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PRINTER'S NO. 4177
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
2727
Session of
2020
INTRODUCED BY T. DAVIS, GALLOWAY, McNEILL, HILL-EVANS, ULLMAN,
DELLOSO, DeLUCA, ROZZI, DRISCOLL, SCHWEYER, WARREN, SANCHEZ,
CIRESI, FRANKEL, KORTZ, DONATUCCI, HOWARD, FREEMAN, DALEY,
MADDEN AND YOUNGBLOOD, JULY 30, 2020
REFERRED TO COMMITTEE ON INSURANCE, JULY 30, 2020
AN ACT
Amending the act of July 22, 1974 (P.L.589, No.205), entitled
"An act relating to unfair insurance practices; prohibiting
unfair methods of competition and unfair or deceptive acts
and practices; and prescribing remedies and penalties,"
further providing for unfair methods of competition and
unfair or deceptive acts or practices defined.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 5(a) of the act of July 22, 1974
(P.L.589, No.205), known as the Unfair Insurance Practices Act,
is amended by adding a paragraph to read:
Section 5. Unfair Methods of Competition and Unfair or
Deceptive Acts or Practices Defined.--(a) "Unfair methods of
competition" and "unfair or deceptive acts or practices" in the
business of insurance means:
* * *
(15) Canceling a policy of insurance of an insured for
nonpayment of a premium during a state of disaster emergency
declared under 35 Pa.C.S. ยง 7301(c) (relating to general
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authority of Governor) that impacts a geographic area or
business segment in which the insured, at the time of the
disaster emergency, resided or was employed, without providing
the insured with a ninety-day grace period for payment of the
premium from the date that the premium was originally due. The
following shall apply:
(i) Any premium that has been deferred during the grace
period shall be due upon the expiration of the policy term but
may be paid by the insured in installments over the remainder of
the policy period.
(ii) If the insured cancels the policy prior to the full
payment of the premium deferred during the grace period, the
remaining amount of the premium deferred shall be due
immediately.
(iii) When a conflict exists between this paragraph and any
other Federal or State law or regulation regarding grace periods
for payment of an insurance premium, the law or regulation
providing greater protection to the insured shall be deemed to
supersede the other conflicting law or regulation.
(iv) Nothing in this section shall be construed to prohibit
an insurer from establishing a payment plan with an insured.
(v) An insurer may not refuse to renew or offer a policy of
insurance solely on the basis that the insured utilized the
grace period as specified in this paragraph, other than for
failure to pay the deferred premium when due.
* * *
Section 2. This act shall take effect immediately.
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