DeLuca legislation passed by PA House and Senate signed today by Gov. Wolf
HARRISBURG, Nov. 27 – State Rep. Tony DeLuca’s H.B. 1016, which provides stronger protections to fraternal life insurance products, was signed into law as Act 98 of 2019 by Gov. Tom Wolf.
DeLuca, Democratic chairman of the House Insurance Committee, said his measure provides enhanced protections to not-for-profit fraternal insurance products by allowing for earlier regulatory intervention; enacts notification requirements to the state Insurance Department before assessments; creates a streamlined process that allows for state transfers of products to another fraternal; and, if necessary, streamlines liquidation.
Fraternal benefit societies are not-for-profit membership organizations. To date, the commonwealth has about 500,000 members of fraternal organizations.
“Before this pro-consumer bill was signed today by Governor Wolf, fraternal life insurance products weren’t held to the same standard as other products,” DeLuca said. “Today’s signing changes that, and I’m grateful for the bipartisan support from my colleagues that got this bill signed into law. As long as I’m in public service, I will continue to fight for consumer protections.”
DeLuca said he initially drafted the bill because he saw a need to provide stronger protections for fraternal members who were purchasing life insurance products offered by fraternal benefit societies, noting the products didn’t receive the same protections as commercial products purchased in the same market.
H.B. 1016 passed the state House and Senate unanimously.