PRINTER'S NO. 571
No. 538 Session of 1989
INTRODUCED BY FUMO, LYNCH, ANDREZESKI, WILLIAMS, PORTERFIELD,
DAWIDA, O'PAKE, MUSTO, STOUT, AFFLERBACH AND RHOADES,
FEBRUARY 15, 1989
REFERRED TO BANKING AND INSURANCE, FEBRUARY 15, 1989
AN ACT
1 Providing for administrative procedure for insureds to file
2 complaints against insurers for actions relating to certain
3 insurance policies; providing for remedies; and conferring
4 powers and duties upon the Insurance Department.
5 The General Assembly of the Commonwealth of Pennsylvania
6 hereby enacts as follows:
7 Section 1. Short title.
8 This act shall be known and may be cited as the Insurance
9 Policy Dispute Act.
10 Section 2. Definitions.
11 The following words and phrases when used in this act shall
12 have the meanings given to them in this section unless the
13 context clearly indicates otherwise:
14 "Department." The Insurance Department of the Commonwealth.
15 Section 3. Complaints.
16 (a) General rule.--An insured who is injured by the failure
17 of the insurer to perform under the insurance policy may file a
18 complaint against the insurer with the department.
1 (b) Exception.--This section does not apply to policies of
2 motor vehicle insurance.
3 Section 4. Procedure.
4 The procedure set forth in 2 Pa.C.S. Ch.5 Subch. A (relating
5 to practice and procedure of Commonwealth agencies) and Ch. 7
6 Subch. A (relating to judicial review of Commonwealth agency
7 action) applies to complaints under section 3.
8 Section 5. Civil remedy.
9 (a) General rule.--Except as provided in section 7(b), a
10 person who files a complaint under section 3 shall not be
11 excluded from the procedures and remedies available under the
12 laws of this Commonwealth.
13 (b) Limitation.--Conclusions reached in an action before the
14 department may not be introduced as evidence for or against
15 either party in a civil action related to the same subject
16 matter as the administrative action.
17 Section 6. Interpretation.
18 In a hearing on a complaint under section 3, the department
19 shall interpret ambiguous language in the insurance policy
20 against the insurer and in favor of the insured.
21 Section 7. Award.
22 (a) Administrative action.--In an action before the
23 department under section 3, the department may award damages not
24 exceeding the face value of the policy.
25 (b) Civil action.--In a civil action which might have been
26 brought before the department under section 3, damages in favor
27 of the insured may not exceed three times the face value of the
28 policy.
29 Section 8. Effective date.
30 This act shall take effect in 60 days.
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