1Amending the act of December 15, 1982 (P.L.1291, No.292),
2entitled "An act to provide for the reasonable
3standardization and minimum loss ratios of coverage and
4simplification of terms and benefits of group medicare
5supplement accident and health insurance policies or group
6subscriber contracts of health plan corporations and
7nonprofit health service plans; to facilitate public
8understanding and comparison of such policies; to eliminate
9provisions contained in such policies which may be misleading
10or confusing in connection with the purchase thereof or with
11the settlement of claims; and to provide for full disclosure
12in the sale of such coverages to persons eligible for
13medicare by reason of age," providing for the return of
14premium funds under certain circumstances.

15The General Assembly of the Commonwealth of Pennsylvania
16hereby enacts as follows:

17Section 1. Section 8 of the act of December 15, 1982 
18(P.L.1291, No.292), known as the Medicare Supplement Insurance
19Act, is amended to read:

20Section 8. Requirements for replacement.

21(a) Application or enrollment forms shall include a question
22designed to elicit information as to whether a certificate to be
23issued under a medicare supplement policy is intended to replace

1any other accident and health insurance presently in force. A
2supplementary application or other form to be signed by the
3applicant containing such a question may be used.

4(b) Upon determining that a sale will involve replacement,
5an insurer, other than a direct response insurer, or its agent,
6shall furnish the applicant, prior to issuance or delivery of
7the certificate, a notice designed to inform the applicant of
8the essential differences in coverage on a form consistent with
9the then current model notification form adopted by the National
10Association of Insurance Commissioners. One copy of such notice
11shall be retained by the applicant and an additional copy signed
12by the applicant shall be retained by the insurer. A direct
13response insurer shall deliver the notice to the applicant upon
14issuance of the certificate.

15(c) An insurer shall refund the balance of any premium paid
16under a Medicare supplement policy upon receipt of proof from
17the insured that other insurance coverage was obtained.

18Section 2. This act shall take effect immediately.