PRINTER'S NO. 3360
No. 2382 Session of 2004
INTRODUCED BY GEORGE, BEBKO-JONES, BELFANTI, BROWNE, DeLUCA,
DeWEESE, FABRIZIO, FREEMAN, GEIST, GOODMAN, GRUCELA, HALUSKA,
HERSHEY, JAMES, KELLER, LAUGHLIN, LEACH, LEVDANSKY, McGEEHAN,
McILHATTAN, PALLONE, SCAVELLO, SHANER, SOLOBAY, THOMAS, TIGUE
AND WASHINGTON, MARCH 8, 2004
REFERRED TO COMMITTEE ON INSURANCE, MARCH 8, 2004
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," providing for cancellation of
12 certain group health insurance policies.
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 621.6. Cancellation of Certain Group Health
19 Insurance Policies.--(a) Notwithstanding any other provision of
20 law, when an insurer seeks to cancel a group health insurance
21 policy due to lack of documentation regarding group status, the
1 insurer shall:
2 (1) Notify each individual insured under the group health
3 insurance policy of the date of cancellation.
4 (2) Permit the group policyholder to provide the required
5 documentation within ten days of the notification under clause
6 (1).
7 (b) This section shall not apply to the following types of
8 policies:
9 (1) Accident only.
10 (2) Limited benefit.
11 (3) Credit.
12 (4) Dental.
13 (5) Vision.
14 (6) Specified disease.
15 (7) Medicare supplement.
16 (8) Civilian Health and Medical Program of the Uniformed
17 Services (CHAMPUS) supplement.
18 (9) Long-term care or disability income.
19 (10) Workers' compensation.
20 (11) Automobile medical payment.
21 (c) (1) The term "health insurance policy" when used in
22 this section means any individual or group health insurance
23 policy, subscriber contract, certificate or plan which provides
24 medical or health care coverage by any health care facility or
25 licensed health care provider which is offered by or is governed
26 under this act or any of the following:
27 (i) Subarticle (f) of Article IV of the act of June 13, 1967
28 (P.L.31, No.21), known as the "Public Welfare Code."
29 (ii) The act of December 29, 1972 (P.L.1701, No.364), known
30 as the "Health Maintenance Organization Act."
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1 (iii) The act of May 18, 1976 (P.L.123, No.54), known as the
2 "Individual Accident and Sickness Insurance Minimum Standards
3 Act."
4 (iv) A nonprofit corporation subject to 40 Pa.C.S. Chs. 61
5 (relating to hospital plan corporations) and 63 (relating to
6 professional health services plan corporations).
7 (2) The term "insurer" when used in this section means any
8 entity that issues an individual or group health insurance
9 policy, contract or plan described under clause (1) of this
10 subsection.
11 Section 2. This act shall take effect in 60 days.
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