Download Act of May. 11, 1949,PL 1210, No. 367 Cl. 40

GROUP LIFE INSURANCE POLICY LAW
Act of May. 11, 1949, P.L. 1210, No. 367
AN ACT
Cl. 40
Relating to group life insurance; describing permitted
policies and restrictions thereon, the premium basis
thereof and rights thereunder; limiting the amount of such
insurance; prescribing standard policy provisions; and
requiring notice of conversion privileges.
TABLE OF CONTENTS
Section 1. Types Permitted.
Section 2. Policies Issued to Employers or Trustees of
Employer Funds.
Section 3. Policies Issued to Creditors.
Section 4. Policies Issued to Labor Unions, Credit Unions,
Police Fraternities, Firemen's Fraternities or
Teachers' Associations or Federations.
Section 5. Policies Issued to Trustees of Joint Funds.
Section 5.1. Policies Issued to Associations.
Section 5.2. Policies Issued to Other Groups.
Section 6. Standard Policy Provisions.
Section 7. Notice of Conversion Privileges.
Section 7.1. Assignment of Incidents of Ownership.
Section 7.2. Out-of-State Coverage.
Section 7.3. Notice of Compensation.
Section 8. Existing Policies (Repealed).
Section 8.1. Policy and Certificate Issued Prior to the
Effective Date.
Section 8.2. Newly Issued Group Policy.
Section 8.3. Newly Issued Certificates Under Policy Issued
Prior to the Effective Date.
Section 8.4. Newly Issued Certificate Under Newly Issued
Policy.
Section 9. Premium Basis.
Section 10. Repeal and Saving Clause.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Types Permitted.--No policy of group life
insurance shall be delivered in this State unless it conforms
to one of the following descriptions and to the requirements
as to each set forth in sections two, three, four and five of
this act.
(1) A policy issued to an employer, or to the trustees of a
fund established by an employer, which employer or trustees
shall be deemed the policyholder, to insure employes of the
employer for the benefit of persons other than the employer.
(2) A policy issued to a creditor, who shall be deemed the
policyholder, to insure debtors of the creditor.
(3) A policy issued to a labor union, a credit union, a
police fraternity, a firemen's fraternity or a teachers'
association or federation, which shall be deemed the
policyholder, to insure members of such union, fraternity,
association or federation for the benefit of persons other
than the union, fraternity, association or federation or any
of their officials, representatives or agents. ((3) amended
July 31, 1968, P.L.939, No.287)
(4) A policy issued to the trustees of a fund established
by an insurer for two or more employers or by two or more
employers or by an insurer for one or more labor unions, or by
one or more labor unions or by an insurer for one or more
employers and one or more labor unions or by one or more
employers and one or more labor unions or by an insurer for
one or more associations meeting the qualifications as defined
in clause (5.1) or by one or more associations meeting the
qualifications as defined in clause (5.1), which trustees
shall be deemed the policyholder, to insure employes of the
employers or members of the unions or such association for the
benefit of persons other than the employers or the unions or
members, employes thereof, and employes of the associations
for the benefit of persons other than the employers or the
unions or the associations. ((4) amended Feb. 3, 1994, P.L.1,
No.1)
(5) Life insurance covering the members of one or more
companies, batteries, troops, battalions, divisions, or other
units of the National Guard or Naval Militia of any state,
written under a policy issued to the Commanding General of the
National Guard or Commanding Officer of the Naval Militia, as
the case may be, who shall be deemed to be the employer for
the purposes of this act, the premium on which is to be paid
by the members of such units for the benefit of persons other
than the employer: Provided, however, That when the benefits
of the policy are offered to all eligible members of the unit
of the National Guard or Naval Militia, not less than seventyfive per centum of the members of such unit may be so insured.
