THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY LONGIETTI, EACHUS, CALTAGIRONE, CARROLL, COHEN, DeLUCA, DONATUCCI, FRANKEL, GALLOWAY, GEORGE, GIBBONS, HENNESSEY, JOSEPHS, KORTZ, KOTIK, MANDERINO, MUNDY, MURT, M. O'BRIEN, READSHAW, SIPTROTH, K. SMITH, WALKO, WHEATLEY AND YOUNGBLOOD, MARCH 10, 2009

AS REPORTED FROM COMMITTEE ON INSURANCE, HOUSE OF REPRESENTATIVES, AS AMENDED, MARCH 18, 2009   

AN ACT

Amending the act of May 17, 1921 (P.L.682, No.284), entitled "An

act relating to insurance; amending, revising, and

consolidating the law providing for the incorporation of

insurance companies, and the regulation, supervision, and

protection of home and foreign insurance companies, Lloyds

associations, reciprocal and inter-insurance exchanges, and

fire insurance rating bureaus, and the regulation and

supervision of insurance carried by such companies,

associations, and exchanges, including insurance carried by

the State Workmen's Insurance Fund; providing penalties; and

repealing existing laws," further providing for conditions

subject to which policies are to be issued; and providing for

health insurance coverage for certain children of insured

parents.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 617(A)(3) and (9) of the act of May 17,

1921 (P.L.682, No.284), known as The Insurance Company Law of

1921, repealed and added May 25, 1951 (P.L.417, No.99) and added

January 18, 1968 (1967 P.L.969, No.433), are amended to read:

Section 617.  Conditions Subject to Which Policies Are to Be

Issued.--(A)  No such policy shall be delivered or issued for

delivery to any person in this Commonwealth unless:

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(3)  it purports to insure only one person, except that a

policy may insure, originally or by subsequent amendment, upon

the application of an adult head of a family who shall be deemed

the policyholder, any two or more eligible members of that

family, including husband, wife, dependent children or any

children under a specified age which, except as provided under

section 617.1, shall not exceed nineteen years and any other

person dependent upon the policyholder; and

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(9)  A policy delivered or issued for delivery after January

1, 1968, under which coverage of a dependent of a policyholder

terminates at a specified age shall, with respect to an

unmarried child covered by the policy prior to the attainment of

the age of nineteen or except as provided under section 617.1,

the age of twenty-nine, who is incapable of self-sustaining

employment by reason of mental retardation or physical handicap

and who became so incapable prior to attainment of age nineteen

and who is chiefly dependent upon such policyholder for support

and maintenance, not so terminate while the policy remains in

force and the dependent remains in such condition, if the

policyholder has within thirty-one days of such dependent's

attainment of the limiting age submitted proof of such

dependent's incapacity as described herein. The foregoing

provisions of this paragraph shall not require an insurer to

insure a dependent who is a mentally retarded or physically

handicapped child where the policy is underwritten on evidence

of insurability based on health factors set forth in the

application or where such dependent does not satisfy the

conditions of the policy as to any requirement for evidence of

insurability or other provisions of the policy, satisfaction of

which is required for coverage thereunder to take effect. In any

such case the terms of the policy shall apply with regard to the

coverage or exclusion from coverage of such dependent.

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Section 2.  The act is amended by adding a section to read:

Section 617.1.  Health Insurance Coverage for Certain

Children of Insured Parents.--(A)  An insurer that issues,

delivers, executes or renews health care insurance in this

Commonwealth, under which coverage of a child would otherwise

terminate at a specified age, shall, at the option of the

child's parent or guardianpolicyholder's insured employe,

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provide coverage to a child of the insuredan insured employe 

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beyond that specified age, up through and including the age of

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twenty-nine, provided that the child meet all of the following

requirements:

(1)  Is not married.

(2)  Has no dependents.

(3)  Is a resident of this Commonwealth or is enrolled as a

full-time student at an institution of higher education in this

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Commonwealth.

(4)  Is not covered by another policy of health insurance

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policyincluding benefits under Title XVIII of the Social

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Security Act (49 Stat. 620, 42 U.S.C. § 1395 et seq.).

(B)  An insured may exercise the option provided under

subsection (A) at any time during the term of the policy by

notice to the insurer.

(C)  This section shall not include the following types of

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insurance or any combination thereof:

(1)  Hospital indemnity.

(2)  Accident.

(3)  Specified disease.

(4)  Disability income.

(5)  Dental.

(6)  Vision.

(7)  Civilian Health and Medical Program of the Uniformed

Services (CHAMPUS) supplement.

(8)  Medicare supplement.

(9)  Long-term care.

(10)  Other limited benefit plans.

(11)  Individual health insurance policies.

(D)  For the purpose of this section:

"Health care insurance" means a group health, sickness or

accident policy or subscriber contract or certificate issued by

an entity subject to any one of the following:

(1)  This act.

(2)  The act of December 29, 1972 (P.L.1701, No.364), known

as the "Health Maintenance Organization Act."

(3)  The act of May 18, 1976 (P.L.123, No.54), known as the

"Individual Accident and Sickness Insurance Minimum Standards

Act."

(4)  40 Pa.C.S. Ch. 61 (relating to hospital plan

corporations) or 63 (relating to professional health services

plan corporations).

(c)(E)  Employers shall not be required to contribute to any

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increased premium charged by the insurer for the exercise of the

option provided under subsection (A), but the contributions may

be agreed to by the employer.

Section 3.  The amendment or addition of sections 617(A)(3)

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and (9) and 617.1 of the act shall apply to policies offered,

issued or renewed on or after the effective date of this

section.

Section 34.  This act shall take effect in 60 days.

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