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- LEG REG REVIEW
- 2004, First
Issue
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- LEG REG REVIEW is a periodic newsletter produced by PHILLIPS ASSOCIATES,
a professional lobbying and consultant firm based near the State
Capitol. It contains
news on the Legislative and Regulatory scene in Pennsylvania that
may be of use to insurance producers, companies, and interested
parties. Subscription
information may be obtained by contacting PHILLIPS ASSOCIATES at
- 717/728-1217, Fax 717/728-1164 or E-mail to xenobun@aol.com.
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- CHANGES IN STORE FOR PA GENERAL ASSEMBLY
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- In
addition to the open seat created by the movement of Republican
John Gordner to the State Senate in Columbia County and a special
election later this month, there are other major developments
affecting the General Assembly.
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- First
is the death of one of the best-liked House members, Roy Cornell
(R) from Montgomery County. Afflicted
with cancer, he never let the disease affect his service to his
constituents. According
to media reports, he was still fielding legislative phone calls
from his deathbed. His funeral service was Jan. 7. If you wish to tell his staff
that you appreciated his life’s work as a public servant, please
address your condolences to Lou Crocco, House Republican Policy
Committee, Main Capitol, Harrisburg, PA 17120.
His death means that there may be some change in House
committee leadership when his replacement as Policy Chair is
named.
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- A second change is the announcement by Senator Hal Mowery
(R-Cumberland) that he will not run for re-election. As Chairman of the Public Health and Welfare Committee and an
active member of the Senate Banking and Insurance Committee, he
was an instrumental force behind almost every insurance-related
piece of legislation to go through the legislature.
Most recently, he was involved in Senate passage of HB 888,
the PACE and {PACE-Net) senior prescription expansion law.
In 2002, his biggest achievement was to force interested
parties to the table to finally hammer out the details of Act 147,
the new Producer Licensing Law.
If you want to send Senator Mowery a letter of
appreciation, direct it to Hon. Hal Mowery, Main Capitol,
Harrisburg, PA 17120. His
term runs until the end of 2004.
Mowery is a licensed insurance producer.
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- Another
retirement is Allan Egolf (R-Perry) in a GOP district.
Democrat Jennifer Mann is running for the Democratic
nomination for Auditor General, opening a House seat in a swing
Lehigh County district. Her
primary opponent is Senator Jack Wagner Allegheny.
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- REP.
HICKERNELL CIRCULATES PRODUCER LICENSE MEMO
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- As anticipated, Rep. Dave Hickernell (R-Lancaster) circulated a
Dear Colleague memo to members of the PA House just before the
recess asking them to co-sponsor a bill giving new insurance
licensees the right to sell, solicit, or negotiate insurance risks
while they are undergoing FBI criminal background checks.
The bill’s rationale is that these checks take a long
time, thus depriving individuals and their agencies the ability to
earn a livelihood before the license is finally granted.
A licensee determined to have a background problem could
not sell, solicit, or negotiate pending an appeal.
The Insurance Department is expected to disagree with Rep.
Hickernell’s proposal.
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- INSURANCE LEGISLATION TO NOTE
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Governor
Rendell signed HB 88 into law as Act 53 of 2003 on December 23.
The legislation restores the authority the Department of
Labor & Industry needed to credential vocational assessment
specialists.
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Before
recessing, a number of insurance bills were introduced:
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HB
2234 (Schroder-R-Chester) makes Medical Malpractice punitive
damages provable beyond a reasonable doubt and commits 80% of the
recovery to the MCare Fund.
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HB
2221 ((Cruz-D-Phila.) says that insurers failing to give volunteer
firefighters or neighborhood watch participants a five percent
homeowner’s insurance discount are in violation of the Unfair
Insurance Practices Act..
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- INSURANCE
DEPARTMENT AWARDS CONTRACT TO STUDY UNINSURED
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- The Insurance Department has selected Market Decisions LLC. from
South Portland, Maine, to conduct a major study of the makeup of
Pennsylvania’s uninsured population.
PA has a lower rate of uninsured (about 10%) than some
surrounding states. This
report will be due in 2005. Although
it is early to begin submitting input into the study, an early
point of conduct is the Department’s Director of the CHIP Pat
Stromberg at 717/ 705-8053.
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- BUSINESS AGENDA ANNOUNCED JANUARY 6
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- On
January 6, a group of Republican House members led by Dave Ross
(Indiana) and Mike Turzai (Allegheny) unveiled a package of bills
called the Keystone Manufacturing Initiative.
The bills included proposals to have a statute of repose
for manufactured products after which the producer is not liable,
to get the Capital Stock & Franchise Tax (CSFT) repeal back on
track, to require a regulatory impact statement for small
business. Several;
proposals had insurance implications as well. Turzai wants to
eliminate the 90-day period for appeals made to total disability
determinations after the 104 weeks specified in Worker’s
Compensation law.
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- Rep.
John Payne (R-Dauphin) proposed Health Saving Account tax
incentives for Pennsylvanians comparable to HSA treatment in the
recently passed Medicare law.
Rep. Mark Mustio (Allegheny), a licensed insurance
producer, put forth the CSFT bill. Joining the ten or so legislators at the press conference
were the PA Chamber of Commerce and Industry, PA Manufacturers
Association, NFIB, Manufacturers Association of South Central PA,
and others.
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- INDUSTRY NEWS
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According
to Business Wire, private companies interested in securing a
Medicare endorsement of their prescription drug card program have
until January 30, 2004 to submit their formal applications to HHS.
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The Hartford is acquiring C N A’s Group Benefits
Division.
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