(5.1) A policy issued to an association, which shall have a
constitution and bylaws and which has been organized by other
than an insurer, is maintained in good faith for purposes
other than that of obtaining insurance, has been in active
existence for at least two years, operates from offices other
than the insurer's and is controlled by principals other than
the insurer's. ((5.1 added Feb. 3, 1994, P.L.1, No.1)
(5.2) A policy issued to a group, other than one described
in clauses (1) through (5.1), and under which the Insurance
Commissioner finds that:
(i) the issuance of such group policy is not contrary to
the best interest of the public;
(ii) the issuance of such group policy would result in
economies of acquisition or administration; and
(iii) the benefits are reasonable in relation to the
premiums charged. ((5.2) added Feb. 3, 1994, P.L.1, No.1)
(6) Nothing contained herein shall be construed to define
as a group the lives covered by (a) a policy insuring only
individuals related by marriage, by blood, or by legal
adoption; or, (b) a joint life policy insuring only
individuals having an insurable interest in each other's
lives. ((6) added May 25, 1951, P.L.410, No.95)
(7) A policy issued in accordance with clause (1), (3),
(4), (5) or (5.1) may include provisions for the payment by
the insurer of life insurance benefits upon the death of the
spouse of the insured employe or member, and upon the death of
one or more of his or her children dependent upon him or her
for support and maintenance. ((7) amended Feb. 3, 1994, P.L.1,
No.1)
Section 2. Policies Issued to Employers or Trustees of
Employer Funds.--A policy issued to an employer, or to the
trustees of a fund established by an employer, to insure
employes of the employer for the benefit of persons other than
the employer shall be subject to the following requirements:
(1) The employes eligible for insurance under the policy
shall be all of the employes of the employer, or all of any
class or classes thereof determined by conditions pertaining
to their employment. The policy may provide that the term
"employes" shall include the employes of one or more
subsidiary corporations, and the employes, individual
proprietors, and partners of one or more affiliated
corporations, proprietors or partnerships if the business of
the employer and of such affiliated corporations, proprietors
or partnerships is under common control through stock
ownership or contract. The policy may provide that the term
"employes" shall include the individual proprietor or partners
if the employer is an individual proprietor or a partnership.
The policy may provide that the term "employes" shall include
retired employes. A policy issued to insure employes of a
public body may provide that the term "employes" shall include
elected or appointed officials. ((1) amended July 1, 1959,
P.L.502, No.128)
(2) The premium for the policy shall be paid by the
policyholder, either wholly or partially from the employer's
funds or funds contributed by him, or wholly or partially from
funds contributed by the insured employes. A policy on which
no part of the premium is to be derived from funds contributed
by the insured employes must insure all eligible employes, or
all except any as to whom evidence of individual insurability
is not satisfactory to the insurer. ((2 amended Feb. 3, 1994,
P.L.1 No.1)
(3) ((3) repealed July 9, 2010, P.L.362, No.51)
(4) ((4) deleted by amendment Feb. 3, 1994, P.L.1, No.1)
Section 3. Policies Issued to Creditors.--A policy issued
to a creditor to insure debtors of the creditor shall be
subject to the following requirements:
(1) The debtors eligible for insurance under the policy
shall be all of the debtors of the creditor whose indebtedness
is repayable in instalments, or all of any class or classes
thereof determined by conditions pertaining to the
indebtedness or to the purchase giving rise to the
indebtedness. The policy may provide that the term "debtors"
shall include the debtors of one or more subsidiary
corporations, and the debtors of one or more affiliated
corporations, proprietors or partnerships if the business of
the policyholder and of such affiliated corporations,
proprietors or partnerships is under common control through
stock ownership, contract, or otherwise.
(2) The premium for the policy shall be paid by the
policyholder, either from the creditor's funds, or from
charges collected from the insured debtors, or from both. A
policy on which no part of the premium is to be derived from
the collection of such identifiable charges must insure all
eligible debtors, or all except any as to whom evidence of
individual insurability is not satisfactory to the insurer.
((2) amended Feb. 3, 1994, P.L.1, No.1)
(3) ((3) deleted by amendment Feb. 3, 1994, P.L.1, No.1)
(4) The amount of insurance on the life of any debtor shall
at no time exceed the amount owed by him which is repayable in
installments to the creditor, or one hundred thousand dollars
($100,000), whichever is less. ((4) amended Feb 3. 1994,
P.L.1, No.1)
(5) The insurance shall be payable to the policyholder.
Such payment shall reduce or extinguish the unpaid
indebtedness of the debtor to the extent of such payment.
