PRINTER'S NO. 240
No. 207 Session of 2007
INTRODUCED BY PICKETT, BAKER, BEYER, BOYD, CALTAGIRONE, CLYMER, COX, CUTLER, DALLY, DeLUCA, FABRIZIO, GEIST, GEORGE, GIBBONS, GINGRICH, GOODMAN, GRUCELA, HARPER, HENNESSEY, HERSHEY, JAMES, JOSEPHS, MANDERINO, MARSICO, McILHATTAN, MELIO, MILLARD, MUNDY, MUSTIO, PHILLIPS, PYLE, RAPP, REICHLEY, ROHRER, RUBLEY, SABATINA, SAYLOR, SCHRODER, SIPTROTH, SOLOBAY, SONNEY, STABACK, STERN, R. STEVENSON, SWANGER, WALKO, WANSACZ, WATSON AND YOUNGBLOOD, FEBRUARY 5, 2007
REFERRED TO COMMITTEE ON INSURANCE, FEBRUARY 5, 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," providing for professional and 12 trade association rate protection. 13 The General Assembly of the Commonwealth of Pennsylvania 14 hereby enacts as follows: 15 Section 1. The act of May 17, 1921 (P.L.682, No.284), known 16 as The Insurance Company Law of 1921, is amended by adding a 17 section to read: 18 Section 633.1. Professional and Trade Association Rate 19 Protection.--(a) An insurer that offers group health, sickness 20 and accident insurance policies, and all other forms of managed
1 or capitated care plans or policies or subscriber contracts in 2 this Commonwealth to members of a professional or trade 3 association on or after the effective date of this section shall 4 base the premiums for association members based upon actual 5 claims and expense experience for such group provided that the 6 association's membership is comprised of at least fifty 7 individuals. 8 (b) This section does not include the following policies: 9 (1) Accident only. 10 (2) Fixed indemnity. 11 (3) Limited benefit. 12 (4) Credit. 13 (5) Dental. 14 (6) Vision. 15 (7) Specified disease. 16 (8) Medicare supplement. 17 (9) CHAMPUS (Civilian Health and Medical Program for the 18 Uniformed Services) supplement. 19 (10) Long-term care. 20 (11) Disability income. 21 (12) Workers' compensation. 22 (13) Automobile medical payment. 23 (c) As used in this section: 24 (1) "Insurer" means any entity subject to this act, the act 25 of December 29, 1972 (P.L.1701, No.364), known as the "Health 26 Maintenance Organization Act," or 40 Pa.C.S. Ch. 61 (relating to 27 hospital plan corporations) or 63 (relating to professional 28 health services plan corporations). 29 (2) "Professional or trade association" means a bona fide 30 organization whose membership consists of businesses associated 20070H0207B0240 - 2 -
1 together for legitimate purposes of mutual benefit or lawful 2 convenience that purchases insurance on a group basis on behalf 3 of members. An association cannot be formed for the sole purpose 4 of purchasing insurance. 5 Section 2. This act shall take effect immediately. A2L40JLW/20070H0207B0240 - 3 -