PRINTER'S NO. 2677
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
2096
Session of
2024
INTRODUCED BY WARREN AND PICKETT, MARCH 12, 2024
REFERRED TO COMMITTEE ON INSURANCE, MARCH 12, 2024
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," in surplus lines, providing for
surplus lines fees and further providing for monthly reports.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The act of May 17, 1921 (P.L.682, No.284), known
as The Insurance Company Law of 1921, is amended by adding a
section to read:
Section 1616.1. Surplus Lines Fees.--(a) Notwithstanding
section 674-A of the act of May 17, 1921 (P.L.789, No.285),
known as "The Insurance Department Act of 1921," a surplus lines
licensee may charge a service fee for the placement of a surplus
lines insurance policy in addition to a commission received from
a surplus lines insurer in accordance with the following
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
requirements:
(1) For personal lines insurance policies, the service fee
shall not exceed one hundred fifty ($150) dollars or four per
centum (4%) of the policy premium, whichever is greater. The
following apply:
(i) The commissioner may increase these amounts by
transmitting notice of the increase to the Legislative Reference
Bureau for publication in the next available issue of the
Pennsylvania Bulletin. The increase shall become effective upon
publication of the notice in the Pennsylvania Bulletin.
(ii) The service fee may be charged for each policy.
(2) The service fee shall be reasonable in relation to the
cost of underwriting, issuing and processing the policy.
(3) In advance of placement of the policy, the surplus lines
licensee shall make clear and conspicuous disclosure in writing
of the following:
(i) The total amount of the service fee, if any.
(ii) The total amount of the inspection fee, if any.
(iii) The amount of premium tax due on the policy.
(iv) An itemization of the fee charged for each service.
(v) A disclosure of any compensation payable to the licensee
from the entity completing the inspection and ownership interest
of the licensee in the entity completing the inspection, but
excluding ownership interest that is part of an investment
portfolio of publicly traded stock.
(b) A surplus lines licensee may recoup from the prospective
insured the actual cost of any inspection required for the
placement of surplus lines insurance with a surplus lines
insurer if:
(1) The inspection is required.
20240HB2096PN2677 - 2 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(2) The cost of the inspection is:
(i) actually incurred by the surplus lines licensee;
(ii) not retained by the surplus lines licensee; and
(iii) documented and verifiable.
Section 2. Section 1620 of the act is amended to read:
Section 1620. Monthly Reports.--Within thirty (30) days
following the end of each month, each surplus lines licensee
shall file with the department, on forms prescribed by the
department, a verified report of all surplus lines insurance
transacted during the preceding month. Each report shall include
the amount of service fees charged for each surplus lines
insurance policy issued.
Section 3. This act shall take effect in 60 days.
20240HB2096PN2677 - 3 -
1
2
3
4
5
6
7
8
9
10
11
12
13