PRINTER'S NO. 3629
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
2922
Session of
2022
INTRODUCED BY GUENST, SANCHEZ, MADDEN, T. DAVIS, DELLOSO,
SAPPEY, D. WILLIAMS, HOWARD AND CIRESI, NOVEMBER 15, 2022
REFERRED TO COMMITTEE ON INSURANCE, NOVEMBER 15, 2022
AN ACT
Providing for requirements for insurers relating to property
insurance claims in response to damages that arise from a
natural disaster.
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 Fair
Assistance Insurance Responsibility (FAIR) 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:
"Federal disaster assistance programs." An assistance
program made available under section 408 of The Robert T.
Stafford Disaster Relief and Emergency Assistance Act (Public
Law 93-288, 88 Stat. 143).
"Insurer." An entity licensed or authorized to conduct the
business of insurance that is governed under the act of May 17,
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1921 (P.L.682, No.284), known as The Insurance Company Law of
1921.
"Natural disaster." Any of the following:
(1) A natural catastrophe, regardless of cause, fire,
flood or explosion, in any part of the United States, which,
in the determination of the President of the United States,
causes damage of sufficient severity and magnitude to warrant
assistance under The Robert T. Stafford Disaster Relief and
Emergency Assistance Act to supplement the efforts and
available resources of State governments, local governments
and disaster relief organizations in alleviating the damage,
loss, hardship or suffering.
(2) A hurricane, tornado, storm, flood, high water,
wind-driven water, tidal wave, earthquake, landslide,
mudslide, snowstorm, drought, fire, explosion or other
catastrophe which results in substantial damage to property,
hardship, suffering or possible loss of life and results in
the Governor requesting that the President of the United
States declare either a major disaster declaration or
emergency declaration as warranted under The Robert T.
Stafford Disaster Relief and Emergency Assistance Act.
Section 3. Disaster assistance.
(a) Notification.--When a policyholder files a property
insurance claim in response to damages that arise from a natural
disaster, within three days of receipt of the claim, the insurer
must notify the policyholder in writing of all Federal disaster
assistance programs available. The notice must also include a
description of the complaint process for unsatisfactory service
with an insurer provided by the Insurance Department.
(b) Investigation.--When a policyholder files a property
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insurance claim in response to damages that arise from a natural
disaster, the insurer must complete the investigation of the
claim within 90 days after notification of the claim. The
insurer may not seek an extension of the investigation as
provided under 31 Pa. Code ยง 146.7 (relating to standards for
prompt, fair and equitable settlements applicable to insurers).
The insurer shall identify the claim as a catastrophic claim.
The policyholder, upon receipt of the insurer's settlement of
claim, shall have a 90-day window to negotiate and offer a
counterclaim to the insurer based upon the proof of loss and
investigation made by the insurer and additional information
provided by the policyholder. The insurer shall either accept or
reject the policyholder's counterclaim.
Section 4. Applicability.
This act shall apply to all claims filed on or after the
effective date of this section.
Section 5. Effective date.
This act shall take effect in 60 days.
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