THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY SCHRODER, BEAR, BOYD, CREIGHTON, DENLINGER, GEORGE, GINGRICH, HENNESSEY, KAUFFMAN, MICOZZIE, MOUL, MURT, PICKETT, QUINN, RAPP, ROAE, SIPTROTH AND WATSON, APRIL 7, 2009

REFERRED TO COMMITTEE ON INSURANCE, APRIL 7, 2009  

AN ACT

Amending the act of May 17, 1921 (P.L.682, No.284), entitled "An

act relating to insurance; amending, revising, and

consolidating the law providing for the incorporation of

insurance companies, and the regulation, supervision, and

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; providing penalties; and

repealing existing laws," further providing for legislative

findings and intent, for definitions, for children's health

care and for outreach.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 2302 of the act of May 17, 1921 (P.L.682,

No.284), known as The Insurance Company Law of 1921, is amended

by adding a paragraph to read:

Section 2302.  Legislative Findings and Intent.--The General

Assembly finds and declares as follows:

* * *

(10)  The Children's Health Insurance Program is defined as

an insurance product and, as such, must have marketing performed

consistently with Article VI-A, Subarticle A, Division 1 of the

act of May 17, 1921 (P.L.789, No.285), known as "The Insurance

Department Act of 1921," the act of July 22, 1974 (P.L.589,

No.205), known as the "Unfair Insurance Practices Act," and

other laws governing the sale, solicitation and negotiation of

contracts of insurance.

Section 2.  Section 2303 of the act is amended by adding a

definition to read:

Section 2303.  Definitions.--As used in this article, the

following words and phrases shall have the meanings given to

them in this section:

* * *

"Producer."  A person that sells, solicits or negotiates

contracts of insurance.

* * *

Section 3.  Section 2311(i) of the act, amended November 2,

2006 (P.L.1314, No.136), is amended to read:

Section 2311.  Children's Health Care.--* * *

(i)  The Children's Health Advisory Council is established

within the department as an advisory council. The following

shall apply:

(1)  The council shall consist of [fourteen] fifteen voting

members. Members provided for in subparagraphs (iv), (v), (vi),

(vii), (viii), (x) [and], (xi) and (xii) shall be appointed by

the Insurance Commissioner. The council shall be geographically

balanced on a Statewide basis and shall include:

(i)  The Secretary of Health ex officio or a designee.

(ii)  The Insurance Commissioner ex officio or a designee.

(iii)  The Secretary of Public Welfare ex officio or a

designee.

(iv)  A representative with experience in children's health

from a school of public health located in this Commonwealth.

(v)  A physician with experience in children's health

appointed from a list of three qualified persons recommended by

the Pennsylvania Medical Society.

(vi)  A representative of a children's hospital or a hospital

with a pediatric outpatient clinic appointed from a list of

three persons submitted by the Hospital Association of

Pennsylvania.

(vii)  A parent of a child who receives primary health care

coverage from the fund.

(viii)  A mid-level professional appointed from lists of

names recommended by Statewide associations representing mid-

level health professionals.

(ix)  A senator appointed by the President pro tempore of the

Senate, a senator appointed by the minority leader of the

Senate, a representative appointed by the Speaker of the House

of Representatives and a representative appointed by the

minority leader of the House of Representatives.

(x)  A representative from a private nonprofit foundation.

(xi)  A representative of business who is not a contractor or

provider of primary health care insurance under this

subdivision.

(xii)  A licensed insurance producer representing a

professional association of insurance producers whose members

sell, solicit or negotiate contracts of health insurance.

(2)  If any specified organization should cease to exist or

fail to make a recommendation within ninety (90) days of a

request to do so, the council shall specify a new equivalent

organization to fulfill the responsibilities of this section.

(3)  The Insurance Commissioner shall chair the council. The

members of the council shall annually elect, by a majority vote

of the members, a vice chairperson from among the members of the

council.

(4)  The presence of eight members shall constitute a quorum

for the transacting of any business. Any act by a majority of

the members present at any meeting at which there is a quorum

shall be deemed to be that of the council.

(5)  All meetings of the council shall be conducted pursuant

to 65 Pa.C.S. Ch. 7 (relating to open meetings) unless otherwise

provided in this section. The council shall meet at least

annually and may provide for special meetings as it deems

necessary. Meeting dates shall be set by a majority vote of

members of the council or by call of the chairperson upon seven

(7) days' notice to all members. The council shall publish

notice of its meetings in the Pennsylvania Bulletin. Notice

shall specify the date, time and place of the meeting and shall

state that the council's meetings are open to the general

public. All action taken by the council shall be taken in open

public session and shall not be taken except upon a majority

vote of the members present at a meeting at which a quorum is

present.

(6)  The members of the council shall not receive a salary or

per diem allowance for serving as members of the council but

shall be reimbursed for actual and necessary expenses incurred

in the performance of their duties.

(7)  Terms of council members shall be as follows:

(i)  The appointed members shall serve for a term of three

(3) years and shall continue to serve thereafter until their

successors are appointed.

(ii)  An appointed member shall not be eligible to serve more

than two full consecutive terms of three (3) years. Vacancies

shall be filled in the same manner in which they were designated

within sixty (60) days of the vacancy.

(iii)  An appointed member may be removed by the appointing

authority for just cause and by a vote of at least seven members

of the council.

(8)  The council shall review outreach activities and may

make recommendations to the department.

(9)  The council shall review and evaluate the accessibility

and availability of services delivered to children enrolled in

the program.

* * *

Section 4.  Section 2312 of the act is amended by adding a

subsection to read:

Section 2312.  Outreach.--* * *

(c)  Moneys included in outreach activities shall be

available to pay a one-time commission as determined by the

department to insurance producers who forward applications for

the Children's Health Insurance Program, if a policy is issued

pursuant to an application submitted by an insurance producer to

a contractor. The amount of the commission shall be determined

by the department on an annual basis.

Section 5.  This act shall take effect in 60 days.