Section 4. Policies Issued to Labor Unions, Credit Unions,
Police Fraternities, Firemen's Fraternities or Teachers'
Associations or Federations.--A policy issued to a labor
union, a credit union, a police fraternity, a firemen's
fraternity or a teachers' association or federation, to insure
members of such union, fraternity, association or federation
for the benefit of persons other than the union, fraternity or
federation or any of its officials, representatives or agents,
shall be subject to the following requirements:
(1) The members eligible for insurance under the policy
shall be all of the members of the union, fraternity,
association or federation, or all of any class or classes
thereof determined by conditions pertaining to their
employment, or to membership in the union, fraternity,
association or federation, or both.
(2) The premium for the policy shall be paid by the
policyholder, either wholly or partially from the union's
funds, the fraternity's funds, association's funds or
federation's funds, or wholly or partially from funds
contributed by the insured members. A policy on which no part
of the premium is to be derived from funds contributed by the
insured members specifically for their insurance must insure
all eligible members, or all except any as to whom evidence of
individual insurability is not satisfactory to the insurer.
((2) amended Feb. 3, 1994, P.L.1, No.1)
(3) The policy must cover at least twenty-five members at
date of issue.
(4) ((4) deleted by amendment Feb. 3, 1994, P.L.1, No.1)
Section 5. Policies Issued to Trustees of Joint Funds.--A
policy issued to the trustees of a fund established by an
insurer for two or more employers or by two or more employers
or by an insurer for one or more labor unions, or by one or
more labor unions or by an insurer for one or more employers
and one or more labor unions, or by one or more employers and
one or more labor unions or by an insurer for one or more
associations meeting the qualifications as defined in clause
(5.1) of section 1, or by one or more associations meeting the
qualifications as defined in clause (5.1) of section 1, to
insure employes of the employers or members of the unions or
members, employes thereof, and employes of the associations
for the benefit of persons other than the employers or the
unions, or such associations, shall be subject to the
following requirements:
(1) The persons eligible for insurance shall be all of the
employes of the employers or all of the members of the unions,
or members, employes thereof, and employes of the associations
or all of any class or classes thereof determined by
conditions pertaining to their employment, or to membership in
the unions or associations, or to both. The policy may provide
that the term "employes" shall include retired employes, and
the individual proprietor or partners if an employer is an
individual proprietor or a partnership. The policy may provide
that the term "employes" shall include the trustees or their
employes, or both, if their duties are principally connected
with such trusteeship.
(2) The premium for the policy shall be paid by the
trustees wholly from funds contributed by the employer or
employers of the insured persons, or by the union or unions,
or by the associations, or by both, or partly from such funds
and partly from funds contributed by the insured persons. A
policy on which no part of the premium is to be derived from
funds contributed by the insured persons specifically for
their insurance must insure all eligible persons, or all
except any as to whom evidence of individual insurability is
not satisfactory to the insurer.
(5 amended Feb. 3, 1994, P.L.1, No.1)
Section 5.1. Policies Issued to Associations.--A policy
issued to an association, which shall have a constitution and
bylaws and which has been organized by other than an insurer,
is maintained in good faith for purposes other than that of
obtaining insurance, has been in active existence for at least
two years, operates from offices other than the insurer's and
is controlled by principals other than the insurer's, shall be
subject to the following requirements:
(1) The persons eligible for insurance shall be all of the
members of the association, employes thereof, or employes of
members of the preceding or all of any class or classes for
the benefit of persons other than the association.
(2) The premium for the policy shall be paid by the
policyholder either wholly from funds contributed by the
association or by employer members, or by both, or wholly from
funds contributed by the insured persons or partly from such
funds and partly from funds contributed by the association or
employer member. A policy on which no part of the premium is
to be derived from funds contributed by the insured persons
must insure all eligible persons or all except any as to whom
evidence of individual insurability is not satisfactory to the
insurer.
