PRINTER'S NO. 1742
No. 1395 Session of 2007
INTRODUCED BY NICKOL, CAPPELLI, CARROLL, CLYMER, EVERETT, FAIRCHILD, GEIST, GILLESPIE, GINGRICH, GRELL, HARRIS, HENNESSEY, KILLION, MOUL, REICHLEY, ROSS, RUBLEY, SAYLOR, SONNEY AND STERN, MAY 29, 2007
REFERRED TO COMMITTEE ON INSURANCE, MAY 29, 2007
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 additional 12 investment authority for subsidiaries. 13 The General Assembly of the Commonwealth of Pennsylvania 14 hereby enacts as follows: 15 Section 1. Section 405.2(c)(1) of the act of May 17, 1921 16 (P.L.682, No.284), known as The Insurance Company Law of 1921, 17 amended December 21, 1995 (P.L.714, No.79), is amended to read: 18 Section 405.2. Additional Investment Authority for 19 Subsidiaries.--* * * 20 (c) (1) At no time shall a domestic life insurance company 21 make an investment in any subsidiary which will bring the 22 aggregate value of its investments, as determined for annual
1 statement purposes but not in excess of cost, in all 2 subsidiaries under this subsection to an amount in excess of 3 [ten per centum (10%)] fifteen per centum (15%) of its total 4 admitted assets as of the immediately preceding thirty-first day 5 of December. At no time shall a domestic life insurance company 6 make an investment which will bring the aggregate value of 7 investments, as determined for annual statement purposes but not 8 in excess of cost, in any one subsidiary in excess of ten per 9 centum (10%) of a company's total admitted assets as of the 10 immediately preceding thirty-first day of December. For any 11 additional investment which will bring the aggregate value of 12 investments, as determined for annual statement purposes but not 13 in excess of cost, in all subsidiaries in excess of ten per 14 centum (10%) but at no time in excess of fifteen per centum 15 (15%) of a company's total admitted assets as of the immediately 16 preceding thirty-first day of December, the prior written 17 approval of the department must be obtained; such investment 18 shall be deemed approved if not approved or disapproved by the 19 department within thirty (30) days of the department's receipt 20 of notification of a domestic life insurance company's intent to 21 make such an investment, in which case written approval is not 22 necessary. In determining the amount of investments of any 23 domestic life insurance company in subsidiaries for purposes of 24 this subsection, there shall be included investments made 25 directly by such insurance company and, if such investment is 26 made by another subsidiary, then to the extent that funds for 27 such investments are provided by the insurance company for such 28 purpose. 29 * * * 30 Section 2. Section 519.1(c)(1) of the act, amended February 20070H1395B1742 - 2 -
1 17, 1994 (P.L.92, No.9), is amended to read: 2 Section 519.1. Additional Investment Authority for 3 Subsidiaries.--* * * 4 (c) (1) At no time shall a domestic stock fire, stock 5 marine or stock fire and marine insurance company make an 6 investment in any subsidiary which will bring the aggregate 7 value of its investments, as determined for annual statement 8 purposes but not in excess of cost, in all subsidiaries under 9 this subsection to an amount in excess of [ten per centum (10%)] 10 fifteen per centum (15%) of its total admitted assets as of the 11 immediately preceding thirty-first day of December. At no time 12 shall a domestic stock fire, stock marine or stock fire and 13 marine insurance company make an investment which will bring the 14 aggregate value of investments, as determined for annual 15 statement purposes but not in excess of cost, in any one 16 subsidiary in excess of ten per centum (10%) of a company's 17 total admitted assets as of the immediately preceding thirty- 18 first day of December. For any additional investment which will 19 bring the aggregate value of investments, as determined for 20 annual statement purposes but not in excess of cost, in all 21 subsidiaries in excess of ten per centum (10%) but at no time in 22 excess of fifteen per centum (15%) of a company's total admitted 23 assets as of the immediately preceding thirty-first day of 24 December, the prior written approval of the department must be 25 obtained; such investment shall be deemed approved if not 26 approved or disapproved by the department within thirty (30) 27 days of the department's receipt of notification of a domestic 28 stock fire, stock marine or stock fire and marine insurance 29 company's intent to make such an investment, in which case 30 written approval is not necessary. In determining the amount of 20070H1395B1742 - 3 -
1 investments of any domestic stock fire, stock marine or stock 2 fire and marine insurance company in subsidiaries for purposes 3 of this subsection, there shall be included investments made 4 directly by such insurance company and, if such investment is 5 made by another subsidiary, then to the extent that funds for 6 such investments are provided by the insurance company for such 7 purpose. 8 * * * 9 Section 3. This act shall take effect in 30 days. E2L40BIL/20070H1395B1742 - 4 -