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                                                       PRINTER'S NO. 656

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 599 Session of 2001


        INTRODUCED BY MICOZZIE, PIPPY, FICHTER, MELIO, BELARDI,
           CALTAGIRONE, CAWLEY, FRANKEL, GEORGE, HARHAI, HERMAN, KAISER,
           LEH, LESCOVITZ, LEVDANSKY, S. MILLER, PRESTON, ROONEY,
           SAINATO, SAYLOR, SCRIMENTI, STABACK, STERN, E. Z. TAYLOR,
           TIGUE, TRELLO, WALKO, WILT, WOJNAROSKI, YOUNGBLOOD AND
           YUDICHAK, FEBRUARY 8, 2001

        REFERRED TO COMMITTEE ON INSURANCE, FEBRUARY 8, 2001

                                     AN ACT

     1  Amending the act of December 14, 1992 (P.L.835, No.134),
     2     entitled "An act providing for the establishment,
     3     organization, operation and termination of fraternal benefit
     4     societies; imposing additional powers and duties on the
     5     Insurance Department and on the Insurance Commissioner;
     6     providing penalties; and making repeals," further providing
     7     for licensing of agents.

     8     The General Assembly of the Commonwealth of Pennsylvania
     9  hereby enacts as follows:
    10     Section 1.  Sections 609 and 614(d) of the act of December
    11  14, 1992 (P.L.835, No.134), known as the Fraternal Benefit
    12  Societies Code, are amended to read:
    13  Section 609.  Licensing of agents.
    14     (a)  General rule.--Agents of societies shall be licensed in
    15  accordance with the insurance laws regulating the licensing,
    16  revocation, suspension or termination of license of resident and
    17  nonresident agents.
    18     (b)  Exemptions from licensure.--No examination or license


     1  shall be required of any regular salaried officer, employee or
     2  member of a licensed society who devotes substantially all of
     3  his services to activities other than the solicitation of
     4  fraternal insurance contracts from the public and who receives
     5  for the solicitation of such contracts no commission or other
     6  compensation directly dependent upon the amount of business
     7  obtained.
     8     (c)  Examination.--
     9         (1)  Any person who in the preceding calendar year has
    10     solicited and procured life insurance contracts on behalf of
    11     any society in an amount of insurance in excess of [$100,000]
    12     $200,000 or, in the case of any other kind or kinds of
    13     insurance which the society might write, on the persons of
    14     more than 25 individuals and who has received or will receive
    15     a commission or other compensation therefor shall be required
    16     to take an examination. No examination shall be required of
    17     any agent who was in the service of a society on January 28,
    18     1978.
    19         (2)  At least once every five years the commissioner
    20     shall review the monetary limit contained in this subsection
    21     and may, in the commissioner's discretion, adjust the amount.
    22     Any adjustment to the amount shall be published as a notice
    23     in the Pennsylvania Bulletin.
    24     (d)  Limitation.--No society doing business in this
    25  Commonwealth shall pay any commission or other compensation to
    26  any person for any services in obtaining in this Commonwealth
    27  any new contract of life, accident or health insurance, or any
    28  new annuity contract, except to a licensed fraternal insurance
    29  agent of that society.
    30  Section 614.  Penalties.
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     1     * * *
     2     (d)  Penalty for other violation.--A person who willfully
     3  violates, neglects or refuses to comply with the provisions of
     4  this act for which a penalty is not otherwise prescribed,
     5  commits a summary offense and shall, upon conviction, be
     6  sentenced to pay a fine of not more than $500. Upon satisfactory
     7  evidence of a violation of any provision of this act, the
     8  commissioner may in [his] the commissioner's discretion, in lieu
     9  of seeking criminal prosecution, pursue any one or more of the
    10  following courses of action:
    11         (1)  Suspend or revoke or refuse to renew the license of
    12     the offending party or parties.
    13         (2)  Impose a civil penalty of not more than [$1,000]
    14     $5,000 for each [and every] act in violation of the
    15     provisions of this act [by the party or parties].
    16     Section 2.  This act shall take effect in 60 days.










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