DeLuca bill that adds stronger protections to life insurance products offered by fraternal benefit societies passes House
HARRISBURG, June 4 – State Rep. Tony DeLuca, D-Allegheny, on Tuesday announced that his legislation geared toward providing stronger protections to fraternal life insurance products passed the state House.
DeLuca, Democratic chairman of the House Insurance Committee, said life insurance products offered by fraternal benefit societies do not receive the same protections as commercial insurance products purchased in the same market. His measure, H.B. 1016, would provide stronger protections for fraternal members.
“The commonwealth has nearly 500,000 fraternal members, and these fraternal benefit societies – which are not-for-profit membership organizations – help secure their members’ financial future by providing a variety of life insurance and retirement products,” DeLuca said. “However, they don’t receive the same protections as commercial insurance products. This bill would rectify that issue and ensure fraternal members enjoy stronger protections to their life insurance products.
Specifically, H.B. 1016 would provide enhanced protections to fraternal insurance products by allowing for earlier regulatory intervention; enacting notification requirements to the state Insurance Department before assessments; creating a streamline process that allows for transfers of products to another fraternal; and if necessary, streamline liquidation.
Deluca’s pro-consumer legislation, which was voted out of the Insurance Committee unanimously, passed the state House unanimously.
House Bill 1016 now heads to the state Senate.