|Posted:||March 28, 2014 11:46 AM|
|From:||Senator Donald C. White|
|To:||All Senate members|
|Subject:||Updating the Pennsylvania Life and Health Insurance Guaranty Association Act|
|In the near future, I plan to introduce legislation that will amend the Pennsylvania Life and Health Insurance Guaranty Association (PLHIGA) Act. PLHIGA is a statutorily created entity composed of all insurers licensed to sell life insurance, health insurance, and individual annuities in the state of Pennsylvania. In the event that a member insurer is found to be insolvent and is ordered to be liquidated by a court, the Guaranty Association Act enables the association to provide protection to Pennsylvania residents who are holders of life and health insurance policies and individual annuities with the insolvent insurer.
The purpose of my legislation is to bring the PLHIGA Act into conformity with recent model acts promulgated by the National Association of Insurance Commissioners, including the 2009 Life and Health Insurance Guaranty Association Model Act which assures policyholders of an insolvent insurer doing business in many states are treated consistently from state to state, and to strengthen the ability of state institutions to address complex multistate insurance insolvencies in a coordinated manner without federal intervention.
Some of the key provisions of the bill address coverage for citizens living abroad; clarify that coverage for structured settlement annuities are based on the payee’s residence; conform triggering events and powers of the association to prevailing standards; expressly address equity-indexed life insurance and annuity contracts; exclude coverage for benefits under Medicare part C & D; and add explicit language on benefit levels.
If you have any questions about this legislation please contact Carlton Logue of my office at firstname.lastname@example.org or 717-787-8724.
Introduced as SB1329