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PRINTER'S NO. 488
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
468
Session of
2017
INTRODUCED BY DeLUCA, FREEMAN, MURT, MILLARD, V. BROWN, D. COSTA
AND NEILSON, FEBRUARY 13, 2017
REFERRED TO COMMITTEE ON INSURANCE, FEBRUARY 13, 2017
AN ACT
Providing for Internet advertisements for insurance, for
advertisements relating to Medicare program, for
advertisements relating to preferred provider benefit plans,
for advertising regarding guaranteed renewable coverage, for
enforcement, for remedies and for private cause of action;
and imposing a duty on the Insurance Department.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Short title.
This act shall be known and may be cited as the Truth in
Insurance Advertising over the Internet Act.
Section 2. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Commissioner." The Insurance Commissioner of the
Commonwealth.
"Department." The Insurance Department of the Commonwealth.
"Institutional advertisement." A general advertisement of an
insurer or producer that is intended to promote interest in the
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concept of insurance or to promote a producer or insurer. The
term includes pages on an Internet website that do not refer to
a specific insurance policy, certificate of coverage or evidence
of coverage or that do not provide an opportunity for an
individual to apply for coverage or to request a quote.
"Insurer." An insurance company, association, exchange,
interinsurance exchange, health maintenance organization,
preferred provider organization, professional health services
plan corporation subject to 40 Pa.C.S. Ch. 63 (relating to
professional health services plan corporations), hospital plan
corporation subject to 40 Pa.C.S. Ch. 61 (relating to hospital
plan corporations), fraternal benefit society, beneficial
association, Lloyd's insurer or health plan corporation.
"Producer." A person required to be licensed under the laws
of this Commonwealth to sell, solicit or negotiate insurance.
Section 3. Internet advertisements for insurance.
(a) Requirement.--A web page of an insurer's Internet
website shall include the appropriate disclosures and
information required by applicable rules and regulations adopted
by the department relating to advertising only if the web page:
(1) describes specific policies or coverage available in
this Commonwealth; or
(2) includes an opportunity for an individual to apply
for coverage or obtain a quote from an insurer for an
insurance policy or certificate or other evidence of
coverage.
(b) Compliance with requirement.--An insurer may comply with
subsection (a) by including a link to a web page that includes
the information necessary to comply with the applicable rules
relating to advertising. The link permitted under this
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subsection shall be prominently placed on the insurer's web
page.
(c) Institutional advertisements.--
(1) Web pages of an Internet website that do not refer
to a specific insurance policy, certificate of coverage or
evidence of coverage or that do not provide an opportunity
for an individual to apply for coverage or request a quote
from an insurer are considered to be institutional
advertisements subject to the regulations adopted by the
department relating to advertising.
(2) Web pages or navigation aids within an insurer's
Internet website that provide a link to a web page described
by subsection (a) but that do not otherwise contain content
described in subsection (b) are considered to be
institutional advertisements subject to rules adopted by the
department relating to advertising.
Section 4. Advertisements relating to Medicare program.
A person may not use an advertisement for an insurance
product relating to Medicare coverage unless the advertisement
includes, in a prominent place, the following language or
similar language: Not connected with or endorsed by the United
States Government or the Federal Medicare program.
Section 5. Advertisements relating to preferred provider
benefit plans.
It is sufficient for an insurer to use the term "PPO plan" in
advertisements when referring to a preferred provider benefit
plan offered under the act of May 17, 1921 (P.L.682, No.284),
known as The Insurance Company Law of 1921.
Section 6. Advertising regarding guaranteed renewable coverage.
(a) Required statement.--An advertisement for a guaranteed
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renewable accident and health insurance policy shall include, in
a prominent place, a statement indicating that rates for the
policy may change if the advertisement suggests or implies that
rates for the product will not change.
(b) Identifying the manner of change.--If an advertisement
is required to include the statement described by subsection
(a), the statement shall generally identify the manner in which
rates may change, such as by age, by health status, by class or
through application of other general criteria.
Section 7. Enforcement.
Upon a determination by hearing that this act has been
violated, the commissioner may pursue one or more of the
following courses of action:
(1) Issue an order requiring the person in violation to
cease and desist from engaging in the violation.
(2) Suspend or revoke or refuse to issue or renew the
certificate or license of the person in violation.
(3) Impose a civil penalty of not more than $5,000 for
each violation.
(4) Impose any other penalty or remedy deemed
appropriate by the commissioner, including restitution.
Section 8. Remedies.
The enforcement remedies imposed under this section are in
addition to other remedies or penalties that may be imposed by
any other applicable statute, including the act of July 22, 1974
(P.L.589, No.205), known as the Unfair Insurance Practices Act.
Violations of this act are deemed and defined by the
commissioner to be an unfair method of competition and an unfair
or deceptive act or practice under the Unfair Insurance
Practices Act.
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Section 9. Private cause of action.
This act may not be construed to create or imply a private
cause of action for a violation of this act.
Section 10. Rules and regulations.
The department shall promulgate rules and regulations
necessary for the administration and enforcement of this act.
Section 11. Effective date.
This act shall take effect in 60 days.
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