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A05617
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
878
Session of
2017
INTRODUCED BY WHITE AND WARD, SEPTEMBER 6, 2017
REFERRED TO BANKING AND INSURANCE, SEPTEMBER 6, 2017
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 general provisions relating to
insurance companies, associations and exchanges, further
providing for rebates and inducements prohibited.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 346 of the act of May 17, 1921 (P.L.682,
No.284), known as The Insurance Company Law of 1921, is amended
to read:
Section 346. Rebates and Inducements Prohibited; Revocation
of Licenses; Penalties.--(a) [No] (a) Except as otherwise
provided in this section, no insurance company, association, or
exchange, by itself or by its officers or members, attorney-in-
fact or by any other party, shall offer, promise, allow, give,
set off, or pay, directly or indirectly, any rebate of, or part
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of, the premium payable on the policy, or on any policy or
agent's commission thereon, or earnings, profit, dividends, or
other benefit founded, arising, accruing, or to accrue thereon
or therefrom, 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 any risk in this Commonwealth, now or hereafter
to be written, which is not specified in the policy contract of
insurance; nor shall any such company, association, or exchange,
personally or otherwise, 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 inducement to insurance or in
connection therewith, which is not specified in the policy.
Nothing in this section shall be construed to prevent the taking
of a bona fide obligation, with legal interest, in payment of
any premium.
(b) Nothing in this section shall be construed as
prohibiting an insurance company, association or exchange, by
itself or by its officers or members, attorney-in-fact or by any
other party from offering or giving to an insured or prospective
insured money or any favor, advantage, object, valuable
consideration or anything other than money which has a cost of
or a redeemable value less than or equal to $100. The
commissioner may increase this amount upon publication of notice
in the Pennsylvania Bulletin. (b) An insurance company,
association or exchange, by itself, its officers, members or
attorney-in-fact or any other party may offer or give to an
insured or a prospective insured, on an annual aggregate basis,
any favor, advantage, object, valuable consideration or anything
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other than money that has a cost or redeemable value of less
than or equal to one hundred dollars ($100). The Insurance
Commissioner may increase this amount upon publication of notice
in the Pennsylvania Bulletin.
(c) Nothing in this section shall [prevent] be construed as :
(1) preventing a company transacting industrial life
insurance on a weekly payment plan from returning to
policyholders, who have made a premium payment for a period of
at least one year, the percentage of premium which the company
would otherwise have paid for the weekly collection of such
premium[.];
(2) permitting any unfair method of competition or an unfair
or deceptive act or practice under the act of July 22, 1974
(P.L.589, No.205), known as the "Unfair Insurance Practices
Act"; or
(d) Nothing in this section shall be construed as (3)
prohibiting an insurance company, association or exchange, by
itself or by its officers or members, attorney-in-fact or by any
other party from offering or giving to an insured or a
prospective insured, for free or at a discounted price, services
or other offerings that relate to or enhance the value of the
insurance product being offered. Services not prohibited
include, but are not limited to, risk management services,
including loss control. loss control of the risks covered under
the policy.
Section 2. This act shall take effect in 60 days.
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