May 9, 2018 A publication of the Pennsylvania Association of Mutual Insurance Companies
Registration Open for the 111th Mid-Atlantic Mutual Advantage Convention Pennsylvania Legislative Update SB 936 Fight Ends in Gubernatorial Veto
Pamic@pamic.org
1017 Mumma Road, Suite 202 Wormleysburg, PA 17043
(717) 303-0197
Contents
Pennsylvania Legislative Update This update provides quick insights into the PA legislature. Find out more about bills moving through committee, Workers Compensation, and current regulations issued by the Department.
Registration Open for the 111th Mid-Atlantic Mutual Advantage Convention For the first time ever together, join all four associations (MAMIC, PAMIC, VAMIC and WVAIC) in Charm City for education, networking and fun at our 111th Convention!
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SB 936 Fight Ends in Gubernatorial Veto page 8
NEWS Registration Open for the 111th Mid-Atlantic Mutual Advantage Convention................................................................................................................................. 4
REGULATION Pennsylvania Legislative Update............................................................................................................................................................................................................... 6 SB 936 Fight Ends in Gubernatorial Veto................................................................................................................................................................................................. 8 Regulator Interviewed During PAMIC Webinar...................................................................................................................................................................................... 9
RESOURCES General Regulatory Information............................................................................................................................................................................................................. 10 Legislation Tracker.................................................................................................................................................................................................................................... 11
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EVENTS
Executive & Board Roundtable When: June 13–14, 2018 Where: Bedford, PA Time: 8:00 a.m. – 2:00 p.m. Info
The Executive & Board Roundtable features education to improve company operations and provides a forum for members to discuss current issues. For the first time, the 2018 Roundtable will be hosted at the Omni Bedford Springs resort. Name
Date
Time
Location
Human Resources Seminar
May 9, 2018
8:00 a.m. – 3:00 p.m.
Sheraton Harrisburg Hershey
Branding the Modern Mutual
May 23, 2018
10 a.m. - 11:00 a.m.
PAMIC Online
PAC Summer Golf Outing
June 13, 2018
1:00 p.m.
Omni Bedford Springs
Executive & Board Roundtable
June 13-14, 2018
8:00 a.m.
Omni Bedford Springs
111th Annual Convention
August 5-7, 2018
Multiple
Baltimore Waterfront Marriott
Financial Management Seminar
September 2018
TBD
Hershey Country Club
Information Technology Seminar
October 2018
TBD
Sheraton Harrisburg Hershey
For more information on PAMIC events please visit our website. Special Thanks to our 2018 Premium Gold Sponsors
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NEWS
Registration Open for the 111th Mid-Atlantic Mutual Advantage Convention For the first time ever together, join all four
associations (MAMIC, PAMIC, VAMIC and WVAIC) in Charm City for education, networking and fun at our 111th Convention! The Convention will be held August 5-7, 2018 at the beautiful Baltimore Marriott Waterfront in Inner Harbor. Register today! The Convention Committee has put together a fantastic line-up of speakers. The keynote speaker is Dr. Ray Shelton, Director of Professional Development at the National Center for Crisis Management. Dr. Ray will be helping us to recognize and deal with stress and trauma in the insurance workplace. Dr. Ray is generously sponsored by Roanoke Valley Claims Service and Temporary Accommodations. Beyond education, the 111th Mid-Atlantic Mutual Advantage Convention offers opportunities to network with colleagues and friends and family in a variety of ways. Join us on Sunday, August 5th from 5-7:00 p.m. for the Welcome Reception at Camden Yards, home of the Baltimore Orioles! You will have the opportunity to tour the stadium, get your picture
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taken in our photo booth, enjoy some delicious hors d’oeuvres and adult beverages (nonalcoholic too) and again this year we will be taking a group photo at 6:00 p.m. On Monday, August 6th, during the Chairman’s Dinner, the Capitol Steps political parody troupe will be performing for us. Generously sponsored by Donegal Insurance Group and Gen Re, this will be a fun night you won’t want to miss! Each year PAMIC selects charities to support throughout the convention. This year we will be raising crucial funds for the St. Ambrose Housing Aid Center. This center assists residents of Baltimore with their housing challenges with their innovative and evolving programs that help 3,000 low and moderate income families each year. We hope you will consider donating to this worthwhile charity. They will have a booth set up near the Convention registration desk.
The Convention Welcome Reception will be hosted at Camden Yards.
Chairman’s Dinner offers a performance by the Capitol Steps.
Need an overnight room? Call 1-800-228-9290 and mention that you are with the Mid-Atlantic Mutual Advantage Convention to receive the reduced rate of $194 plus applicable taxes. We hope that you will join us for the 111th Mid-Atlantic Mutual Advantage Convention, on the water, in Inner Harbor, Maryland! Visit our event page for more information.
