Regular Session 2017-2018 House Bill 1851 P.N. 3797

SENATE AMENDED

PRIOR PRINTER'S NOS. 2552, 2991

PRINTER'S NO. 3797

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

1851

Session of

2017

INTRODUCED BY PICKETT, BAKER, SCHLEGEL CULVER, DeLUCA, MILLARD,

WARD, D. COSTA, BRADFORD, M. QUINN, WHEELAND AND ROTHMAN,

OCTOBER 10, 2017

SENATOR BROWNE, APPROPRIATIONS, IN SENATE, RE-REPORTED AS

AMENDED, JUNE 21, 2018

AN ACT

Amending the act of May 17, 1921 (P.L.789, No.285), entitled "An

act relating to insurance; establishing an insurance

department; and amending, revising, and consolidating the law

relating to the licensing, qualification, regulation,

examination, suspension, and dissolution of insurance

companies, Lloyds associations, reciprocal and inter-

insurance exchanges, and certain societies and orders, the

examination and regulation of fire insurance rating bureaus,

and the licensing and regulation of insurance agents and

brokers; the service of legal process upon foreign insurance

companies, associations or exchanges; providing penalties,

and repealing existing laws," in examinations, further

providing for purpose AND FOR DEFINITIONS and providing for

scheduling conference, for budget estimate and revisions, for

billing invoices and for annual examination and analysis

report. AND FOR THE PENNSYLVANIA PROFESSIONAL LIABILITY JOINT

UNDERWRITING ASSOCIATION; AND MAKING A RELATED REPEAL.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. Section 901 of the act of May 17, 1921 (P.L.789,

No.285), known as The Insurance Department Act of 1921, is

amended to read:

SECTION 1. SECTIONS 901 AND 902 OF THE ACT OF MAY 17, 1921

(P.L.789, NO.285), KNOWN AS THE INSURANCE DEPARTMENT ACT OF

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1921, ARE AMENDED TO READ:

Section 901. Purpose.--The purpose of this article is to

provide an effective and efficient system for examining the

activities, operations, financial condition and affairs of all

persons transacting the business of insurance in this

Commonwealth and all persons otherwise subject to the

jurisdiction of the department. The provisions of this article

are intended to enable the department to adopt a flexible system

of examinations which directs resources as may be deemed

appropriate and necessary for the administration of the

insurance and insurance related laws of this Commonwealth. This

article recognizes the commitment of the department to work with

the insurance industry to utilize the most efficient means to

conduct examinations, minimize costs, facilitate cooperation and

communication between insurers and the department, increase

transparency and increase efficiencies to the greatest extent

possible.

SECTION 902. DEFINITIONS.--THE FOLLOWING WORDS AND PHRASES

WHEN USED IN THIS ARTICLE SHALL HAVE, UNLESS THE CONTEXT CLEARLY

INDICATES OTHERWISE, THE MEANINGS GIVEN TO THEM IN THIS SECTION:

"COMMISSIONER" MEANS THE INSURANCE COMMISSIONER OF THE

COMMONWEALTH.

"COMPANY" MEANS ANY PERSON ENGAGING IN OR PROPOSING OR

ATTEMPTING TO ENGAGE IN ANY TRANSACTION OR KIND OF INSURANCE OR

SURETY BUSINESS AND ANY PERSON OR GROUP OF PERSONS WHO MAY

OTHERWISE BE SUBJECT TO THE ADMINISTRATIVE OR REGULATORY

AUTHORITY OF THE INSURANCE DEPARTMENT. THE TERM INCLUDES THE

PENNSYLVANIA PROFESSIONAL LIABILITY JOINT UNDERWRITING

ASSOCIATION ESTABLISHED IN SECTION 731 OF THE ACT OF MARCH 20,

2002 (P.L.154, NO.13), KNOWN AS THE MEDICAL CARE AVAILABILITY

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AND REDUCTION OF ERROR (MCARE) ACT .

