An Act establishing the Landslide and Sinkhole Insurance Program and the Landslide and Sinkhole Insurance Fund; establishing and providing for the powers and duties of the Landslide and Sinkhole Insurance Board; providing for duties of the Auditor General; imposing a penalty; and making transfers.

PRIOR PRINTER'S NOS. 1069, 2096 PRINTER'S NO. 2104
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 589
Session of
2025
INTRODUCED BY KINKEAD, GAYDOS, SANCHEZ, KHAN, BENHAM, VENKAT,
BRENNAN, KUZMA, CEPEDA-FREYTIZ, MALAGARI, FREEMAN, HILL-
EVANS, FLEMING, OTTEN, DEASY, STEELE, GREEN, KENYATTA,
GUENST, SCHWEYER, PASHINSKI, INGLIS, MATZIE, ABNEY,
SALISBURY, POWELL, KULIK, MAYES, D. MILLER, MARKOSEK,
McANDREW, TAKAC AND WEBSTER, MARCH 20, 2025
AS RE-REPORTED FROM COMMITTEE ON APPROPRIATIONS, HOUSE OF
REPRESENTATIVES, AS AMENDED, JULY 9, 2025
AN ACT
Establishing the Landslide and Sinkhole Insurance Program and
the Landslide and Sinkhole Insurance Fund; establishing and
providing for the powers and duties of the Landslide and
Sinkhole Insurance Board; providing for duties of the Auditor
General; imposing a penalty; and making transfers.
TABLE OF CONTENTS
Chapter 1. Preliminary Provisions
Section 101. Declarations.
Section 102. Definitions.
Chapter 3. Landslide and Sinkhole Insurance Program
Section 301. Program goals.
Section 302. Landslide and Sinkhole Insurance Program.
Section 303. Board authority.
Section 304. Land-use controls.
Section 305. Landslide and Sinkhole Insurance Board.
Chapter 5. Landslide and Sinkhole Insurance Fund
Section 501. Landslide and Sinkhole Insurance Fund.
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Section 502. Expenses.
Section 503. State Treasurer custodian of insurance fund.
Section 504. Schedule of premiums.
Section 505. Surplus.
Section 506. Investment of surplus.
Section 507. Disbursements from insurance fund.
Section 508. Application for insurance, terms of insurance and
penalty for false statement.
Section 509. Application for increase in insurance.
Section 510. Automatic inflation protection increase.
Section 511. Insurance for structures under construction.
Section 512. Claims.
Section 513. Audit by Auditor General.
Section 514. Claims against insurance fund.
Section 515. Defenses against claims, suits, procedure and
investigations of claims.
Section 516. Subrogation to rights of claimants.
Section 517. Insurance companies may cover this type of risk.
Chapter 7. Administration and Funding
Section 701. Rules and regulations.
Section 702. Escrow of premium payments.
Section 703. Properties in violation of State or local law.
Section 704. Board report.
Section 705. Appropriation.
Section 706. Appeals.
Section 707. Cost of administration.
Chapter 9. Miscellaneous Provisions
Section 901. Effective date.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
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CHAPTER 1
PRELIMINARY PROVISIONS
Section 101. Declarations.
The General Assembly finds and declares as follows:
(1) Geologists have studied with increasing concern the
underground movement of the geological formations in this
Commonwealth and its impeding effects on vertical and
horizontal natural and manmade surfaces.
(2) Landslides and sinkholes have historically been the
norm throughout most parts of this Commonwealth.
(3) Landslides and sinkholes occur without regard for
municipal boundaries, ordinances, planning codes, politics
and economies, making it difficult for local officials to
deal effectively with the development and implementation of
methods and standards to control the devastation that these
natural forces can cause.
(4) Landslides and sinkholes have caused an enormous
amount of damage to homes and roadways in this Commonwealth,
particularly the southwestern region of the State.
