PennsylvaniaCounty and municipal contracts could not block insurer repayment claims
If enacted, county agencies and municipal governments could not enforce certain service contract terms that block liability insurers from seeking repayment after claims.
What it does
County agencies and municipal governments could not enforce covered service contract terms that block their liability insurers from seeking repayment for claim costs. This includes clauses that waive the insurer's recovery rights.
Argument forInsurers might recover more of their liability costs from county and municipal governments, which could help protect public funds after claims.
Argument againstCounty and municipal governments might have less room to limit insurer repayment claims in service contracts, which could leave them with greater costs after liability claims.
More detail
A county agency or municipal government could not enforce a covered contract term that blocks its liability insurer from seeking repayment for claim costs. A covered service provider contract is an agreement for services regulated under Pennsylvania's Children, Youth and Families Manual. The term must block an insurer or other provider of liability coverage from seeking compensation from the county agency or municipal government; this includes clauses that waive recovery rights. A covered term would be void as against public policy, meaning it could not be enforced. The rule would apply to covered contracts entered into or renewed on or after the act takes effect, 60 days after enactment.
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Where it stands
- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Oct 13Referred to Banking & InsuranceLatest
- Sep 29Third consideration and final passagePassed House
- Vote recorded FINAL PASSAGE. Result: pass.Lower
- Vote recorded Committee vote (Appropriations): Re-report Bill As Committed. Result: pass.Lower
- Sep 29Re-reported as committedMinor
- Jul 1Re-committed to AppropriationsMinor
- Vote recorded Committee vote (Rules): Re-report Bill As Committed. Result: pass.Lower
- Jul 1Second considerationMinor
- Jul 1Re-reported as committedMinor
- Jun 24Re-committed to RulesMinor
- Vote recorded Committee vote (Children & Youth): Report Bill As Committed. Result: pass.Lower
- Jun 24First considerationMinor
- Jun 24Reported as committedMinor
- May 6Referred to Children & YouthIntroduced
Government & Ethics