THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY WHITE, BELFANTI, BRENNAN, CALTAGIRONE, D. COSTA, EACHUS, McGEEHAN, MELIO, MUNDY, MURT, SIPTROTH, SWANGER AND YOUNGBLOOD, MARCH 12, 2010

REFERRED TO COMMITTEE ON INSURANCE, MARCH 12, 2010  

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," providing for cancellation of

health insurance policies.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  The act of May 17, 1921 (P.L.682, No.284), known

as The Insurance Company Law of 1921, is amended by adding a

section to read:

Section 1013-A.  Cancellation of Health Insurance Policies.--

(a)  Except as provided in subsection (b), and notwithstanding

other provisions of this act, no insurer shall retroactively

cancel a health insurance policy.

(b)  An insurer may:

(1)  cancel policies wherein an insured knowingly furnished

false or incomplete information on an application or other

official correspondence regarding the health insurance policy to

be canceled; or

(2)  cancel policies for nonpayment of premium, in accordance

with all other applicable insurance laws.

(c)  A cancellation by an insurer of a policy of health

insurance shall not be effective unless the insurer delivers or

mails to the named insured at the address shown in the policy a

written notice of the cancellation or refusal to renew. The

notice shall:

(1)  Be in a form acceptable to the commissioner.

(2)  State the date, not less than sixty (60) days after the

date of the mailing or delivery, on which cancellation or

refusal to renew shall become effective.

(3)  State the specific reason or reasons provided by this

section of the insurer for cancellation or refusal to renew.

(4)  Advise the insured of his right to request in writing,

within thirty (30) days of the receipt of the notice of

cancellation and of the receipt of the reason or reasons for the

cancellation in the notice of cancellation, that the

commissioner review the action of the insurer.

Section 2.  This act shall take effect in 60 days.