(5) Landslides and sinkholes will continue to plague
southwestern Pennsylvania.
(6) Landslides and sinkholes affect every state in the
nation, causing an estimated $2,000,000,000 to $4,000,000,000
in damages per year.
(7) Landslide and sinkhole damage caused by flooding is
not covered by the National Flood Insurance Program.
(8) Problems associated with landslide and sinkhole
damage are becoming more widespread.
Section 102. Definitions.
The following words and phrases when used in this act shall
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have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Board." The Landslide and Sinkhole Insurance Board
established under section 305.
"Community." A political subdivision that has zoning and
building code jurisdiction over an area having landslide and
sinkhole features.
"Department." The Department of Community and Economic
Development of the Commonwealth.
"GIS." Geographic information systems.
"Insurance fund." The Landslide and Sinkhole Insurance Fund
established under section 501.
"Landslide." A detached mass of soil, rock, earth or debris
that moves down a slope and is of sufficient size to cause
damage.
"Landslide features." The term includes rockfall areas,
creep, red beds and historic landslides.
"Program." The Landslide and Sinkhole Insurance Program
established under section 302.
"Sinkhole." A closed topographic depression or basin,
generally draining underground, including a doline, uvala, blind
valley or sink.
CHAPTER 3
LANDSLIDE AND SINKHOLE INSURANCE PROGRAM
Section 301. Program goals.
The goals of the program shall be to:
(1) Provide actuarially sound insurance coverage.
(2) Make program policies universally available and
competitively priced.
(3) Make use of the most effective scientific and
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technological advances available, including, but not limited
to, technology such as GIS.
(4) Process claims promptly, fairly and consistently.
(5) Collaborate with other organizations that operate in
the public interest to assist in achieving the program's
goals.
Section 302. Landslide and Sinkhole Insurance Program.
The Landslide and Sinkhole Insurance Program is established
within the department. The program shall be administered by the
board. The department shall provide administrative services and
staff to the board for the purposes specified under this act.
The board shall reimburse the department for the cost incurred
for providing the administrative services and staff, including
legal counsel. The board shall enter into an agreement with the
department specifying the rights and obligations that the board
and department have in administering their duties required under
this act.
Section 303. Board authority.
(a) Intergovernmental cooperation.--The board shall:
(1) Work closely with Federal, State and local agencies
and any other government agencies, including those of other
states, to accomplish program goals.
(2) Collaborate with the Department of Conservation and
Natural Resources, Department of Transportation, educational
institutions and Federal agencies to complete a survey of
this Commonwealth to define landslide and sinkhole features
and identify areas of this Commonwealth most at risk of
landslides and sinkholes and develop a Statewide map of
landslide and sinkhole risk.
(3) Develop best management practices, including
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recommendations for local governments to mitigate slope
instability and landslide and sinkhole risk.
(4) Develop and maintain a community rating system based
on landslide and sinkhole risk.
(5) Develop and maintain a publicly accessible Internet
website that includes all of the following:
(i) Share the most up-to-date geological surveys in
the form of maps, GIS data or other useful forms and
related information free of charge to government agencies
and appropriate representatives of communities and at a
reasonable cost to all other persons.
(ii) Landslide and sinkhole insurance map panels.
(iii) A Statewide map of landslide and sinkhole risk
and a community rating system.
(6) Inform the Department of Transportation of which
highways are at greatest risk from landslides and sinkholes.
(7) Notify local governments in areas with the greatest
risk from landslides and sinkholes.
(8) Have the authority to consult, receive information
and enter into any agreements or other arrangements in order
to identify and publish information with respect to all
duties under this act.
(b) Studies and investigations.--
(1) The board is authorized to carry out necessary
studies and investigations, utilizing to the maximum extent
practicable the existing facilities and services of other
Federal and State departments or agencies, local government
agencies and any other organizations to implement the board's
duties under this act.
