SENATE AMENDED
PRIOR PRINTER'S NOS. 574, 3700, 4080 PRINTER'S No. 4195
No. 550 Session of 1999
INTRODUCED BY BARD, NICKOL, E. Z. TAYLOR, DeLUCA, LEDERER,
BAKER, BARRAR, BELARDI, BROWNE, CLARK, L. I. COHEN, M. COHEN,
CURRY, DALEY, FAIRCHILD, GEIST, HARHAI, LAUGHLIN, MAHER,
McNAUGHTON, S. MILLER, ORIE, ROSS, RUBLEY, SEMMEL, SERAFINI,
SEYFERT, STABACK, STEELMAN, THOMAS, TIGUE, TRELLO, VAN HORNE,
WILLIAMS AND YOUNGBLOOD, FEBRUARY 10, 1999
SENATOR HOLL, BANKING AND INSURANCE, IN SENATE, AS AMENDED,
NOVEMBER 15, 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 payment of life
12 insurance benefits and for publication of rate increases on
13 home page; FURTHER PROVIDING FOR INCLUSION OF HEALTH <--
14 MAINTENANCE ORGANIZATIONS IN CONVERSION NOTIFICATIONS;
15 CHANGING THE EXPIRATION DATE OF AN ARTICLE; FURTHER DEFINING
16 "INSURER" AND "PERSON" FOR PURPOSES OF INSURANCE HOLDING
17 COMPANIES; AND FURTHER PROVIDING FOR STANDARDS AND MANAGEMENT
18 OF AN INSURER WITHIN A HOLDING COMPANY SYSTEM.
19 The General Assembly of the Commonwealth of Pennsylvania
20 hereby enacts as follows:
21 Section 1. The act of May 17, 1921 (P.L.682, No.284), known
22 as The Insurance Company Law of 1921, is amended by adding
23 sections A SECTION to read: <--
1 Section 411B. Payment of Benefits.--(a) Except as set forth
2 in subsection (b), life insurance death benefits not paid within
3 thirty days after satisfactory proof of death was submitted to
4 the insurer shall bear interest at the rate of interest payable
5 on death benefits left on deposit by the beneficiary with the
6 insurer. This interest shall accrue from the date of death of
7 the insured to the date the benefits are paid to the
8 beneficiary. In cases where satisfactory proof of death is
9 submitted more than one hundred eighty days after the death of
10 the insured, and the death benefits are not paid within thirty
11 days after satisfactory proof of death was submitted to the
12 insurer, interest shall accrue from the date on which
13 satisfactory proof was submitted to the date on which the
14 benefits of the policy are paid.
15 (b) Notwithstanding section 6 of the act of May 11, 1949
16 (P.L.1210, No.367), referred to as the Group Life Insurance
17 Policy Law, this section shall apply to all life insurance
18 policies except variable insurance policies.
19 (c) The term "left on deposit" shall mean a specific
20 settlement option provided within the life insurance policy
21 under which the death benefit proceeds are retained by the
22 insurer for the beneficiary and are credited with a specific
23 rate of interest.
24 Section 2194. Publication of Rate Increases on Home Page.-- <--
25 The Insurance Department shall post all proposed and finalized
26 rate increases by providers of health care benefits over which,
27 the Insurance Commissioner has jurisdiction on the Insurance
28 Department's home page and shall provide ratepayers with the
29 opportunity to file comments on any proposed rate increase on-
30 line or by mail.
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1 SECTION 2. SECTIONS 1009-A AND 1012-A OF THE ACT, ADDED <--
2 NOVEMBER 4, 1997 (P.L.492, NO.51), ARE AMENDED TO READ:
3 SECTION 1009-A. CONVERSION POLICIES.--(A) NOTIFICATION OF
4 THE CONVERSION PRIVILEGE SHALL BE INCLUDED WITH EACH CERTIFICATE
5 OF COVERAGE ISSUED UNDER SECTION 621.2(D), AND WITH ANY HMO
6 SUBSCRIBER AGREEMENT. EACH CERTIFICATE HOLDER IN AN INSURED
7 GROUP AND EACH HMO SUBSCRIBER SHALL BE GIVEN WRITTEN
8 NOTIFICATION OF THE CONVERSION PRIVILEGE AND ITS DURATION WITHIN
9 A PERIOD BEGINNING FIFTEEN (15) DAYS BEFORE AND ENDING THIRTY
10 (30) DAYS AFTER THE DATE OF TERMINATION OF THE GROUP COVERAGE.
