PRINTER'S NO. 2515
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1842
Session of
2017
INTRODUCED BY TOBASH, DeLUCA, PICKETT AND WHEELAND,
OCTOBER 2, 2017
REFERRED TO COMMITTEE ON INSURANCE, OCTOBER 2, 2017
AN ACT
Amending the act of May 17, 1921 (P.L.789, No.285), entitled "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," in insurance producers, further
providing for rebates prohibited and for inducements
prohibited.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Sections 645-A and 646-A of the act of May 17,
1921 (P.L.789, No.285), known as The Insurance Department Act of
1921, are amended to read:
Section 645-A. Rebates prohibited.
(a) Prohibition.--[No]
(1) Except as otherwise provided in paragraph (2), no
insurance producer shall, directly or indirectly, offer,
promise, allow, give, set off or pay a rebate of, or part of,
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a premium payable on the contract of insurance or on the
insurance producer's commission, earnings, profits, dividends
or other benefit founded, arising, accruing or to accrue
thereon, or any special advantage in date of policy or age of
issue, or any paid employment or contract for services of any
kind, or any other valuable consideration or inducement, to
or for insurance on a risk in this Commonwealth which is not
specified in the contract of insurance.
(2) Nothing in this section shall be construed as
prohibiting an insurance producer from offering or giving to
an insured or prospective insured money or any favor,
advantage, object, valuable consideration or thing other than
money which has a cost or redeemable value of less than $100
and which is not specified in the contract of insurance. The
commissioner may increase the dollar amount under this
paragraph to reflect an upward change in the United States
Department of Labor Consumer Price Index for All Urban
Consumers (CPI-U) in the preceding year, upon publication of
notice in the Pennsylvania Bulletin.
* * *
Section 646-A. Inducements prohibited.
(a) Prohibition.--[No]
(1) Except as otherwise provided in this subsection, no
insurance producer shall, directly or indirectly, offer,
promise, give, option, sell or purchase any stocks, bonds,
securities or property, or any dividends or profits accruing
or to accrue thereon, or other thing of value whatsoever, as
an inducement to purchase a contract of insurance.
(2) Nothing in this section shall be construed to
prevent the taking of a bona fide obligation, with legal
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interest, in payment of any premium.
(3) This section shall not prohibit payment or receipt
of referral fees in accordance with this act.
(4) Nothing in this section shall be construed as
prohibiting an insurance producer from offering or giving to
an insured or prospective insured money or any favor,
advantage, object, valuable consideration or thing other than
money which has a cost or redeemable value of less than $100.
The commissioner may increase the dollar amount under this
paragraph to reflect an upward change in the United States
Department of Labor Consumer Price Index for All Urban
Consumers (CPI-U) in the preceding year, upon publication of
notice in the Pennsylvania Bulletin.
* * *
Section 2. This act shall take effect immediately.
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