PRINTER'S NO. 2514
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1841
Session of
2017
INTRODUCED BY TOBASH, DeLUCA, PICKETT, MILLARD AND WHEELAND,
OCTOBER 2, 2017
REFERRED TO COMMITTEE ON INSURANCE, OCTOBER 2, 2017
AN ACT
Amending the act of May 17, 1921 (P.L.682, No.284), entitled "An
act relating to insurance; amending, revising, and
consolidating the law providing for the incorporation of
insurance companies, and the regulation, supervision, and
protection of home and foreign insurance companies, Lloyds
associations, reciprocal and inter-insurance exchanges, and
fire insurance rating bureaus, and the regulation and
supervision of insurance carried by such companies,
associations, and exchanges, including insurance carried by
the State Workmen's Insurance Fund; providing penalties; and
repealing existing laws," in general provisions relating to
insurance companies, associations and exchanges, further
providing for rebates and inducements prohibited, revocation
of licenses and penalties.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 346 of the act of May 17, 1921 (P.L.682,
No.284), known as The Insurance Company Law of 1921, is amended
to read:
Section 346. Rebates and Inducements Prohibited; Revocation
of Licenses; Penalties.--[No] (a) Except as otherwise provided
in this section, no insurance company, association[,] or
exchange, by itself [or by its officers, or members, attorney-
in-fact or by], its officers, members or attorney-in-fact or any
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other party, shall offer, promise, allow, give, set off, or pay,
directly or indirectly, any rebate of, or part of, the premium
payable on the policy, or on any policy or agent's commission
thereon, or earnings, profit, dividends, or other benefit
founded, arising, accruing, or to accrue thereon or therefrom,
or any special advantage in date of policy or age of issue, or
any paid employment or contract for services of any kind, or any
other valuable consideration or inducement, to or for insurance
on any risk in this Commonwealth, now or hereafter to be
written, which is not specified in the policy contract of
insurance; nor shall any such company, association, or exchange,
personally or otherwise, offer, promise, give, option, sell, or
purchase any stocks, bonds, securities, or property, or any
dividends or profits accruing or to accrue thereon, or other
thing of value whatsoever, as inducement to insurance or in
connection therewith, which is not specified in the policy.
(b) Nothing in this section shall be construed to prevent
the taking of a bona fide obligation, with legal interest, in
payment of any premium.
(c) Nothing in this section shall be construed as
prohibiting an insurance company, association or exchange, by
itself, its officers, members or attorney-in-fact or any other
party, from offering or giving to an insured or prospective
insured money or any favor, advantage, object, valuable
consideration or thing other than money which has a cost or
redeemable value of less than one hundred dollars ($100). The
Insurance Commissioner may increase the dollar amount under this
subsection to reflect an upward change in the United States
Department of Labor Consumer Price Index for All Urban Consumers
(CPI-U) in the preceding year, upon publication of notice in the
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Pennsylvania Bulletin.
(d) Nothing in this section shall prevent a company
transacting industrial life insurance on a weekly payment plan
from returning to policyholders, who have made a premium payment
for a period of at least one year, the percentage of premium
which the company would otherwise have paid for the weekly
collection of such premium.
(e) Nothing in this section shall be construed as
prohibiting an insurance company, association or exchange, by
itself, its officers, members or attorney-in-fact or any other
party, from offering or giving to an insured or prospective
insured, for free or at a discounted price, services or other
offerings that relate to or enhance the value of the insurance
product being offered. Services not prohibited include, but are
not limited to, risk management services, including loss
control.
Section 2. This act shall take effect immediately.
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