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- LEG REG REVIEW
- 2004, Sixth
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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- REGULATORY AGENDAS RELEASED
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- Pursuant
to Executive Order 1996-1, state agencies are required to list their
regulatory agendas for the year.
Tops were the Department of State with 90-plus regulations
governing the various occupational boards such as nurses, doctors,
cosmetologists, CPAs, etc. Next
was Labor & Industry with 34.
Insurance
came in third with 28 regulations. Fourth was DEP with 22.
These regulations are just proposals and need to have a
period of public comment as well as a legal review by the
Independent Regulatory Review Commission.
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- Regulations
with insurance emphasis follow:
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L&I:
There are 3 Worker’s Compensation regulations dealing with medical
costs, electronic claims processing, and licensing of vocational
experts, all in Spring 2004
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Securities
has three regulations dealing with investment advisors
(registration, capital requirements, financial records coming in May
2004 (G. Philip Rutledge 717/783-5130)
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DEP
plans a major overhaul of the Mine Subsidence Insurance Program with
changes in coverage, limits, premium, policy duration, etc. in
March. (Larry Ruane 783-9590)
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Insurance
Department:
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Producer
Licensing regulations to implement Act 147 Spring/Summer 2004
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HO
and Auto Cancellations & Non-renewals in Fall 2004
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Auto
Forms, Proof of Financial Responsibility in Fall 2004
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Life
& Annuity Replacement and Variable Annuity Contracts (Fall)
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Annuity
Disclosures and Senior Protection Annuities(Spring)
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Life
Sales Practices (Spring) and Disclosures in Life Solicitation (Fall)
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Variable
Life (Fall)
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Life
Illustrations (Winter)
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Forms
Prior Approval repeal (Fall), P/C Filings (Fall)
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Privacy
(Winter/Spring)
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Other
Winter regulations include HMOs, Individual Accident
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Other
Spring/Summer regulations include Premium Financing, Mcare, Insurer
Reserves
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Other
Fall regulations include Insurance advertising, Viatical Licensing,
and unfair Claims Settlements
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- MED MAL
CAP MEETING INCONCLUSIVE
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- The
meeting of the Senate Judiciary Committee failed to gain consensus
on any of the approaches to resolving tort issues.
The outcome was to pass a ‘shell’ bill (one that allows
further action later on the Senate floor but that has no contents). The impasse stems over addressing the mounting liability
crisis via a constitutional amendment permitting the General
Assembly to cap non-economic damages.
A resolution was adopted to have the Joint State Government
Commission look into the liability issue.
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- DEPARTMENT
ISSUES TWO REGULATIONS
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- The
Insurance Department has issued two regulations for review by the
Independent Regulatory Review Commission (IRRC) and interested
stakeholders. The first
governs annual audits of continuing care providers and integrates
that regulation (Title 31, Chapter 151, 151.7 Disclosure Statements)
into a companion regulation, 31 PA Code, Chapter 147, on how
insurance companies must conduct their annual audits.
This proposed regulation is also called the CPA Audit Rule.
Some provisions include:
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The
definition of insurer is updated to include PPO, employers’ mutual
liability insurance associations, and the JUA.
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A
section on electronic filings is added, as are clarifications of
procedures used to arbitrate disputes and correct errors.
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Qualifications
of CPAs doing insurer audits (Public Accountants are excluded from
these audits per this Rule) are enhanced
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- BUDGET
SEASON BEGINS IN EARNEST
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- The
Budget cycle begins with hearings by the House and Senate
Appropriations Committees this coming week.
Go to www.pcn.org for a
schedule of televised hearings.
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- POLITICAL
NOTES
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Former
U.S. Congressman and former State Representative Jon Fox is making a
bid for his old job in the PA General Assembly.
The seat opened up when Rep. Ellen Bard (R-Montgomery) chose
to run for Congress in the now open congressional seat vacated by
Joe Hoeffel who is running as the Democratic nominee for U.S.
Senate. Fox will oppose Josh Shapiro, Hoeffel’s former chief of
staff.
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Eulogies
are in order for former Bethlehem State Representative Bill Ryback
(D) who died at age 82. Ryback
served two stints in the General Assembly, most recently from
1980-1990 when Joe Uliana defeated him.
Ryback served with distinction as the Democratic Chairman of
the House Insurance Committee.
Personal
Note: Mr. Ryback was a people’s legislator. With insurance, he was very tough but very fair.
I personally appreciated working with him because of his
integrity and grit.
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Retiring
is Rep. Jim Lynch (R-Warren).
- There will be a spirited primary contest in
western PA as two incumbent Democratic legislators Joe Preston and
Mike Diven were bypassed in favor of an Allegheny County Democratic
Party endorsement of Anthony Coghill and Edward Gainey.
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