"DEPARTMENT" MEANS THE INSURANCE DEPARTMENT OF THE

COMMONWEALTH.

"EXAMINER" MEANS ANY INDIVIDUAL OR FIRM HAVING BEEN

AUTHORIZED BY THE INSURANCE DEPARTMENT TO CONDUCT AN EXAMINATION

UNDER THIS ARTICLE.

"INSURER" MEANS ANY INDIVIDUAL, CORPORATION, ASSOCIATION,

PARTNERSHIP, RECIPROCAL EXCHANGE, INTER-INSURER, LLOYDS INSURER,

FRATERNAL BENEFIT SOCIETY, BENEFICIAL ASSOCIATION AND ANY OTHER

LEGAL ENTITY ENGAGED IN THE BUSINESS OF INSURANCE, INCLUDING

AGENTS, BROKERS AND ADJUSTERS AND ALSO MEANS HEALTH CARE PLANS

AS DEFINED IN 40 PA.C.S. CHS. 61 (RELATING TO HOSPITAL PLAN

CORPORATIONS), 63 (RELATING TO PROFESSIONAL HEALTH SERVICES PLAN

CORPORATIONS), 65 (RELATING TO FRATERNAL BENEFIT SOCIETIES) AND

67 (RELATING TO BENEFICIAL SOCIETIES) AND THE ACT OF DECEMBER

29, 1972 (P.L.1701, NO.364), KNOWN AS THE "HEALTH MAINTENANCE

ORGANIZATION ACT." FOR PURPOSES OF THIS ARTICLE, HEALTH CARE

PLANS, FRATERNAL BENEFIT SOCIETIES AND BENEFICIAL SOCIETIES

SHALL BE DEEMED TO BE ENGAGED IN THE BUSINESS OF INSURANCE.

"NAIC" MEANS THE NATIONAL ASSOCIATION OF INSURANCE

COMMISSIONERS.

"PERSON" MEANS ANY INDIVIDUAL, AGGREGATION OF INDIVIDUALS,

TRUST, ASSOCIATION, PARTNERSHIP OR CORPORATION OR ANY AFFILIATE

THEREOF. THE TERM SHALL EXCLUDE AGENTS.

Section 2. The act is amended by adding sections to read:

Section 904.1. Scheduling Conference.--Prior to commencing

examination field work under this article, the department shall

hold a scheduling conference with a company to discuss the

following:

(1) The purpose and scope of the examination.

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(2) The estimated costs for the examination.

(3) The types of information that the company will be asked

to produce.

(4) The most efficient means of conducting the examination.

(5) Any alternative approaches in conducting the examination

that would be more convenient, less burdensome or less expensive

for the company while still providing for an effective

examination by the department.

Section 904.2. Budget Estimate and Revisions.--(a) No more

than thirty days after the scheduling conference under section

904.1 has been conducted, the department shall provide the

company with a detailed written budget estimate for the

examination that must, for each forthcoming phase of the

examination, as appropriate:

(1) Identify the individuals or firms performing the

examination and their daily or hourly rates.

(2) Provide an estimate of travel, lodging, meal and other

administrative or supply costs.

(3) Estimate the length of time to conduct on-site and off-

site examination activities.

(b) Within fifteen days of receipt of a budget estimate

under subsection (a), the company and the department shall have

an additional discussion regarding the most efficient means of

conducting the examination and producing information. If

necessary, revisions of the budget estimate shall be made.

extended if the company and the department mutually agree to the

extension.

(d) At any time during the examination, the department shall

hold another scheduling conference with the company in

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accordance with section 904.1 and provide a revised budget

estimate as set forth in subsection (a) if:

(1) the department determines that the cost of the

examination will exceed the budget estimate by more than ten per

centum; or

(2) there is a material change in staffing assignments.

