PRINTER'S NO. 727
No. 648 Session of 1975
INTRODUCED BY A. K. HUTCHINSON, TOLL, ZEARFOSS, ROMANELLI,
SCHMITT, GILLETTE, BARBER, TRELLO, COHEN AND STAHL,
MARCH 4, 1975
REFERRED TO COMMITTEE ON CONSUMER PROTECTION, MARCH 5, 1975
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,"
13 authorizing the Insurance Commissioner or a duly designated
14 deputy to institute prosecution under certain penalty
15 sections.
16 The General Assembly of the Commonwealth of Pennsylvania
17 hereby enacts as follows:
18 Section 1. Section 604, act of May 17, 1921 (P.L.789,
19 No.284), known as "The Insurance Department Act of one thousand
20 nine hundred and twenty-one," amended December 30, 1974
21 (No.343), is amended to read:
22 Section 604. Penalty for Acting as Agent Without License.--
23 Any individual, copartnership, or corporation transacting
24 business within this Commonwealth as the agent of an insurance
1 company, association, or exchange, without a license as required
2 by this act, shall be guilty of a misdemeanor, and, upon
3 conviction thereof, shall be sentenced to pay a fine not
4 exceeding one thousand dollars. Prosecution for any violation
5 under this section may be instituted by the Insurance
6 Commissioner or a duly designated deputy.
7 Section 2. Section 623 of the act, amended June 5, 1947
8 (P.L.439, No.200), is amended to read:
9 Section 623. Penalties for Acting as Broker Without a
10 License and Transacting Business with an Unlicensed Broker.--Any
11 person, copartnership, or corporation transacting business as an
12 insurance broker, within this Commonwealth, or soliciting
13 insurance or transmitting for a partnership, copartnership,
14 association, or corporation, other than himself or itself, an
15 application for a policy of insurance, or offering or assuming
16 to act in the negotiation of such insurance, or in any manner
17 aiding in transacting an insurance business, or negotiating for
18 or placing risks, or delivering policies or collecting premiums
19 for policies which are effective in this State, without a
20 license as broker, or in the case of title insurance without
21 being admitted to practice as an attorney-at-law or being
22 licensed as a real estate broker or real estate agent, unless he
23 or she or it be acting as a licensed agent and then only for the
24 companies he, she or it is duly licensed by this Commonwealth to
25 represent, shall be deemed guilty of a misdemeanor, and, upon
26 conviction thereof, shall pay a fine not exceeding one thousand
27 dollars. Any company, association, or exchange, or the agent of
28 any company, association, or exchange, accepting applications or
29 orders for insurance or securing any insurance business through
30 anyone acting without a license, as aforesaid, shall be guilty
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1 of a misdemeanor, and, upon conviction thereof, shall pay a fine
2 not exceeding one thousand dollars. Prosecution for any
3 violation under this section may be instituted by the Insurance
4 Commissioner or a duly designated deputy.
5 Section 3. Section 654 of the act, added December 22, 1965
6 (P.L.1172, No.463), is amended to read:
7 Section 654. Penal Provision.--Any individual,
8 copartnership, or corporation acting as a manager or exclusive
9 general agent of a domestic insurance company without a license,
10 as required by this act, shall be guilty of a misdemeanor, and,
11 upon conviction thereof, shall be sentenced to pay a fine not
12 exceeding one thousand dollars for each day of operation without
13 a license.
14 Any domestic insurance company which fails to file the
15 certification required by section 650 hereof shall be guilty of
16 a misdemeanor, and, upon conviction thereof, shall be sentenced
17 to pay a fine not exceed one thousand dollars for each day of
18 non-compliance.
19 Prosecution for any violation under this section may be
20 instituted by the Insurance Commissioner or a duly designated
21 deputy.
22 Section 4. This act shall take effect immediately.
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