PRINTER'S NO. 3841
No. 2784 Session of 1996
INTRODUCED BY MICOZZIE, COLAFELLA, MELIO, DEMPSEY, TRELLO,
JOSEPHS AND B. SMITH, JUNE 25, 1996
REFERRED TO COMMITTEE ON INSURANCE, JUNE 25, 1996
AN ACT
1 Amending the act of May 17, 1921 (P.L.682, No.284), entitled "An
2 act relating to insurance; amending, revising, and
3 consolidating the law providing for the incorporation of
4 insurance companies, and the regulation, supervision, and
5 protection of home and foreign insurance companies, Lloyds
6 associations, reciprocal and inter-insurance exchanges, and
7 fire insurance rating bureaus, and the regulation and
8 supervision of insurance carried by such companies,
9 associations, and exchanges, including insurance carried by
10 the State Workmen's Insurance Fund; providing penalties; and
11 repealing existing laws," further providing for government-
12 owned companies.
13 The General Assembly of the Commonwealth of Pennsylvania
14 hereby enacts as follows:
15 Section 1. Section 300(c) of the act of May 17, 1921
16 (P.L.682, No.284), known as The Insurance Company Law of 1921,
17 added July 17, 1959 (P.L.545, No.163), is amended to read:
18 Section 300. Government Owned Companies.--* * *
19 (c) The provisions of this section shall not apply:
20 (1) to any insurance company, association or exchange which
21 was so owned, controlled or constituted prior to January 1,
22 1958, and was authorized to do business in this Commonwealth and
1 was issued a certificate of authority to do so prior to January
2 1, 1958[.]; or
3 (2) if the Insurance Commissioner determines that the
4 insurance company, association or exchange:
5 (i) does not receive a subsidy or other competitive
6 advantage, as a result of such control or status, that would
7 enable it to compete unfairly with similarly situated authorized
8 insurers which are not so controlled or constituted;
9 (ii) is not entitled to claim sovereign immunity as a result
10 of such control or status or has waived the sovereign immunity;
11 and
12 (iii) otherwise satisfies all applicable requirements for
13 the issuance of a certificate of authority.
14 Section 2. This act shall take effect immediately.
E28L40PJP/19960H2784B3841 - 2 -