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PRINTER'S NO. 1135
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
877
Session of
2017
INTRODUCED BY WHITE AND WARD, SEPTEMBER 6, 2017
REFERRED TO BANKING AND INSURANCE, SEPTEMBER 6, 2017
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 insurance producers, further
providing for rebates prohibited and for inducements
prohibited.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Sections 645-A and 646-A of the act of May 17,
1921 (P.L.789, No.285), known as The Insurance Department Act of
1921, are amended to read:
Section 645-A. Rebates prohibited.
(a) Prohibition.--No insurance producer shall, directly or
indirectly, offer, promise, allow, give, set off or pay a rebate
of, or part of, a premium payable on the contract of insurance
or on the insurance producer's commission, earnings, profits,
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dividends or other benefit founded, arising, accruing or to
accrue thereon, 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 a risk in this Commonwealth which is not
specified in the contract of insurance.
(a.1) Construction.--Nothing in this section shall be
construed as prohibiting an insurance producer from offering or
giving to an insured or prospective insured money or any favor,
advantage, object, valuable consideration or anything other than
money which has a cost of or a redeemable value less than or
equal to $100 which is not specified in the contract of
insurance. The commissioner may increase this amount upon
publication of notice in the Pennsylvania Bulletin.
(b) Penalty.--A person that violates subsection (a) commits
a misdemeanor of the third degree.
Section 646-A. Inducements prohibited.
(a) Prohibition.--No insurance producer shall, directly or
indirectly, 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 an inducement to purchase a contract of
insurance. Nothing in this section shall be construed to prevent
the taking of a bona fide obligation, with legal interest, in
payment of any premium. This section shall not prohibit payment
or receipt of referral fees in accordance with this act.
(a.1) Construction.--Nothing in this section shall be
construed as prohibiting an insurance producer from offering or
giving to an insured or prospective insured money or any favor,
advantage, object, valuable consideration or anything other than
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money which has a cost of or a redeemable value less than or
equal to $100. The commissioner may increase this amount upon
publication of notice in the Pennsylvania Bulletin.
(b) Penalty.--A person that violates subsection (a) commits
a misdemeanor of the third degree.
Section 2. This act shall take effect in 60 days.
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