Support Baltimore by donating to St Ambrose Housing Aid Center.
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REGULATION
Pennsylvania Legislative Update By Vince Phillips, Phillips Associates
Governor Signs Bills on Rebates and Inducements Signed into law May 4, 2018, were two bills sponsored by Senate Banking & Insurance Committee Chair Don White (R-Indiana) which change long-standing PA law to now permit rebates and inducements by insurance producers and insurance companies. Senate 877 is Act 22 of 2018. Senate Bill 878 is now Act 23 of 2018. $100 is the upward limit for rebates and inducements and under no conditions will rebates/inducements be allowed if they are contingent on the sale of an insurance product. Following are the texts of the two statutes. Both become effective in 60 days.
community (insurance companies, agencies, etc.) to better understand regulations and provide them with an informal way to resolve noncompliance issues before penalties are imposed. The vote was 116-72 with four Republicans joining Democrats to say ‘no’ and seven Democrats who crossed over to vote with the Republican majority.
House Bill 1792 (Benninghoff-R-Centre) gives the General Assembly the power to void existing regulation providing both House and Senate pass it and the Governor signs it. Once a regulation is voided, an agency may not reissue the same regulation unless specifically authorized by a new law. A legislative Major Regulatory Reform Legislation Passed committee may report a concurrent resolution to initiate repeal of an existing regulation by House after a public hearing is held. The 105-82 vote The House is taking action to address had eight Republicans voting ‘no’ with the burdensome regulations and processes and Democratic minority. recently voted for several bills whose goal is to provide greater legislative oversight of the House Bill 1237 (Keefer-R-York) mandates regulatory review process. that a proposed regulation with an impact House Bill 1960 (Ellis-R-Butler) requires that of one million dollars or more per year on each agency appoint a regulatory compliance officer. This position will enable the regulated business have a concurrence vote by the
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General Assembly, thus giving legislators de facto veto power over economically significant regulations. The 101-89 vote included 13 Republicans crossing over to vote ‘no’ with the Democratic minority. House Bill 209 (Phillips-Hill-R-York) establishes an independent Office of the Repealer. That position’s duty is to review existing regulations and recommend repeal if they are obsolete or “if it finds the existing regulation(s) to be contrary to the public interest.” The 10883 vote had six Democrats voting with the Republican majority and 12 Republicans voting ‘no’.
Communications Device’ is defined as: “Interactive wireless communications device.” A wireless telephone, personal digital assistant, smart phone, portable or mobile computer or similar device which can be used for voice communication, texting, e-mailing, browsing the internet or instant messaging. The legislative update is provided by Vince Phillips of Phillips Associates. For more detailed info on issues facing the PA legislature please contact Vince at xenobun@aol.com.
House Bill 1959 (Rothman-R-Cumberland) requires all agencies that issue permits (primarily Department of Environmental Protection) to increase transparency through the permitting process. The 112-75 vote had seven Republicans crossing over to vote ‘no’ and six Democrats in the ‘yes’ column. HB 1684: House Committee Moves Distracted Driving Bill On April 30, the House Transportation Committee voted unanimously to move House Bill 1684 sponsored by Rep. Rosemary Brown (R-Monroe). This bill prohibits drivers less than 18 years of age from using interactive wireless communications devices – even those that are hands-free – while operating a vehicle and makes a violation a summary offense (fine and two points). The term ‘Interactive Wireless
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SB 936 Fight Ends in Gubernatorial Veto After months of intense debate and a significant victory in the state Senate and state House, Governor Wolf vetoed SB 936, legislation that would have improved health outcomes for injured workers, curtail the dangerous practice of profiting off medically unproven compound creams, and help prevent opioid addiction.
The legislation’s trip to the governor’s desk had many twists and turns including an initial tie vote in the House on February 6, 2018. After that vote, the PCCJR activated a campaign aimed at switching “no” votes to “yes” and making sure those who voted “yes” heard the support and appreciation of their constituents. The trial bar spent several hundred thousand dollars on targeted mailings, flyers, and paid advertising into legislative districts attempting to intimidate legislators who voted “yes” into switching their vote. Even though we were vastly outspent, we achieved a stunning victory on April 16 when the common-sense legislation was reconsidered by the House and passed by a vote of 101 to 92. Before the veto, the Governor said he would take “executive action” to address some of the bills concerns. Those actions and details remain to be seen. Editorial note: Sen Don White (R), Indiana, PA issued a Senate Co-sponsorship memo on May 2, 2018 to place the Governor’s Executive Action into law. Written by Curt Schroder, Executive Director of PCCJR, a coalition dedicated to bringing fairness to Pennsylvania’s courts by elevating awareness of civil justice issues and advocating for legal reform. More information at www.paforciviljusticereform.com.
