PRINTER'S NO. 3238
No. 2478 Session of 1980
INTRODUCED BY CALTAGIRONE, COCHRAN, ZITTERMAN AND PRATT,
APRIL 28, 1980
REFERRED TO COMMITTEE ON INSURANCE, APRIL 28, 1980
AN ACT
1 Amending the act of May 17, 1921 (P.L.682, No.284), entitled "An
2 act relating to insurance; amending, revising, and
3 consolidating the law providing for the incorporation of
4 insurance companies, and the regulation, supervision, and
5 protection of home and foreign insurance companies, Lloyds
6 associations, reciprocal and inter-insurance exchanges, and
7 fire insurance rating bureaus, and the regulation and
8 supervision of insurance carried by such companies,
9 associations, and exchanges, including insurance carried by
10 the State Workmen's Insurance Fund; providing penalties; and
11 repealing existing laws," requiring payment within 30 days
12 from the date of settlement of a claim.
13 The General Assembly of the Commonwealth of Pennsylvania
14 hereby enacts as follows:
15 Section 1. The act of May 17, 1921 (P.L.682, No.284), known
16 as "The Insurance Company Law of 1921," is amended by adding a
17 section to read:
18 Section 357. Timely Payment of Claims.--Claims payable by an
19 insurance company shall be paid within thirty (30) days after
20 settlement has been made with the claimant. After thirty (30)
21 days from settlement, the company shall pay interest on the
22 balance unpaid at the end of each monthly period thereafter at
1 the annual prime interest rate on the thirtieth day after
2 settlement.
3 Section 2. This act shall take effect in 60 days.
D7L37RLC/19800H2478B3238 - 2 -