The Pennsylvania Insurance Department will now have its own dedicated funding source under Act 46 in the newly signed 2013-14 state budget.
The dedicated budget fund will be used by the department to pay all costs and expenses associated with its general operations.
According to Deputy Press Secretary Melissa Fox, the move is a change in the way the department is funded and will not change the amount the department receives.
She said prior to Act 46, the department fell under the general fund budget, which it still is a part of, but now a certain part of regulatory fees and assessments will be dedicated directly to the agency.
She said most of the money in fees generated by the department will continue to go to the general fund.
"This will give us the means and security to do long-term planning," she explained.
Insurance Commissioner Michael Consedine said, "Act 46 is a historic change for the department and helps us ensure that Pennsylvania keeps pace with an ever-increasing global marketplace."
He noted that Pennsylvania is the fifth-largest insurance marketplace in the country and the 14th-largest globally. The Insurance Department oversees the operations of 1,700 insurance companies offering more than $92 billion of annual premiums in all lines of insurance products.
"Having a financially stable, professional insurance regulator is one of the primary factors in bringing insurance jobs to a state, and with dedicated funding we're making an even stronger case for insurance sector job-growth in Pennsylvania," Consedine said. "With an insurance marketplace that is highly diverse, stable and growing, we are focused on providing a regulatory environment for the insurance business that promotes a competitive marketplace, which serves to benefit our consumers."
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