(5.1 added Feb. 3, 1994, P.L.1, No.1)
Section 5.2. Policies Issued to Other Groups.--A policy
issued to a group, other than one described in clauses (1)
through (5.1) of section 1, and which meets the requirements
of clause (5.2) of section 1 shall also meet the requirements
of this section. The premium for the policy shall be paid by
the policyholder either wholly from the policyholder's funds
or funds contributed by the policyholder or wholly from funds
contributed by the insured persons, or both. A policy on which
no part of the premium is to be derived from funds contributed
by the insured persons must insure all eligible persons or all
except any as to whom evidence of individual insurability is
not satisfactory to the insurer.
(5.2 added Feb. 3, 1994, P.L.1, No.1)
Section 6. Standard Policy Provisions.--No policy of group
life insurance shall be delivered in this State unless it
contains in substance the following provisions, or provisions
which in the opinion of the Insurance Commissioner are more
favorable to the persons insured, or at least as favorable to
the persons insured and more favorable to the policy holder:
Provided, however, That (i) provisions (6) to (10) inclusive
shall not apply to policies issued to a creditor to insure
debtors of such creditor; (ii) the standard provisions
required for individual life insurance policies shall not
apply to group life insurance policies; and (iii) if the group
life insurance policy is on a plan of insurance other than the
term plan, it shall contain a non-forfeiture provision or
provisions which in the opinion of the Commissioner is or are
equitable to the insured persons and to the policyholder, but
nothing herein shall be construed to require that group life
insurance policies contain the same non-forfeiture provisions
as are required for individual life insurance policies.
(1) A provision that the policyholder is entitled to a
grace period of thirty-one days for the payment of any premium
due except the first, during which grace period the death
benefit coverage shall continue in force, unless the
policyholder shall have given the insurer written notice of
discontinuance in advance of the date of discontinuance and in
accordance with the terms of the policy. The policy may
provide that the policyholder shall be liable to the insurer
for the payment of a pro rata premium for the time the policy
was in force during such grace period.
(2) A provision that the validity of the policy shall not
be contested, except for nonpayment of premiums, after it has
been in force for two years from its date of issue; and that
no statement made by any person insured under the policy
relating to his insurability shall be used in contesting the
validity of the insurance with respect to which such statement
was made after such insurance has been in force prior to the
contest for a period of two years during such person's
lifetime nor unless it is contained in a written instrument
signed by him.
(3) A provision that a copy of the application, if any, of
the policyholder shall be attached to the policy when issued,
that all statements made by the policyholder or by the persons
insured shall be deemed representations and not warranties,
and that no statement made by any person insured shall be used
in any contest unless a copy of the instrument containing the
statement is or has been furnished to such person or to his
beneficiary.
(4) A provision setting forth the conditions, if any, under
which the insurer reserves the right to require a person
eligible for insurance to furnish evidence of individual
insurability satisfactory to the insurer as a condition to
part or all of his coverage.
(5) A provision specifying an equitable adjustment of
premiums or of benefits or of both to be made in the event the
age of a person insured has been misstated, such provision to
contain a clear statement of the method of adjustment to be
used.
(6) A provision that any sum becoming due by reason of the
death of the person insured shall be payable to the
beneficiary designated by the person insured, subject to the
provisions of the policy in the event there is no designated
beneficiary, as to all or any part of such sum, living at the
death of the person insured, and subject to any right reserved
by the insurer in the policy and set forth in the certificate
to pay at its option a part of such sum not exceeding two
hundred fifty dollars to any person appearing to the insurer
to be equitably entitled thereto by reason of having incurred
funeral or other expenses incident to the last illness or
death of the person insured.
(7) A provision that the insurer will issue to the
policyholder for delivery to each person insured an individual
certificate setting forth a statement as to the insurance
protection to which he is entitled, to whom the insurance
benefits are payable, and the rights and conditions set forth
in (8), (9) and (10) following.