11 THE CERTIFICATE HOLDER OR THE HOLDER'S DEPENDENT AND THE HMO
12 SUBSCRIBER OR THE SUBSCRIBER'S DEPENDENT SHALL HAVE NO LESS THAN
13 THIRTY-ONE (31) DAYS FOLLOWING NOTIFICATION TO EXERCISE THE
14 CONVERSION PRIVILEGE. WRITTEN NOTIFICATION PROVIDED BY THE
15 CONTRACT HOLDER AND SUPPLIED TO THE CERTIFICATE HOLDER OR
16 SUBSCRIBER OR MAILED TO THE CERTIFICATE HOLDER'S OR SUBSCRIBER'S
17 LAST KNOWN ADDRESS OR THE LAST ADDRESS FURNISHED TO THE INSURER
18 BY THE CONTRACT HOLDER OR EMPLOYER SHALL CONSTITUTE FULL
19 COMPLIANCE WITH THIS SECTION.
20 (B) THE PREMIUM RATES FOR INDIVIDUALS WHO PURCHASE A
21 COMPARABLE GROUP CONVERSION POLICY OFFERED PURSUANT TO
22 APPLICABLE LAW SHALL BE LIMITED TO ONE HUNDRED TWENTY PER CENTUM
23 (120%) OF THE APPROVED PREMIUM RATES FOR COMPARABLE GROUP
24 COVERAGE.
25 SECTION 1012-A. EXPIRATION.--THIS ARTICLE SHALL EXPIRE ON
26 DECEMBER 31, [2000] 2003.
27 SECTION 3. THE DEFINITIONS OF "INSURER" AND "PERSON" IN
28 SECTION 1401 OF THE ACT, AMENDED FEBRUARY 17, 1994 (P.L.92,
29 NO.9), ARE AMENDED TO READ:
30 SECTION 1401. DEFINITIONS.--AS USED IN THIS ARTICLE THE
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1 FOLLOWING WORDS AND PHRASES SHALL HAVE THE MEANINGS GIVEN TO
2 THEM IN THIS SECTION:
3 * * *
4 "INSURER." ANY HEALTH MAINTENANCE ORGANIZATION, PREFERRED
5 PROVIDER ORGANIZATION, COMPANY, ASSOCIATION OR EXCHANGE
6 AUTHORIZED BY THE INSURANCE COMMISSIONER TO TRANSACT THE
7 BUSINESS OF INSURANCE IN THIS COMMONWEALTH EXCEPT THAT THE TERM
8 SHALL NOT INCLUDE:
9 (1) THE COMMONWEALTH OR ANY AGENCY OR INSTRUMENTALITY
10 THEREOF;
11 (2) AGENCIES, AUTHORITIES OR INSTRUMENTALITIES OF THE UNITED
12 STATES, ITS POSSESSIONS AND TERRITORIES, THE COMMONWEALTH OF
13 PUERTO RICO, THE DISTRICT OF COLUMBIA OR A STATE OR POLITICAL
14 SUBDIVISION;
15 (3) FRATERNAL BENEFIT SOCIETIES; OR
16 (4) NONPROFIT MEDICAL AND HOSPITAL SERVICE ASSOCIATIONS.
17 [THE TERM SHALL INCLUDE HEALTH MAINTENANCE ORGANIZATIONS AS
18 DEFINED IN THE ACT OF DECEMBER 29, 1972 (P.L.1701, NO.364),
19 KNOWN AS THE "HEALTH MAINTENANCE ORGANIZATION ACT."]
20 * * *
21 "PERSON." AN INDIVIDUAL, A CORPORATION, A PARTNERSHIP, A
22 LIMITED LIABILITY COMPANY, AN ASSOCIATION, A JOINT STOCK
23 COMPANY, A TRUST, AN UNINCORPORATED ORGANIZATION, ANY SIMILAR
24 ENTITY OR ANY COMBINATION OF THE FOREGOING ACTING IN CONCERT.
25 THE TERM SHALL NOT INCLUDE ANY JOINT VENTURE PARTNERSHIP
26 EXCLUSIVELY ENGAGED IN OWNING, MANAGING, LEASING OR DEVELOPING
27 REAL OR TANGIBLE PERSONAL PROPERTY.
28 * * *
29 SECTION 4. SECTION 1405(A)(2)(I) OF THE ACT, AMENDED
30 FEBRUARY 17, 1994 (P.L.92, NO.9), IS AMENDED TO READ:
19990H0550B4195 - 4 -
1 SECTION 1405. STANDARDS AND MANAGEMENT OF AN INSURER WITHIN
2 A HOLDING COMPANY SYSTEM.--(A) * * *
3 (2) THE FOLLOWING TRANSACTIONS INVOLVING A DOMESTIC INSURER
4 AND ANY PERSON IN ITS HOLDING COMPANY SYSTEM MAY NOT BE ENTERED
5 INTO UNLESS THE INSURER HAS NOTIFIED THE DEPARTMENT IN WRITING
6 OF ITS INTENTION TO ENTER INTO SUCH TRANSACTION AT LEAST THIRTY
7 (30) DAYS PRIOR THERETO OR SUCH SHORTER PERIOD AS THE DEPARTMENT
8 MAY PERMIT AND THE DEPARTMENT HAS NOT DISAPPROVED IT WITHIN SUCH
9 PERIOD:
10 (I) SALES, PURCHASES, EXCHANGES, LOANS OR EXTENSIONS OF
11 CREDIT, GUARANTEES [OR], INVESTMENTS, [INCLUDING] PLEDGES OF
12 ASSETS OR ASSETS TO BE RECEIVED BY THE DOMESTIC INSURER AS
13 CONTRIBUTIONS TO ITS SURPLUS, PROVIDED THAT, AS OF THE THIRTY-
14 FIRST DAY OF DECEMBER NEXT PRECEDING, SUCH TRANSACTIONS ARE
15 EQUAL TO OR EXCEED THE LESSER OF FIVE PER CENTUM (5%) OF THE
16 INSURER'S ADMITTED ASSETS OR TWENTY-FIVE PER CENTUM (25%) OF
17 SURPLUS AS REGARDS POLICYHOLDERS.
18 * * *
19 Section 2 5. (a) Except as provided in subsection (b), the <--
20 addition of section 411B of the act shall apply to insurance
21 policies issued or renewed on or after the effective date of
22 this act.
23 (b) Unless there is a policy provision to the contrary, the
24 addition of section 411B of the act shall apply to policies in
25 existence on the effective date of this act.
26 Section 3. This act shall take effect in 60 days. <--
27 SECTION 6. THIS ACT SHALL TAKE EFFECT AS FOLLOWS: <--
28 (1) THE AMENDMENT OF SECTIONS 1009-A AND 1012-A OF THE
29 ACT SHALL TAKE EFFECT IMMEDIATELY.
30 (2) THIS SECTION SHALL TAKE EFFECT IMMEDIATELY.
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1 (3) THE REMAINDER OF THIS ACT SHALL TAKE EFFECT IN 60
2 DAYS.
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