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- LEG REG REVIEW
- 2004, Fifth
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. It is a free
Member Service if you are a member of the Pennsylvania Association
of Health Underwriters (PAHU) or the PA Surplus Lines Association (PSLA).
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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- HICKERNELL INTRODUCES PRODUCER LICENSING BILL
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- On
February 3, Rep. Dave Hickernell (R-Lancaster) introduced HB 2328 to
create a provisional license for new insurance producers because of
the delays some have experienced in getting their FBI criminal
background check completed in a timely way.
The delay (it is argued) prevents new people from entering
the business and effectively poses an economic hardship on the
agency as well if it has to pay a non-selling producer for 90 days.
This provisional license would have to be requested by the license
applicant who accepts liability for consequences of insurance sold
during the 90-day provisional period.
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- SENATE JUDICIARY COMMITTEE TAKES UP CAPS
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- This week
the Senate Judiciary Committee will take up several measures dealing
with capping non-economic damages.
Except for SR 160, they all seek to amend the PA Constitution
to permit the General Assembly to cap awards.
None of them seek to cap economic damage awards.
Even if these were to pass the legislature, the measure would
have to pass the General Assembly next session and then go to voter
referendum.
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SB
50, sponsored by Sen. Jake Corman (R-Centre), would cap all
non-economic awards. Presumably,
this would include product liability as well.
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HB
1326, sponsored by Rep. Mike Turzai (R-Allegheny) is similar to SB
50.
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SB
1000, sponsored by Sen. Steward Greenleaf (R-Montgomery), limits the
cap provision to Medical Malpractice situations and then only if
there is no “reckless willful or wanton misconduct or (the medical
procure) does not result in an injury determined by a fact finder to
be a serious impairment of bodily function, serious disfigurement,
or death”.
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SR
160, sponsored by Sen. Jane Orie (R-Allegheny), directs the Joint
State Government Commission to study the feasibility of establishing
an alternative to the existing liability system as it relates to
Medical Malpractice.
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- BUDGET SPEECH REFERENCES INSURANCE
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- Governor
Ed Rendell’s Budget address received headlines over issues such as
a massive environmental bond issue or by putting the repeal of the
Capital stock and Franchise Tax back on track.
There were a number of references to insurance.
He expressed the priority this Administration gives to
curbing health care (and health insurance) costs.
A specific idea was to establish a consumer liaison unit
within DOI.
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- ON THE REGULATORY SIDE
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The
Eligible Surplus Lines list was published in the PA Bulletin.
The information lists eligible companies and gives their
addresses. A quick way
to access this information is to go to the PA Surplus Lines
Association web site, www.pasla.org.
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The
Insurance Department has received an application from Aetna Dental
to merge with Aetna Life.
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- HAY REPORT SEEKS STATE SCHOOL BENEFIT PLAN
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- Per HR
159, the Hay Group and the Legislative Budget and Finance Committee
released a report that, as expected, supports consolidation of all
school district health benefit plans into one administered by the
state. It did reference
opposition to a mandatory system from groups such as PAHU, the PA
Federation of Teachers, and some of the Blues.
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- POLITICAL
NOTES
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According
to news reports, Rep. Ellen Bard (R-Montgomery) will not run for
re-election and will instead concentrate on winning the GOP nod for
the congressional nomination in the 13th district.
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Republicans
won another special House election, this time in Columbia County to
fill the position vacated by John Gordner upon his election as
Senator in a special election.
(Gordner succeeded Ed Helfrick who retired due to illness.)
The new House member is David Millard.
The party ratio remains 104 R – 94 D.
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- LITITZ MUTUAL WINS NATIONAL RECOGNITION
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- Profiled
in January 2004’s A.M. Best Review was Pennsylvania’s
Lititz Mutual Insurance Company because of its fifty-year A-plus
rating with A.M. Best. There
were only 18 P/C insurance companies in the U.S. making the list and
Lititz Mutual was the only PA insurer.
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- OTHER LEGISLATIVE UPDATES
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On
Feb. 4, the House Health and Human Services moved HB 1187
establishing a Toxic Mold Task Force.
Insurers would be included in its makeup.
This same committee did not move HB 2299, the Health Savings
Account (H S A) bill.
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The
Labor Relations meeting scheduled for this week is now March 17.
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Introduced
by Rep. Ken Ruffing (D-Westmoreland) is HB 2352 to create a
Landslide Insurance Program within PEMA.
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The
House Veterans Affairs and Emergency Preparedness Committee plans a
Feb. 12 hearing on HB 1060 (Vance-R-Cumberland) on updating the law
relating to emergency medical services.
- House Appropriations Committee plans an open
forum for House members to state their views on the 2004-2005 Budget
unveiled by the Governor last week.
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