PRINTER'S NO. 1742
No. 1395 Session of 2007
INTRODUCED BY NICKOL, CAPPELLI, CARROLL, CLYMER, EVERETT,
FAIRCHILD, GEIST, GILLESPIE, GINGRICH, GRELL, HARRIS,
HENNESSEY, KILLION, MOUL, REICHLEY, ROSS, RUBLEY, SAYLOR,
SONNEY AND STERN, MAY 29, 2007
REFERRED TO COMMITTEE ON INSURANCE, MAY 29, 2007
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 additional
12 investment authority for subsidiaries.
13 The General Assembly of the Commonwealth of Pennsylvania
14 hereby enacts as follows:
15 Section 1. Section 405.2(c)(1) of the act of May 17, 1921
16 (P.L.682, No.284), known as The Insurance Company Law of 1921,
17 amended December 21, 1995 (P.L.714, No.79), is amended to read:
18 Section 405.2. Additional Investment Authority for
19 Subsidiaries.--* * *
20 (c) (1) At no time shall a domestic life insurance company
21 make an investment in any subsidiary which will bring the
22 aggregate value of its investments, as determined for annual
1 statement purposes but not in excess of cost, in all
2 subsidiaries under this subsection to an amount in excess of
3 [ten per centum (10%)] fifteen per centum (15%) of its total
4 admitted assets as of the immediately preceding thirty-first day
5 of December. At no time shall a domestic life insurance company
6 make an investment which will bring the aggregate value of
7 investments, as determined for annual statement purposes but not
8 in excess of cost, in any one subsidiary in excess of ten per
9 centum (10%) of a company's total admitted assets as of the
10 immediately preceding thirty-first day of December. For any
11 additional investment which will bring the aggregate value of
12 investments, as determined for annual statement purposes but not
13 in excess of cost, in all subsidiaries in excess of ten per
14 centum (10%) but at no time in excess of fifteen per centum
15 (15%) of a company's total admitted assets as of the immediately
16 preceding thirty-first day of December, the prior written
17 approval of the department must be obtained; such investment
18 shall be deemed approved if not approved or disapproved by the
19 department within thirty (30) days of the department's receipt
20 of notification of a domestic life insurance company's intent to
21 make such an investment, in which case written approval is not
22 necessary. In determining the amount of investments of any
23 domestic life insurance company in subsidiaries for purposes of
24 this subsection, there shall be included investments made
25 directly by such insurance company and, if such investment is
26 made by another subsidiary, then to the extent that funds for
27 such investments are provided by the insurance company for such
28 purpose.
29 * * *
30 Section 2. Section 519.1(c)(1) of the act, amended February
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1 17, 1994 (P.L.92, No.9), is amended to read:
2 Section 519.1. Additional Investment Authority for
3 Subsidiaries.--* * *
4 (c) (1) At no time shall a domestic stock fire, stock
5 marine or stock fire and marine insurance company make an
6 investment in any subsidiary which will bring the aggregate
7 value of its investments, as determined for annual statement
8 purposes but not in excess of cost, in all subsidiaries under
9 this subsection to an amount in excess of [ten per centum (10%)]
10 fifteen per centum (15%) of its total admitted assets as of the
11 immediately preceding thirty-first day of December. At no time
12 shall a domestic stock fire, stock marine or stock fire and
13 marine insurance company make an investment which will bring the
14 aggregate value of investments, as determined for annual
15 statement purposes but not in excess of cost, in any one
16 subsidiary in excess of ten per centum (10%) of a company's
17 total admitted assets as of the immediately preceding thirty-
18 first day of December. For any additional investment which will
19 bring the aggregate value of investments, as determined for
20 annual statement purposes but not in excess of cost, in all
21 subsidiaries in excess of ten per centum (10%) but at no time in
22 excess of fifteen per centum (15%) of a company's total admitted
23 assets as of the immediately preceding thirty-first day of
24 December, the prior written approval of the department must be
25 obtained; such investment shall be deemed approved if not
26 approved or disapproved by the department within thirty (30)
27 days of the department's receipt of notification of a domestic
28 stock fire, stock marine or stock fire and marine insurance
29 company's intent to make such an investment, in which case
30 written approval is not necessary. In determining the amount of
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1 investments of any domestic stock fire, stock marine or stock
2 fire and marine insurance company in subsidiaries for purposes
3 of this subsection, there shall be included investments made
4 directly by such insurance company and, if such investment is
5 made by another subsidiary, then to the extent that funds for
6 such investments are provided by the insurance company for such
7 purpose.
8 * * *
9 Section 3. This act shall take effect in 30 days.
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