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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| HOUSE BILL |
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| INTRODUCED BY DeLUCA, BRENNAN, D. COSTA, MAHONEY, WHITE, HARKINS, HARHAI, SANTONI, KULA, JOSEPHS, KOTIK, CALTAGIRONE, READSHAW, COHEN, DALEY, BENNINGHOFF, THOMAS, GINGRICH, MOUL, TAYLOR, DONATUCCI AND DENLINGER, JUNE 14, 2011 |
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| REFERRED TO COMMITTEE ON INSURANCE, JUNE 14, 2011 |
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| AN ACT |
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1 | Providing for truth in insurance advertising over the Internet. |
2 | The General Assembly of the Commonwealth of Pennsylvania |
3 | hereby enacts as follows: |
4 | Section 1. Short title. |
5 | This act shall be known and may be cited as the Truth in |
6 | Insurance Advertising over the Internet Act. |
7 | Section 2. Definitions. |
8 | The following words and phrases when used in this act shall |
9 | have the meanings given to them in this section unless the |
10 | context clearly indicates otherwise: |
11 | "Commissioner." The Insurance Commissioner of the |
12 | Commonwealth. |
13 | "Department." The Insurance Department of the Commonwealth. |
14 | "Institutional advertisement." A general advertisement of an |
15 | insurer or producer that is intended to promote interest in the |
16 | concept of insurance or to promote a producer or insurer. The |
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1 | term includes pages on an Internet website that do not refer to |
2 | a specific insurance policy, certificate of coverage or evidence |
3 | of coverage or that do not provide an opportunity for an |
4 | individual to apply for coverage or to request a quote. |
5 | "Insurer." An insurance company, association, exchange, |
6 | interinsurance exchange, health maintenance organization, |
7 | preferred provider organization, professional health services |
8 | plan corporation subject to 40 Pa.C.S. Ch. 63 (relating to |
9 | professional health services plan corporations), hospital plan |
10 | corporation subject to 40 Pa.C.S. Ch. 61 (relating to hospital |
11 | plan corporations), fraternal benefit society, beneficial |
12 | association, Lloyd's insurer or health plan corporation. |
13 | "Producer." A person required to be licensed under the laws |
14 | of this Commonwealth to sell, solicit or negotiate insurance. |
15 | Section 3. Internet advertisements for insurance. |
16 | (a) Requirement.--A web page of an insurer's Internet |
17 | website shall include the appropriate disclosures and |
18 | information required by applicable rules and regulations adopted |
19 | by the department relating to advertising only if the web page: |
20 | (1) describes specific policies or coverage available in |
21 | this Commonwealth; or |
22 | (2) includes an opportunity for an individual to apply |
23 | for coverage or obtain a quote from an insurer for an |
24 | insurance policy or certificate or other evidence of |
25 | coverage. |
26 | (b) Compliance with requirement.--An insurer may comply with |
27 | subsection (a) by including a link to a web page that includes |
28 | the information necessary to comply with the applicable rules |
29 | relating to advertising. The link permitted under this |
30 | subsection shall be prominently placed on the insurer's web |
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1 | page. |
2 | (c) Institutional advertisements.-- |
3 | (1) Web pages of an Internet website that do not refer |
4 | to a specific insurance policy, certificate of coverage or |
5 | evidence of coverage or that do not provide an opportunity |
6 | for an individual to apply for coverage or request a quote |
7 | from an insurer are considered to be institutional |
8 | advertisements subject to the regulations adopted by the |
9 | department relating to advertising. |
10 | (2) Web pages or navigation aids within an insurer's |
11 | Internet website that provide a link to a web page described |
12 | by subsection (a) but that do not otherwise contain content |
13 | described in subsection (b) are considered to be |
14 | institutional advertisements subject to rules adopted by the |
15 | department relating to advertising. |
16 | Section 4. Advertisements relating to Medicare program. |
17 | A person may not use an advertisement for an insurance |
18 | product relating to Medicare coverage unless the advertisement |
19 | includes, in a prominent place, the following language or |
20 | similar language: Not connected with or endorsed by the United |
21 | States Government or the Federal Medicare program. |
22 | Section 5. Advertisements relating to preferred provider |
23 | benefit plans. |
24 | It is sufficient for an insurer to use the term "PPO plan" in |
25 | advertisements when referring to a preferred provider benefit |
26 | plan offered under the act of May 17, 1921 (P.L.682, No.284), |
27 | known as The Insurance Company Law of 1921. |
28 | Section 6. Advertising regarding guaranteed renewable coverage. |
29 | (a) Required statement.--An advertisement for a guaranteed |
30 | renewable accident and health insurance policy shall include, in |
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1 | a prominent place, a statement indicating that rates for the |
2 | policy may change if the advertisement suggests or implies that |
3 | rates for the product will not change. |
4 | (b) Identifying the manner of change.--If an advertisement |
5 | is required to include the statement described by subsection |
6 | (a), the statement shall generally identify the manner in which |
7 | rates may change, such as by age, by health status, by class or |
8 | through application of other general criteria. |
9 | Section 7. Enforcement. |
10 | Upon a determination by hearing that this act has been |
11 | violated, the commissioner may pursue one or more of the |
12 | following courses of action: |
13 | (1) Issue an order requiring the person in violation to |
14 | cease and desist from engaging in the violation. |
15 | (2) Suspend or revoke or refuse to issue or renew the |
16 | certificate or license of the person in violation. |
17 | (3) Impose a civil penalty of not more than $5,000 for |
18 | each violation. |
19 | (4) Impose any other penalty or remedy deemed |
20 | appropriate by the commissioner, including restitution. |
21 | Section 8. Remedies. |
22 | The enforcement remedies imposed under this section are in |
23 | addition to other remedies or penalties that may be imposed by |
24 | any other applicable statute, including the act of July 22, 1974 |
25 | (P.L.589, No.205), known as the Unfair Insurance Practices Act. |
26 | Violations of this act are deemed and defined by the |
27 | commissioner to be an unfair method of competition and an unfair |
28 | or deceptive act or practice under the Unfair Insurance |
29 | Practices Act. |
30 | Section 9. Private cause of action. |
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1 | Nothing in this act shall be construed to create or imply a |
2 | private cause of action for a violation of this act. |
3 | Section 10. Rules and regulations. |
4 | The department shall promulgate rules and regulations |
5 | necessary for the administration and enforcement of this act. |
6 | Section 20. Effective date. |
7 | This act shall take effect in 60 days. |
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