PRINTER'S NO. 2129
No. 1532 Session of 2000
INTRODUCED BY HOLL, SALVATORE, TARTAGLIONE, DENT AND BOSCOLA,
SEPTEMBER 25, 2000
REFERRED TO BANKING AND INSURANCE, SEPTEMBER 25, 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," further providing for inclusion of
12 health maintenance organizations in conversion notifications;
13 and changing the expiration date of an article.
14 The General Assembly of the Commonwealth of Pennsylvania
15 hereby enacts as follows:
16 Section 1. Sections 1009-A and 1012-A of the act of May 17,
17 1921 (P.L.682, No.284), known as The Insurance Company Law of
18 1921, added November 4, 1997 (P.L.492, No.51), are amended to
19 read:
20 Section 1009-A. Conversion Policies.--(a) Notification of
21 the conversion privilege shall be included with each certificate
22 of coverage issued under section 621.2(d), and with any HMO
23 subscriber agreement. Each certificate holder in an insured
1 group and each HMO subscriber shall be given written
2 notification of the conversion privilege and its duration within
3 a period beginning fifteen (15) days before and ending thirty
4 (30) days after the date of termination of the group coverage.
5 The certificate holder or the holder's dependent and the HMO
6 subscriber or the subscriber's dependent shall have no less than
7 thirty-one (31) days following notification to exercise the
8 conversion privilege. Written notification provided by the
9 contract holder and supplied to the certificate holder or
10 subscriber or mailed to the certificate holder's or subscriber's
11 last known address or the last address furnished to the insurer
12 by the contract holder or employer shall constitute full
13 compliance with this section.
14 (b) The premium rates for individuals who purchase a
15 comparable group conversion policy offered pursuant to
16 applicable law shall be limited to one hundred twenty per centum
17 (120%) of the approved premium rates for comparable group
18 coverage.
19 Section 1012-A. Expiration.--This article shall expire on
20 December 31, [2000] 2003.
21 Section 2. This act shall take effect immediately.
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