PRINTER'S NO. 2786
No. 227 Session of 1989
INTRODUCED BY ITKIN, DeLUCA, RYBAK, GANNON, YANDRISEVITS,
JOSEPHS, COLAIZZO, MELIO, CAWLEY, DEMPSEY, PESCI, TRELLO,
GIGLIOTTI, CESSAR, BELARDI, STABACK, TRICH, ALLEN, THOMAS,
COHEN, PRESSMANN, E. Z. TAYLOR, BISHOP, KOSINSKI,
CAPPABIANCA, JADLOWIEC, BATTISTO, BELFANTI, VEON, FARGO,
BILLOW, PRESTON, STISH, B. SMITH, TIGUE, TANGRETTI,
B. D. CLARK, DIETTERICK, HALUSKA, OLASZ, MRKONIC, FOX,
PISTELLA, McHALE, BUNT, GEIST AND LASHINGER,
NOVEMBER 15, 1989
REFERRED TO COMMITTEE ON RULES, NOVEMBER 15, 1989
A RESOLUTION
1 Directing the Speaker of the House of Representatives to appoint
2 a select bipartisan committee to investigate the
3 administration of the Catastrophic Loss Trust Fund and the
4 Pennsylvania Insurance Management Company.
5 WHEREAS, The creation of the Catastrophic Loss Trust Fund in
6 1984 was controversial in that the Commonwealth became involved
7 in the provision and administration of insurance benefits; and
8 WHEREAS, The Pennsylvania Insurance Management Company was
9 selected as the administrator for benefits provided to eligible
10 claimants; and
11 WHEREAS, Members of the House of Representatives have
12 received complaints concerning the Pennsylvania Insurance
13 Management Company's inefficient performance of their
14 contractual duties; and
15 WHEREAS, Such complaints include long delays in processing
1 payments, making architectural modifications in the homes of
2 claimants, and providing equipment needed to assist in the
3 rehabilitation of claimants; and
4 WHEREAS, Such delays have caused frustration and, in some
5 cases, required claimants to use their own funds for payments
6 which should have been covered as eligible expenses; and
7 WHEREAS, Even though the fund has been abolished, there
8 remains an unfunded liability of some $270 million; and
9 WHEREAS, The Commonwealth has a continuing obligation to
10 ensure that the administration of benefits still to be provided
11 through the fund is done in a professional and competent manner,
12 with as little delay as possible and with the greatest
13 efficiency possible; and
14 WHEREAS, Serious questions concerning the competency of the
15 Pennsylvania Insurance Management Company to administer fund
16 benefits and the apparent lack of oversight supervision by the
17 Catastrophic Loss Trust Fund Board require the House of
18 Representatives to conduct its own inquiry concerning these
19 matters; therefore be it
20 RESOLVED, That the Speaker of the House of Representatives
21 appoint a select bipartisan committee composed of seven members,
22 four from the majority party and three from the minority party,
23 to investigate the operation of both the Catastrophic Loss Trust
24 Fund and the Pennsylvania Insurance Management Company; and be
25 it further
26 RESOLVED, That the committee may hold hearings, take
27 testimony and make its investigations at such places as it deems
28 necessary in this Commonwealth. Each member of the committee
29 shall have power to administer oaths and affirmations to
30 witnesses appearing before the committee; and be it further
19890H0227R2786 - 2 -
1 RESOLVED, That the committee shall report to the House of
2 Representatives on its activities, findings and recommendations
3 as soon as possible, and shall issue interim reports to the
4 House of Representatives as the committee deems necessary.
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