HB 261 — An Act amending the act of May 17, 1921 (P.L.682, No.284), known as The Insurance Company Law of 1921, in casualty insurance, further providing for conditions subject to which policies are to be issued and for group accident and sickness insurance; and, in community health reinvestment, further providing for definitions.

PRINTER'S NO.   169

                     THE GENERAL ASSEMBLY OF PENNSYLVANIA



                         HOUSE BILL
                         No. 261
                                               Session of
                                                 2025

     INTRODUCED BY PICKETT, WARREN, VENKAT, VITALI, KHAN, SANCHEZ,
        SAPPEY, SAMUELSON, MALAGARI, KENYATTA, DONAHUE, BURGOS,
        NEILSON, BRENNAN, HILL-EVANS, GALLAGHER, SCHLOSSBERG AND
        DALEY, JANUARY 17, 2025

     REFERRED TO COMMITTEE ON INSURANCE, JANUARY 17, 2025


                                    AN ACT
 1   Amending the act of May 17, 1921 (P.L.682, No.284), entitled "An
 2      act relating to insurance; amending, revising, and
 3      consolidating the law providing for the incorporation of
 4      insurance companies, and the regulation, supervision, and
 5      protection of home and foreign insurance companies, Lloyds
 6      associations, reciprocal and inter-insurance exchanges, and
 7      fire insurance rating bureaus, and the regulation and
 8      supervision of insurance carried by such companies,
 9      associations, and exchanges, including insurance carried by
10      the State Workmen's Insurance Fund; providing penalties; and
11      repealing existing laws," in casualty insurance, further
12      providing for conditions subject to which policies are to be
13      issued and for group accident and sickness insurance; and, in
14      community health reinvestment, further providing for
15      definitions.
16      The General Assembly of the Commonwealth of Pennsylvania
17   hereby enacts as follows:
18      Section 1.    Sections 617(A)(9) and 621.2(a)(6) of the act of
19   May 17, 1921 (P.L.682, No.284), known as The Insurance Company
20   Law of 1921, are amended to read:
21      Section 617.    Conditions Subject to Which Policies Are to Be
22   Issued.--(A)    No such policy shall be delivered or issued for
23   delivery to any person in this Commonwealth unless:
 1      * * *
 2      (9)   A policy delivered or issued for delivery after January
 3   1, 1968, under which coverage of a dependent of a policyholder
 4   terminates at a specified age shall, with respect to an
 5   unmarried child covered by the policy prior to the attainment of
 6   the age of nineteen who is incapable of self-sustaining
 7   employment by reason of [mental retardation or physical
 8   handicap] an intellectual or physical disability and who became
 9   so incapable prior to attainment of age nineteen and who is
10   chiefly dependent upon such policyholder for support and
11   maintenance, not so terminate while the policy remains in force
12   and the dependent remains in such condition, if the policyholder
13   has within thirty-one days of such dependent's attainment of the
14   limiting age submitted proof of such dependent's incapacity as
15   described herein. The foregoing provisions of this paragraph
16   shall not require an insurer to insure a dependent [who is a
17   mentally retarded or physically handicapped] child who has an
18   intellectual or physical disability where the policy is
19   underwritten on evidence of insurability based on health factors
20   set forth in the application or where such dependent child does
21   not satisfy the conditions of the policy as to any requirement
22   for evidence of insurability or other provisions of the policy,
23   satisfaction of which is required for coverage thereunder to
24   take effect. In any such case the terms of the policy shall
25   apply with regard to the coverage or exclusion from coverage of
26   such dependent.
27      * * *
28      Section 621.2.   Group Accident and Sickness Insurance.--(a)
29   Group accident and sickness insurance is hereby declared to be
30   that form of accident and sickness insurance covering groups of

20250HB0261PN0169                  - 2 -
 1   persons defined in this section with or without one or more
 2   members of their families or one or more of their dependents, or
 3   covering one or more members of the families or one or more
 4   dependents of such groups or persons and issued upon the
 5   following basis:
 6      * * *
 7      (6)   A policy delivered or issued for delivery on or after
 8   January 1, 1968 under which coverage of a dependent of an
 9   employe or other member of the insured group terminates at a
10   specified age shall, with respect to an unmarried child covered
11   by the policy prior to the attainment of the age of nineteen who
12   is incapable of self-sustaining employment by reason of [mental
13   retardation or physical handicap] intellectual or physical
14   disability and who became so incapable prior to attainment of
15   age nineteen and who is chiefly dependent upon such employe or
16   member for support and maintenance, not so terminate while the
17   insurance of the employe or member remains in force and the
18   dependent remains in such condition, if the insured employe or
19   member has within thirty-one days of such dependent's attainment
20   of the termination age submitted proof of such dependent's
21   incapacity as described herein. The foregoing provisions of this
22   paragraph shall not require an insurer to insure a dependent
23   [who is a mentally retarded or physically handicapped] child who
24   has an intellectual or physical disability if the dependent is a
25   child of an employe or other member of the insured group [where
26   such] and the dependent does not satisfy the conditions of the
27   group policy as to any requirements for evidence of insurability
28   or other provisions as may be stated in the group policy
29   required for coverage thereunder to take effect. In any such
30   case the terms of the policy shall apply with regard to the

20250HB0261PN0169                  - 3 -
 1   coverage or exclusion from coverage of such dependent.
 2      * * *
 3      Section 2.   Paragraph (3) of the definition of "community
 4   health reinvestment activity" in section 2501 of the act is
 5   amended to read:
 6   Section 2501.   Definitions.
 7      The following words and phrases when used in this article
 8   shall have the meanings given to them in this section unless the
 9   context clearly indicates otherwise:
10      "Community health reinvestment activity."   Community health
11   services and projects that improve health care or make health
12   care more accessible. The term includes funding, subsidization
13   or provision of the following:
14           * * *
15           (3)   Programs for the prevention and treatment of disease
16      or injury, including [mental retardation] intellectual
17      disabilities, mental disorders, mental health counseling or
18      the promotion of health or wellness.
19   * * *
20      Section 3.   This act shall take effect immediately.




20250HB0261PN0169                   - 4 -