Banking and Insurance Committee

Banking and Insurance Committee

Banking and Insurance Committee 03/18/08

The Senate Banking and Insurance Committee met on Tuesday, March 18, 2008 and took the following action:

Reported as Amended (unanimously):

SB 998 PN 1215 (McIlhinney): This bill requires health insurance policies issued by insurance companies to reimburse for mental health services provided by licensed clinical social workers.

SB 1254 PN 1702 (D. White): This legislation amends the Insurance Company Law of 1921 to clarify that service contracts are not an insurance product and are exempt from insurance regulation.

Reported as Committed (unanimously):

SR 248, PN 1828 (D. White): This resolution designates April 7-11, 2008 as "Community Banking Week" in Pennsylvania.

Banking and Insurance Committee 12/04/07

The Senate Banking and Insurance Committee met on Tuesday, December 04, 2007 and took the following action:

Reported as amended (unanimously)

SB 483, PN 525 (Browne): This bill amends the Usury Law to limit pre-payment penalties, increases the fine for violations of the law, clarifies and expands the investigation and enforcement duties of the Banking Department.

SB 484, PN 526 (Browne): This bill amends the confidentiality provisions of the Banking Code to authorize the Department of Banking to publicly release information about enforcement actions.

SB 487, PN 529 (Browne): This bill amends the Mortgage Bankers and Brokers and Consumer Equity Protection Act to create a new licensing category for individual mortgage originators (individual who deals directly with the consumer in order to obtain mortgage loan applications). It also sets up pre-licensing education and testing requirements, as well as continuing education requirements and license renewal provision.

SB 488, PN 530 (Browne): This bill creates a new licensing category for individual mortgage originators (individuals that solicit and negotiate directly with mortgage loan applicants) under the Second Mortgage Licensure Act. It sets up pre-licensing education and testing requirements, as well as continuing education requirements and license renewal provision.

Banking and Insurance Committee 10/24/07

The Senate Banking and Insurance Committee met on Wednesday, October 24, 2007 and took action as follows:

Reported as amended (unanimously):

SB 1137, PN 1488 (D. White): This bill extends the Medical Care Availability and Reduction of Error (Mcare) Act abatement expiration from December 31, 2007 to December 31, 2008 and establishes a State Treasury fund that is known as the Mcare Reserve Fund.

Banking and Insurance Committee 05/02/07

The Senate Banking and Insurance Committee met on Wednesday, May 2, 2007, and took action as follows:

Reported Out as Amended

HB 112 pn 1354 (Representative Eachus) The legislation amends the Insurance Company Law to further provide for hospital plan corporations and professional health services plan corporations and for consolidations under the Insurance Holding Company Act. It provides the Insurance Department with additional tools to review, approve, or disapprove consolidations of Blue Cross/Blue Shield companies. Vote: 9-5

A00605 (D.White) -Changes the name of the Insurance Restructuring Executive Board to the Insurance Restructuring Board; adds the Auditor General or his designee as a board member, increasing the board membership to nine; the Governor’s appointee must be a member of the general public who is a policyholder of a hospital plan corporation or professional health services plan corporation; requires a vote of seven members to approve a recommendation or the determination that the merger is in the public interest; clarifies that a majority of the board constitutes a quorum; requires the Insurance Department to make a determination that the merger is in the public interest; requires approval of that determination by the board; includes a retroactivity clause wherein the act shall not apply to any merger, consolidation or other acquisition of control made or consummated prior to January 1, 2007. Amendment Vote: 9-5

Banking and Insurance Committee 03/28/07

The Senate Banking and Insurance Committee met on Wednesday, March 28, 2007, and took action as follows:

Reported Out as Committed (Unanimously)

Senate Resolution 65 (D. White) The resolution designates April 16 through 20, 2007, as "Community Banking Week" in Pennsylvania.

Banking and Insurance Committee 03/13/07

The Senate Banking and Insurance Committee met on Tuesday, March 13, 2007, and took action as follows:

Reported Out as Committed (Unanimously)

SB 222 pn 259 (Stack) The legislation amends Section 501-A of the Insurance Department Act of 1921 to add a trend test to the definition of “company action level event” for property and casualty insurers. The test is a mathematical formula used to provide earlier determination of when a company is approaching a company action level event.

