|Posted:||April 22, 2013 04:52 PM|
|From:||Senator Donald C. White and Sen. Michael J. Stack|
|To:||All Senate members|
|In the near future, we will be introducing legislation to move the Pennsylvania Insurance Department to a dedicated funding structure.
The purpose of the bill is to create a new special fund for the administration of the Insurance Department in order to provide much-needed flexibility for the Department in its regulation, management, development, and oversight of PA’s insurance industry to address part of Gov. Corbett’s budget proposal. To date, Pennsylvania is one of only two states in the country without this type of arrangement.
As the premier insurance regulator of the 5th largest insurance market in the U.S., this legislation is necessary to preserve jobs in our commonwealth, continue to keep NAIC accreditation, retain revenue generated to PA, better be able to serve and protect insurance consumers, and uphold consumer choice in insurers and products.
The Insurance Regulation and Oversight Fund will be a special revenue fund composed of fifty percent of all fees, reimbursements, funds, money, and other revenues collected, received, or derived by the Insurance Department, as well as 100% of all penalties, fines assessments, augmentations, or settlements received by the Insurance Department from persons and entities under the supervision of the Insurance Department.
The proposal does not utilize any additional assessment against licensees, does not increase any existing fees charged by the Department, and results in a substantially revenue neutral impact to the Commonwealth.
Introduced as SB914