PA. GOV. SIGNS BILLS ON CROP, SURPLUS:

Pennsylvania Gov. Edward G. Rendell has signed into law several bills affecting the insurance industry, including one on crop insurance awareness and another on insurance company surplus contributions. Senate Bill 912, sponsored by Sen. Mike Waugh (R-York), provides for a program to educate producers of agricultural commodities as to the benefits of federal crop insurance and risk management practices. The state agricultural department may provide financial assistance to eligible producers in an amount of up to 10 percent of the cost of federal crop insurance premiums. Senate Bill 1096, sponsored by Sen. Gibson Armstrong (R-Lancaster, York), amends the Insurance Company Law of 1921. The provisions on surplus notes adds provisions on subordination of liabilities, payment of interest and reporting requirements. The amendments increase the cap on agreements involving the lending of securities from 2 to 5 percent. The bill also adds new provisions to the nonforfeiture provisions of annuities that require minimum payments under an annuity contract when the annuitant ceases payments.

Topics Agribusiness Pennsylvania