(8) A provision that if the insurance, or any portion of
it, on a person covered under the policy ceases because of
termination of employment or of membership in the class or
classes eligible for coverage under the policy, such person
shall be entitled to have issued to him by the insurer,
without evidence of insurability, an individual policy of life
insurance without disability or other supplementary benefits,
provided application for the individual policy shall be made,
and the first premium paid to the insurer, within thirty-one
days after such termination, and provided further that,
(i) The individual policy shall, at the option of such
person, be on any one of the forms, except term insurance,
then customarily issued by the insurer at the age and for the
amount applied for;
(ii) the individual policy shall be in an amount not in
excess of the amount of life insurance which ceases because of
such termination, less, in the case of a person whose
membership in the class or classes eligible for coverage
terminates but who continues in employment in another class,
the amount of any life insurance for which such person is or
becomes eligible under any other group policy within thirtyone days after such termination: Provided, That any amount of
insurance which shall have matured on or before the date of
such termination as an endowment payable to the person
insured, whether in one sum or in instalments or in the form
of an annuity, shall not, for the purposes of this provision,
be included in the amount which is considered to cease because
of such termination; and
(iii) the premium on the individual policy shall be at the
insurer's then customary rate applicable to the form and
amount of the individual policy, to the class of risk to which
such person then belongs, and to his age attained on the
effective date of the individual policy.
((8) amended May 25, 1951, P.L.410, No.95)
(9) A provision that if the group policy terminates or is
amended so as to terminate the insurance of any class of
insured persons, every person insured thereunder at the date
of such termination whose insurance terminates and who has
been so insured for at least five years prior to such
termination date shall be entitled to have issued to him by
the insurer an individual policy of life insurance, subject to
the same conditions and limitations as are provided by (8)
above, except that the group policy may provide that the
amount of such individual policy shall not exceed the smaller
of (i) the amount of the person's life insurance protection
ceasing because of the termination or amendment of the group
policy, less the amount of any life insurance for which he is
or becomes eligible under any group policy issued or
reinstated by the same or another insurer within thirty-one
days after such termination and (ii) two thousand dollars
($2000).
(10) A provision that if a person insured under the group
policy dies during the period within which he would have been
entitled to have an individual policy issued to him in
accordance with (8) or (9) above and before such an individual
policy shall have become effective, the amount of life
insurance which he would have been entitled to have issued to
him under such individual policy shall be payable as a claim
under the group policy, whether or not application for the
individual policy or the payment of the first premium therefor
has been made.
Section 7. Notice of Conversion Privileges.--If any
individual insured under a group life insurance policy
hereafter delivered in this State becomes entitled under the
terms of such policy to have an individual policy of life
insurance issued to him without evidence of insurability,
subject to making of application and payment of the first
premium within the period specified in such policy, and if
such individual is not given notice of the existence of such
right at least fifteen days prior to the expiration date of
such period, then, in such event the individual shall have an
additional period within which to exercise such right, but
nothing herein contained shall be construed to continue any
insurance beyond the period provided in such policy. This
additional period shall expire fifteen days next after the
individual is given such notice but in no event shall such
additional period extend beyond sixty days next after the
expiration date of the period provided in such policy. Written
notice presented to the individual or mailed by the
policyholder to the last known address of the individual or
mailed by the insurer to the last known address of the
individual as furnished by the policyholder shall constitute
notice for the purpose of this section.
Section 7.1. Assignment of Incidents of Ownership.-Notwithstanding any provision of law, a person whose life is
insured under any policy of group life insurance, whether or
not such policy is otherwise subject to this act, is permitted
to make an assignment of all or any part of his incidents of
ownership in such insurance, including, without limitation,
any right to designate a beneficiary or beneficiaries
thereunder and any right to have an individual policy issued
upon termination either of employment or of said policy of
group life insurance, provided that the insurer and the group
policyholder may prohibit or restrict such assignment by
appropriate policy provisions. This section shall be construed
as declaring the law as it existed prior to its enactment and
not as modifying it.
