Robinson: Senate Approves Bill to Stabilize Insurance Market

HARRISBURG – The Senate approved legislation today that would stabilize the insurance market, according to Sen. Devlin Robinson (R-37).

House Bill 2096 – which mirrors Robinson’s Senate Bill 1148 – would bring clarity and consistency to the insurance market by establishing a fee structure for surplus lines insurance in personal transactions. Surplus lines insurance involves coverage provided by insurers not licensed in a specific state, often for high-risk or unusual risks that standard insurers won’t cover.

“This bill ensures that consumers are protected through clear and fair practices in the surplus lines insurance market,” Robinson said. “It enhances transparency and provides guidelines that benefit both insurers and insureds.”

The legislation proposes amendments to the Insurance Company Law of 1921, allowing surplus lines licensees to charge a service fee for placing surplus lines insurance policies. In addition to any commissions received from insurers, these service fees must be reasonable and transparent to consumers. Key provisions include capping service fees for personal lines insurance policies at $150 or 4% of the policy premium, whichever is greater. The commissioner has the authority to adjust these fees, which must be disclosed upfront. Licensees can also recover verifiable costs for necessary inspections not retained by them and must submit monthly reports to the Department of Insurance detailing all service fees and transactions.

The unanimous passage of House Bill 2096 marks a significant step toward a more transparent and regulated surplus lines insurance market in Pennsylvania. It now heads to the governor to be signed into law. The legislation will take effect in 60 days upon signage, allowing stakeholders to adjust to the new requirements.


Allison Dutrey

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