(2) The board may enter into any contracts, agreements
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or other appropriate arrangements to carry out its authority
under this subsection. Studies and investigations under
paragraph (1) shall include analysis of the following:
(i) Laws.
(ii) Regulations.
(iii) Ordinances.
(iv) Zoning.
(v) Building codes.
(vi) Building permits.
(vii) Subdivision or other building restrictions.
(c) State and local measures.--On the basis of studies and
investigations under subsection (b), the board shall develop
comprehensive criteria designed to encourage, where necessary,
the adoption of adequate State and local measures which, to the
maximum extent feasible, will:
(1) Constrict the development of land that is exposed to
landslide and sinkhole damage, where appropriate.
(2) Guide the development of proposed construction away
from locations that are threatened by landslide and sinkhole
features.
(3) Assist in reducing damage caused by landslides and
sinkholes.
(4) Otherwise improve the long-term land management and
use of landslide-prone and sinkhole-prone areas.
(d) Technical assistance.--The board shall work closely with
and provide technical assistance to State and local government
agencies to encourage the application of the criteria and the
adoption and enforcement of the measures under this section.
Section 304. Land-use controls.
A local government may adopt land-use controls for the
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benefit of the local government's residents. The following shall
apply:
(1) No new landslide and sinkhole insurance coverage
shall be provided to new construction without proof of
compliance with local prevention measures adopted by an
appropriate local public body.
(2) A community rating system shall be employed by the
board as an incentive for community landslide and sinkhole
management. The rating system shall consider where landslide
and sinkhole damage is more likely to occur and give higher
ratings to those communities that have lower risk of damage
either due to low risk of the damage occurring due to the
natural characteristics of the community or due to steps
taken by the community to prevent the damage. This rating
system shall be reflected by the rates assigned to
communities.
Section 305. Landslide and Sinkhole Insurance Board.
(a) Establishment.--The Landslide and Sinkhole Insurance
Board is established. The board shall include the following
members:
(1) The Director of the Pennsylvania Emergency
Management Agency or a designee.
(2) The Secretary of Community and Economic Development
or a designee who shall serve as chair of the board.
(3) The Secretary of Conservation and Natural Resources
or a designee.
(4) The Insurance Commissioner or a designee.
(5) The State Treasurer or a designee.
(6) The Secretary of Transportation or a designee.
(b) Insurance Program.--
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(1) The board shall develop and administer the program,
including assessing a premium for participating in the
program.
(2) Payments for premiums assessed under paragraph (1)
shall be deposited into the insurance fund.
(3) Money deposited into the insurance fund under
paragraph (2) shall only be used for the program.
(c) Duties of board.--The board shall have the following
duties:
(1) Bring civil actions in courts of competent
jurisdiction as the board deems necessary and defend the
board against civil claims brought against the board.
(2) Establish bylaws for the management and regulation
of the board's internal affairs.
(3) Engage and contract with attorneys, accountants and
financial experts and any other advisors, consultants and
agents as the board deems necessary and fix their
compensation.
(4) Engage in any other act as the board deems necessary
to implement the board's duties under this act.
CHAPTER 5
LANDSLIDE AND SINKHOLE INSURANCE FUND
Section 501. Landslide and Sinkhole Insurance Fund.
(a) Establishment.--The Landslide and Sinkhole Insurance
Fund is established as a restricted fund in the State Treasury.
(b) Purpose.--The insurance fund shall be used to insure
against damages resulting from landslide and sinkhole damage.
(c) Claim or liability.--A claim against or a liability of
the insurance fund shall not be deemed to constitute a debt or
liability of the Commonwealth or a charge against the General
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Fund.
Section 502. Expenses.
The expenses of the administration of the insurance fund
shall be paid out entirely from the insurance fund.
Section 503. State Treasurer custodian of insurance fund.
The State Treasurer shall be the custodian of the insurance
fund and all disbursements from the insurance fund shall be paid
by the State Treasurer upon request by the board. The following
shall apply:
(1) The State Treasurer shall not be required to audit
accounts from which the board requests payments.
