PRIOR PRINTER'S NO. 2999 PRINTER'S NO. 3074
No. 2384 Session of 1993
INTRODUCED BY REINARD, MICOZZIE, COLAFELLA AND COLAIZZO,
DECEMBER 15, 1993
AS REPORTED FROM COMMITTEE ON INSURANCE, HOUSE OF
REPRESENTATIVES, AS AMENDED, JANUARY 24, 1994
AN ACT
1 Amending the act of July 22, 1974 (P.L.589, No.205), entitled
2 "An act relating to unfair insurance practices; prohibiting
3 unfair methods of competition and unfair or deceptive acts
4 and practices; and prescribing remedies and penalties,"
5 further providing for unfair or deceptive acts or practices.
6 The General Assembly of the Commonwealth of Pennsylvania
7 hereby enacts as follows:
8 Section 1. Section 5(C)(3) of the act of July 22, 1974 <--
9 (P.L.589, No.205), known as the Unfair Insurance Practices Act,
10 is amended by adding a subsection to read: <--
11 Section 5. Unfair Methods of Competition and Unfair or
12 Deceptive Acts or Practices Defined.--* * *
13 (d) It shall be deemed to be an unfair or deceptive act or <--
14 practice under this act for any insurer to cancel or to refuse
15 to renew any policy of insurance for any reason that is not
16 based on the risk characteristics of the exposure to be insured.
17 (C) NOTHING IN SUBSECTION (A)(9) OF THIS SECTION SHALL <--
18 APPLY:
1 * * *
2 (3) TO ANY POLICY OR BOUND APPLICATION OF INSURANCE WHICH
3 HAS BEEN IN EFFECT LESS THAN SIXTY DAYS, INCLUDING ANY NOTICE OF
4 TERMINATION PERIOD, UNLESS IT IS A RENEWAL POLICY. THE INSURED
5 OR APPLICANT SHALL RECEIVE WRITTEN NOTICE OF ANY DECLINATION OF
6 COVERAGE STATING THE REASONS, WHICH MUST BE COMPLETE AS TO WHY
7 THE INSURED OR APPLICANT FAILS TO QUALIFY OR NO LONGER QUALIFIES
8 FOR THE POLICY OF INSURANCE. ANY DECLINATION OF COVERAGE WITHIN
9 THE SIXTY-DAY PERIOD PROVIDED IN THIS CLAUSE SHALL, FOR PURPOSES
10 OF REVIEW BY THE INSURANCE COMMISSIONER, BE DEEMED A REFUSAL TO
11 WRITE AND SHALL NOT BE SUBJECT TO THE PROVISIONS OF SUBSECTION
12 (A)(9) OF THIS SECTION.
13 * * *
14 Section 2. This act shall take effect in 60 days.
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