PRINTER'S NO. 2211
No. 1557 Session of 2000
INTRODUCED BY WAGNER, OCTOBER 5, 2000
REFERRED TO BANKING AND INSURANCE, OCTOBER 5, 2000
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 defining "unfair methods of competition" and "unfair
6 or deceptive acts or practices."
7 The General Assembly of the Commonwealth of Pennsylvania
8 hereby enacts as follows:
9 Section 1. Section 5(a) of the act of July 22, 1974
10 (P.L.589, No.205), known as the Unfair Insurance Practices Act,
11 is amended by adding a paragraph to read:
12 Section 5. Unfair Methods of Competition and Unfair or
13 Deceptive Acts or Practices Defined.--(a) "Unfair methods of
14 competition" and "unfair or deceptive acts or practices" in the
15 business of insurance means:
16 * * *
17 (15) Cancelling or refusing to renew any policy of health
18 insurance without providing written notice to the insured at the
19 last known address of the insured. The cancellation or refusal
1 to renew shall not be effective unless the insurer provides the
2 required notice. The notice shall:
3 (i) Be in a form acceptable to the Insurance Commissioner.
4 (ii) State the date, no less than thirty days after the date
5 of mailing or delivery, on which the cancellation or refusal to
6 renew shall become effective.
7 (iii) State the specific reason or reasons for cancellation
8 or refusal to renew. Where the reason is failure to make a
9 timely payment, the insured shall be afforded an opportunity to
10 make payment within a reasonable amount of time to avoid
11 cancellation of the policy.
12 (iv) Advise the insured of the insured's right to request,
13 in writing, within thirty days of receipt of the notice of
14 cancellation or intention not to renew and within thirty days of
15 receipt of the reason or reasons for the cancellation or refusal
16 to renew as stated in the notice, that the Insurance
17 Commissioner review the action of the insurer.
18 * * *
19 Section 2. This act shall take effect in 60 days.
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