SB 548 pn 292 (Corman) The Long-Term Care Partnership Program is established under the measure. The Department of Public Welfare will administer the program.

The bill specifies that the purpose of creating a Long-Term Care Partnership Program is to reduce future Medicaid costs for long-term care by delaying or eliminating dependence on Medicaid by providing incentives for people to purchase long-term care insurance.

SB 550 pn 293 (D. White) The bill amends the Insurance Company Law of 1921 to further provide for the regulation of Blue Cross and Blue Shield consolidations under the Insurance Holding Company Act. The consolidation of any Blue Cross/Blue Shield parent company would fall under the oversight and review requirements of the Insurance Department.

Banking and Insurance Committee 09/20/06

The Senate Banking and Insurance Committee met on Wednesday, September 20, 2006, and took action as follows:

Reported Out as Committed

Senate Bill 1335 pn 2050 The legislation amends the Insurance Company Law to reauthorize the Alternative Mechanism provisions relating to health care insurance by removing the sunset date for the program and also adds other clarifying language regarding premiums. Unanimous Vote

Reported Out as Amended

Senate Bill 972 pn 1309 The bill amends Sections 1102 and 1115 of the Medical Care Availability and Reduction of Error Act (Mcare) to extend the abatement program that provides assistance to health care providers to include the calendar year 2007. A09305 (Armstrong) extends the program for one year. Unanimous Vote

Banking and Insurance Committee 06/27/06

The Senate Banking and Insurance Committee met on Tuesday, June 27, 2006, and took action as follows:

Reported Out as Committed

House Bill 2542 pn 4003 (Baker) The bill permits Pennsylvania corporations to file a continuation statement allowing financing statements filed with the Department of State prior to July 1, 2001 (if the filing of a continuation statement occurs before the original financing statement ceases to be effective after December 30, 2005 or six months before the financing statement expires) to remain as legally effective documents. Unanimous Committee Vote.

Banking and Insurance Committee 06/20/06

The Senate Banking and Insurance Committee met on Monday, June 19, 2006, and took action as follows:

Reported as Amended (Unanimous)

House Bill 1068 pn 3342 (Tangretti) The bill amends Title 51 (Military Affairs) to further provide for life insurance benefits to members of the National Guard and members of the Armed Forces of the United States or its Reserve Component. Unanimous Vote. A08124 Clarifies language in the bill to make sure it conforms to language used in federal law and also limits premium payment to members of the PA National Guard. Unanimous Vote

House Bill 1632 pn 3230 (Kenney) The bill amends the Unfair Insurance Practices Act to prohibit an insurer from denying a property and casualty insurance claim for victims of abuse. Unanimous Vote. A8223 Clarifying language. Unanimous Vote

Senate Bill 180 pn 251 (Armstrong) The bill creates a freestanding act known as the Credit Reporting Agency Law. The bill allows for consumers to place and remove security freezes on the consumer’s credit report. Unanimous Vote. A8240 Rewrites the language with similar language dealing with placement of a security freeze on an individual’s credit report. Unanimous Vote.

Banking and Insurance Committee 10/24/05

The Senate Banking and Insurance Committee met on Monday, October 24, 2005, and took action as follows:

Reported as Amended (Unanimous)

Senate Bill 869 pn 1111 (Senator D. White) The bill amends Title 51 (Military Affairs) by providing for the extension of health insurance benefits for certain military personnel who were full-time students at the time of employment. A0326 (Stack) Technical –Unanimous Vote, A0327 (White) Omnibus Amendment for clarification purposes – Unanimous Vote

Banking and Insurance Committee 10/17/05

The Senate Banking and Insurance Committee met on Monday, October 17, 2005, and took action as follows:

Reported Out as Amended (Unanimously)

Senate Bill 854 pn 1101 The legislation brings the state tax laws into compliance with federal tax laws regarding the treatment of Health Savings Accounts and Medical Savings Accounts. Specifically, Contributions to Health Savings Accounts (HSAs) and distributions from HSAs for qualified medical expenses will be tax-free. A03102 (Technical) Unanimous Vote

Banking and Insurance Committee 9/20/05

The Senate Banking and Insurance Committee met on September 20, 2005, and took action as follows:

Reported Out as Committed (Unanimously)

House Bill 1261, pn 1487 (Rep. O’Neill) The bill amends Title 51 (Military Affairs) providing for deferred motor vehicle coverage. Unanimous Vote.

