THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY JOHNSON, BRIGGS, BROWN, BUXTON, CALTAGIRONE, CARROLL, D. COSTA, FRANKEL, HENNESSEY, JOSEPHS, MANN, MICOZZIE, PAYTON, READSHAW, SANTONI, SIPTROTH AND YOUNGBLOOD, MAY 5, 2010

AS REPORTED FROM COMMITTEE ON INSURANCE, HOUSE OF REPRESENTATIVES, AS AMENDED, JUNE 22, 2010   

AN ACT

Amending the act of May 17, 1921 (P.L.789, No.285), entitled, as

amended, "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 producer licensing, providing for life, accident

and health insurance.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  The act of May 17, 1921 (P.L.789, No.285), known

as The Insurance Department Act of 1921, is amended by adding a

section to read:

Section 604.1-A.  Life, accident and health insurance.

(a)  Scope.--This section shall apply to insurance producer

licensing examinations taken for life insurance or for life,

accident and health or sickness lines of insurance.

(b)  Administration.--The department or a vendor selected by

the department shall review producer licensing examinations

subject to this section if, during any six-month period

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beginning on July 1, an examination exhibits an overall pass

rate of less than 70% for examinees who have taken the test for

the first time on an annual basis, and shall consider as part of

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the review determinations and findings made under this section.

The department or its selected vendor shall do all of the

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following:

(1)  Collect Beginning on January 1, 2011, collect 

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demographic data from individuals who have made application

to take an insurance producer licensing examination subject

to this section. The data shall be collected on a form and in

a manner prescribed by the department and shall include the

race, gender, nation of origin and highest achieved

educational level of the examination applicant. The form

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shall contain a written statement displayed prominently on

each page used to collect the data which states:

You are not required to disclose this information and

will not be penalized for leaving it blank. This

information is used strictly for research and statistical

purposes in order to improve the quality and fairness of

the examination.

(2)  Review the data collected under paragraph (1) and

compare it to the outcome of each question of the producer

insurance licensing examinations and to the overall outcome

of the examinations to determine whether there was any

disparity in the pass rate based on demographic

characteristics of the examinees.

(3)  Report to the chair and minority chair of the

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Banking and Insurance Committee of the Senate and the chair

and minority chair of the Insurance Committee of the House of

Representatives by January 15, 2011, and every six months

thereafter, its findings under paragraphs (1) and (2) and

revisions made to the producer insurance licensing

examination relative to these findings.

(3)  Publish its findings under paragraph (2) on its

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Internet website by September 30, 2011, and every six months

thereafter.

(c)  Right-to-Know.--The individual demographic data

collected under subsection (b)(1) shall not be subject to the

act of February 14, 2008 (P.L.6, No.3), known as the Right-to-

Know Law.

Section 2.  This act shall take effect July 1, 2010, or

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immediately, whichever is later immediately.

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