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                                 HOUSE AMENDED
        PRIOR PRINTER'S NO. 2129                      PRINTER'S NO. 2281

THE GENERAL ASSEMBLY OF PENNSYLVANIA


SENATE BILL

No. 1532 Session of 2000


        INTRODUCED BY HOLL, SALVATORE, TARTAGLIONE, DENT, BOSCOLA,
           CORMAN and MOWERY, SEPTEMBER 25, 2000

        AS REPORTED FROM COMMITTEE ON INSURANCE, HOUSE OF
           REPRESENTATIVES, AS AMENDED, NOVEMBER 14, 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," PROVIDING FOR COVERAGE REQUIREMENTS  <--
    12     FOR INSULIN AND OTHER BLOOD SUGAR CONTROLLING AGENTS; further
    13     providing for inclusion of health maintenance organizations
    14     in conversion notifications; and changing the expiration date
    15     of an article.

    16     The General Assembly of the Commonwealth of Pennsylvania
    17  hereby enacts as follows:
    18     Section 1.  Sections 1009-A and 1012-A of the act of May 17,   <--
    19  1921 (P.L.682, No.284), known as The Insurance Company Law of
    20  1921, added November 4, 1997 (P.L.492, No.51), are amended to
    21  read:
    22     SECTION 1.  SECTION 634(E) OF THE ACT OF MAY 17, 1921          <--
    23  (P.L.682, NO.284), KNOWN AS THE INSURANCE COMPANY LAW OF 1921,

     1  ADDED OCTOBER 16, 1998 (P.L.784, NO.98), IS AMENDED TO READ:
     2     SECTION 634.  REIMBURSEMENT FOR DIABETIC SUPPLIES.--* * *
     3     (E)  THE COVERAGE REQUIRED UNDER THIS SECTION SHALL BE
     4  SUBJECT TO THE ANNUAL DEDUCTIBLES, COPAYMENTS OR COINSURANCE
     5  REQUIREMENTS IMPOSED BY AN ENTITY SUBJECT TO THIS SECTION FOR
     6  SIMILAR COVERAGES UNDER THE SAME HEALTH INSURANCE POLICY OR
     7  CONTRACT.
     8     SECTION 2.  SECTIONS 1009-A AND 1012-A OF THE ACT, ADDED
     9  NOVEMBER 4, 1997 (P.L.492, NO.51), ARE AMENDED TO READ:
    10     Section 1009-A.  Conversion Policies.--(a)  Notification of
    11  the conversion privilege shall be included with each certificate
    12  of coverage issued under section 621.2(d), and with any HMO
    13  subscriber agreement. Each certificate holder in an insured
    14  group and each HMO subscriber shall be given written
    15  notification of the conversion privilege and its duration within
    16  a period beginning fifteen (15) days before and ending thirty
    17  (30) days after the date of termination of the group coverage.
    18  The certificate holder or the holder's dependent and the HMO
    19  subscriber or the subscriber's dependent shall have no less than
    20  thirty-one (31) days following notification to exercise the
    21  conversion privilege. Written notification provided by the
    22  contract holder and supplied to the certificate holder or
    23  subscriber or mailed to the certificate holder's or subscriber's
    24  last known address or the last address furnished to the insurer
    25  by the contract holder or employer shall constitute full
    26  compliance with this section.
    27     (b)  The premium rates for individuals who purchase a
    28  comparable group conversion policy offered pursuant to
    29  applicable law shall be limited to one hundred twenty per centum
    30  (120%) of the approved premium rates for comparable group
    20000S1532B2281                  - 2 -

     1  coverage.
     2     Section 1012-A.  Expiration.--This article shall expire on
     3  December 31, [2000] 2003.
     4     Section 2 3.  This act shall take effect immediately.          <--


















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