Section 904.3. Billing Invoices.--(a) The following shall

apply for each billing invoice submitted to a company regarding

examination work:

(1) An invoice which is submitted by a contractor of the

department must contain an itemized and detailed description of

charges on a quarterly hour basis by the examiner, including the

applicable billing rates and a per charge description of related

travel or other expenses.

(2) An invoice which is submitted by the department directly

must contain instructions on how a company may obtain an

itemized and detailed description of the charges.

(3) An invoice shall be submitted to a company on a monthly

basis as soon as practicable but no later than sixty days after

the date on which the billed activity was performed.

(4) An invoice must provide a due date of no fewer than

thirty days after the bill is submitted to the company.

(5) An invoice must contain an explanation of the invoicing

process and the procedure for resolving billing disputes.

(b) To the extent possible, the department shall follow the

procedures under subsection (a) for billing invoices submitted

by third-party consultants retained as described under section

905.1(a)(2), (3), (4), (5) or (6).

Section 905.1. Annual Examination and Analysis Report.--(a)

Within thirty days of the end of each fiscal year, the

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department shall publish a report setting forth, for the

immediately prior fiscal year, the total amount of money billed

to companies by the department and its contractors retained in

each of the following categories:

(1) Financial examinations conducted under section 904.

(2) Market conduct examinations conducted under section 904.

(3) Examinations conducted under section 1406 of the act of

May 17, 1921 (P.L.682, No.284), known as "The Insurance Company

Law of 1921."

(4) The review of transactions under any of the following

sections of "The Insurance Company Law of 1921":

(i) Section 803-A.

(ii) Section 807-A.

(iii) Section 1402.

(iv) Section 1405.

(5) The solvency monitoring of companies under any of the

following:

(i) Section 507-A.

(ii) Section 506-B.

(iii) Section 2607 of "The Insurance Company Law of 1921."

(6) Other subsequently enacted statutory provisions that

provide for the retention of third-party consultants.

(b) The report under this section must:

(1) separately list the identity of each contractor retained

by the department and the amount of money billed by the

contractor to companies ;

(2) disclose the total amount of deposits into the Insurance

Regulation and Oversight Fund under section 4(a)(3) of the act

of July 2, 2013 (P.L.255, No.46), known as the "Insurance

Regulation and Oversight Fund Act," as a result of financial and

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market regulation activities for which regulated entities are

responsible to pay; and

(3) include an analysis of the effectiveness of the

procedures under this article and recommendations to further

improve the efficiency and transparency of the examination

processes.

SECTION 3. THE ACT IS AMENDED BY ADDING AN ARTICLE TO READ:

ARTICLE IX-A

PENNSYLVANIA PROFESSIONAL LIABILITY JOINT

UNDERWRITING ASSOCIATION

SUBARTICLE A

PRELIMINARY PROVISIONS

SECTION 901-A. DECLARATION OF POLICY.

THE GENERAL ASSEMBLY FINDS AND DECLARES AS FOLLOWS:

(1) THE COMMISSIONER'S REVIEW OF THE ASSOCIATION'S PLAN

OF OPERATION AND RATE FILINGS HAS IDENTIFIED A DECREASE IN

THE NUMBER OF CLAIM PAYMENTS AND THE DECLINE IN THE NEED IN

THIS COMMONWEALTH FOR THE TYPES OF MEDICAL PROFESSIONAL

LIABILITY INSURANCE POLICIES OFFERED BY THE ASSOCIATION UNDER

CHAPTER 7 OF THE MCARE ACT. THE REVIEW HAS IDENTIFIED A NEED

TO MODERNIZE THE ASSOCIATION IN ORDER TO PRODUCE NEEDED

ECONOMICAL AND ADMINISTRATIVE EFFICIENCIES.

