THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

INTRODUCED BY WARD, D. WHITE, VANCE, TARTAGLIONE, WAUGH, ORIE, PICCOLA, BROWNE, STACK, EARLL AND MENSCH, JANUARY 8, 2010

REFERRED TO BANKING AND INSURANCE, JANUARY 8, 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," further providing for immunity from

liability.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 349.1 of the act of May 17, 1921

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

added June 11, 1986 (P.L.226, No.64) is amended to read:

Section 349.1.  Immunity from Liability.--[(a)  In the

absence of fraud or bad faith, no person or his employes or

agents shall be subject to civil liability and no civil cause of

action shall arise against any of them for any of the following:

(1)  Information relating to suspected fraudulent insurance

acts furnished by them to or received from law enforcement

officials, their agents and employes.

(2)  Information relating to suspected fraudulent insurance

acts furnished by them to or received from other persons subject

to the provisions of this act.

(3)  Information furnished by them in reports to the

Insurance Department, National Association of Insurance

Commissioners or another organization established to detect and

prevent fraudulent insurance acts, their agents, employes or

designees.

(b)  The Insurance Commissioner and employes of the Insurance

Department, in the absence of fraud or bad faith, shall not be

subject to civil liability. No civil cause of action shall arise

against any of them by virtue of the publication of a report or

bulletin related to the official activities of the Insurance

Department.

(c)  Nothing in this section is intended to abrogate or

modify a common law or statutory immunity heretofore enjoyed by

any person.

(d)  As used in this section the following words and phrases

shall have the meanings given to them in this subsection:

"Absence of bad faith" means without serious doubt that the

information furnished or received, or the report or bulletin

published, is not true.

"Absence of fraud" means without knowledge that the

information furnished or received, or the report or bulletin

published, is not true.

"Fraudulent insurance act" means an act committed by a person

who, knowingly and with intent to defraud, presents, causes to

be presented or prepares with knowledge or belief that it will

be presented to or by an insurer, purported insurer or broker,

or an agent of an insurer, purported insurer or broker, a

written statement as part or in support of an application for

the issuance or rating of an insurance policy for commercial

insurance, or a claim for payment or other benefit pursuant to

an insurance policy for commercial or personal insurance which

he knows to contain materially false information concerning a

fact material to the statement or claim or to conceal, for the

purpose of misleading, information concerning a fact material to

the statement or claim.]

(a)  In the absence of actual malice, a person is not subject

to civil liability for libel, slander, bad faith or any other

civil cause of action, and no civil cause of action of any

nature shall arise against the person:

(1)  For any information furnished to or received from

Federal, State or local law enforcement officials, their agents

or employes relating to suspected fraudulent insurance acts or

persons suspected of engaging in such acts.

(2)  For any information furnished to or received from the

Insurance Department, the Department of Health, the Department

of Labor and Industry, the Insurance Fraud Prevention Authority,

the Automobile Theft Prevention Authority, the National

Insurance Crime Bureau, the National Association of Insurance

Commissioners or a recognized comprehensive database system

relating to suspected fraudulent insurance acts or persons

suspected of engaging in such acts.

(3)  For other actions taken in cooperation with any of the

agencies or individuals identified in this subsection in the

lawful investigation of suspected fraudulent insurance acts.

(b)  (1)  In addition to the immunity granted in subsection

(a), persons identified as designated employes of insurers,

self-insurers or insurance licensees whose responsibilities

include the investigation and disposition of claims relating to

suspected fraudulent insurance acts may share information on

such acts and persons suspected of engaging in them with other

designated employes employed by the same or other insurers,

self-insurers or insurance licensees whose responsibilities

include the investigation and disposition of claims relating to

suspected fraudulent insurance acts. Unless such persons act

with actual malice or in reckless disregard for the rights of

any insured, the insurers, self-insurers or insurance licensees

and their employes shall not be subject to libel, slander, bad

faith or any other civil cause of action, and such causes of

action shall not arise against them.

(2)  Notwithstanding the provisions of this subsection, the

qualified immunity against civil liability conferred under this

subsection shall be forfeited with respect to the exchange or

publication of any defamatory information with third persons not

expressly authorized by this subsection to share in the

information.

(c)  The Insurance commissioner and employes of the Insurance

Department when acting without malice and in the absence of

fraud or bad faith are not subject to civil liability for libel,

slander or any other relevant tort, and no civil cause of action

of any nature exists against such person by virtue of the

execution of official activities or duties of the Insurance

Department under this act or by virtue of the publication of any

report or bulletin related to the official activities or duties

of the Insurance Department under this act.

(d)  Nothing in this section is intended to abrogate or

modify a common law or statutory immunity enjoyed by any person

prior to the effective date of this subsection or to prohibit a

bad faith or any other civil action based upon actions other

than those described in this section.

Section 2.  Repeals are as follows:

(1)  The General Assembly declares that the repeals under

paragraph (2) are necessary to effectuate the provisions of

this act.

(2)  (i)  The provisions of 75 Pa.C.S. § 1795(b) and

(c) are repealed.

(ii)  Section 3(c) of the act of July 2, 1980

(P.L.340, No.85), known as the Arson Reporting Immunity

Act, is repealed.

Section 3.  This act shall take effect in 60 days.