THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY DeLUCA, MICOZZIE, BOBACK, BOYD, BOYLE, D. COSTA, CREIGHTON, DEASY, FRANKEL, GRUCELA, HALUSKA, HORNAMAN, KORTZ, KOTIK, LONGIETTI, MAHONEY, MIRABITO, MOUL, MUNDY, MURT, PASHINSKI, READSHAW, SIPTROTH, R. TAYLOR, WALKO, WATERS, WHITE AND YOUNGBLOOD, DECEMBER 9, 2009

REFERRED TO COMMITTEE ON INSURANCE, DECEMBER 9, 2009  

AN ACT

Amending the act of May 17, 1921 (P.L.682, No.284), entitled "An

act relating to insurance; amending, revising, and

consolidating the law providing for the incorporation of

insurance companies, and the regulation, supervision, and

protection of home and foreign insurance companies, Lloyds

associations, reciprocal and inter-insurance exchanges, and

fire insurance rating bureaus, and the regulation and

supervision of insurance carried by such companies,

associations, and exchanges, including insurance carried by

the State Workmen's Insurance Fund; providing penalties; and

repealing existing laws," further providnig for immunity from

liability; and making related repeals.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 349.1 of the act of May 17, 1921

(P.L.682, No.284), known as The Insurance Company Law of 1921,

added June 11, 1986 (P.L.226, No.64), is amended to read:

Section 349.1.  Immunity from Liability.--[(a)  In the

absence of fraud or bad faith, no person or his employes or

agents shall be subject to civil liability and no civil cause of

action shall arise against any of them for any of the following:

(1)  Information relating to suspected fraudulent insurance

acts furnished by them to or received from law enforcement

officials, their agents and employes.

(2)  Information relating to suspected fraudulent insurance

acts furnished by them to or received from other persons subject

to the provisions of this act.

(3)  Information furnished by them in reports to the

Insurance Department, National Association of Insurance

Commissioners or another organization established to detect and

prevent fraudulent insurance acts, their agents, employes or

designees.

(b)  The Insurance Commissioner and employes of the Insurance

Department, in the absence of fraud or bad faith, shall not be

subject to civil liability. No civil cause of action shall arise

against any of them by virtue of the publication of a report or

bulletin related to the official activities of the Insurance

Department.

(c)  Nothing in this section is intended to abrogate or

modify a common law or statutory immunity heretofore enjoyed by

any person.

(d)  As used in this section the following words and phrases

shall have the meanings given to them in this subsection:

"Absence of bad faith" means without serious doubt that the

information furnished or received, or the report or bulletin

published, is not true.

"Absence of fraud" means without knowledge that the

information furnished or received, or the report or bulletin

published, is not true.

"Fraudulent insurance act" means an act committed by a person

who, knowingly and with intent to defraud, presents, causes to

be presented or prepares with knowledge or belief that it will

be presented to or by an insurer, purported insurer or broker,

or an agent of an insurer, purported insurer or broker, a

written statement as part or in support of an application for

the issuance or rating of an insurance policy for commercial

insurance, or a claim for payment or other benefit pursuant to

an insurance policy for commercial or personal insurance which

he knows to contain materially false information concerning a

fact material to the statement or claim or to conceal, for the

purpose of misleading, information concerning a fact material to

the statement or claim.]

(a)  In the absence of actual malice, a person is not subject

to civil liability for libel, slander, bad faith or any other

civil cause of action and no civil cause of action shall arise

against a person:

(1)  for information furnished to or received from Federal,

State or local law enforcement officials, their agents or

employes relating to suspected fraudulent insurance acts or

persons suspected of engaging in such acts;

(2)  for information furnished to or received from the

Insurance Department, the Department of Health, the Department

of Labor and Industry, the Insurance Fraud Prevention Authority,

the Automobile Theft Prevention Authority, the National

Insurance Crime Bureau, the National Association of Insurance

Commissioners or a recognized comprehensive database system

relating to suspected fraudulent insurance acts or persons

suspected of engaging in such acts; or

(3)  for other actions taken in cooperation with agencies or

individuals identified in this subsection in the lawful

investigation of suspected fraudulent insurance acts.

(b)  In addition to the immunity granted in subsection (a),

persons identified as designated employes of insurers, self-

insureds or insurance licensees whose responsibilities include

the investigation and disposition of claims relating to

suspected fraudulent insurance acts may share information on the

acts and persons suspected of engaging in such acts with other

designated employes employed by the same or other insurers,

self-insureds or insurance licensees whose responsibilities

include the investigation and disposition of claims relating to

suspected fraudulent insurance acts. Unless the persons act with

actual malice or in reckless disregard for the rights of

insured persons, insurers, self-insureds or insurance licensees

and their employes shall not be subject to libel, slander, bad

faith or other civil cause of action, and civil causes of action

shall not arise against them. The qualified immunity against

civil liability provided under this subsection shall be

forfeited regarding the exchange or publication of defamatory

information with third persons not expressly authorized by this

subsection to share in the information.

(c)  The Insurance Commissioner and employes of the Insurance

Department, when acting without malice and in the absence of

fraud or bad faith, are not subject to civil liability for

libel, slander or any other relevant tort, and no civil cause of

action exists against such person by virtue of the execution of

official activities or duties of the Insurance Department by

statute or by virtue of the publication of a report or bulletin

related to the official activities or statutory duties of the

Insurance Department under this act.

(d)  Nothing in this section is intended to abrogate or

modify a common law or statutory immunity previously enjoyed by

a person or to prohibit a bad faith or other civil action based

upon actions other than those described in this section.

Section 2.  (a)  The repeals in this section are necessary to

effectuate this act.

(b)  The following parts of acts are repealed:

(1)  Section 3(c) of the act of July 2, 1980 (P.L.340,

No.85), known as the Arson Reporting Immunity Act.  

(2)  75 Pa.C.S. § 1795(b) and (c).

Section 3.  This act shall take effect in 60 days.