PRINTER'S NO. 2704
No. 2058 Session of 1997
INTRODUCED BY MANDERINO, THOMAS, E. Z. TAYLOR, DeWEESE,
MAITLAND, GORDNER, GEORGE, BELARDI, EVANS, BELFANTI, ITKIN,
COWELL, BEBKO-JONES, M. COHEN, LEDERER, LUCYK, LAUGHLIN,
WALKO, MELIO, SAINATO, MARKOSEK, KENNEY, SURRA, JOSEPHS,
BISHOP, ROBINSON, MUNDY, CARN, YOUNGBLOOD, WOGAN, BATTISTO,
HENNESSEY, OLASZ, TANGRETTI, DeLUCA, CURRY, BOSCOLA, STABACK,
BROWN, TRELLO, C. WILLIAMS, STEELMAN AND VAN HORNE,
DECEMBER 16, 1997
REFERRED TO COMMITTEE ON INSURANCE, DECEMBER 16, 1997
AN ACT
1 Amending the act of July 22, 1974 (P.L.589, No.205), entitled
2 "An act relating to unfair insurance practices; prohibiting
3 unfair methods of competition and unfair or deceptive acts
4 and practices; and prescribing remedies and penalties,"
5 further defining unfair or deceptive acts or practices.
6 The General Assembly of the Commonwealth of Pennsylvania
7 hereby enacts as follows:
8 Section 1. Section 5(a)(9)(iv) and (v) of the act of July
9 22, 1974 (P.L.589, No.205), known as the Unfair Insurance
10 Practices Act, are amended to read:
11 Section 5. Unfair Methods of Competition and Unfair or
12 Deceptive Acts or Practices Defined.--(a) "Unfair methods of
13 competition" and "unfair or deceptive acts or practices" in the
14 business of insurance means:
15 * * *
16 (9) Cancelling any policy of insurance covering owner-
1 occupied private residential properties or personal property of
2 individuals that has been in force for sixty days or more or
3 refusing to renew any such policy unless the policy was obtained
4 through material misrepresentation, fraudulent statements,
5 omissions or concealment of fact material to the acceptance of
6 the risk or to the hazard assumed by the company; or there has
7 been a substantial change or increase in hazard in the risk
8 assumed by the company subsequent to the date the policy was
9 issued; or there is a substantial increase in hazards insured
10 against by reason of wilful or negligent acts or omissions by
11 the insured; or the insured has failed to pay any premium when
12 due whether such premium is payable directly to the company or
13 its agent or indirectly under any premium finance plan or
14 extension of credit; or for any other reasons approved by the
15 commissioner pursuant to rules and regulations promulgated by
16 the commissioner. No cancellation or refusal to renew by any
17 person shall be effective unless a written notice of the
18 cancellation or refusal to renew is received by the insured
19 either at the address shown in the policy or at a forwarding
20 address. Such notice shall:
21 * * *
22 (iv) Advise the insured of [his] the insured's right to
23 request, in writing, within [ten] thirty days of the receipt of
24 the notice of cancellation or intention not to renew that the
25 Insurance Commissioner review the action of the insurer.
26 (v) Advise the insured of [his] the insured's possible
27 eligibility for insurance under the act of July 31, 1968
28 (P.L.738, No.233), known as "The Pennsylvania Fair Plan Act," or
29 the Pennsylvania Assigned Risk Plan.
30 * * *
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1 Section 2. This act shall take effect in 60 days.
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