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FOR IMMEDIATE RELEASE |
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State
Rep. Tony DeLuca |
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Senate committee approves DeLuca consumer protection bill
HARRISBURG, Feb. 5 – The Senate Banking and Insurance committee has approved a bill introduced by state Rep. Tony DeLuca, D-Allegheny, that would require credit insurance companies to refund customer premiums when a policy is terminated before its original expiration date.
DeLuca's legislation H.B. 526, would require insurance policies to include a refund on the remaining premium and provide written notice to the debtor on how to obtain a refund.
The legislation would also require the finance company or bank to inform the insurance company when the debt that is covered terminates. Notification would have to take place within 60 days of the debt termination. Alternatively, the finance company or bank could notify the consumer directly.
In either case consumer would get their money back.
"Under my bill, when people no longer need credit insurance they would be able to receive a refund," DeLuca said. "I introduced this bill with the consumer in mind because it would make sure that when the policy debt ends, people would be able to get quick refunds on the remaining policies."
DeLuca is chairman of the House Insurance Committee. The legislation is being considered by the full Senate.
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