HOUSE AMENDED
PRIOR PRINTER'S NOS. 545, 995, 1063 PRINTER'S NO. 1299
No. 483 Session of 2003
INTRODUCED BY MOWERY, PILEGGI, RAFFERTY, EARLL, TOMLINSON,
TARTAGLIONE, ERICKSON, WENGER, CORMAN, STACK, C. WILLIAMS AND
THOMPSON, MARCH 17, 2003
AS REPORTED FROM COMMITTEE ON INSURANCE, HOUSE OF
REPRESENTATIVES, AS AMENDED, NOVEMBER 25, 2003
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," further providing for life
12 insurance applications; AND EXTENDING THE EXPIRATION DATE OF <--
13 PROVISIONS RELATING TO HEALTH CARE INSURANCE INDIVIDUAL
14 ACCESSIBILITY.
15 The General Assembly of the Commonwealth of Pennsylvania
16 hereby enacts as follows:
17 Section 1. Section 412 of the act of May 17, 1921 (P.L.682,
18 No.284), known as The Insurance Company Law of 1921, amended
19 April 3, 1992 (P.L.44, No.13), is amended to read:
20 Section 412. Application for Insurance; Insurable
21 Interest.--No policy of life insurance shall be delivered in
22 this Commonwealth except upon the application of the person
1 insured. A person liable for the support of a child may take out
2 a policy of insurance on such child; and persons,
3 copartnerships, associations, [and] corporations, and the
4 trustee of a trust established by a person, copartnership,
5 association or corporation providing benefits to its officers,
6 directors, principals, partners or employes may insure the lives
7 and health of officers, directors, principals, partners, and
8 employes, without the signing of a personal application as
9 hereinbefore required; provided that such persons,
10 copartnerships, associations, corporations and the trustee of a
11 trust established by a person, copartnership, association or
12 corporation shall notify such officers, directors, principals,
13 partners and employes in writing of the intent to purchase a
14 policy of life insurance insuring the lives of such officers,
15 directors, principals, partners or employes and obtain the prior
16 written consent of such officers, directors, principals,
17 partners or employes. Any person may insure his own life for the
18 benefit of any person, copartnership, association, [or]
19 corporation, or trustee of a trust established by a person,
20 copartnership, association or corporation, but no person shall
21 cause to be insured the life of another, unless the beneficiary
22 named in such policy or agreement of life insurance, whether
23 himself or a third person, has an insurable interest in the life
24 of the insured. If a policy of life insurance has been issued in
25 conformity with this section, no transfer of such policy or any
26 interest thereunder shall be invalid by reason of a lack of
27 insurable interest of the transferee in the life of the insured
28 or the payment of premiums thereafter by the transferee. The
29 term "insurable interest" is defined as meaning, in the case of
30 persons related by blood or law, an interest engendered by love
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1 and affection, and, in the case of other persons, a lawful
2 economic interest in having the life of the insured continue, as
3 distinguished from an interest which would arise only by the
4 death of the insured. A charitable organization that meets the
5 requirements of section 501(c)(3) of the Internal Revenue Code
6 of 1986 (Public Law 99-514, 26 U.S.C. § 501(c)(3)), as amended,
7 may own or purchase life insurance on an insured who consents to
8 the ownership or purchase of that insurance.
9 SECTION 2. SECTION 1012-A OF THE ACT, AMENDED DECEMBER 20, <--
10 2000 (P.L.967, NO.132), IS AMENDED TO READ:
11 SECTION 1012-A. EXPIRATION.--THIS ARTICLE SHALL EXPIRE ON
12 [DECEMBER 31, 2003] DECEMBER 31, 2006.
13 Section 2 3. This act shall take effect in 60 days. <--
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