(2) ENSURING THE FUTURE AVAILABILITY OF AND ACCESS TO

QUALITY HEALTH CARE IS A FUNDAMENTAL GOVERNMENT GOAL, AND IT

IS ESSENTIAL TO THE PUBLIC HEALTH, SAFETY AND WELFARE OF ALL

RESIDENTS OF THIS COMMONWEALTH THAT ACCESS TO A FULL SPECTRUM

OF HOSPITAL SERVICES AND TO HIGHLY TRAINED PHYSICIANS IN ALL

SPECIALTIES IS AVAILABLE.

(3) IN ORDER TO ACCOMPLISH THE GOALS UNDER PARAGRAPH

(2), MEDICAL PROFESSIONAL LIABILITY INSURANCE MUST CONTINUE

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TO BE OBTAINABLE AT AN AFFORDABLE AND REASONABLE COST IN

EVERY GEOGRAPHIC REGION OF THIS COMMONWEALTH. PLACING THE

ASSOCIATION WITHIN THE DEPARTMENT WILL GIVE THE COMMISSIONER

MORE OVERSIGHT OF EXPENDITURES AND ENSURE BETTER EFFICIENCIES

IN THE OPERATION OF THE ASSOCIATION.

SECTION 902-A. DEFINITIONS.

THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS ARTICLE

SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE

CONTEXT CLEARLY INDICATES OTHERWISE:

"ASSOCIATION." THE PENNSYLVANIA PROFESSIONAL LIABILITY JOINT

UNDERWRITING ASSOCIATION ESTABLISHED IN SECTION 731 OF THE MCARE

ACT.

"BOARD." THE JOINT UNDERWRITING ASSOCIATION BOARD DESCRIBED

IN SECTION 912-A(A).

"COMMISSIONER." THE INSURANCE COMMISSIONER OF THE

COMMONWEALTH.

"DEPARTMENT." THE INSURANCE DEPARTMENT OF THE COMMONWEALTH.

"HEALTH CARE PROVIDER." AS DEFINED IN SECTION 702 OF THE

MCARE ACT.

"MCARE ACT." THE ACT OF MARCH 20, 2002 (P.L.154, NO.13),

KNOWN AS THE MEDICAL CARE AVAILABILITY AND REDUCTION OF ERROR

(MCARE) ACT.

"PLAN." A PLAN OF OPERATION SUBMITTED TO AND APPROVED BY THE

COMMISSIONER UNDER SECTION 731(B)(1) OF THE MCARE ACT OR THIS

ARTICLE.

SUBARTICLE B

OVERSIGHT AND DUTIES

SECTION 911-A. ASSOCIATION OVERSIGHT AND ADDITIONAL DUTIES.

(A) OVERSIGHT.--THE ASSOCIATION SHALL CONTINUE AS AN

INSTRUMENTALITY OF THE COMMONWEALTH AND SHALL OPERATE UNDER THE

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CONTROL, DIRECTION AND OVERSIGHT OF THE DEPARTMENT.

(B) ADDITIONAL DUTIES.--IN ADDITION TO THE DUTIES DESCRIBED

UNDER SUBCHAPTER C OF CHAPTER 7 OF THE MCARE ACT, THE

ASSOCIATION SHALL DO ALL OF THE FOLLOWING:

(1) SUBMIT MONTHLY REPORTS TO THE COMMISSIONER OF

PREMIUMS COLLECTED AND CLAIMS PAID DURING THE IMMEDIATELY

PRECEDING MONTH.

(2) PROVIDE TO THE COMMISSIONER ADDITIONAL DOCUMENTS AND

INFORMATION REGARDING THE ASSOCIATION'S OPERATIONS AS THE

COMMISSIONER MAY REQUEST.

(3) WITHIN 60 DAYS FOLLOWING THE EFFECTIVE DATE OF THIS

SECTION, PREPARE AND SUBMIT A NEW PLAN FOR APPROVAL BY THE

COMMISSIONER UNDER SECTION 731(B)(1) OF THE MCARE ACT. THE

NEW PLAN SHALL CONTAIN PROVISIONS NOT INCONSISTENT WITH THIS

ARTICLE. THE PLAN MAY BE AMENDED AT THE DIRECTION OF THE

BOARD OR THE COMMISSIONER.

