NOTICES
Amendments to Insurance Holding Companies Law (PPOs); Notice No. 2001-02
[31 Pa.B. 895] 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) website at www. insurance.state.pa.us or the Legislature's website at www. legis.state.pa.us.
One of the amendments in Act 132 will bring risk-assuming preferred provider organizations (PPOs) within the scope of the Insurance Holding Companies Law (40 P. S. §§ 991.1401--991.1413)1 by adding PPOs to the definition of ''insurer'' in that law. Other amendments to the Insurance Holding Companies Law will add limited liability company to the definition of ''person'' and pledges of assets to the types of transactions involving affiliates in insurance holding company systems that must be reported to the Department before the transactions occur. The Act 132 amendments to the Insurance Holding Companies Law will become effective in 60 days of enactment.
Therefore, as of February 17, 2001, PPOs will be required to comply with the Insurance Holding Companies Law, including the following:
1. An acquisition of control of or merger with a PPO must be approved by the Department. See 40 P. S. §§ 991.1402 and 991.1403 (relating to acquisition of control of a merger with domestic insurer; and acquisitions involving insurers not otherwise covered).
2. A PPO that is a member of an insurance holding company system must file a registration statement with the Department by March 31, 2001, and each year thereafter. See 40 P. S. § 991.1404 (relating to registration of insurers).
3. Dividends and transactions within a holding company system will be subject to standards and reporting requirements. See 40 P. S. § 991.1405 (relating to standards and management of an insurer within a holding company system).
4. A PPO's board of directors and committees must comply with requirements relating to membership. See 40 P. S. § 991.1405(c) (relating to standards and management of an insurer within a holding company system).
Instructions and formats for the statements and notices required to be filed under the law prescribed in the Department's regulations in 31 Pa. Code Chapter 25 (relating to rules and procedural requirements for insurance holding company systems). Additional application procedures for acquisitions and mergers can be obtained from the Department's website by clicking on ''Companies,'' ''Company Licensing Applications and Forms,'' and then ''Miscellaneous Documents.''
Questions relating to acquisitions and mergers may be directed to Robert Brackbill, Chief, Company Licensing Division, (717) 783-2143, Ra-in-company@state.pa.us. Questions relating to registration statements, dividendsand transactions may be directed to Kaushik Patel, Chief, Financial Analysis Division, (717) 787-5890, Ra-in-analysis@state.pa.us.
M. DIANE KOKEN,
Insurance Commissioner______
1 Information on how to obtain a copy of the Insurance Holding Companies Law (Article XIV of The Insurance Company Law of 1921, added December 18, 1992, P. L. 1519, No. 178) or the accompanying regulation (31 Pa. Code, Chapter 25) can be obtained from the Department's Website. (Click on the ''Companies'' button at the left-hand side of the home page.)
[Pa.B. Doc. No. 01-239. Filed for public inspection February 9, 2001, 9:00 a.m.]
No part of the information on this site may be reproduced for profit or sold for profit.This material has been drawn directly from the official Pennsylvania Bulletin full text database. Due to the limitations of HTML or differences in display capabilities of different browsers, this version may differ slightly from the official printed version.
