PRINTER'S NO. 423
No. 408 Session of 1989
INTRODUCED BY PECORA AND LYNCH, FEBRUARY 6, 1989
REFERRED TO BANKING AND INSURANCE, FEBRUARY 6, 1989
AN ACT
1 Amending the act of May 17, 1921 (P.L.789, No.285), entitled, as
2 amended, "An act relating to insurance; establishing an
3 insurance department; and amending, revising, and
4 consolidating the law relating to the licensing,
5 qualification, regulation, examination, suspension, and
6 dissolution of insurance companies, Lloyds associations,
7 reciprocal and inter-insurance exchanges, and certain
8 societies and orders, the examination and regulation of fire
9 insurance rating bureaus, and the licensing and regulation of
10 insurance agents and brokers; the service of legal process
11 upon foreign insurance companies, associations or exchanges;
12 providing penalties, and repealing existing laws," providing
13 for disclosure by the Insurance Commissioner of certain
14 information relating to agents.
15 The General Assembly of the Commonwealth of Pennsylvania
16 hereby enacts as follows:
17 Section 1. The act of May 17, 1921 (P.L.789, No.285), known
18 as The Insurance Department Act of one thousand nine hundred and
19 twenty-one, is amended by adding a section to read:
20 Section 602.1. Insurance Commissioner Disclosure Relating to
21 Agents.--(a) The Insurance Commissioner, upon a formal request
22 from an insurance company for disclosure relating to the
23 affirmative declaration by an applicant for additional standard
1 licensure, shall disclose any information from the records of
2 the Insurance Department which is relevant to the affirmative
3 declaration of the applicant that the applicant:
4 (1) has engaged in such conduct as would disqualify that
5 agent from obtaining additional licenses;
6 (2) has been penalized or fined, had a license refused,
7 suspended or revoked by the Insurance Department or has such an
8 action pending; or
9 (3) has been indicted or involved in criminal proceedings or
10 has received written notifications or termination of prior
11 appointments due to an account being in dispute with an
12 insurance company, association or exchange.
13 (b) The Insurance Commissioner, upon a receipt of an
14 application for additional standard licensure that is
15 accompanied by a request from that company for disclosure, shall
16 disclose any information from the records of the Insurance
17 Department as required in subsection (a).
18 (c) The Insurance Commissioner may not disclose information
19 under this section unless the applicant specifically consents in
20 writing to the disclosure within fifteen days of receipt of a
21 written request for disclosure by the Insurance Department.
22 (d) Requested information shall be made available to the
23 company within ten days of receipt by the Insurance Commissioner
24 of the applicant's written consent to the disclosure.
25 (e) No insurance company or agent shall be held liable for a
26 violation of section six hundred four if, subsequent to the
27 issuance of a temporary license upon completion of the
28 application for an additional standard license, the Insurance
29 Commissioner deems the applicant not worthy of a license.
30 (f) The Insurance Commissioner, a designated deputy of the
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1 Insurance Commissioner and the Insurance Department, after
2 strictly complying with the requirement and restrictions of this
3 section, may not be held liable to another on account of the
4 disclosures made.
5 Section 2. This act shall take effect immediately.
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