(4) SUBMIT TO EXAMINATIONS UNDER ARTICLE IX.

(1) NO MEMBER OF THE ASSOCIATION OR ANY HEALTH CARE

PROVIDER INSURED BY A POLICY PROVIDED BY THE ASSOCIATION

SHALL HAVE A CLAIM AGAINST THE CURRENT OR FUTURE FUNDS,

PROFITS, INVESTMENTS OR LOSSES OF THE ASSOCIATION, INCLUDING

UPON DISSOLUTION.

(2) A CLAIM AGAINST OR A LIABILITY OF THE ASSOCIATION

UNDER A POLICY PROVIDED BY THE ASSOCIATION UNDER THE MCARE

ACT SHALL BE CONSIDERED A LIABILITY OF THE COMMONWEALTH.

SECTION 912-A. BOARD.

(A) MEMBERSHIP AND PURPOSE.--THE MEMBERSHIP OF THE JOINT

UNDERWRITING ASSOCIATION BOARD IS STATUTORILY ESTABLISHED. THE

BOARD SHALL GOVERN THE OPERATIONS OF THE ASSOCIATION AND SHALL

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CONSIST OF THE FOLLOWING MEMBERS:

(1) THREE MEMBERS APPOINTED BY THE GOVERNOR.

(2) ONE MEMBER APPOINTED BY EACH OF THE FOLLOWING:

(I) THE PRESIDENT PRO TEMPORE OF THE SENATE.

(II) THE MINORITY LEADER OF THE SENATE.

(III) THE SPEAKER OF THE HOUSE OF REPRESENTATIVES.

(IV) THE MINORITY LEADER OF THE HOUSE OF

REPRESENTATIVES.

(B) CHAIR.--THE GOVERNOR SHALL APPOINT THE CHAIR OF THE

BOARD FROM AMONG THE BOARD MEMBERS.

THE WILL OF THE MEMBER'S APPOINTING AUTHORITY FOR A TERM OF FOUR

YEARS OR UNTIL THE MEMBER'S SUCCESSOR HAS BEEN APPOINTED AND IS

QUALIFIED. A VACANCY ON THE BOARD SHALL BE FILLED BY THE SAME

APPOINTING AUTHORITY AS THE OUTGOING MEMBER.

(D) QUORUM.--A MAJORITY OF THE MEMBERS OF THE BOARD SHALL

CONSTITUTE A QUORUM. THE VOTE OF A MAJORITY OF THE MEMBERS

ATTENDING A MEETING OF THE BOARD SHALL BE REQUIRED FOR ALL

ACTIONS OF THE BOARD.

(E) COMPENSATION.--MEMBERS OF THE BOARD SHALL NOT BE

COMPENSATED FOR SERVICE AS BOARD MEMBERS BUT SHALL BE ENTITLED

TO REIMBURSEMENT OF EXPENSES UNDER RULES GOVERNING THE

REIMBURSEMENT OF EXPENSES TO COMMONWEALTH EXECUTIVE AGENCY

PERSONNEL.

(F) EXECUTIVE DIRECTOR AND ADMINISTRATIVE SUPPORT.--THE DAY-

TO-DAY OPERATIONS OF THE BOARD SHALL BE MANAGED BY AN EXECUTIVE

DIRECTOR HIRED BY THE COMMISSIONER WHOSE ANNUAL SALARY AND OTHER

BENEFITS OF EMPLOYMENT SHALL BE DETERMINED BY THE COMMISSIONER.

THE DEPARTMENT SHALL PROVIDE THE BOARD WITH OTHER ADMINISTRATIVE

SUPPORT AS THE DEPARTMENT, IN CONSULTATION WITH THE EXECUTIVE

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DIRECTOR, DEEMS NECESSARY AND APPROPRIATE. THE EXECUTIVE

DIRECTOR AND OTHER STAFF HIRED TO SUPPORT THE WORK OF THE BOARD

SHALL BE CONSIDERED COMMONWEALTH EMPLOYEES.

