PRINTER'S NO. 1006
No. 853 Session of 2007
INTRODUCED BY BOSCOLA, MAY 9, 2007
REFERRED TO BANKING AND INSURANCE, MAY 9, 2007
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 additional 12 notification requirements relating to annuity contracts. 13 The General Assembly of the Commonwealth of Pennsylvania 14 hereby enacts as follows: 15 Section 1. Section 410E heading of the act of May 17, 1921 16 (P.L.682, No.284), known as The Insurance Company Law of 1921, 17 added November 5, 1981 (P.L.325, No.116), is amended and 18 subsection (b) is amended by adding a paragraph to read: 19 Section 410E. Notice of Contractholder's Right to Examine 20 Annuity or Pure Endowment Contracts and Notification Relating to 21 Annuity Contracts.--* * * 22 (b) * * *
1 (1.1) No mutual fund may be sold through, as part of, or in 2 conjunction with the sale of an annuity contract unless a one- 3 page notice is affixed to the front of the fund prospectus 4 which: 5 (i) explains that, inasmuch as the fund is being purchased 6 through, as part of, or in conjunction with an insurance 7 product, the return generated by the fund and paid to the buyer 8 will be reduced by certain fees not usually associated with the 9 purchase of such a fund; and 10 (ii) enumerates by type and amount each fee or expense which 11 will, or which is likely to be, incurred as a result of the 12 presence of an insurance component in the transaction, 13 including, but not limited to, mortality and risk charges. 14 * * * 15 Section 2. This act shall take effect in 60 days. D23L40RLE/20070S0853B1006 - 2 -