Banking and Insurance Committee 7/2/05

The Senate Banking and Insurance Committee met on Saturday, July 2, 2005, and took action as follows:

Reported Out as Amended (Unanimously)

House Bill 107 pn 1922 (Payne) This bill authorizes the establishment and maintenance of health savings accounts and provides for special tax provisions for such accounts.

A02551 (Armstrong) Strips the bill of previous provisions and inserts provisions of a previously passed Senate Bill (SB 300). Unanimous Vote.

Banking and Insurance Committee 6/2205

The Senate Banking and Insurance Committee met on Wednesday, June 22, 2005, and took action as follows:

Reported Out as Committed:

Senate Bill 260 pn 264 (Armstrong) The bill establishes the Interstate Insurance Product Regulation Compact Establishment Act which provides uniform standards for the individual and group annuity, life insurance, disability income insurance and long term care insurance. Vote: Unanimous

Banking and Insurance Committee 11/8/04

The Senate Banking and Insurance Committee met on Monday, November 8, 2004 and reported the following bill:

As Amended (unanimously)

House Bill 552 (PN 4587) This bill was proposed to amend the Pennsylvania Securities Act to provide for the recovery of short swing profits. The bill was amended by the Banking and Insurance Committee to remove all house language. The bill amends the Pennsylvania Securities Act to further provide for exempt transactions and adds a section to provide for a variety of fees.

Banking and Insurance Committee 10/4/04

The Senate Banking and Insurance Committee met on Monday, October 4, 2004 and reported out the following bills:

As Committed (unanimously):

House Bill 547 (PN 805) (Gannon)   This bill amends the Pennsylvania Securities Act of 1972 to increase certain administrative assesments for violations of the Act.

House Bill 553 (PN 655) (Turzai)   This bill amends the Pennsylvania Securities Act of 1972 by granting the Pennsylvania Securities Commission the ability to escrow extraordinary paypments for a maximum of 90 days pending the determination of possible violations of securities laws.

House Bill 561 (PN 663) (Nickol)   This bill amends the Pennsylvania Securities Act of 1972 by adding to existing law disclosure requirements relating to advisors.

House Bill 595 (PN 697) (Stetler)   This bill amends the Pennsylvania Securities Act of 1972 by further providing for the Securities Commission to seek reimbursement for work services provided to a trustee, receiver, or conservator provided the reimbursement does not exceed 10% of the funds held by the trustee.

House Bill 599 (PN 1483) (Manderino)   This bill amends the Pennsylvania Securities Act of 1972 by further providing for time limitations consistent with the federal Act.

House Bill 600 (PN 702) (Pallone)   This bill amends the Pennsylvania Securities Act of 1972 to permit the Securities Commission to deny a registration statement if the issuer loaned money to company insiders that has not been repaid.

House Bill 604 (PN 1484) (Browne) This bill amends the Pennsylvania Securities Act of 1972 by further providing for registration sanctions and for criminal penalties.

Banking and Insurance Committee 6/22/04

The Senate Banking and Insurance Committee met on Tuesday, June 22, 2004 and unanimously reported out

Senate Bill 1111 which would exempt certain reimbursements, contributions, and interest to a health savings account from taxation and imposes certain restrictions on high deductible plans.

Banking and Insurance Committee 6/15/04

The Senate Banking and Insurance Committee met on Tuesday, June 15, 2004 and took the following actions:

Reported from Committee as amended

Senate Bill 1096 which amends the Insurance Company Law of 1921 (Act 284 of 1921) by providing for nonforfeiture law and for individual deferred annuities.