(2) The State Treasurer shall not be liable for any
payment made under this act.
Section 504. Schedule of premiums.
(a) Publication.--At any time during each year, the board
shall prepare and publish on the board's publicly accessible
Internet website a schedule of premiums or rates of insurance
for subscribers for the program according to the following:
(1) The schedules shall be printed and distributed free
of charge to individuals who request a schedule.
(2) A subscriber may pay to the State Treasurer the
amount of premium appropriate and, upon payment, shall be
insured in accordance with this act for the year for which
the premium is paid.
(3) The insurance acquired under paragraph (2) shall
cover all payments becoming due for which the premium is
paid.
(b) Amount of premium.--The premium for the program is fixed
and shall be adequate to enable payment of all sums that may
become due and payable under the provisions of this act, and
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adequate reserve sufficient to carry all policies and claims to
maturity.
(c) Fixing premiums.--In fixing a premium payable by a
subscriber, the board may:
(1) take into account the condition of the premises of
the subscriber as shown by the report of any inspector
appointed by the board;
(2) annually assess the amount of the premium charged
and the needs of maintaining the insurance fund under this
act. In addition, the board may change the amount of premiums
payable by any subscriber as the condition of the premises of
the subscriber may justify; and
(3) increase the premiums of any subscriber whose loss
experience warrants the change.
(d) Effective date of insurance.--The insurance of any
subscriber shall not be effective until the subscriber has paid
in full the premium fixed and determined under this section.
(e) Credits.--Rate structures shall provide incentives for
measures that reduce the risk of landslide and sinkhole damage
and evaluate the measures. The program shall provide incentives
in the form of credits on premium rates for landslide and
sinkhole insurance coverage in communities that the board
determines have adopted and enforced measures that reduce the
risk of landslide and sinkhole damage. A credit on premium rates
for landslide and sinkhole insurance coverage shall be based on
the estimated reduction in damage risks resulting from the
measures adopted by a community under the program.
Section 505. Surplus.
(a) Set aside percentage.--The board shall set aside 5% of
all premiums collected under this act until the board determines
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that the surplus is large enough to cover the catastrophe hazard
of all the subscribers to the insurance fund and to guarantee
the solvency of the insurance fund.
(b) Reevaluation.--If the board determines that the surplus
is large enough under subsection (a), the board shall reevaluate
the set aside under subsection (a) and investment of the surplus
and, if approved by a two-thirds majority of the board, adjust
the percentage of premiums to set aside.
Section 506. Investment of surplus.
(a) Duty of board.--The board shall direct the investment of
the insurance fund as authorized by the investment policy
approved by the board.
(b) State Treasurer custodian.--The State Treasurer shall be
custodian of the insurance fund and the following shall apply:
(1) The State Treasurer shall have full and exclusive
power to invest moneys of the insurance fund, as may be
directed by the board, with that degree of judgment, skill
and care under the circumstances then prevailing which
persons of prudence, discretion and intelligence, who are
familiar with such matters, exercise in the management of
their own affairs, not related to speculation, but to the
permanent disposition of the money, considering the probable
income to be derived and the probable safety of their
capital. Investments shall be made in accordance with a
written investment policy approved by the board. The
investment policy shall address liquidity, diversification,
safety of principal, yield, maturity and quality and the
capability of investment management with primary emphasis on
safety and liquidity.
(2) The State Treasurer shall be responsible for
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executing and overseeing all insurance fund investments and
may hire investment advisers, asset managers, actuaries and
other financial professional consultants or investment
experts that, in the opinion of the State Treasurer, as
necessary, to assist in the management of the insurance fund.
(3) The State Treasurer may pay for all investment and
management expenses from the insurance fund.
(4) The State Treasurer shall provide an annual
investment report to the board and make all reports available
online.
Section 507. Disbursements from insurance fund.
