The Pennsylvania Senate recently advanced legislation that would update and streamline reporting requirements for insurance companies operating in the commonwealth.
Under the bill, insurance companies would be required to provide specific information on their corporate structure on an annual basis beginning in January 2020.
This information includes a list of board members and officers and will be used to ensure the Pennsylvania Department of Insurance meets National Association of Insurance Commissioners (NAIC) requirements. The NAIC mandates states conduct financial stability examinations of insurance companies.
Failure to comply could result in the loss of NAIC accreditation for the department.
“For insurance companies, Senate Bill 1205 should reduce the cumbersome burden that comes with the department’s financial stability examination since much of the relevant material will be already provided and updated annually,” Sen. Dan Laughlin (R-Erie), who introduced the bill, said. “This burden is especially heavy for Pennsylvania’s smaller insurance companies. In addition, this bill also includes provisions that will help those companies based in Pennsylvania by increasing the parity between the reporting requirements they face and those of out-of-state businesses.”
If S.B. 1205 passes, companies that fail to file in a timely matter could be fined $200 for each day of delay up to $25,000 annually.