Bill Text: PA HB2007 | 2009-2010 | Regular Session | Introduced

---

Bill Title: Providing for the regulation of senior-specific certifications and professional designations in the sale of life insurance and annuities; and imposing penalties.

Spectrum: Moderate Partisan Bill (Democrat 29-8)

Status: (Introduced - Dead) 2009-09-28 - Referred to INSURANCE [HB2007 Detail]

Download: Pennsylvania-2009-HB2007-Introduced.html

---

PRINTER'S NO. 2713
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 2007 Session of2009
INTRODUCED BY DeLUCA, MICOZZIE, BELFANTI, BOYD, CALTAGIRONE, COHEN, CONKLIN, D. COSTA, CREIGHTON, FABRIZIO, FRANKEL, HARKINS, HENNESSEY, JOSEPHS, KORTZ, KOTIK, MANDERINO, MATZIE, MOUL, MUNDY, MURT, MYERS, M. O'BRIEN, O'NEILL, PASHINSKI, READSHAW, REICHLEY, SEIP, SIPTROTH, STABACK, R. TAYLOR, WALKO, WHITE AND YOUNGBLOOD, SEPTEMBER 28, 2009
REFERRED TO COMMITTEE ON INSURANCE, SEPTEMBER 28, 2009
AN ACT
Providing for the regulation of senior-specific certifications
and professional designations in the sale of life insurance
and annuities; and imposing penalties.
WHEREAS, Pennsylvania has the third-largest percentage of
elderly population in the country; and
WHEREAS, Approximately 2.5 million Pennsylvanians are 60
years of age or older and more than 310,000 Pennsylvanians are
85 years of age or older; and
WHEREAS, Over the next ten years, the number of citizens who
will be at least 60 years of age is projected to increase by
more than 27% to approximately 3.2 million citizens, and the
number of citizens who will be at least 85 years of age is
projected to increase by more than 16% to approximately 365,000;
and
WHEREAS, The Federal Bureau of Investigation (FBI) has
reported that older citizens are most likely to have
considerable savings, own a home and have excellent credit, all
of which unscrupulous individuals target for theft; and
WHEREAS, Individuals attempting to steal these assets will
focus their efforts on older citizens since they are most likely
in a financial position to make considerable purchases; and
WHEREAS, The FBI has also stated that older citizens are less
likely to report being defrauded because:
(1) they do not know where to report it;
(2) they are too ashamed at having been defrauded; or
(3) they do not know they have been defrauded; and
WHEREAS, In some cases, elderly victims may not report being
defrauded out of concern relatives may conclude they no longer
have the mental capacity to manage their own financial affairs;
and
WHEREAS, When an elderly victim does report the crime, the
FBI has found they are often unreliable as a witness; and
WHEREAS, Individuals attempting to take advantage of senior
citizens are keenly aware of the effects of age on memory and
the strong possibility the elderly victim will be unable to
supply investigators with adequate information to build a case
for a successful prosecution; and
WHEREAS, By virtue of the act of November 6, 1987 (P.L.381,
No.79), known as the Older Adults Protective Services Act, the
policy of the Commonwealth is to provide for the detection and
reduction, correction or elimination of abuse, neglect,
exploitation and abandonment, and to establish a program of
protective services for older adults in need of them.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Purpose.
20090HB2007PN2713 - 2 -
The purpose of this act is to set standards to protect
consumers from misleading and fraudulent marketing practices
regarding the use of senior-specific certifications and
professional designations in the solicitation, sale or purchase
of or advice made in connection with a life insurance or annuity
product.
Section 2. Scope.
This act shall apply to any solicitation, sale or purchase of
or advice made in connection with a life insurance or annuity
product by an insurance producer.
Section 3. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Commissioner." The Insurance Commissioner of the
Commonwealth.
"Department." The Insurance Department of the Commonwealth.
"Insurance producer." A person required to be licensed under
the laws of this Commonwealth to sell, solicit or negotiate
insurance, including annuities.
Section 4. Prohibitions.
(a) Senior-specific certification or professional
designation.--It shall be an unfair method of competition and an
unfair or deceptive act or practice in the business of insurance
within the act of July 22, 1974 (P.L.589, No.205), known as the
Unfair Insurance Practices Act, for an insurance producer to use
a senior-specific certification or professional designation that
indicates or implies, in a way misleading to a purchaser or
prospective purchaser, the insurance producer has special
certification or training in advising or servicing seniors in
20090HB2007PN2713 - 3 -
connection with the solicitation, sale or purchase of a life
insurance or annuity product or in the provision of advice as to
the value of or the advisability of purchasing or selling a life
insurance or annuity product, either directly or indirectly
through publications or writings, or by issuing or promulgating
analyses or reports related to a life insurance or annuity
product.
(b) Specific prohibitions.--The prohibited use of senior-
specific certifications or professional designations includes,
but is not limited to, the following:
(1) Use of a certification or professional designation
by an insurance producer who has not earned or is otherwise
ineligible to use the certification or designation.
(2) Use of a nonexistent or self-conferred certification
or professional designation.
(3) Use of a certification or professional designation
that indicates or implies a level of occupational
qualifications obtained through education, training or
experience that the insurance producer using the
certification or designation does not have.
(4) Use of a certification or professional designation
that was obtained from a certifying or designating
organization that:
(i) is primarily engaged in the business of
instruction in sales or marketing;
(ii) does not have reasonable standards or
procedures for assuring the competency of its
certificants or designees;
(iii) does not have reasonable standards or
procedures for monitoring and disciplining its
20090HB2007PN2713 - 4 -
certificants or designees for improper or unethical
conduct; or
(iv) does not have reasonable continuing education
requirements for its certificants or designees in order
to maintain the certificate or designation.
Section 5. Rebuttable presumption.
(a) Criteria.--There is a rebuttable presumption that a
certifying or designating organization is not disqualified
solely for purposes of subsection (b)(4) when the certification
or designation issued from the organization does not primarily
apply to sales or marketing and when the organization or the
certification or designation in question has been accredited by:
(1) the American National Standards Institute (ANSI);
(2) the National Commission for Certifying Agencies
(NCCA); or
(3) an organization that is on the United States
Department of Education's list entitled "Accrediting Agencies
Recognized for Title IV Purposes."
(b) Determination.--In determining whether a combination of
words or an acronym standing for a combination of words
constitutes a certification or professional designation
indicating or implying that a person has special certification
or training in advising or servicing seniors, factors to be
considered shall include:
(1) The use of one or more words such as "senior,"
"retirement," "elder" or like words combined with one or more
words such as "certified," "registered," "chartered,"
"advisor," "specialist," "consultant," "planner" or like
words in the name of the certification or professional
designation.
20090HB2007PN2713 - 5 -
(2) The manner in which those words are combined.
Section 6. Enforcement.
(a) Penalties and remedies.--Upon a determination by hearing
that this act was violated, the commissioner may pursue one or
more of the following courses of action:
(1) Issue an order requiring the person in violation to
cease and desist from engaging in the violation.
(2) Suspend or revoke or refuse to issue or renew the
certificate or license of the person in violation.
(3) Impose a civil penalty of not more than $5,000 for
each violation.
(4) Impose another penalty or remedy deemed appropriate
by the commissioner, including restitution.
(b) Other remedies.--The enforcement remedies imposed under
this section are in addition to any other remedies or penalties
that may be imposed by any other applicable statute.
Section 7. Existing licenses and designations.
Nothing in this act shall be construed to affect existing
licenses and designations issued and approved by the department.
Section 20. Effective date.
This act shall take effect in 60 days.
20090HB2007PN2713 - 6 -