(7.1 added July 5, 1973, P.L.94, No.41)
Section 7.2. Out-of-State Coverage.--(a) No insurer shall
issue in this Commonwealth group life insurance coverage
provided under a group policy issued in another state or
deliver or issue for delivery in this Commonwealth a
certificate of group life insurance evidencing coverage under
a group policy issued in another state unless:
(1) such coverage is in compliance with the requirements of
this act and any other applicable act; or
(2) for coverage under a group policy or a certificate
evidencing coverage under a group policy issued to an out-ofState trustee of a fund, such coverage is issued in another
state wherein the insurance supervisory official or agency of
that state has determined that the issuance of the group
policy or certificate is not contrary to the best interests of
the general public, the issuance of the group policy or
certificate would result in economies of acquisition or
administration and the benefits are reasonable in relation to
the premium charged. If coverage or a certificate is issued in
this Commonwealth pursuant to this clause, an insurer shall
file with the Insurance Department a copy of the group policy
and certificate, a copy of the statute from the state in which
the group policy or certificate is issued authorizing the
issuance of the group policy or certificate, evidence of
approval in the state where the policy or certificate is
issued and copies of all supportive material used by the
company to secure approval of the group policy or certificate
in that state, including all the documentation required in
this clause. The Insurance Commissioner, at any time
subsequent to receipt of such information, after finding that
the standards of this clause have not been met, may order the
insurer to stop marketing such coverage in this Commonwealth.
(i) This clause shall apply to any group policy or
certificate evidencing coverage under a group policy issued to
any organization, or to any trust or trustee of a trust
established or participated in by one or more organizations,
to insure certain persons: Provided, however, That the
organization must be:
(A) a bank, retailer or other issuer of a credit card,
charge card or payment card that is issued to buy goods or
services, and the policy must insure holders of that card; or
(B) a bank, savings and loan association, credit union,
mutual fund, money market fund, stock broker or other similar
financial institution regulated by state or Federal law, and
the policy must insure the depositors, account holders or
members of that institution.
(ii) This clause shall not apply to any group policy or
certificate providing credit life insurance as defined in the
act of September 2, 1961 (P.L.1232, No.540), known as the
"Model Act for the Regulation of Credit Life Insurance and
Credit Accident and Health Insurance."
(b) The provisions of this act shall not apply if a group
policy is issued to:
(1) An out-of-State single employer.
(2) A trustee of a fund established by any person acting
directly as an employer having its principal office located in
a state other than this Commonwealth.
(3) An association, or a trust or trustee of a trust
established or participated in by one or more associations, to
insure association members or spouses or dependents of
members: Provided, however, That the association must be
organized or domiciled in a state other than this
Commonwealth, have a constitution and bylaws, be organized by
other than an insurer, be maintained in good faith for
purposes other than those of obtaining insurance, have been in
active existence for at least two years, operate from offices
other than the insurer's and be controlled by principals other
than the insurer's.
(4) A union-negotiated out-of-State trust.
(5) Other groups as may be determined by the Insurance
Commissioner, subject to subsection (a).
(c) (1) For group life insurance coverage provided in this
Commonwealth under a group policy issued in another state, and
except as provided in clause (2) of subsection (a) and
subsection (b), all group policies, certificates, amendments,
endorsements and enrollment forms shall be filed with the
Insurance Commissioner for approval. The insurer shall also
file with the Insurance Commissioner evidence of approval in
the state where the group policy is issued.
(2) Forms so filed for approval shall be subject to the
provisions of section 354 of the act of May 17, 1921 (P.L.682,
No.284), known as "The Insurance Company Law of 1921."
(d) As used in this section, the term "out-of-State single
employer" means any person acting directly as an employer and
having its principal office located in a state other than this
Commonwealth. "Out-of-State trustee of a fund" means a trustee
of a fund established by an insurer for two or more employers
or established by two or more persons acting directly as
employers and the trustee having its principal office located
in a state other than this Commonwealth. "Out-of-State
coverage" means insurance coverage issued in this Commonwealth
and provided under a group policy issued in a state other than
this Commonwealth. A "union-negotiated out-of-State trust"
means a trust established under a collective bargaining
agreement and which is located in a state other than this
Commonwealth.
(7.2 added Feb. 3, 1994, P.L.1, No.1)
Section 7.3. Notice of Compensation.--(a) In the case of a
policy issued to a group described in clause (5.1) or (5.2) of
section 1 on a group basis, if compensation of any kind will
or may be paid to a policyholder or sponsoring or endorsing
entity, the insurer shall cause to be distributed to
prospective insureds in a written notice that compensation
will or may be paid.
(b) Such notice shall be distributed:
(1) whether compensation is direct or indirect; and
(2) whether such compensation is paid to or retained by the
policyholder or sponsoring or endorsing entity or paid to or
retained by a third party at the direction of the policyholder
or sponsoring or endorsing entity or any entity affiliated
therewith by way of ownership, contract or employment.
