PRINTER'S NO. 87
No. 86 Session of 1981
INTRODUCED BY DeVERTER, KOWALYSHYN, MADIGAN AND L. E. SMITH,
JANUARY 19, 1981
REFERRED TO COMMITTEE ON INSURANCE, JANUARY 19, 1981
AN ACT
1 Amending the act of May 17, 1921 (P.L.789, No.285), 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," further
13 providing for transactions in this Commonwealth involving
14 group or blanket insurance or group annuities.
15 The General Assembly of the Commonwealth of Pennsylvania
16 hereby enacts as follows:
17 Section 1. Clauses (5) and (5.1) of subsection (e) of
18 section 208, act of May 17, 1921 (P.L.789, No.285), known as
19 "The Insurance Department Act of one thousand nine hundred and
20 twenty-one," amended or added July 9, 1976 (P.L.912, No.166),
21 are amended to read:
22 Section 208. Certificates of Authority To Do Business.--
23 * * *
1 (e) The provisions of this section shall not apply to the
2 following:
3 * * *
4 (5) [Transactions in this Commonwealth, except group credit
5 life or group credit accident and health insurance transactions,
6 involving group or blanket insurance policies or group annuity
7 contracts where the group policy or contract is issued and
8 delivered pursuant to the group or blanket insurance or group
9 annuity laws of a jurisdiction in which the insurer is
10 authorized to do an insurance business and in which the
11 policyholder is domiciled or has its principal place of business
12 or otherwise has a bona fide situs.] Transactions in this
13 Commonwealth where:
14 (i) The master policy was lawfully issued and delivered in
15 and pursuant to the laws of the state in which the insurer was
16 authorized to do an insurance business and in which the
17 policyholder was domiciled or otherwise had a bona fide situs;
18 and
19 (ii) The insurer complies with clause (5.1).
20 For the purposes of this subsection, insurer shall include any
21 group insurance trust or any other entity owned, established by,
22 affiliated with or controlled by an insurer marketing a master
23 policy underwritten by an insurer.
24 (5.1) [Transactions in this Commonwealth, except group
25 credit life or group credit accident and health insurance
26 transactions, involving a group or blanket insurance policy or
27 group annuity contract not exempt under the provisions of clause
28 (5) of this subsection, shall nonetheless be exempt from the
29 provisions of this section if:
30 (i) they involve a group which conforms to one of the
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1 definitions of eligibility for group coverage contained in the
2 laws of this Commonwealth; and,
3 (ii) the group policy or contract is lawfully issued without
4 this Commonwealth in a jurisdiction in which the insurer is
5 authorized to do an insurance business.
6 It shall be the responsibility of the insurer claiming exemption
7 under this subsection to demonstrate compliance with each of the
8 above conditions.] Any group life, group accident and health
9 insurance, group credit life insurance, group credit accident
10 and health insurance, blanket accident and health insurance, or
11 group annuities offered, delivered or issued for delivery by any
12 insurer to residents of this Commonwealth under a policy of
13 group life or accident and health insurance or group credit life
14 insurance, group credit accident and health insurance, blanket
15 accident and health insurance or group annuities issued outside
16 this Commonwealth shall comply with all laws relating to group
17 insurance issued within this Commonwealth, except:
18 (i) As those laws include a definition of group.
19 (ii) Group insurance issued to ten or more members,
20 employes, of the same employer or employes or members of any
21 trade or professional association or of a labor union or of any
22 other similar association, where such association or union has
23 constitution or by-laws and is formed in good faith for purposes
24 other than that of obtaining insurance and which is not owned
25 by, established by, affiliated with or controlled by the
26 insurer.
27 (iii) Particular policies if the commissioner determines,
28 pursuant to regulation, that application of this section to such
29 policies is inappropriate and not consistent with the purposes
30 of this section.
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1 * * *
2 Section 2. This act shall take effect in 60 days.
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