Banking and Insurance Committee11/17/03

The Senate Banking and Insurance Committee met on Monday, November 17, 2003 and took the following action

Unanimously reported out

Nominations of Richard Gerber and Robert M. Lam to the Pennsylvania Securities Commission with favorable recommendations.

Banking and Insurance Committee 9/22/03

The Senate Banking and Insurance Committee met on September 22, 2003 and reported out the following bill as amended:

Senate Bill 815 (D. White) (11-2 vote) This bill amends the Insurance Department Act as it relates to large deductible insurance policies and exempts certain collateral from qualifying as an asset of the estate of an insolvent insurer.

A3509 (D. White) (12-1 vote) This amendment increases the amount of time a policyholder has to pay amounts due to reimburse the guaranty association from 30 days to 60 days.

There was also a motion by Senator Wagner to table the bill. The motion failed by an 8-5 vote.

Banking and Insurance Committee 6/17/03

The Senate Banking and Insurance Committee met on Wednesday, June 11, 2003 and reported out the following nomination with a favorable recommendation:

M. Diane Koken as state Insurance Commissioner. The nomination passed by a 12-1 vote (1 abstention).

Banking and Insurance Committee 11/13/02

The Senate Banking and Insurance Committee met on Wednesday, November 13, 2002 and reported the following bill out of committee:

House Bill 2599 (ALLEN) This bill amends the Motor Vehicle Sales Finance Act to further providing for Banking Department's authority and to enforce provisions, provides for additional consumer protection provisions. This bill was amended and unanimously reported out of committee.

Banking and Insurance Committee 9/25/02

The Senate Banking and Insurance Committee met on Wednesday, September 25, 2002 and reported the following bill out of committee:

Senate Bill 962 (HOLL) This bill amends The Insurance Department Act of 1921 to 'modernize' the insurance industry. This legislation would bring the State of Pennsylvania in compliance with legislation passed in 47 other states to make the insurance industry and the licensing of insurance producers uniform throughout the nation. This bill was amended and unanimously reported out of committee.

Banking and Insurance Committee 6/12/02

The Senate Banking and Insurance Committee met on Wednesday, June 12, 2002 and reported out the following bills:

Senate Bill 1424 (HOLL) This bill amends The Insurance Department Act of 1921 to repeal the requirements that an informational statement be filed by foreign insurance companies and lowers (for 30 months) the minimum guaranteed interest rate from 3% to 1.5% on individual fixed annuity contracts. The Mastectomy & Breast Cancer Reconstruction language was removed from this bill and can now be found in Senate Bill 1417 which is presently being considered in the House. Finally, it amends the Surplus Lines Law to make licensing more uniform and clarifying existing practices of the Department of Insurance. This bill was amended and unanimously reported out of committee.

Banking and Insurance Committee 6/4/02

The Senate Banking and Insurance Committee met on Tuesday, June 4, 2002 and reported out the following bills:

Senate Bill 1416 (PN 1934) (MOWERY) This bill amends The Insurance Department Act of 1921 to waive licensing requirements for car rental companies who offer coverages in connection with the rental of motor vehicles. This bill was amended and unanimously reported out of committee (14-0).

House Bill 412 (PN 3294) (KAISER) This bill amends the Public School Code to further provide for notice of Pennsylvania=s Children=s Health Insurance Program (CHIP). This bill was unanimously reported out of committee (14-0).

Banking and Insurance Committee 4/24/02

The Banking and Insurance Committee met on April 24, 2002 and reported the following bills out of Committee:

Senate Bill 1222 (Greenleaf) This bill amends Title 17 (Credit Unions) of Pennsylvania Consolidated Statutes. It expands the authority of state-chartered credit unions, in keeping with federal legislation dealing with federally chartered credit unions. It also provides for the involuntary dissolution of a credit union. This bill was amended and unanimously reported out of committee (14-0).

Senate Bill 1417 (Holl) This bill would bring Pennsylvania insurance law in compliance with the requirements set forth in the Federal Women’s Health and Cancer Rights Act of 1998 (WHCRA) This bill was unanimously reported out of committee (14-0).