(a) Operation of insurance fund.--Money from the general
appropriation shall be available for the expense of
administering the insurance fund, including the purchase of
surety bonds, supplies, materials and motor vehicles, providing
for administrative expenses, workmen's insurance covering the
officers and employees of the board and any other expenses to
enable the operation of the insurance fund as deemed necessary
by the board.
(b) Treasury Department.--Money from a general appropriation
shall also be available for payment to the Treasury Department
for the cost of making disbursements out of the insurance fund
on behalf of the insurance fund at amounts as the Treasury
Department, with the approval of the board, shall determine.
(c) Accounting.--
(1) The board shall keep an accurate account of the
money paid in premiums by subscribers and the disbursements
on account of damages to the subscribers' premises. The board
may engage the services of professionals to manage the
accounting under this subsection.
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(2) If at the expiration of any year there shall be a
balance remaining after deducting the disbursements, the
unearned premiums on undetermined risks and the percentage of
premiums paid or payable to create or maintain the surplus as
required under this section, and after setting aside an
adequate reserve, the balance, as the board may determine to
be safely distributable, may be allocated to the cost of
administering the insurance fund or distributed among the
subscribers in proportion to the premiums paid by them.
(3) For the proportionate share of the subscribers who
remain subscribers to the insurance fund, the premiums
distributed to subscribers under paragraph (2) shall be
credited to the installment of premiums next due by the
subscribers. The proportionate share of the subscribers who
have ceased to be subscribers in the insurance fund shall be
refunded out of the insurance fund in the manner provided
under this chapter.
Section 508. Application for insurance, terms of insurance and
penalty for false statement.
(a) Application for insurance.--
(1) An owner of a structure who desires to become a
subscriber to the insurance fund for the purpose of insuring
the structure against damages from landslide and sinkhole
damage shall make a complete application, as prescribed by
the board, to the board or the board's agents.
(2) Upon receiving an application under paragraph (1),
the board shall:
(i) Make an investigation as may be necessary if the
application complies with the rules and regulations of
the board.
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(ii) Within 90 days after receiving the application,
issue a certificate showing whether the board approved
the application and the amount of premium payable by the
applicant for the year for which the premium is sought.
(3) The amount of insurance coverage for which an
applicant is approved under paragraph (2) shall not exceed
the replacement cost of the insured structure or $150,000,
whichever is less. The maximum dollar amount of coverage
established under this paragraph shall be reviewed annually
by the board to determine whether the insurance fund has the
capacity to increase the amount of insurance available to
subscribers. The board may adjust the maximum dollar amount
of coverage under this paragraph based on available money and
need as determined by the annual review.
(4) Policies issued under this chapter may be issued for
one year, for two years or for three years as the board may
establish.
(5) Except as provided under subsection (b), no
insurance shall become effective until the premiums have been
paid. All premiums shall be payable to the State Treasurer,
who shall issue a receipt for payment. The receipt for
premium together with a certificate of the board shall be
evidence that the applicant has become a subscriber to the
insurance fund and is insured.
(b) Failure to approve or deny application.--If the board
fails to make the necessary investigations or inspection and
fails to approve or deny an application as required under
subsection (a), the insurance requested by the applicant shall
be deemed granted. The insurance shall be effective from the
date of the application's submission under subsection (a). The
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following shall apply to insurance coverage:
(1) The coverage shall be null and void if the applicant
fails to remit the premium payment within 20 days from the
day the bill for the premium was postmarked.
(2) The insurance may be subjected to later reductions,
and premiums adjusted accordingly, if the board determines
that the amount of insurance coverage requested is in excess
of the current replacement cost of the structure or the
maximum amount of coverage established by the insurance fund,
whichever is less.
