Pennsylvania HB 404: 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 health insurance coverage for certain children of insured parents.

Bill Text

PRINTER'S NO. 376
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 404
Session of
2025
INTRODUCED BY PASHINSKI, FRANKEL, KHAN, FREEMAN, KINKEAD,
HADDOCK, HANBIDGE, SIEGEL, GIRAL, SHUSTERMAN, BOROWSKI,
PROBST, McNEILL, HILL-EVANS, T. DAVIS, HARKINS, CEPEDA-
FREYTIZ, D. WILLIAMS, SANCHEZ, VENKAT, MUNROE, BENHAM, OTTEN,
ABNEY, BRENNAN, HOWARD, INGLIS, STEELE, GUENST, CARROLL,
KENYATTA, HOHENSTEIN, CERRATO, WAXMAN, KAZEEM, DALEY, CIRESI,
MERSKI, PIELLI, WARREN, SAMUELSON, BRIGGS, DONAHUE, BOYD,
SCHLOSSBERG, CONKLIN, NEILSON, DEASY, GREEN, BURGOS,
A. BROWN, ISAACSON AND MAYES, JANUARY 29, 2025
REFERRED TO COMMITTEE ON INSURANCE, JANUARY 29, 2025
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," in casualty insurance, further
providing for conditions subject to which policies are to be
issued and for health insurance coverage for certain children
of insured parents.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Sections 617(A)(3) and (9) and 617.1 of the act
of May 17, 1921 (P.L.682, No.284), known as The Insurance
Company Law of 1921, are amended to read:
Section 617. Conditions Subject to Which Policies Are to Be
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20

Issued.--(A) No such policy shall be delivered or issued for
delivery to any person in this Commonwealth unless:
* * *
(3) it purports to insure only one person, except that a
policy may insure, originally or by subsequent amendment, upon
the application of an adult head of a family who shall be deemed
the policyholder, any two or more eligible members of that
family, including husband, wife, dependent children or any
children under a specified age which[, except as provided under
section 617.1, shall not exceed nineteen] shall be at least
twenty-six years and any other person dependent upon the
policyholder; and
* * *
(9) A policy delivered or issued for delivery after January
1, 1968, under which coverage of a dependent of a policyholder
terminates at a specified age shall, with respect to an
unmarried child covered by the policy prior to the attainment of
the age of [nineteen] twenty-six who is incapable of self-
sustaining employment by reason of [mental retardation or
physical handicap] an intellectual or physical disability and
who became so incapable prior to attainment of age [nineteen]
twenty-six and who is chiefly dependent upon such policyholder
for support and maintenance, not so terminate while the policy
remains in force and the dependent remains in such condition, if
the policyholder has within thirty-one days of such dependent's
attainment of the limiting age submitted proof of such
dependent's incapacity as described herein. The foregoing
provisions of this paragraph shall not require an insurer to
insure a dependent who [is a mentally retarded or physically
handicapped child] has an intellectual or physical disability
20250HB0404PN0376 - 2 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30

where the policy is underwritten on evidence of insurability
based on health factors set forth in the application or where
such dependent does not satisfy the conditions of the policy as
to any requirement for evidence of insurability or other
provisions of the policy, satisfaction of which is required for
coverage thereunder to take effect. In any such case the terms
of the policy shall apply with regard to the coverage or
exclusion from coverage of such dependent.
* * *
Section 617.1. Health Insurance Coverage for Certain
Children of Insured Parents.--(A) (1) A health insurance
policy offered, issued or renewed in this Commonwealth that
provides dependent coverage of children shall continue to make
such coverage available for an adult child who has not attained
the age of twenty-six prior to the date of issuance or renewal.
(2) With respect to a child who has not attained the age of
twenty-six, a health insurance policy:
(i) May define dependent for purposes of eligibility for
dependent coverage of children in terms of a relationship
between the child and the policyholder or certificate holder,
including as described in 26 U.S.C. § 152(f)(1) (relating to
dependent defined).
(ii) May not deny or restrict dependent coverage based on
any of the following or any combination of the following:
(a) The presence or absence of the child's financial
dependency on any other person.
(b) The residency of the child, whether by l