SB 878 — An Act amending the act of May 17, 1921 (P.L.682, No.284), known as The Insurance Company Law of 1921, in general provisions relating to insurance companies, associations and exchanges, further providing for rebates and inducements prohibited.

HOUSE AMENDED PRIOR PRINTER'S NO.

1136 PRINTER'STHE NO.GENERAL ASSEMBLY OF PENNSYLVANIA SENATE BILL Session of No.

1459878 THE2017 GENERALINTRODUCED ASSEMBLYBY OFWHITE PENNSYLVANIAAND SENATEWARD, BILLSEPTEMBER Session6, 2017 REFERRED TO BANKING AND INSURANCE, SEPTEMBER 6, 2017 AN ACT Amending the act of No.May 17, 1921 (P.L.682, No.284), entitled "An act relating to insurance;

878amending, 2017revising, INTRODUCEDand BYconsolidating WHITEthe ANDlaw WARD,providing SEPTEMBERfor 6,the 2017incorporation ASof REPORTEDinsurance FROMcompanies, COMMITTEEand ONthe INSURANCE,regulation, HOUSEsupervision, OFand REPRESENTATIVES,protection ASof AMENDED,home FEBRUARYand 5,foreign 2018insurance ANcompanies, ACTLloyds Amendingfire insurance rating bureaus, and the actregulation ands, and supervision of Mayinsurance 17,carried 1921by (P.L.682,such No.284),companies, entitledassociations, "Anand actexchanges, relatingincluding toinsurance insurance;carried by the State Workmen's Insurance Fund;

amending, revising, and consolidating the law providing for the incorporation of 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;

Penalties.--(a) [No]No (A) EXCEPT AS OTHERWISE <-- PROVIDED IN THIS SECTION, NO insurance company, association, or exchange, by itself or by its officers or members, attorney-in-attorney- factin-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 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;

(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.

(B)(c) ANNothing INSURANCEin COMPANY,this ASSOCIATIONsection ORshall EXCHANGE,[prevent] BYbe <--construed ITSELF,as ITSpreventing OFFICERS,a MEMBERScompany ORtransacting ATTORNEY-IN-FACTindustrial ORlife ANYinsurance OTHERon PARTYa MAYweekly OFFERpayment ORplan GIVEfrom TOreturning ANto INSUREDpolicyholders, ORwho Ahave PROSPECTIVEmade INSURED,a 20170SB0878PN1459premium -payment 2for -a ONperiod ANof ANNUALat AGGREGATEleast BASIS,one ANYyear, FAVOR,the ADVANTAGE,percentage OBJECT,of VALUABLEpremium CONSIDERATIONwhich ORthe ANYTHINGcompany OTHERwould THANotherwise MONEYhave THAT20170SB0878PN1136 HAS- A2 COST- ORpaid REDEEMABLEfor VALUEthe OFweekly LESScollection THANof ORsuch EQUALpremium. TO ONE HUNDRED DOLLARS ($100).

THE(d) INSURANCENothing COMMISSIONERin MAYthis INCREASEsection THISshall AMOUNTbe UPONconstrued PUBLICATIONas OFprohibiting NOTICEan INinsurance THEcompany, PENNSYLVANIAassociation BULLETIN.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.

(B.1) NOTWITHSTANDING ANY OTHER PROVISION OF THIS SECTION TO THE CONTRARY, AN INSURANCE COMPANY, ASSOCIATION OR EXCHANGE, BY ITSELF, ITS OFFICERS, MEMBERS OR ATTORNEY-IN-FACT OR ANY OTHER PARTY MAY NOT MAKE RECEIPT OF ANYTHING OF VALUE CONTINGENT ON THE PURCHASE OF INSURANCE.

(c) Nothing in this section shall [prevent] be construed as:

<-- (1) 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 paid for the weekly collection of such premium[.];

<-- (2) PERMITTING ANY UNFAIR METHOD OF COMPETITION OR AN UNFAIR OR DECEPTIVE ACT OR PRACTICE UNDER THE ACT OF JULY 22, 1974 (P.L.589, NO.205), KNOWN AS THE "UNFAIR INSURANCE PRACTICES ACT";

OR (d) Nothing in this section shall be construed as (3) <-- 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 A <-- 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.

LOSS CONTROL OF THE RISKS COVERED UNDER <-- 20170SB0878PN1459 - 3 - THE POLICY.

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