RULES AND REGULATIONS
[ 31 PA. CODE CH. 43 ]
Fraternal Beneficial Societies
[41 Pa.B. 4948]
[Saturday, September 17, 2011]
The Insurance Department (Department) rescinds Chapter 43 to read as set forth in Annex A. This final-omitted rulemaking is adopted under the authority in sections 206, 506, 1501 and 1502 of The Administrative Code of 1929 (71 P. S. §§ 66, 186, 411 and 412), regarding the general rulemaking authority of the Department, and Article XXIV of The Insurance Company Law of 1921 (act) (40 P. S. §§ 991.2401—991.2466), regarding fraternal benefit societies.
Notice of the proposed rulemaking is omitted in accordance with section 204(3) of the act of July 31, 1968 (P. L. 769, No. 240) (45 P. S. § 1204(3)), known as the Commonwealth Documents Law (CDL). The proposed rulemaking procedures in this instance are unnecessary because the Department is rescinding obsolete regulations that have been superseded by statute.
The purpose of this final-omitted rulemaking is to rescind Chapter 43 to eliminate obsolete, unnecessary regulations. The regulations were adopted on July 23, 1948, under the authority of section 5 of the act of June 4, 1937 (P. L. 1643, No. 342) (Act 342) (40 P. S. § 1105). The regulations related to the establishment and valuation of life insurance reserves by beneficial societies that fell within the scope of section 1 of Act 342 (40 P. S. § 1101). This type of society no longer exists as an entity licensed to transact insurance in this Commonwealth.
Act 342, which initially authorized the regulations, was initially repealed by section 905 of the Fraternal Benefit Society Code of 1977 (40 P. S. § 1141-905) and further by section 701 of the Fraternal Benefit Societies Code of 1992 (40 P. S. § 1142-701) insofar as it was inconsistent with those acts. Finally, the Fraternal Benefit Societies Code of 1992 was replaced by Article XXIV of the act. Specifically, the requirements in the regulations have been replaced by section 9 of the act (40 P. S. § 991.2451) and other current laws and regulations regarding the establishment and valuation of reserves for life insurance products.
Entities currently licensed to transact insurance business in this Commonwealth will not be affected by the rescission of these obsolete, unnecessary regulations.
The rescission of these obsolete, unnecessary regulations will not increase the Department's costs.
The rescission of these obsolete, unnecessary regulations will not have fiscal impact on the general public.
The rescission of these obsolete, unnecessary regulations will not impose additional costs on political subdivisions.
The rescission of these obsolete, unnecessary regulations will not impose costs on fraternal benefit societies or other insurers writing life insurance in this Commonwealth.
The final-omitted rulemaking will not impose paperwork on the Department.
The final-omitted rulemaking will become effective upon publication in the Pennsylvania Bulletin.
Questions regarding the final-omitted rulemaking may be addressed to Peter J. Salvatore, Regulatory Coordinator, Insurance Department, 1326 Strawberry Square, Harrisburg, PA 17120, (717) 787-4429, fax (717) 705-8378, email@example.com.
Under section 5.1(c) of the Regulatory Review Act (71 P. S. § 745.5a(c)), on July 15, 2011, the Department submitted a copy of the final-omitted rulemaking and a copy of a Regulatory Analysis Form to the Independent Regulatory Review Commission (IRRC) and to the Chairpersons of the House Committee on Insurance and the Senate Committee on Banking and Insurance. On the same date, the regulations were submitted to the Office of Attorney General for review and approval under the Commonwealth Attorneys Act (71 P. S. §§ 732-101— 732-506).
Under section 5.1(j.2) of the Regulatory Review Act, on August 24, 2011, the final-omitted rulemaking was deemed approved by the House and Senate Committees. Under section 5.1(e) of the Regulatory Review Act, IRRC met on August 25, 2011, and approved the final-omitted rulemaking.
The Insurance Commissioner finds that:
(1) The proposed rulemaking procedures in sections 201 and 202 of the CDL (45 P. S. §§ 1201 and 1202) are unnecessary because this final-omitted rulemaking rescinds obsolete regulations.
(2) There is good cause to forego public notice of the intention to rescind Chapter 43 because notice of the amendments under the circumstances is unnecessary, impractical and not contrary to the public interest under section 204 of the CDL.
(3) Public comment cannot change the fact that the regulations are obsolete.
The Commissioner, acting under the authority in sections 206, 506, 1501 and 1502 of The Administrative Code of 1929, orders that:
(1) The regulations of the Department, 31 Pa. Code Chapter 43, are amended by deleting §§ 43.1 and 43.2 to read as set forth in Annex A.
(2) The Department shall submit this order and Annex A to the Office of Attorney General and the Office of General Counsel for approval as to form and legality as required by law.
(3) The Department shall certify this order and Annex A and deposit them with the Legislative Reference Bureau as required by law.
(4) This order shall take effect upon its publication in the Pennsylvania Bulletin.
MICHAEL F. CONSEDINE,
(Editor's Note: For the text of the order of the Independent Regulatory Review Commission relating to this document, see 41 Pa.B. 4923 (September 10, 2011).)
Fiscal Note: 11-248. No fiscal impact; (8) recommends adoption.
TITLE 31. INSURANCE
PART I. GENERAL PROVISIONS
Subpart D. (Reserved)
CHAPTER 43. (Reserved)
§§ 43.1 and 43.2. (Reserved).
[Pa.B. Doc. No. 11-1594. Filed for public inspection September 16, 2011, 9:00 a.m.]
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