PRINTER'S NO. 1959
No. 1639 Session of 1989
INTRODUCED BY JACKSON, LLOYD, MOEHLMANN, TRELLO, JAROLIN, OLASZ,
FLICK, E. Z. TAYLOR, REBER, STABACK AND BELARDI, JUNE 6, 1989
REFERRED TO COMMITTEE ON INSURANCE, JUNE 6, 1989
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 homeowner's casualty
12 insurance to provide coverage for sinkhole damage.
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 508. Sinkhole Coverage.--In addition to other types
19 of insurance currently offered, all homeowner's casualty
20 insurance companies doing business in this Commonwealth shall
21 offer to provide coverage against loss or damage caused by the
22 caving in of the surface of the earth due to sinkholes by means
23 of assigned risk joint underwriting or other reasonable and
1 appropriate arrangements.
2 Section 2. The Insurance Commissioner shall adopt such rules
3 and regulations as are necessary to implement the provisions of
4 this act.
5 Section 3. This act shall take effect in 60 days.
E22L40MRD/19890H1639B1959 - 2 -