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                                                      PRINTER'S NO. 2959

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 2025 Session of 2007


        INTRODUCED BY PICKETT, BOYD, CUTLER, J. EVANS, KENNEY, KILLION,
           MUSTIO, REICHLEY, STERN, TURZAI AND WATSON, DECEMBER 6, 2007

        REFERRED TO COMMITTEE ON INSURANCE, DECEMBER 6, 2007

                                     AN ACT

     1  Amending the act of June 2, 1915 (P.L.736, No.338), entitled, as
     2     reenacted and amended, "An act defining the liability of an
     3     employer to pay damages for injuries received by an employe
     4     in the course of employment; establishing an elective
     5     schedule of compensation; providing procedure for the
     6     determination of liability and compensation thereunder; and
     7     prescribing penalties," providing for hybrid policies for
     8     certain business entities.

     9     The General Assembly of the Commonwealth of Pennsylvania
    10  hereby enacts as follows:
    11     Section 1.  The act of June 2, 1915 (P.L.736, No.338), known
    12  as the Workers' Compensation Act, reenacted and amended June 21,
    13  1939 (P.L.520, No.281), is amended by adding a section to read:
    14     Section 1527.  (a)  The fund is required to provide a hybrid
    15  policy to business entities.
    16     (b)  The department and the Insurance Department shall
    17  promulgate rules and regulations necessary to carry out the
    18  provisions of this section.
    19     (c)  Insurance producers holding the property, casualty or
    20  health lines of authority shall market the hybrid policy.
    21     (d)  The department in conjunction with the Insurance

     1  Department shall develop a mechanism for joint oversight of the
     2  health insurance component of the hybrid policy.
     3     (e)  The Insurance Department shall have oversight over the
     4  sale, solicitation and negotiation of the hybrid policy.
     5     (f)  The fund shall have authority to underwrite applications
     6  and evaluate claims. It shall also establish a commission
     7  schedule for insurance producers.
     8     (g)  The enforcement remedies imposed under this section are
     9  in addition to other remedies or penalties which may be imposed
    10  by other applicable statute, including the act of July 22, 1974
    11  (P.L.589, No.205), known as the "Unfair Insurance Practices
    12  Act." A violation of this section shall be an unfair method of
    13  competition and an unfair or deceptive act or practice under the
    14  "Unfair Insurance Practices Act."
    15     (h)  The fund shall report annually the numbers of hybrid
    16  policies sold in this Commonwealth on its website and provide
    17  notice in the Pennsylvania Bulletin.
    18     (i)  As used in this section:
    19     (1)  "Business entity" shall mean a sole proprietor employing
    20  fewer than two employes including the owner of the sole
    21  proprietorship.
    22     (2)  "Hybrid policy" shall mean an insurance policy for
    23  business entities that includes workers' compensation coverage
    24  and health benefits.
    25     (3)  "Insurance producer" shall mean a person licensed under
    26  Article VI-A, Subarticle A, Division 1 of the act of May 17,
    27  1921 (P.L.789, No.285), known as "The Insurance Department Act
    28  of 1921."
    29     Section 2.  This act shall take effect in 60 days.

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