PRINTER'S NO. 639
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
649
Session of
2015
INTRODUCED BY RAFFERTY, TARTAGLIONE, GREENLEAF, BREWSTER, COSTA,
YUDICHAK AND MENSCH, MARCH 20, 2015
REFERRED TO BANKING AND INSURANCE, MARCH 20, 2015
AN ACT
Amending the act of July 3, 1986 (P.L.396, No.86), entitled "An
act requiring notice of rate increases, policy cancellations
and nonrenewals by property and casualty insurers," further
providing for notice of increase in premium and for notice
requirements for midterm cancellations.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 1 of the act of July 3, 1986 (P.L.396,
No.86), entitled "An act requiring notice of rate increases,
policy cancellations and nonrenewals by property and casualty
insurers," amended June 13, 1995 (P.L.60, 10), is amended to
read:
Section 1. Notice of increase in premium.
(a) General rule.--Notwithstanding any other provision of
law, a policy of insurance covering commercial property or
casualty risks in this Commonwealth shall provide for not less
than 30 days' advance notice to the named insured of an increase
in renewal premium.
(b) Medical professional liability insurance policies.--A
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policy of insurance covering medical professional liability in
this Commonwealth shall provide for not less than 60 days'
advance notice to the named insured of an increase in renewal
premium. The advance notice shall also include the amount of the
proposed renewal premium increase.
(c) Applicability.--This section shall not apply to policies
written on a retrospective rating plan.
Section 2. Section 3(a) of the act is amended by adding a
paragraph to read:
Section 3. Notice requirements for midterm cancellations and
nonrenewals.
(a) Requirements.--Notices of midterm cancellation and
nonrenewal shall meet the following requirements:
* * *
(3.1) A policy for insurance covering medical
professional liability in this Commonwealth shall provide for
not less than 90 days' advance notice to the named insured of
a nonrenewal, cancellation or termination.
* * *
Section 3. This act shall take effect in 60 days.
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