PRINTER'S NO. 1894
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1679
Session of
2021
INTRODUCED BY PICKETT, JUNE 23, 2021
REFERRED TO COMMITTEE ON INSURANCE, JUNE 23, 2021
AN ACT
Amending the act of May 17, 1921 (P.L.682, No.284), entitled "An
act relating to insurance; amending, revising, and
consolidating the law providing for the incorporation of
insurance companies, and the regulation, supervision, and
protection of home and foreign insurance companies, Lloyds
associations, reciprocal and inter-insurance exchanges, and
fire insurance rating bureaus, and the regulation and
supervision of insurance carried by such companies,
associations, and exchanges, including insurance carried by
the State Workmen's Insurance Fund; providing penalties; and
repealing existing laws," in automobile insurance issuance,
renewal, cancellation and refusal, providing for policy
changes.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The act of May 17, 1921 (P.L.682, No.284), known
as The Insurance Company Law of 1921, is amended by adding a
section to read:
Section 2006.1. Policy Changes.--(a) Notwithstanding the
definition of "renewal" or "to renew" in section 2001, an
insurer may change the types and limits of coverage at renewal
that reduce those contained in the policy being superseded if
the insurer has met the requirements of this section.
(b) An insurer may change the types and limits of coverage
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at renewal that reduce those contained in the policy being
superseded if the insurer has filed with the commissioner a
request for the proposed policy changes no fewer than ninety
(90) days prior to the effective date of the proposed changes.
The request shall, at a minimum, include the following:
(1) The proposed effective date of the proposed changes.
(2) The number of insureds within this Commonwealth who will
be affected by the proposed changes.
(3) The number of claims, evaluated on an annual basis, that
the insurer anticipates might be impacted by the proposed
changes.
(4) The total dollar value of the losses and expenses
associated with the claims identified in paragraph (3).
(5) The overall average premium increase or decrease caused
by the proposed changes.
(6) The reasons for requesting the changes.
(7) A copy of the notice of policy changes that will be
issued to the affected policyholders.
(c) The commissioner shall approve or deny the proposed
changes. In reviewing filings made under this section, the
commissioner may consider whether the proposed changes are in
the public interest. In determining whether the proposed changes
are in the public interest, the commissioner may consider, but
shall not be limited to, the following:
(1) The impact on the premiums and rates of the policy, with
and without the proposed changes.
(2) The number of insureds within this Commonwealth who will
be affected by the proposed changes.
(3) The number of claims, evaluated on an annual basis, that
the insurer anticipates might be impacted by the proposed
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changes.
(4) The total dollar value of the losses and expenses
associated with the claims identified in paragraph (3).
(5) Whether the proposed changes are consistent with policy
language found in the insurance market.
(6) Whether the proposed changes are sought to reflect
changes in the insurer's reinsurance coverage.
(7) Whether the proposed changes are in response to a change
in the laws of this Commonwealth.
(8) Whether the proposed notice of policy changes meets the
requirements of the notice under subsection (d).
(9) Whether and to what extent the benefits to be provided
under the new policy are lesser in quantity and quality than the
benefits provided in the policy being superseded.
(d) No changes made in accordance with this section shall be
effective until the insurer provides the first named insured
with notice of the changes at least sixty (60) days prior to the
effective date of the changes. The notice shall be on a form
prescribed and approved by the Insurance Department and shall,
at a minimum, meet the following standards:
(1) The notice shall be in 12-point font and labeled
"Attention: Your Coverage is Changing."
(2) The notice shall include the name of the insurance
company that issued the policy.
(3) The notice shall include the policy number that is being
changed.
(4) The notice shall clearly describe, in narrative form,
the changes being made to the policy.
(5) The notice shall advise the insured of possible
eligibility for insurance through the automobile assigned risk
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plan.
(6) The notice shall advise of the change in premium, if
any, caused by the changes made to the policy.
(7) The notice shall provide a telephone number and email
address that the insured may use to contact the insurer to
obtain further information on the changes in terms and
conditions of the policy or reduction in coverage.
(e) An insurer who has filed a proposed change request may
request an administrative hearing if the commissioner denies the
filing. The hearing shall be conducted in accordance with 2
Pa.C.S. (relating to administrative law and procedure).
Section 2. This act shall take effect in 60 days.
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