE ON INSURANCE, FEBRUARY 10, 1999
AN ACT
1 Amending the act of May 17, 1921 (P.L.682, No.284), entitled "An
2 act relating to insurance; amending, revising, and
3 consolidating the law providing for the incorporation of
4 insurance companies, and the regulation, supervision, and
5 protection of home and foreign insurance companies, Lloyds
6 associations, reciprocal and inter-insurance exchanges, and
7 fire insurance rating bureaus, and the regulation and
8 supervision of insurance carried by such companies,
9 associations, and exchanges, including insurance carried by
10 the State Workmen's Insurance Fund; providing penalties; and
11 repealing existing laws," providing for payment of life
12 insurance benefits.
13 The General Assembly of the Commonwealth of Pennsylvania
14 hereby enacts as follows:
15 Section 1. The act of May 17, 1921 (P.L.682, No.284), known
16 as The Insurance Company Law of 1921, is amended by adding a
17 section to read:
18 Section 411B. Payment of Benefits.--(a) Except as set forth
19 in subsection (b), life insurance death benefits are overdue if
20 not paid within thirty days after submission to the insurer of a
21 certificate of death for the insured. Overdue benefits shall
1 bear interest at the rate of interest payable on death proceeds
2 left on deposit with the insurer, from the date of submission to
3 the date of payment.
4 (b) Notwithstanding section 6 of the act of May 11, 1949
5 (P.L.1210, No.367), referred to as the Group Life Insurance
6 Policy Law, this section shall apply to all life insurance
7 policies except variable insurance policies.
8 Section 2. (a) Except as provided in subsection (b), the
9 addition of section 411B of the act shall apply to insurance
10 policies issued or renewed on or after the effective date of
11 this act.
12 (b) Unless there is a policy provision to the contrary, the
13 addition of section 411B of the act shall apply to policies in
14 existence on the effective date of this act.
15 Section 3. This act shall take effect in 60 days.
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