238 Amendments to Insurance Holding Companies Law; notice no. 2001-01

INSURANCE DEPARTMENT

Amendments to Insurance Holding Companies Law; Notice No. 2001-01

[31 Pa.B. 894]

   House Bill No. 550 (P. N. 4226) enacted December 20, 2000, (Act 132-2000) contained a number of amendments to The Insurance Company Law of 1921. The bill can be obtained electronically from the Pennsylvania General Assembly's Electronic Bill Room by accessing the Insurance Department's (Department) web site at www. insurance.state.pa.us or the Legislature's web site at www.legis.state.pa.us.

   Act 132-2000 included three important amendments to the Insurance Holding Companies Law¹:

   1.  Adding preferred provider organizations (PPOs) to the definition of ''insurer'' to bring risk-assuming PPOs within the scope of the Insurance Holding Companies Law. Therefore, acquisitions or mergers of domestic PPOs will be subject to the Department's approval, and PPOs will be required to file annual holding company registration statements and notices of intended material transactions. Initial registration statements must be filed by March 31, 2001.

   2.  Adding limited liability companies to the definition of ''person'' to require the Department's prior approval of an acquisition of a domestic insurer by a limited liability company and the Department's oversight of insurance holding company systems in which the parent company is organized as a limited liability company.

   3.  Adding pledges of assets to the types of material transactions involving affiliates in insurance holding company systems that must be reported to the Department before the transactions occur. The Department has the authority to disapprove material transactions within 30 days of receiving notice.

   The amendments will become effective February 17, 2001.

   Questions concerning this notice may be directed to Stephen J. Johnson, CPA, Deputy Insurance Commissioner, Office of Regulation of Companies, 1345 Strawberry Square, Harrisburg, PA 17120, [phone]/Fax: [phone], [e-mail].

M. DIANE KOKEN,   
Insurance Director

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¹ (Article XIV of The Insurance Company Law of 1921, added December 18, 1992, P. L. 1519, No. 178, 40 P. S. §§  991.1401--991.1413)

[Pa.B. Doc. No. 01-238. Filed for public inspection February 9, 2001, 9:00 a.m.]