PRINTER'S NO. 344
No. 308 Session of 2007
INTRODUCED BY RAFFERTY, BOSCOLA, WONDERLING, CORMAN, EARLL,
O'PAKE, C. WILLIAMS, BRUBAKER, COSTA, REGOLA, GREENLEAF,
M. WHITE AND RHOADES, MARCH 9, 2007
REFERRED TO BANKING AND INSURANCE, MARCH 9, 2007
AN ACT
1 Amending the act of July 3, 1986 (P.L.396, No.86), entitled "An
2 act requiring notice of rate increases, policy cancellations
3 and nonrenewals by property and casualty insurers," further
4 providing for notice of increase in premium and for notice
5 requirements for midterm cancellations.
6 The General Assembly of the Commonwealth of Pennsylvania
7 hereby enacts as follows:
8 Section 1. Section 1 of the act of July 3, 1986 (P.L.396,
9 No.86), entitled "An act requiring notice of rate increases,
10 policy cancellations and nonrenewals by property and casualty
11 insurers," amended June 13, 1995 (P.L.60, 10), is amended to
12 read:
13 Section 1. Notice of increase in premium.
14 (1) Notwithstanding any other provision of law, a policy
15 of insurance covering commercial property or casualty risks
16 in this Commonwealth shall provide for not less than 30 days'
17 advance notice to the named insured of an increase in renewal
18 premium.
19 (2) A policy of insurance covering medical professional
1 liability in this Commonwealth shall provide for not less
2 than 60 days' advance notice to the named insured of an
3 increase in renewal premium. The advanced notice shall also
4 include the amount of the proposed renewal premium increase.
5 (3) This section shall not apply to policies written on
6 a retrospective rating plan.
7 Section 2. Section 3(a) of the act is amended by adding a
8 paragraph to read:
9 Section 3. Notice requirements for midterm cancellations and
10 nonrenewals.
11 (a) Requirements.--Notices of midterm cancellation and
12 nonrenewal shall meet the following requirements:
13 * * *
14 (3.1) A policy for insurance covering medical
15 professional liability in this Commonwealth shall provide for
16 not less than 90 days' advance notice to the named insured of
17 a nonrenewal, cancellation or termination.
18 * * *
19 Section 3. This act shall take effect in 60 days.
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