THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

INTRODUCED BY D. WHITE, STACK, ORIE, M. WHITE, EICHELBERGER AND MENSCH, JANUARY 12, 2011

REFERRED TO BANKING AND INSURANCE, JANUARY 12, 2011  

AN ACT

Amending the act of May 17, 1921 (P.L.789, No.285), entitled, as

amended, "An act relating to insurance; establishing an

insurance department; and amending, revising, and

consolidating the law relating to the licensing,

qualification, regulation, examination, suspension, and

dissolution of insurance companies, Lloyds associations,

reciprocal and inter-insurance exchanges, and certain

societies and orders, the examination and regulation of fire

insurance rating bureaus, and the licensing and regulation of

insurance agents and brokers; the service of legal process

upon foreign insurance companies, associations or exchanges;

providing penalties, and repealing existing laws," further

providing for definitions.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  The definition of "company action level event" in

section 501-B of the act of May 17, 1921 (P.L.789, No.285),

known as The Insurance Department Act of 1921, added June 22,

2000 (P.L.457, No.62), is amended to read:

Section 501-B.  Definitions.--The following words and phrases

when used in this article shall have, unless the context clearly

indicates otherwise, the meanings given to them in this section:

* * *

"Company action level event" means any of the following

events:

(1)  Filing of an RBC report that indicates that the health

organization's total adjusted capital is greater than or equal

to its regulatory action level RBC but less than its company

action level RBC.

(1.1)  Filing of an RBC report that indicates the health

organization's total adjusted capital is greater than or equal

to its company action level RBC but less than the product of its

authorized control level RBC and 3.0 and the health

organization's trend test result triggers regulatory attention

as determined in accordance with the Trend Test Calculation

included in the RBC instructions.

(2)  Notification by the Insurance Department to a health

organization of an adjusted RBC report that indicates an event

under paragraph (1) or (1.1).

* * *

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