(c) The notice required by this section shall be placed on
or accompany any application or enrollment form provided to
prospective insureds.
(d) As used in this section, a "sponsoring or endorsing
entity" means an organization which has arranged for the
offering of a program of insurance in a manner which
communicates that eligibility for participation in the program
is dependent upon affiliation with such organization or that
it encourages participation in the program.
(7.3 added Feb. 3, 1994, P.L.1, No.1)
Section 8. Existing Policies.--(8 repealed Feb. 3, 1994,
P.L.1, No.1)
Section 8.1. Policy and Certificate Issued Prior to the
Effective Date.--The provisions of this amendatory act shall
not invalidate or otherwise affect any group policy legally
issued prior to the effective date of this section or
certificate in effect prior to the effective date of this
section. All such group policies or certificates may remain in
full force and effect until three years after the effective
date of this section, notwithstanding the fact that they do
not comply with the provisions of this act.
(8.1 added Feb. 3, 1994, P.L.1, No.1)
Section 8.2. Newly Issued Group Policy.--Any group policy
issued on or after the effective date of this section shall
comply with the provisions of this act.
(8.2 added Feb. 3, 1994, P.L.1, No.1)
Section 8.3. Newly Issued Certificate Under Policy Issued
Prior to the Effective Date.--Certificates issued on or after
the effective date of this section under a group policy
legally issued prior to the effective date of this section
shall comply with the provisions of this act no later than
three years after the act is enacted if issued to: an employer
or trustees of a fund established by an employer, trustees of
a fund established by two or more employers none of whom has
joined after the effective date of this section, labor union,
police fraternity, firemen's fraternity, teachers' association
or federation and a unit of the National Guard or Naval
Militia. Any other certificates issued on or after the
effective date of this section under a group policy issued
prior to the effective date of this section shall comply with
the provisions of this act.
(8.3 added Feb. 3, 1994, P.L.1, No.1)
Section 8.4. Newly Issued Certificate Under Newly Issued
Policy.--Any certificate issued under a group policy issued on
or after the effective date of this section shall comply with
the provisions of this act.
(8.4 added Feb. 3, 1994, P.L.1, No.1)
Section 9. Premium Basis.--The Insurance Commissioner
shall, from time to time, issue regulations, except with
respect to group life insurance defined in clause (2) of
section 1 and in section 3, prescribing the minimum group life
insurance premiums to be charged for the first year of
insurance, based on an examination of the experience of such
insurers and on reasonable assumptions as to interest,
mortality and expense. No such regulation or amendment thereto
shall be promulgated except upon notice and after hearing to
all insurers affected thereby.
No domestic, foreign or alien life insurance company shall
deliver in this Commonwealth any policy of group life
insurance the premium for which shall be less than the premium
prescribed in the regulations promulgated by the Insurance
Commissioner. Any such policy may, however, anything in this
act to the contrary notwithstanding, provide for a
readjustment of the rate based on experience at the end of the
first or any subsequent year of insurance, which readjustment
may be made retroactive for such policy year only.
(9 amended Aug. 14, 1959, P.L.722, No.254)
Section 10. Repeal and Saving Clause.--Sections four
hundred fifteen and four hundred sixteen of the act, approved
the seventeenth day of May, one thousand nine hundred twenty-
one (Pamphlet Laws 682), 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 interinsurance 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," and
their amendments, are hereby repealed.
All other acts and parts of acts inconsistent herewith are
hereby repealed.
This act shall not repeal the act, approved the twentysecond day of June, one thousand nine hundred thirty-one
(Pamphlet Laws 844), entitled, as amended "An act authorizing
the Commonwealth of Pennsylvania, or any department or
division thereof, and counties, cities, boroughs, incorporated
towns, townships, school districts, vocational school
districts, and institution districts to make contracts of
life, health, hospitalization, medical services, and accident
policies for the benefit of employes thereof, and contracts
for pensions for such employes; and providing for the payment
of the cost thereof," nor its amendments, nor any partial
reenactment thereof.