(G) POWERS AND DUTIES.--THE BOARD SHALL ADMINISTER THE PLAN,

DECIDE ALL MATTERS OF POLICY AND HAVE AUTHORITY TO EXERCISE ALL

REASONABLE AND NECESSARY POWERS RELATING TO THE OPERATION OF THE

ASSOCIATION. IN FURTHERANCE OF THE BOARD'S POWERS AND DUTIES,

THE BOARD MAY DO ALL OF THE FOLLOWING:

(1) ADOPT BYLAWS AND GUIDELINES.

(2) APPOINT COMMITTEES AND RETAIN EXPERTS AND ADVISORS,

CONSULTANTS AND AGENTS TO RENDER SERVICES AS THE BOARD DEEMS

NECESSARY TO CARRY OUT THE OPERATIONS OF THE BOARD AND THE

ASSOCIATION.

(3) ENTER INTO AGREEMENTS AND CONTRACTS AS MAY BE

NECESSARY FOR THE ADMINISTRATION OF THE PLAN AND CONSISTENT

WITH THIS ACT AND THE APPLICABLE PROVISIONS OF THE MCARE ACT.

(4) DEVELOP RATES, RATING PLANS, RATING AND UNDERWRITING

RULES AND STANDARDS, RATE CLASSIFICATIONS, RATE TERRITORIES,

POLICY FORMS AND RIDERS IN ACCORDANCE WITH APPLICABLE LAWS

AND SUBJECT TO THE COMMISSIONER'S APPROVAL UNDER SECTIONS

712(F) AND 731(B)(2) AND (4) OF THE MCARE ACT.

(5) INVEST, BORROW AND DISBURSE FUNDS, BUDGET EXPENSES,

LEVY ASSESSMENTS, RECEIVE CONTRIBUTIONS, REINSURE LIABILITIES

OF THE ASSOCIATION AND PERFORM ALL OTHER DUTIES NECESSARY OR

INCIDENTAL TO THE PROPER ADMINISTRATION OF THE PLAN.

(6) IF THE BOARD DEEMS IT TO BE IN THE BEST INTERESTS OF

THE POLICY HOLDERS AND THE COMMONWEALTH, SUBJECT TO THE

COMMISSIONER'S APPROVAL, PLACE A PORTION OF THE FUNDS OF THE

ASSOCIATION IN A RESTRICTED RECEIPT ACCOUNT IN THE TREASURY

DEPARTMENT. THE STATE TREASURER SHALL CREATE A RESTRICTED

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RECEIPT ACCOUNT AT THE REQUEST OF THE BOARD. MONEY IN THE

ACCOUNT IS APPROPRIATED FOR THE PURPOSES REQUIRED IN THE

MCARE ACT, THIS ARTICLE AND AS MAY OTHERWISE BE DIRECTED BY

THE BOARD.

(7) AUTHORIZE THE EXECUTIVE DIRECTOR TO PARTICIPATE IN

THE SCHEDULING CONFERENCES AND OTHER PROVISIONS OF ARTICLE IX

ON BEHALF OF THE BOARD.

SECTION 913-A. DISSOLUTION.

(A) GENERAL.--THE ASSOCIATION MAY BE DISSOLVED AS FOLLOWS:

(1) AT THE REQUEST OF A MAJORITY OF THE MEMBERS OF THE

ASSOCIATION AND AS APPROVED BY THE COMMISSIONER.

(2) BY ACT OF THE GENERAL ASSEMBLY.

(B) DISTRIBUTION OF ASSETS.--UPON DISSOLUTION OF THE

ASSOCIATION UNDER THIS SECTION, ALL ASSETS OF THE ASSOCIATION,

FROM WHATEVER SOURCE, SHALL BE DISTRIBUTED AS THE BOARD MAY

DETERMINE, SUBJECT TO THE APPROVAL OF THE COMMISSIONER.

