Bill Text: PA SB1181 | 2009-2010 | Regular Session | Amended

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Bill Title: Further providing for immunity from liability; and making a related repeal.

Spectrum: Moderate Partisan Bill (Republican 9-2)

Status: (Passed) 2010-10-27 - Act No. 97 [SB1181 Detail]

Download: Pennsylvania-2009-SB1181-Amended.html

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PRIOR PRINTER'S NOS. 1592, 2035 PRINTER'S NO. 2187
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No. 1181 Session of2010
INTRODUCED BY WARD, D. WHITE, VANCE, TARTAGLIONE, WAUGH, ORIE, PICCOLA, BROWNE, STACK, EARLL AND MENSCH, JANUARY 8, 2010
SENATOR CORMAN, APPROPRIATIONS, RE-REPORTED AS AMENDED, SEPTEMBER 20, 2010
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 immunity from
liability; and making a related repeal.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 349.1 of the act of May 17, 1921
(P.L.682, No.284), known as The Insurance Company Law of 1921,
added June 11, 1986 (P.L.226, No.64) is amended to read:
Section 349.1. Immunity from Liability.--(a) In the absence
of fraud or bad faith, no individual, person or his employes or <--
agents shall be subject to civil liability and no civil cause of
action shall arise against any of them for any of the following:
(1) Information relating to suspected fraudulent insurance
acts or persons suspected of engaging in such acts furnished by
them to or received from Federal, State or local law enforcement
officials, their agents and employes and designees.
(2) Information relating to suspected fraudulent insurance
acts or persons suspected of engaging in such acts furnished by
them to or received from other persons subject to the provisions
of this act.
(3) Information furnished by them [in reports to the
Insurance Department,] or received from a Federal, State or
local agency, the National Association of Insurance
Commissioners or another organization established to detect and
prevent fraudulent insurance acts, their agents, employes or
designees or a recognized comprehensive database system approved
by the Insurance Department.
(a.1) In the absence of fraud or bad faith, the immunity
granted in subsection (a) shall also apply to persons identified
as designated employes of insurers, self-insurers or insurance
licensees whose responsibilities include the investigation and
disposition of claims relating to suspected fraudulent insurance
acts when sharing information on such acts or persons suspected
of engaging in such acts with other designated employes of the
same or other insurers, self-insurers or insurance licensees
whose responsibilities include the investigation or disposition
of claims relating to suspected fraudulent insurance acts.
(b) [The Insurance Commissioner and employes of the
Insurance Department] State agencies and their employes and
designees, in the absence of fraud or bad faith, shall not be
subject to civil liability for sharing information identified in
subsection (a). No civil cause of action shall arise against any
of them by virtue of the publication of a report or bulletin
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related to the official activities of the [Insurance Department]
State agency.
(c) Nothing in this section is intended to abrogate or
modify a common law or statutory immunity heretofore enjoyed by
any person.
(d) As used in this section the following words and phrases
shall have the meanings given to them in this subsection:
"Absence of bad faith" means without serious doubt that the
information furnished or received, or the report or bulletin
published, is not true.
"Absence of fraud" means without knowledge that the
information furnished or received, or the report or bulletin
published, is not true.
"Fraudulent insurance act" means an act committed by a person
who, knowingly and with intent to defraud, presents, causes to
be presented or prepares with knowledge or belief that it will
be presented to or by an insurer, purported insurer or broker,
or an agent of an insurer, purported insurer or broker, [a
written statement] information as part or in support of an
application for the issuance or rating of an insurance policy
for commercial or personal insurance, or a claim for payment or
other benefit pursuant to an insurance policy for commercial or
personal insurance which he knows to contain materially false
information concerning a fact material to the statement or claim
or to conceal, for the purpose of misleading, information
concerning a fact material to the statement or claim.
"Insurer" means an insurance company, association, exchange, <--
interinsurance exchange, health maintenance organization,
preferred provider organization, professional health services
plan corporation subject to 40 Pa.C.S. Ch. 63 (relating to
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professional health services plan corporations), a hospital plan
corporation subject to 40 Pa.C.S. Ch. 61 (relating to hospital
plan corporations), fraternal benefit society, beneficial
association, Lloyd's insurer or health plan corporation.
Section 2. Repeals are as follows:
(1) The General Assembly declares that the repeal under
paragraph (2) is necessary to effectuate the provisions of
this act.
(2) Section 3(c) of the act of July 2, 1980 (P.L.340,
No.85), known as the Arson Reporting Immunity Act, is
repealed.
Section 3. This act shall take effect in 60 days.
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