THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY DeLUCA, DENLINGER, FRANKEL, JOSEPHS, SIPTROTH, WALKO AND GEIST, FEBRUARY 19, 2009

REFERRED TO COMMITTEE ON INSURANCE, FEBRUARY 19, 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 annual and

other reports and penalties.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 320 of the act of May 17, 1921 (P.L.682,

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

December 18, 1992 (P.L.1519, No.178) and February 17, 1994 (P.L.

92, No.9), is amended to read:

Section 320.  Annual and Other Reports; Penalties.--(a)  (1)

Every stock and mutual insurance company, association, and

exchange, doing business in this Commonwealth, shall annually,

on or before the first day of March, file in the office of the

Insurance Commissioner and with the National Association of

Insurance Commissioners a statement which shall exhibit its

financial condition on the thirty-first day of December of the

previous year, and its business of that year and shall, within

thirty days after requested by the Insurance Commissioner, file

with the Insurance Commissioner and with the National

Association of Insurance Commissioners such additional statement

or statements concerning its affairs and financial condition as

the Insurance Commissioner may, in his discretion, require. The

Insurance Commissioner shall require each insurance company

association and exchange to report its financial condition on

the statement convention blanks, in such form as adopted by the

National Association of Insurance Commissioners and shall, upon

written request, furnish such blanks for their convenience; and

may make such changes, from time to time, in the form of the

same as shall seem best adapted to elicit from them a true

exhibit of their financial condition.

(2)  Unless otherwise provided by law, regulation or order of

the Insurance Commissioner, each insurance company, association

and exchange shall adhere to the annual or quarterly statement

instructions and the accounting practices and procedures manuals

prescribed by the National Association of Insurance

Commissioners. The Insurance Commissioner may require each

insurance company, association and exchange to file in the

office of the Insurance Commissioner and with the National

Association of Insurance Commissioners financial statements on

diskettes or other electronic information storage devices

acceptable to the Insurance Commissioner.

(b)  Insurance companies of foreign governments, doing

business in this Commonwealth, shall be required to return only

the business done in the United States, and the assets held by

and for them within the United States for the protection of

policyholders therein.

(c)  In the absence of actual malice, members of the National

Association of Insurance Commissioners, their duly authorized

committees, subcommittees and task forces, their delegates and

employes and all others charged with the responsibility of

collecting, reviewing, analyzing and disseminating the

information developed from the filing of the annual statement

convention blanks shall be acting as agents of the Insurance

Commissioner under the authority of this act and shall not be

subject to civil liability for libel, slander or any other cause

of action by virtue of their collection, review and analysis or

dissemination of the data and information collected from the

filings required hereunder.

(d)  [All financial analysis ratios and examination synopses

concerning insurance companies that are submitted to the

Insurance Department by the National Association of Insurance

Commissioners' Insurance Regulatory Information System are

confidential and may not be disclosed by the Insurance

Department. Work products developed by Insurance Department

staff in conducting financial analyses of financial statements

filed pursuant to this section are confidential and shall not be

disclosed by the Insurance Department.] (1)  The following

documents, materials or information shall be confidential by law

and privileged, shall not be subject to subpoena, discovery or

the act of February 14, 2008 (P.L.6, No.3), known as the Right-

to-Know Law, or admissible in evidence in any private civil

action.

(i)  All documents, materials or other information provided

by an insurance company, association or exchange in support of

the statement of actuarial opinion filed under this section,

including actuarial reports, work papers or actuarial opinion

summaries and any other material provided by the insurance

company, association or exchange to the Insurance Department in

connection with actuarial reports, work papers or actuarial

opinion summaries.

(ii)  All financial analysis ratios, analyst team reports and

other financial analytical results concerning insurance

companies, associations and exchanges that are provided to the

Insurance Department by the National Association of Insurance

Commissioners.

(iii)  All additional work products, documents, materials or

information produced by, obtained by or provided to the

Insurance Department in the course of conducting financial

analyses of financial statements filed under this section.

(2)  Neither the Insurance Commissioner nor any individual or

person who receives documents, materials or information while

acting under the authority of the Insurance Commissioner shall

be permitted or required to testify in any private civil action

concerning any confidential documents, materials or information

covered by this section.

(3)  No waiver of any applicable privilege or claim of

confidentiality in the documents, materials or information shall

occur as a result of disclosure to the Insurance Commissioner or

as a result of the Insurance Commissioner sharing information in

conformance with sections 201-A and 202-A of the act of May 17,

1921 (P.L.789, No.285), known as "The Insurance Department Act

of 1921."

(4)  The Insurance Commissioner may use the documents,

materials or other information obtained or created under this

section in furtherance of any regulatory or legal action brought

as part of the Insurance Commissioner's official duties.

(e)  (1)  Any company, association, or exchange, which

neglects to make and file its annual statement, or other

statements that may be required, in the form or within the time

herein provided shall forfeit a sum not to exceed two hundred

dollars ($200) for each day during which such neglect continues,

and, upon notice by the commissioner, its authority to do new

business shall cease while such default continues.

(2)  For wilfully making a false annual or other statement

required by law, an insurance company, association or exchange,

and the persons making oath to or subscribing the same, shall

severally be punished by a fine of not less than one thousand

dollars ($1,000) nor more than ten thousand dollars ($10,000). A

person who wilfully makes oath to such false statement shall be

guilty of perjury.

(3)  The Insurance Commissioner may suspend, revoke or refuse

to renew the certificate of authority of any insurer failing to

file its annual statement when due.

Section 2.  This act shall take effect in 60 days.