SUBARTICLE C

MISCELLANEOUS PROVISIONS

SECTION 921-A. ADMINISTRATION AND CONSTRUCTION.

THE FOLLOWING SHALL APPLY:

(1) WITHIN 30 DAYS FOLLOWING THE EFFECTIVE DATE OF

THIS SECTION, ALL PAPER AND ELECTRONIC DOCUMENTS AND

FILES AND OTHER ASSETS OF THE ASSOCIATION IN THE

POSSESSION OF THE ASSOCIATION, ITS EXECUTIVE DIRECTOR AND

EMPLOYEES SHALL BE TRANSFERRED TO THE DEPARTMENT.

(2) WITHIN 30 DAYS FOLLOWING THE EFFECTIVE DATE OF

THIS SECTION, AUTHORITY TO ACT ON BEHALF OF THE BOARD

SHALL BE TRANSFERRED TO THE EXECUTIVE DIRECTOR HIRED BY

THE COMMISSIONER UNDER SECTION 912-A(F). THE COMMISSIONER

MAY APPOINT AN ACTING EXECUTIVE DIRECTOR TO ACT UNTIL AN

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EXECUTIVE DIRECTOR HAS BEEN HIRED.

SECTION 4. REPEALS ARE AS FOLLOWS:

(1) THE GENERAL ASSEMBLY DECLARES THAT THE REPEAL UNDER

PARAGRAPH (2) IS NECESSARY TO EFFECTUATE THE ADDITION OF

SECTION 911-A(C)(2) OF THE ACT.

(2) SECTION 731(C) OF THE ACT OF MARCH 20, 2002

(P.L.154, NO.13), KNOWN AS THE MEDICAL CARE AVAILABILITY AND

REDUCTION OF ERROR (MCARE) ACT, IS REPEALED.

SECTION 5. THE FOLLOWING SHALL APPLY:

(1) ORDERS, REGULATIONS, RULES AND DECISIONS WHICH WERE

ISSUED, PROMULGATED OR MADE BY THE PENNSYLVANIA PROFESSIONAL

LIABILITY JOINT UNDERWRITING ASSOCIATION UNDER THE ACT OF

MARCH 20, 2002 (P.L.154, NO.13), KNOWN AS THE MEDICAL CARE

AVAILABILITY AND REDUCTION OF ERROR (MCARE) ACT, IN

CONNECTION WITH CH. 7, SUBCH. C OF THE MCARE ACT, AND WHICH

ARE IN EFFECT ON THE EFFECTIVE DATE OF THIS SECTION, SHALL

REMAIN APPLICABLE AND IN FULL FORCE AND EFFECT UNTIL MODIFIED

OR TERMINATED.

(2) THE FOLLOWING SHALL APPLY TO ADMINISTRATION AND

CONSTRUCTION:

(I) ACTIVITIES INITIATED UNDER CH. 7, SUBCH. C OF

THE MCARE ACT SHALL CONTINUE AND REMAIN IN FULL FORCE AND

EFFECT.

(II) INSURANCE POLICIES ISSUED AND CONTRACTS ENTERED

INTO BY THE PENNSYLVANIA PROFESSIONAL LIABILITY JOINT

UNDERWRITING ASSOCIATION PRIOR TO THE EFFECTIVE DATE OF

THIS SECTION ARE NOT AFFECTED NOR IMPAIRED BY THIS

ARTICLE.

SECTION 6. THE PROVISIONS OF SECTIONS 904.1, 904.2, 904.3,

AND 905.1 OF THE ACT SHALL APPLY TO EXAMINATIONS COMMENCING AT

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LEAST 30 DAYS AFTER THE EFFECTIVE DATE OF THIS SECTION.

Section 3 7. This act shall take effect in 60 30 days.

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