PRINTER'S NO. 2667
No. 2062 Session of 1976
INTRODUCED BY A. K. HUTCHINSON, ZEARFOSS, PYLES, SCHMITT,
TRELLO, ABRAHAM, COHEN, TAYLOR AND VROON, JANUARY 27, 1976
REFERRED TO COMMITTEE ON CONSUMER PROTECTION, JANUARY 27, 1976
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," eliminating certain exemptions on
12 reserving requirements applicable to mutual fire insurance
13 companies.
14 The General Assembly of the Commonwealth of Pennsylvania
15 hereby enacts as follows:
16 Section 1. Section 807, act of May 17, 1921 (P.L.682,
17 No.284), known as "The Insurance Company Law of 1921," amended
18 August 23, 1961 (P.L.1090, No.490), is amended to read:
19 Section 807. Reserves.--A mutual insurance company, other
20 than a mutual life company, shall maintain unearned premium and
21 other reserves separately, for each kind of insurance, upon the
22 same basis as that required of domestic stock insurance
23 companies transacting the same kind of insurance, except that
1 the Insurance Commissioner may, by written order, fix a
2 different basis of reserve for losses and claim in workmen's
3 compensation insurance. Any reserve for losses or claims based
4 upon the premium income shall be computed upon the net premium
5 income, after deducting any so-called dividend or premium
6 returned or credited to the member. [Except when cash premiums
7 are payable in advance, the] The provisions relating to unearned
8 premium reserve shall not apply to policies issued by a domestic
9 mutual fire insurance company under the authority of section 202
10 (b) (1), which policies set forth therein, or in the promissory
11 note attached thereto, a limited or unlimited liability to
12 assessment.
13 Such companies shall accumulate such reserves not later than
14 December 31, [1961] 1976.
15 Section 2. This act shall take effect immediately.
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