PRINTER'S NO. 1228
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
972
Session of
2015
INTRODUCED BY PICKETT, V. BROWN, MILLARD, HELM, MUSTIO, DAVIS,
JAMES, KOTIK, RAPP, McNEILL, KILLION AND CUTLER,
APRIL 15, 2015
REFERRED TO COMMITTEE ON INSURANCE, APRIL 15, 2015
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," in life and endowment insurance and
annuities, further providing for policy delivery.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 404-A of the act of May 17, 1921
(P.L.682, No.284), known as The Insurance Company Law of 1921,
added December 18, 1996 (P.L.1003, No.154), is amended to read:
Section 404-A. [Policy Delivery.--When the individual policy
or annuity is delivered to the policyholder by the producer by
hand, a delivery receipt shall be used. This receipt must be in
a least a duplicate set and state the date the policy or annuity
was received by the policyholder. The receipt date shall be the
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date on which the policyholder and producer sign the delivery
receipt, and such date shall commence any applicable policy or
annuity examination period. Copies of the delivery receipt must
be provided to the policyholder on the date of policy or annuity
delivery and to the issuing insurer. When the individual policy
or annuity is delivered to the policyholder by a means other
than by hand delivery by the producer, the insurer shall
establish appropriate means of verifying delivery by the
producer of the policy or annuity and of establishing the date
from which any applicable policy or examination period shall
commence. A certificate of mail is adequate proof of delivery.]
Delivery of Individual Policies and Annuities.--(a) For
purposes of determining the commencement of the period during
which the owner of an individual insurance policy or annuity may
exercise any statutory right to examine, surrender or return the
policy for cancellation, the date of delivery of the policy or
annuity shall be:
(1) t he date of the signed receipt of delivery if the
insurance policy or annuity is:
(i) delivered by United States mail or other postal delivery
system; or
(ii) physically delivered to the owner by a representative
of the insurer; or
(2) t h e date of electronic transmission of the policy or
annuity provided the electronic transmission has been effected
in accordance with this section and the provisions of section
354.7 and any other state or Federal laws governing the
electronic transmission of documents and information. The
insurer shall retain evidence of electronic transmittal for the
entire period of the insurance policy or annuity.
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(b) If an insurer does not deliver a policy or annuity by
the means set forth in subsection (a), the burden of proof shall
be on the insurer to establish that the policy or annuity was
delivered, in the event of a dispute with the owner of the
policy or annuity.
(c) Notwithstanding subsections (a) and (b), a policy or
annuity shall be deemed to have been delivered to the owner of
the policy or annuity as of the date of its issuance if six (6)
months have passed since its issuance and the owner of the
policy or annuity has paid the premiums pursuant to the contract
for those six (6) months.
Section 2. This act shall take effect in 60 days.
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