PRINTER'S NO. 2075
No. 1671 Session of 1971
INTRODUCED BY MESSRS. MELTON AND BARBER, NOVEMBER 11, 1971
REFERRED TO COMMITTEE ON CONSUMER PROTECTION, NOVEMBER 29, 1971
AN ACT
1 Amending the act of May 17, 1921 (P.L.789), entitled, as
2 amended, "An act relating to insurance; establishing an
3 insurance department; and amending, revising, and
4 consolidating the law relating to the licensing,
5 qualification, regulation, examination, suspension, and
6 dissolution of insurance companies, Lloyds associations,
7 reciprocal and inter-insurance exchanges, and certain
8 societies and orders, the examination and regulation of fire
9 insurance rating bureaus, and the licensing and regulation of
10 insurance agents and brokers; the service of legal process
11 upon foreign insurance companies, associations or exchanges;
12 providing penalties, and repealing existing laws," reducing
13 certain age requirements and making the same conform to
14 certain existing law.
15 The General Assembly of the Commonwealth of Pennsylvania
16 hereby enacts as follows:
17 Section 1. Subsection (a) of section 603, act of May 17,
18 1921 (P.L.789), known as "The Insurance Department Act of one
19 thousand nine hundred and twenty-one," amended August 21, 1961
20 (P.L.1018), and as partially repealed by act of January 6, 1970
21 (P.L.434) and act of July 31, 1970 (Act No. 223), is amended to
22 read:
23 Section 603. Agent's Licenses.--(a) The Insurance
24 Commissioner may issue, upon certification as aforesaid by any
1 company, association, or exchange, authorized by law to transact
2 business within this Commonwealth, an agent's license to any
3 person of at least [twenty-one] eighteen years of age and to any
4 copartnership or corporation. No license as agent shall be
5 granted to any corporation unless by provisions of its charter
6 it is authorized to engage in the business of insurance or real
7 estate, and unless individual licenses are also secured for each
8 active officer of such corporation; and no license shall be
9 granted to a copartnership or firm unless individual licenses
10 are also secured for each active member of such copartnership or
11 firm. Before any such license is granted, the applicant shall
12 first make answer, in writing and under oath, to interrogatories
13 on forms and supplements such as the Insurance Commissioner
14 shall prepare and submit, which answers shall be vouched for by
15 indorsement of the company, association, or exchange interested,
16 and to the effect that the applicant is of good business
17 reputation, and of experience in underwriting, other than
18 soliciting, and is worthy of a license: Provided, That any
19 applicant who shall have held, for any period during the five
20 years immediately preceding the application, a license to
21 transact, as agent, any class or kind of insurance business for
22 any company, association, or exchange, authorized to transact
23 business within this Commonwealth, shall be entitled, upon
24 proper application, to receive a license to transact, as agent,
25 the same class or kind of insurance business for any other
26 company, association, or exchange, so authorized to transact
27 business, without the necessity of submitting to an examination.
28 When the Insurance Commissioner is satisfied that the applicant
29 is worthy of license, and that he is reasonably familiar with
30 provisions of the insurance law of this Commonwealth, he shall
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1 issue a license stating that the company, association, or
2 exchange, represented by the agent, has complied with the
3 requirements of law and has been authorized by the Insurance
4 Commissioner to transact business within this Commonwealth, and
5 that the agent has been duly appointed by the company,
6 association, or exchange named in the license. Licenses of life
7 insurance agents shall expire annually at midnight of March
8 thirty-first, licenses of fire insurance agents shall expire
9 annually at midnight of September thirtieth, and the licenses of
10 casualty and health and accident insurance agents shall expire
11 annually at midnight of December thirty-first, unless sooner
12 terminated as the result of severance of business relations
13 between the company, association, or exchange and the agent, or
14 unless revoked by the Insurance Commissioner for cause. Licenses
15 for casualty insurance agents issued to expire at midnight
16 November thirtieth, one thousand nine hundred forty-nine, are
17 hereby extended until midnight December thirty-first, one
18 thousand nine hundred forty-nine. The department shall collect
19 an additional fee for each such license extended at the rate of
20 one-twelfth of the annual rate, as fixed by this act, for each
21 additional month that the term of such licenses are extended.
22 Any person whose license is revoked may appeal to the [court of
23 common pleas of Dauphin County] Commonwealth Court within thirty
24 days of the date of receipt, by registered mail, of a notice of
25 the fact of such revocation. The provisions of this section
26 shall apply to domestic mutual fire insurance companies, but no
27 agent of a domestic mutual fire insurance company acting or
28 authorized to act as such on the effective date of this act
29 shall be required to take an examination for licensure.
30 * * *
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1 Section 2. Section 622 of the act, as partially repealed by
2 act of January 6, 1970 (P.L.434) and act of July 31, 1970 (Act
3 No. 223), is amended to read:
4 Section 622. Brokers' Licenses.--The Insurance Commissioner
5 may issue, to any person of at least [twenty-one] eighteen years
6 of age or to any copartnership or corporation, a license to act
7 as an insurance broker to negotiate contracts of insurance or
8 reinsurance, other than life insurance, with any insurance
9 company, association, or exchange, or the agents thereof,
10 authorized by law to transact business within this Commonwealth.
11 No license shall be issued to any corporation to act as an
12 insurance broker unless by its charter it is authorized to
13 engage in the business of insurance or real estate. Before any
14 license is issued, the applicant shall make answer, in writing
15 and under oath, to such interrogatories and on such forms and
16 supplements as the Insurance Commissioner shall prepare and
17 submit, which answers shall be vouched for by indorsement of at
18 least two agents or by the officers of any insurance company,
19 association, or exchange, other than the officers or agents of a
20 life insurance company, who are acquainted with the applicant,
21 to the effect that the applicant is of good business reputation,
22 and has experience in underwriting, other than soliciting, and
23 is worthy of a license. When the Insurance Commissioner is
24 satisfied that the applicant is worthy of a license, and that he
25 is reasonably familiar with provisions of the insurance laws of
26 this Commonwealth, he shall issue a broker's license to expire
27 annually one year from date of issue, unless sooner revoked by
28 the Insurance Commissioner for cause. Any person whose license
29 is revoked may appeal to the [court of common pleas of Dauphin
30 County] Commonwealth Court within thirty days of the date of
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1 receipt by registered mail of a notice of the fact of such
2 revocation.
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