PRINTER'S NO. 656
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. 20010H0599B0656 - 2 -
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. A18L40JLW/20010H0599B0656 - 3 -