PRIOR PRINTER'S NO. 574 PRINTER'S No. 3700
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
AS REPORTED FROM COMMITTEE ON INSURANCE, HOUSE OF
REPRESENTATIVES, AS AMENDED, JUNE 12, 2000
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
1 certificate of death for the insured. Overdue benefits shall
2 bear interest at the rate of interest payable on death proceeds
3 left on deposit with the insurer, from the date of submission to
4 the date of payment. NOT PAID WITHIN THIRTY DAYS AFTER <--
5 SATISFACTORY PROOF OF DEATH WAS SUBMITTED TO THE INSURER SHALL
6 BEAR INTEREST AT THE RATE OF INTEREST PAYABLE ON DEATH BENEFITS
7 LEFT ON DEPOSIT BY THE BENEFICIARY WITH THE INSURER. THIS
8 INTEREST SHALL ACCRUE FROM THE DATE OF DEATH OF THE INSURED TO
9 THE DATE THE BENEFITS ARE PAID TO THE BENEFICIARY. IN CASES
10 WHERE SATISFACTORY PROOF OF DEATH IS SUBMITTED MORE THAN ONE
11 HUNDRED EIGHTY DAYS AFTER THE DEATH OF THE INSURED, AND THE
12 DEATH BENEFITS ARE NOT PAID WITHIN THIRTY DAYS AFTER
13 SATISFACTORY PROOF OF DEATH WAS SUBMITTED TO THE INSURER,
14 INTEREST SHALL ACCRUE FROM THE DATE ON WHICH SATISFACTORY PROOF
15 WAS SUBMITTED TO THE DATE ON WHICH THE BENEFITS OF THE POLICY
16 ARE PAID.
17 (b) Notwithstanding section 6 of the act of May 11, 1949
18 (P.L.1210, No.367), referred to as the Group Life Insurance
19 Policy Law, this section shall apply to all life insurance
20 policies except variable insurance policies.
21 (C) THE TERM "LEFT ON DEPOSIT" SHALL MEAN A SPECIFIC <--
22 SETTLEMENT OPTION PROVIDED WITHIN THE LIFE INSURANCE POLICY
23 UNDER WHICH THE DEATH BENEFIT PROCEEDS ARE RETAINED BY THE
24 INSURER FOR THE BENEFICIARY AND ARE CREDITED WITH A SPECIFIC
25 RATE OF INTEREST.
26 Section 2. (a) Except as provided in subsection (b), the
27 addition of section 411B of the act shall apply to insurance
28 policies issued or renewed on or after the effective date of
29 this act.
30 (b) Unless there is a policy provision to the contrary, the
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1 addition of section 411B of the act shall apply to policies in
2 existence on the effective date of this act.
3 Section 3. This act shall take effect in 60 days.
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