See other bills
under the
same topic
PRINTER'S NO. 4216
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
2759
Session of
2020
INTRODUCED BY DERMODY, ROZZI, SANCHEZ, ZABEL, KENYATTA, McNEILL,
KINSEY, GALLOWAY, WILLIAMS, T. DAVIS, YOUNGBLOOD, MADDEN,
SCHLOSSBERG, McCARTER, MALAGARI, DRISCOLL, ULLMAN,
SHUSTERMAN, HANBIDGE, DELLOSO, HOWARD, DeLUCA, NEILSON,
KORTZ, McCLINTON, HILL-EVANS, READSHAW, CIRESI, SCHWEYER,
OTTEN, DEASY, FRANKEL, KOSIEROWSKI, WEBSTER, KIM, PASHINSKI,
BRIGGS, SNYDER, SIMS, KRUEGER, DONATUCCI, HOHENSTEIN,
ISAACSON, GOODMAN, SAINATO, COMITTA, MULLINS, SAPPEY,
FITZGERALD AND FIEDLER, AUGUST 7, 2020
REFERRED TO COMMITTEE ON INSURANCE, AUGUST 7, 2020
AN ACT
Regulating business interruption insurance during a state of
disaster emergency.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Short title.
This act shall be known and may be cited as the Business
Interruption Insurance Act.
Section 2. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Commissioner." The Insurance Commissioner of the
Commonwealth.
"COVID-19." The Coronavirus disease 2019, an infectious
1
2
3
4
5
6
7
8
9
10
11
12
13
14
disease caused by severe acute respiratory syndrome Coronavirus
2 that was first identified during December 2019 in Wuhan,
China.
"Eligible employee." A full-time employee who works a normal
work week of at least 25 hours.
"Insurance Company Law of 1921." The act of May 17, 1921
(P.L.682, No.284), known as The Insurance Company Law of 1921.
"Insurance policy." A policy, subscriber contract,
certificate or plan that:
(1) is offered, issued or renewed by an insurer;
(2) provides for property and casualty insurance; and
(3) does not exclusively provide for life insurance or
health insurance, or both.
"Insurer." As follows:
(1) An entity licensed or authorized to conduct the
business of insurance that is governed under the Insurance
Company Law of 1921.
(2) The term excludes a risk retention group under
Article XV of the Insurance Company Law of 1921.
"Net written premiums received." Gross direct premiums
written, less return premiums and dividends credited or paid to
policyholders, as reported on an insurer's annual financial
statement.
"Proclamation of disaster emergency." The proclamation of
disaster emergency issued by the Governor on March 6, 2020,
published at 50 Pa.B. 1644 (March 21, 2020), and any renewal of
the state of disaster emergency. The term includes any
proclamation of disaster emergency related to COVID-19.
Section 3. Business interruption during state of disaster
emergency.
20200HB2759PN4216 - 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
(a) Business interruption.--Notwithstanding any other law or
court rulings, rule or regulation, an insurance policy that
insures against loss or damage to property, which includes the
loss of use and occupancy and business interruption, in force in
this Commonwealth on the date of a proclamation of disaster
emergency shall be construed to include among the covered perils
under the insurance policy coverage for business interruption
all losses as a result of the proclamation, including due to a
global virus transmission or pandemic. The coverage shall be
afforded not subject to any exclusions, including ones for virus
or pandemic, as long as the loss is the result of the natural
disaster causing the proclamation to be issued.
(b) Indemnification.--The coverage required by this section
shall indemnify the insured of an insurance policy, subject to
the broadest or greatest limit and lowest deductible afforded to
business interruption coverage under the insurance policy, for
any loss of business or business interruption for the duration
of the declaration of disaster emergency described in subsection
(a).
(c) Applicability.--This section shall apply to an insurance
policy that is:
(1) issued to an insured of an insurance policy if the
insured has fewer than 100 eligible employees in this
Commonwealth; and
(2) in force on the date of the proclamation of disaster
emergency.
Section 4. Relief and reimbursement.
(a) Application.--An insurer that indemnifies an insured of
an insurance policy that has filed a claim under section 3 may
apply to the commissioner for relief and reimbursement by the
20200HB2759PN4216 - 3 -
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
commissioner from money collected and made available for this
purpose, as provided in section 5 or otherwise in accordance
with Federal or State law.
(b) Procedures.--The commissioner shall establish procedures
for the submission and qualification of claims by insurers that
are eligible for reimbursement under this section. The
commissioner shall incorporate into the procedures:
(1) standards that are necessary to protect against the
submission of fraudulent claims by insureds; and
(2) appropriate safeguards for insurers to use in the
review and payment of claims.
Section 5. Special purpose apportionments.
(a) Recovery.--The commissioner may impose upon, distribute
among and collect from insurers engaged in providing property
and casualty insurance in this Commonwealth, whether or not the
property and casualty insurance specifically includes coverage
for business interruptions, additional amounts necessary to
recover the amounts paid to insurers under section 4.
(b) Distribution.--The additional special purpose
apportionment authorized under subsection (a) shall be
distributed in the proportion that the net written premiums
received by each insurer subject to the apportionment under this
section for insurance written or renewed on risks in this
Commonwealth, during the immediately preceding calendar year,
bears to the sum total of all the net written premiums received
by all insurers writing that property and casualty insurance
within this Commonwealth during that same calendar year, as
reported.
Section 6. Effective date.
This act shall take effect immediately.
20200HB2759PN4216 - 4 -
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