The state House of Representatives recently approved Senate Bill 1205 that updates and streamlines reporting requirements for insurance companies.
The legislation, which advanced through the state Senate Sept. 25, would require insurance companies to provide the state insurance commissioner with a list of their board members and officers and any other information on their corporate structure on an annual basis beginning in January 2020.
This information would be used to ensure the Insurance Department of the Commonwealth continues to meet the National Association of Insurance Commissioners-mandated requirement to conduct financial stability examinations of insurance companies doing business in the state.
Failure to meet the requirement could jeopardize the department’s accreditation.
“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.”
The bill now moves to Gov. Tom Wolf for his signature.