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Regulator Interviewed During PAMIC Webinar PAMIC recently hosted the “Marketing
Regulation: Insurance Department Perspective” webinar that welcomed Christopher Monahan, Deputy Insurance Commissioner for the Office of Market Regulation for an interview. This interview style webinar focused on opening the lines of communication between PAMIC and the Department. Joel Hopkins acted as our interviewer for this session, and his questions mirror situations encountered working with insurance companies as they navigate Market Conduct and Financial Examinations. Market Regulation impacts the way that insurance companies do business in Pennsylvania. In recent years, rising costs associated with Market Conduct and Financial Exams have caused strain between the Insurance Department and companies operating in Pennsylvania.
About the Presenters: Christopher Monahan, Deputy Insurance Commissioner for the Insurance Department’s Office of Market Regulation where he oversees the Bureaus of Consumer Services, Market Actions and Enforcement/Producer Licensing. He and his staff ensure consumers receive the protections they deserve under the laws and regulations of the Commonwealth, and the insurance industry is provided a level playing field to compete. Joel Hopkins’ practice includes representing the insurance industry in regulatory, organizational, operational, coverage, claims, bad faith and insolvency issues. He regularly counsels business clients on insurance and risk transfer matters, including complicated coverage and program issues relating to mergers and acquisitions. Check out the full interview on the PAMIC website.
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RESOURCES
General Regulatory Information
Use this table to discover important links to information on Insurance Department’s that affect PAMIC members.
Pennsylvania Insurance Department Bulletins Notices SOP’s
Regulations
Title 40 Statutes Unconsolidated Statutes
Press Releases PID Newsletter Consumer Alerts News & Notes
Title 18 Statutes
News
Title 11 Statutes
General Info
Statutes
News
Title 38.2 Statutes
News
Delaware Department of Insurance Bulletins
Regulations
NJ Department of Banking & Insurance Bulletins
Regulations
Maryland Insurance Administration Bulletins
Regulations
Virginia SCC - Bureau of Insurance Admin Letters Admin Orders
Regulations
West Virginia Office of the Insurance Commissioner Info Letters
Regulations
Statutes
Consumer Advocate
Statutes
News Releases Newsletters
Ohio Department of Insurance Bulletins
Regulations
New York Department of Financial Services - Insurance Opinions Circular Letter
Regulations
Statutes
Press Releases Statements
Michigan Department of Insurance and Financial Services Bulletins
Regulations
Statutes
Press Releases
Maine Department of Professional & Financial Regulation Bulletins
Regulations
Statutes
Press Releases
Statutes
Press Releases
California Department of Insurance Bulletins
Regulations
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Legislation Tracker Legislative Tracking Information on PAMIC’s Website A significant and growing part of PAMIC’s mission is to provide advocacy (government affairs ) services to our members. The General Assembly is prolific in producing over 4,000 pieces of legislation during their 2-year Session covering all facets of life in Pennsylvania. Fortunately, only a handful of these bills actually make it into law. For example, Governor Wolf just signed Act 22 and Act 23 of 2018 into law last week (the latest bills to become law) and they happen to deal with the elimination on the prohibition on rebates and inducements in insurance transactions. However, there are many other Bills “in the hopper” that PAMIC is keeping an eye on. Below is a list of bills that the association is currently tracking. For a full list visit our PA Bill Information Page.
Bill #
Sponsor
Description
HB 544
Dan Moul (R)
Amends Act further providing for liability for landowners to recreational users. 5-21-18 S Set on the Senate Calendar
HB 1848
Tina Pickett (R)
Amends Title 40 (Insurance), in regulation of insurers and related persons generally, providing for corporate governance annual disclosure. The industry and the PID have worked the technical language regarding this bill. One major issue currently outstanding relates to 3rd party fees for review of the reports. The PID and PAMIC are working on language that may break this logjam.
HB 1851
Tina Pickett (R)
Amends the Insurance Department Act, in examinations, further providing for purpose & providing for scheduling conference, for budget estimate & revisions, for billing invoices and for annual examination & analysis report. Referred to Senate Banking and Insurance Committee.
SB 1031
Daniel Laughlin (R)
Amends The Insurance Department Act, in examinations, further providing for purpose and providing for scheduling conference, for budget estimate and revisions, for billing invoices and for annual examination and analysis report. 5-21-18 S Set on the Senate Calendar
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Branding the Modern Mutual PAMIC Online
May 23, 2018 Info
Pamic@pamic.org
1017 Mumma Road, Suite 202 Wormleysburg, PA 17043
(717) 303-0197