Pennsylvania Act 1986-64 — AUTOMOBILE INSURANCE TASK FORCE - CREATING

Act text

AUTOMOBILE INSURANCE TASK FORCE - CREATING
                  Act of Jun. 11, 1986, P.L. 226, No. 64              Cl. 40
                                  AN ACT

     Amending the act of May 17, 1921 (P.L.682, No.284), entitled "An
        act relating to insurance; amending, revising, and
        consolidating the law providing for the incorporation of
        insurance companies, and the regulation, supervision, and
        protection of home and foreign insurance companies, Lloyds
        associations, reciprocal and inter-insurance exchanges, and
        fire insurance rating bureaus, and the regulation and
        supervision of insurance carried by such companies,
        associations, and exchanges, including insurance carried by
        the State Workmen's Insurance Fund; providing penalties; and
        repealing existing laws," further providing for investments;
        requiring alcohol abuse and dependency coverage; providing
        civil immunity for persons who furnish or receive information
        relating to suspected fraudulent insurance activities;
        creating a task force to conduct a review of various factors
        used in determining automobile insurance premiums; and making
        an appropriation.

        The General Assembly of the Commonwealth of Pennsylvania
     hereby enacts as follows:

        Section 19.  (a)  A task force is established to conduct an
     in-depth study of automobile insurance rates and present to the
     General Assembly a detailed proposal and recommendations
     concerning various rating factors used in determining automobile
     insurance premiums.
        (b)  The task force shall consist of nine members. Three
     members shall be appointed by the Governor, three by the
     President pro tempore of the Senate and three by the Speaker of
     the House of Representatives. Each appointing authority shall
     appoint one male representative of consumers of automobile
     insurance, one female representative of consumers of automobile
     insurance and one individual with special skill, training and
     experience in the field of automobile insurance. At least one
     member appointed by the President pro tempore shall be
     recommended by the Minority Leader of the Senate and at least
     one member appointed by the Speaker of the House of
     Representatives shall be recommended by the Minority Leader of
     the House of Representatives. Members of the task force shall
     not be officers, officials or employees of the Commonwealth.
     Members of the task force shall not receive compensation, but
     may be reimbursed for actual and necessary expenses reasonably
     incurred in the deliberations of the task force.
        (c)  The task force shall constitute a legislative advisory
     committee assigned administratively to the Joint State
     Government Commission. The commission shall provide offices,
     staff, support, clerical assistance and administrative services
     to the task force.
        (d)  The task force shall contract for an independent
     professional evaluation of automobile insurance rating
     practices, which evaluation shall identify, analyze and compare
     various options for the rating of drivers, including
     recommendations regarding the use of alternatives to any or all
     of the existing rating factors and the economic impact upon
     consumers of such options. The task force shall develop criteria
     and specifications for the evaluation, publicly advertise a
     request for proposals and competitively select a contractor,
     with the approval of at least six members of the task force,
     from among responsive and responsible bidders. A final report
     from the contractor shall be presented to the task force on
     January 6, 1987.
        (e)  The task force shall review the final report of the
     contractor, conduct public hearings following receipt of the
     report and issue a final report of the recommendations of the
     task force not later than April 1, 1987. The task force shall
     provide its final report and recommendations to the Governor,
     the President pro tempore of the Senate and the Speaker of the
     House of Representatives.
        Section 20.  The sum of $125,000, or as much thereof as may
     be necessary, is hereby appropriated to the Insurance Department
     to carry out the provisions of section 19.