THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY DeLUCA, BRENNAN, D. COSTA, MAHONEY, WHITE, HARKINS, HARHAI, SANTONI, KULA, JOSEPHS, KOTIK, CALTAGIRONE, READSHAW, COHEN, DALEY, BENNINGHOFF, THOMAS, GINGRICH, MOUL, TAYLOR, DONATUCCI AND DENLINGER, JUNE 14, 2011

REFERRED TO COMMITTEE ON INSURANCE, JUNE 14, 2011  

AN ACT

Providing for truth in insurance advertising over the Internet.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Short title.

This act shall be known and may be cited as the Truth in

Insurance Advertising over the Internet Act.

Section 2.  Definitions.

The following words and phrases when used in this act shall

have the meanings given to them in this section unless the

context clearly indicates otherwise:

"Commissioner."  The Insurance Commissioner of the

Commonwealth.

"Department."  The Insurance Department of the Commonwealth.

"Institutional advertisement."  A general advertisement of an

insurer or producer that is intended to promote interest in the

concept of insurance or to promote a producer or insurer. The

term includes pages on an Internet website that do not refer to

a specific insurance policy, certificate of coverage or evidence

of coverage or that do not provide an opportunity for an

individual to apply for coverage or to request a quote.

"Insurer."  An insurance company, association, exchange,

interinsurance exchange, health maintenance organization,

preferred provider organization, professional health services

plan corporation subject to 40 Pa.C.S. Ch. 63 (relating to

professional health services plan corporations), hospital plan

corporation subject to 40 Pa.C.S. Ch. 61 (relating to hospital

plan corporations), fraternal benefit society, beneficial

association, Lloyd's insurer or health plan corporation.

"Producer."  A person required to be licensed under the laws

of this Commonwealth to sell, solicit or negotiate insurance.

Section 3. Internet advertisements for insurance.

(a)  Requirement.--A web page of an insurer's Internet

website shall include the appropriate disclosures and

information required by applicable rules and regulations adopted

by the department relating to advertising only if the web page:

(1)  describes specific policies or coverage available in

this Commonwealth; or

(2)  includes an opportunity for an individual to apply

for coverage or obtain a quote from an insurer for an

insurance policy or certificate or other evidence of

coverage.

(b)  Compliance with requirement.--An insurer may comply with

subsection (a) by including a link to a web page that includes

the information necessary to comply with the applicable rules

relating to advertising. The link permitted under this

subsection shall be prominently placed on the insurer's web

page.

(c)  Institutional advertisements.--

(1)  Web pages of an Internet website that do not refer

to a specific insurance policy, certificate of coverage or

evidence of coverage or that do not provide an opportunity

for an individual to apply for coverage or request a quote

from an insurer are considered to be institutional

advertisements subject to the regulations adopted by the

department relating to advertising.

(2)  Web pages or navigation aids within an insurer's

Internet website that provide a link to a web page described

by subsection (a) but that do not otherwise contain content

described in subsection (b) are considered to be

institutional advertisements subject to rules adopted by the

department relating to advertising.

Section 4.  Advertisements relating to Medicare program.

A person may not use an advertisement for an insurance

product relating to Medicare coverage unless the advertisement

includes, in a prominent place, the following language or

similar language: Not connected with or endorsed by the United

States Government or the Federal Medicare program.

Section 5.  Advertisements relating to preferred provider

benefit plans.

It is sufficient for an insurer to use the term "PPO plan" in

advertisements when referring to a preferred provider benefit

plan offered under the act of May 17, 1921 (P.L.682, No.284),

known as The Insurance Company Law of 1921.

Section 6.  Advertising regarding guaranteed renewable coverage.

(a)  Required statement.--An advertisement for a guaranteed

renewable accident and health insurance policy shall include, in

a prominent place, a statement indicating that rates for the

policy may change if the advertisement suggests or implies that

rates for the product will not change.

(b)  Identifying the manner of change.--If an advertisement

is required to include the statement described by subsection

(a), the statement shall generally identify the manner in which

rates may change, such as by age, by health status, by class or

through application of other general criteria.

Section 7.  Enforcement.

Upon a determination by hearing that this act has been

violated, the commissioner may pursue one or more of the

following courses of action:

(1)  Issue an order requiring the person in violation to

cease and desist from engaging in the violation.

(2)  Suspend or revoke or refuse to issue or renew the

certificate or license of the person in violation.

(3)  Impose a civil penalty of not more than $5,000 for

each violation.

(4)  Impose any other penalty or remedy deemed

appropriate by the commissioner, including restitution.

Section 8.  Remedies.

The enforcement remedies imposed under this section are in

addition to other remedies or penalties that may be imposed by

any other applicable statute, including the act of July 22, 1974

(P.L.589, No.205), known as the Unfair Insurance Practices Act.

Violations of this act are deemed and defined by the

commissioner to be an unfair method of competition and an unfair

or deceptive act or practice under the Unfair Insurance

Practices Act.

Section 9.  Private cause of action.

Nothing in this act shall be construed to create or imply a

private cause of action for a violation of this act.

Section 10.  Rules and regulations.

The department shall promulgate rules and regulations

necessary for the administration and enforcement of this act.

Section 20.  Effective date.

This act shall take effect in 60 days.