(3) The insurance shall be void if, upon inspection of
the structure, the board determines that:
(i) landslide and sinkhole damage occurred prior to
the request by the applicant for insurance;
(ii) the applicant, due to an unreasonable action or
inaction, is responsible for the failure of the board to
inspect the structure within 60 days of receipt of the
application in accordance with this section; or
(iii) landslide and sinkhole damage was the result
of a negligent act or omission by the applicant.
(c) Offense.--Whoever shall knowingly furnish or make any
false certificate, application or statement as required under
this section shall be guilty of a summary offense and, upon
conviction, shall be sentenced to pay a fine not to exceed $300.
Section 509. Application for increase in insurance.
(a) Application process.--An application for an increase in
the amount of insurance, up to the allowable limits, may be made
at any time by the subscriber by submitting a written statement,
as determined by the board, to the board, except during a period
when a claim filed by the subscriber is open and pending
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investigation.
(b) Approval of request.--
(1) Upon receipt of the subscriber's written statement
under subsection (a), the board shall reinspect the structure
within 60 days.
(2) If reinspection under paragraph (1) occurs within
the 60-day period and the structure passes the reinspection,
the new amount of insurance shall be approved and shall be
effective from the date of the first premium payment after
reinspection.
(3) If reinspection under paragraph (1) does not occur
within the 60-day period, the new amount of insurance shall
be deemed approved by the board and shall be effective from
the date the subscriber's application for additional
insurance was received by the board under subsection (a), but
the additional coverage shall be null and void if the
subscriber fails to remit the premium payment within 20 days
from the day the bill for additional premium is postmarked.
(c) Reduction in additional insurance.--The additional
insurance approved under this section may be reduced, with
premiums adjusted accordingly, if the board determines that the
subscriber's total amount of insurance exceeds the current
replacement cost of the structure or the maximum amount of
coverage established by the insurance fund, whichever is less.
(d) Voided additional insurance.--Additional insurance
approved under this section shall be void if, upon reinspection
of the structure, the board determines that:
(1) landslide and sinkhole damage occurred prior to the
request of the subscriber for additional insurance;
(2) the subscriber's unreasonable action or inaction is
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responsible for the board's failure to reinspect the insured
structure within 60 days of receipt of the application for
additional insurance under subsection (a); or
(3) landslide and sinkhole damage was the result of a
negligent act or omission by the subscriber.
Section 510. Automatic inflation protection increase.
The board shall make available to all subscribers an annual
inflation protection option on the anniversary date of each
policy to uniformly increase subscribers' coverage. A subscriber
must elect this option within 30 days. The option shall not be
made available more than once annually. An inflation protection
increase shall not be subject to a reinspection of the
structure.
Section 511. Insurance for structures under construction.
The board shall make available landslide and sinkhole
insurance to owners of structures under construction. The
insurance under this section shall have a term of no more than
18 months, or until the structure is 80% complete, whichever is
earlier.
Section 512. Claims.
A claim for payment due to loss for an insured under the
program shall be on a form and in a manner established by the
board and made available on the department's publicly accessible
Internet website and by mail upon request. Claims shall be for
loss of use due to damage from landslide and payment for claims
shall be contingent upon inspection by the board.
Section 513. Audit by Auditor General.
The following shall apply to an audit by Auditor General:
(1) The Auditor General or a designee shall at least
once each year make a complete examination and audit of the
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insurance fund, including all receipts and expenditures, cash
on hand and securities and investments or property held
representing cash or cash disbursements.
(2) The Auditor General is authorized to employ
consultants, experts, accountants or investigators as
necessary to carry out this section.
(3) The expense incurred in making an examination and
audit under paragraph (1) shall be certified to the insurance
fund by the Auditor General and shall be paid from the
general appropriation.
(4) The first audit of the insurance fund may, in the
discretion of the Auditor General, extend back to the
establishment of the insurance fund or to any other period in
the insurance fund's existence.
Section 514. Claims against insurance fund.
A subscriber to the insurance fund must file with the board a
true statement of the subscriber's claim for any landslide and
sinkhole damage and shall provide the board an opportunity to
investigate to determine whether the board must pay the claim.
