1. Part I: Legislative Overview

2. Today's Topics Review of material in packet Budget preview
Legislative session in review
A peak at the GA at work
Insurance bills passed
New Bills and Sponsorship Memos
PAMIC Legislative priorities
Transparency
CGAD
Other
PID Legislative Priorities
Amicus Curia
PAMIC Pac

3. No PID Budget Hearings Scheduled Consolidation of Services Rumors:
Budget Preview
Tax Revenues are $367 million below estimates as of January 2017
Estimated $714 million shortfall by end of Fiscal Year 2016/17
Projection of $1.5 billion shortfall by June 2018
Cost Drivers:
Human Services
Pensions
Corrections
What’s to be done in short term:
Consolidating HR, Admin, IT functions
Hiring Freeze/Spending limits
Closing Prisons
Agency Consolidations
What’s to be done long term:
Radical rethinking of government
Raise taxes
Other Revenue Enhancers
Governor Wolf to present FY 2017/2018 to General Assembly on February 7, 2017
No PID Budget Hearings Scheduled
Consolidation of Services
Rumors:
No new broad based tax increases (PIT, Sales Tax)
Premium Tax, Fees are on table

4. Total Filed = 3,760

5. New Laws = 307

7. 4 1

8. New Laws: Legislative Session 2015/16
Full Summaries in Folder

9. This Session so Far Over 1,700 HCO’s & SCO’s
Over 500 Bills & Resolutions
PAMIC tracking 20 items
All tracked items can be seen on PAMIC website in “Members Area” - (updates daily)

10. House Bills HB 35 Thomas, Curtis
Amends re Breach of Personal Information Act
(PN 42) Amends the Breach of Personal Information Notification Act providing for disposal of materials containing personal information by stipulating various methods which may be employed. Lays out penalties for violations. Effective in 60 days
HB 36
Amends Breach of Personal Information Act
(PN 43) Amends the Breach of Personal Information Notification Act providing for disposal of materials containing personal information by amending the definition of "personal information" to include various additional criteria. Effective in 60 days.
HB 214
Miller, Daniel
Amends Title 75 re digitized driver's license
(PN 179) Amends title 75 (Vehicles) providing for the option of a digitized driver's license through a mobile app offered by the Department of Transportation. Effective in 60 days.
HB 238
Kampf, Warren
Act re Fairness in Claims & Transparency Act

11. Senate Bills SB 86 Greenleaf, Stew
Act re regulation of service contracts
(PN 65) The Service Contract Act provides for the regulation of service contracts and for powers and duties of the Insurance Commissioner; and imposes a civil penalty. Effective in 60 days.
SB 190
McGarrigle, Tho
Amends Insurance Dept Act re storage facility
PN 179) Amends the Insurance Department Act adding an article providing for self-service storage facility insurance. The Insurance Department may issue a self-service storage agent license to an owner that has complied with the requirements of the bill authorizing the owner to offer or to sell the kinds of insurance prescribed in this section in connection with and incidental to the rental of space at a self-service storage facility. The bill provides for application, sale of insurance, requirements, training, exclusions, and promotions. Effective in 60 days.

12. HCO’s & SCO’s HCO 108 Driscoll, Michael
Financial literacy capstone course
HCO 316
Murt, Thomas
Insurance policy premium tax
HCO 319
Flood Insurance Premium Assistance Program
HCO 383
Miller, Daniel
Digitized driver's license
HCO 443
DeLuca, Anthony
Unfair discrimination in auto insurance
HCO 515
Freeman, Robert
Workers' Compensation Act & health insurance
HCO 581
Charlton, Alexa
Self storage unit content insurance
HCO 632
Saccone, Rick
Drug convictions & license suspension removal
HCO 719
Kampf, Warren
Fairness in Claims and Transparency Act
HCO 811
Dush, Cris
Volunteer fire & EMS services reimbursements
HCO 881
Truth in Insurance Advertising online
HCO1035
Warren, Perry (
PA Flood Insurance Premium Assistance TF
SCO 188
Greenleaf, Stew
Regulation of service contracts
SCO 401
Rafferty, John
Property and casualty insurance & notices

13. (use handouts as your guide - leave them with legislator)
PAMIC Legislative Priorities
Resourcing for Solvency Monitoring
Cost Transparency (see handout)
CGAD (see handout)
Other:
Budget Related (see handout)
Umbrella Policies
Minimum Limits
Asbestos Trusts
When meeting with your legislator today, focus on:
Solvency Monitoring issues
Budget Issues
CGAD (if time permits)
(use handouts as your guide - leave them with legislator)

14. PID Legislative Priorities
CGAD - accreditation issue (see comment letter)
Market Regulation Accreditation
Only P&C issue raised was auto insurance minimum limits (focused on file & use)
Main focus is on health insurance

15. Recent PAMIC Amicus participation:
Rancosky Amicus (October still pending)): The amicus brief filed by the PDI and PAMIC calls into question whether the two-prong test for statutory insurance bad faith, established decades ago in Terletsky will continue or not. Terletsky v. Prudential Property and Cas. Ins. Co., 649 A.2d 680 (Pa. Super. 1994)[Bad faith plaintiff must show (1) that insurer did not have reasonable basis for denying benefits; and (2) that insurer knew or recklessly disregarded that lack of reasonable basis in denying the claim]. It also calls into question whether the long-held requirement – that a disgruntled insured can only prove that “knowing and reckless disregard” with evidence of some motive of self-interest or ill will – should also be discarded.
Wolfe Amicus (July decided): On December 15, 2014, the Supreme Court of Pennsylvania held, in a 5-1 decision, that bad faith claims brought pursuant to 42 Pa. C.S. § 8371 may be assigned by an insured to an injured third party under Pennsylvania law. See Allstate Prop. & Cas. Ins. Co. v. Wolfe, No. 39 MAP 2014 (Pa. Dec. 15, 2014).

16. The PAMIC PAC