1Providing for Internet advertisements for insurance, for 
2advertisements relating to Medicare program, for
3advertisements relating to preferred provider benefit plans,
4for advertising regarding guaranteed renewable coverage, for
5enforcement, for remedies and for private cause of action;
6and imposing a duty on the Insurance Department.

7The General Assembly of the Commonwealth of Pennsylvania
8hereby enacts as follows:

9Section 1.  Short title.

10This act shall be known and may be cited as the Truth in
11Insurance Advertising over the Internet Act.

12Section 2.  Definitions.

13The following words and phrases when used in this act shall
14have the meanings given to them in this section unless the
15context clearly indicates otherwise:

16"Commissioner."  The Insurance Commissioner of the
17Commonwealth.

18"Department."  The Insurance Department of the Commonwealth.

19"Institutional advertisement."  A general advertisement of an

1insurer or producer that is intended to promote interest in the
2concept of insurance or to promote a producer or insurer. The
3term includes pages on an Internet website that do not refer to
4a specific insurance policy, certificate of coverage or evidence
5of coverage or that do not provide an opportunity for an
6individual to apply for coverage or to request a quote.

7"Insurer."  An insurance company, association, exchange,
8interinsurance exchange, health maintenance organization,
9preferred provider organization, professional health services
10plan corporation subject to 40 Pa.C.S. Ch. 63 (relating to
11professional health services plan corporations), hospital plan
12corporation subject to 40 Pa.C.S. Ch. 61 (relating to hospital
13plan corporations), fraternal benefit society, beneficial
14association, Lloyd's insurer or health plan corporation.

15"Producer."  A person required to be licensed under the laws
16of this Commonwealth to sell, solicit or negotiate insurance.

17Section 3. Internet advertisements for insurance.

18(a)  Requirement.--A web page of an insurer's Internet
19website shall include the appropriate disclosures and
20information required by applicable rules and regulations adopted
21by the department relating to advertising only if the web page:

22(1)  describes specific policies or coverage available in
23this Commonwealth; or

24(2)  includes an opportunity for an individual to apply
25for coverage or obtain a quote from an insurer for an
26insurance policy or certificate or other evidence of
27coverage.

28(b)  Compliance with requirement.--An insurer may comply with
29subsection (a) by including a link to a web page that includes
30the information necessary to comply with the applicable rules

1relating to advertising. The link permitted under this
2subsection shall be prominently placed on the insurer's web
3page.

4(c)  Institutional advertisements.--

5(1)  Web pages of an Internet website that do not refer
6to a specific insurance policy, certificate of coverage or
7evidence of coverage or that do not provide an opportunity
8for an individual to apply for coverage or request a quote
9from an insurer are considered to be institutional
10advertisements subject to the regulations adopted by the
11department relating to advertising.

12(2)  Web pages or navigation aids within an insurer's
13Internet website that provide a link to a web page described
14by subsection (a) but that do not otherwise contain content
15described in subsection (b) are considered to be
16institutional advertisements subject to rules adopted by the
17department relating to advertising.

18Section 4.  Advertisements relating to Medicare program.

19A person may not use an advertisement for an insurance
20product relating to Medicare coverage unless the advertisement
21includes, in a prominent place, the following language or
22similar language: Not connected with or endorsed by the United
23States Government or the Federal Medicare program.

24Section 5.  Advertisements relating to preferred provider
25benefit plans.

26It is sufficient for an insurer to use the term "PPO plan" in
27advertisements when referring to a preferred provider benefit
28plan offered under the act of May 17, 1921 (P.L.682, No.284),
29known as The Insurance Company Law of 1921.

30Section 6.  Advertising regarding guaranteed renewable coverage.

1(a)  Required statement.--An advertisement for a guaranteed
2renewable accident and health insurance policy shall include, in
3a prominent place, a statement indicating that rates for the
4policy may change if the advertisement suggests or implies that
5rates for the product will not change.

6(b)  Identifying the manner of change.--If an advertisement
7is required to include the statement described by subsection
8(a), the statement shall generally identify the manner in which
9rates may change, such as by age, by health status, by class or
10through application of other general criteria.

11Section 7.  Enforcement.

12Upon a determination by hearing that this act has been
13violated, the commissioner may pursue one or more of the
14following courses of action:

15(1)  Issue an order requiring the person in violation to
16cease and desist from engaging in the violation.

17(2)  Suspend or revoke or refuse to issue or renew the
18certificate or license of the person in violation.

19(3)  Impose a civil penalty of not more than $5,000 for
20each violation.

21(4)  Impose any other penalty or remedy deemed
22appropriate by the commissioner, including restitution.

23Section 8.  Remedies.

24The enforcement remedies imposed under this section are in
25addition to other remedies or penalties that may be imposed by
26any other applicable statute, including the act of July 22, 1974
27(P.L.589, No.205), known as the Unfair Insurance Practices Act.
28Violations of this act are deemed and defined by the
29commissioner to be an unfair method of competition and an unfair
30or deceptive act or practice under the Unfair Insurance

1Practices Act.

2Section 9.  Private cause of action.

3Nothing in this act shall be construed to create or imply a
4private cause of action for a violation of this act.

5Section 10.  Rules and regulations.

6The department shall promulgate rules and regulations
7necessary for the administration and enforcement of this act.

8Section 20.  Effective date.

9This act shall take effect in 60 days.