Section 515. Defenses against claims, suits, procedure and
investigations of claims.
In each case where a claim is made against the insurance
fund, the insurance fund shall be entitled to every defense
against the claim under the policy and shall be subrogated to
every right of the subscriber arising out of accidents against
any third persons. The insurance fund may, in the name of the
insurance fund, sue or be sued to enforce any right given
against or to any subscriber or other persons under this act.
Section 516. Subrogation to rights of claimants.
Nothing in this act shall relieve any person, partnership or
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corporation from any liability for damages sustained, and the
insurance fund shall be subrogated to the rights of any property
owners' insurance as provided under this chapter.
Section 517. Insurance companies may cover this type of risk.
An insurance company may issue policies covering the type of
risk covered under this act if the policy is approved by the
Insurance Commissioner as to policy form and rates.
CHAPTER 7
ADMINISTRATION AND FUNDING
Section 701. Rules and regulations.
The board may publish guidance and rules and promulgate
regulations to carry out the purposes of this act, including
reasonable classification of risks eligible for coverage under
this act, limits of coverage and rules covering the adjustment
and settlement of claims.
Section 702. Escrow of premium payments.
A mortgage lender that offers the purchase of insurance under
this act shall escrow the premium.
Section 703. Properties in violation of State or local law.
No new landslide and sinkhole insurance coverage shall be
provided for a property that the board finds has been declared
by a State or local zoning authority or other authorized public
body to be in violation of State or local laws, regulations or
ordinances that are intended to discourage or otherwise restrict
land development or occupancy in areas that are prone to
landslides and sinkholes.
Section 704. Board report.
The board shall make an annual report on the program and on
experience with landslide and sinkhole insurance sales through
producers to the chairperson and minority chairperson of the
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Environmental Resources and Energy Committee of the Senate and
the chairperson and minority chairperson of the Environmental
and Natural Resource Protection Committee of the House of
Representatives.
Section 705. Appropriation.
(a) Annually.--Funding shall be appropriated on an annual
basis to the board for the purposes of this act and expenses of
organization and administration of the insurance fund as
provided under this act.
(b) Additional transfer.--If, upon completion of an annual
examination and audit under section 513, the board determines
that the total asset value of the insurance fund is less than
$10,000,000, an additional sum as may be necessary to increase
the total asset value of the insurance fund to $10,000,000 shall
be transferred from the General Fund to the insurance fund for
the purposes of this act for the fiscal year immediately
following the examination and audit.
(c) (A) Fund transfer.--
(1) The sum of $10,000,000 is transferred from the
General Fund to the insurance fund for the fiscal year July
1, 2025, through June 30, 2026.
(2) If, upon completion of an annual examination and
audit under section 513, the board determines that the total
asset value of the insurance fund is at least $20,000,000,
the sum of $10,000,000 is transferred from the insurance fund
to the General Fund, if the transfer would not impair the
solvency of the insurance fund.
(d) (B) Board.--Money in the insurance fund is appropriated
to the board in amounts as may be determined annually by the
Governor to be used for the specified purposes of this act.
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Section 706. Appeals.
A party aggrieved by an action of the board shall have the
right to appeal in accordance with 2 Pa.C.S. (relating to
administrative law and procedure).
Section 707. Cost of administration.
The board shall keep an accurate account of money paid in
premiums by the subscribers and disbursements on account of
damages to structures. If, at the expiration of any year, there
is a balance remaining after deducting the disbursements, the
unearned premiums on undetermined risks and the percentage of
premiums paid or payable to create or maintain the surplus
provided under this act, and after setting aside an adequate
reserve, the board may determine to allocate the remaining money
to the cost of administering the insurance fund.
CHAPTER 9
MISCELLANEOUS PROVISIONS
Section 901. Effective date.
This act shall take effect immediately.
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