See other bills
under the
same topic
PRINTER'S NO. 1136
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
878
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.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.
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.--(a) No insurance company, association,
or exchange, by itself or by its officers or members, attorney-
in-fact or by any 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
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
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.
Nothing in this section shall be construed to prevent the taking
of a bona fide obligation, with legal interest, in payment of
any premium.
(b) Nothing in this section shall be construed as
prohibiting an insurance company, association or exchange, by
itself or by its officers or members, attorney-in-fact or by any
other party 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. The
commissioner may increase this amount upon publication of notice
in the Pennsylvania Bulletin.
(c) Nothing in this section shall [prevent] be construed as
preventing 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
20170SB0878PN1136 - 2 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
paid for the weekly collection of such premium.
(d) Nothing in this section shall be construed as
prohibiting an insurance company, association or exchange, by
itself or by its officers or members, attorney-in-fact or by 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 in 60 days.
20170SB0878PN1136 - 3 -
1
2
3
4
5
6
7
8
9
10
11