Senate Passes Insurance Regulation Legislation

HARRISBURG, MARCH 16, 2010 — The Senate today approved insurance regulation legislation that includes state Sen. Mike Stack’s legislation to update the law regulating surplus lines insurers.

Senate Bill 237 would protect consumers by strictly regulating the purchase or exchange of an annuity. It would ensure that those who are selling annuities in Pennsylvania are making sure that the product is suitable for the individual based on their financial status, tax status and investment objectives.

“In this economy, individuals are carefully considering when to make significant purchases and take out loans,” said Stack, who is the Democratic chairman of the Senate Banking and Insurance Committee. “This legislation will ensure that consumers get a good product. This is particularly beneficial to senior citizens on fixed incomes.”

Senate Bill 237 also uses language from Stack’s legislation (Senate Bill 493) that includes new licensing fees, bi-annual licenses, and higher fines for surplus lines insurers, which offer property and casualty insurance coverage to non-standard risks like hole-in-one insurance and insurance for traveling amusement rides.

“This measure tightens regulations involving higher risk lines of insurance,” Stack said. “It will ensure that consumers are more adequately protected.”

The bill changes the expiration date for the Children’s Health Insurance Program (CHIP) from Dec. 31, 2010 to Dec., 31, 2013.

“Children will continue to receive quality, affordable health care, thanks to this extension” Stack said. “Parents can provide their children with important care, from a check-up to an emergency room visit through this important and successful program.”

The measure also creates the Health Insurance Coverage and Nondiscrimination Act, which would maintain the commonwealth’s right to regulate health insurance in Pennsylvania by complying with the requirements of the federal Public Health Service Act.

The bill now goes to the House and governor for signatures.

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