Section 420 - Government owned companies(a) For purposes of this section, except when the context clearly indicates otherwise: (1)"Insurance company" means an insurance company, association or exchange or any other entity subject to the jurisdiction of the Insurance Department.(2)"Control" has the meaning prescribed in section 1401 . (3)"Government owned" means owned or controlled, directly or indirectly, by another state, territory or jurisdiction of the United States or by a foreign government or by any political subdivision, instrumentality or agency of either.(b) A government owned insurance company shall not be admitted or authorized to do business in this Commonwealth until it has demonstrated and continues to demonstrate to the Insurance Commissioner's satisfaction that it: (1) does not receive a subsidy or other competitive advantage as a result of such control or status that would enable it to compete unfairly with similarly situated authorized insurers which are not so controlled or constituted;(2) is not entitled to claim sovereign or similar governmental immunity or has filed a waiver of sovereign or similar governmental immunity with the Insurance Commissioner;(3) cedes no more than fifty per centum (50%) of its annual gross written premiums to assuming insurers that neither hold a certificate of authority nor are qualified reinsurers in this Commonwealth;(4) maintains a policyholders' surplus of at least thirty-five million dollars ($35,000,000) or such other amount determined by the Insurance Commissioner calculated and reported in the manner prescribed by the department pursuant to section 320;(5) is domiciled in a jurisdiction which has insolvency laws applicable to the insurance company that in law and application are fair, reasonable and not prejudicial to policyholders, creditors or the public generally;(6) has filed with the Insurance Commissioner an irrevocable consent not to seek the protection of 11 U.S.C. § 304 (relating to cases and ancillary to foreign proceedings);(7) its operation as an insurer would not be detrimental to the public interests of this Commonwealth;(8) otherwise satisfies all applicable requirements for the issuance of a certificate of authority, including, but not limited to, reasonable standards of solvency, the deposit of security, the establishment of a special trust fund for the benefit of policyholders or other requirements as may be established from time to time by the Insurance Commissioner; and(9) is in compliance with the requirements set forth in section 301 . Any entity granted a certificate of authority under the provisions of this section shall notify the Insurance Commissioner within five (5) business days of any material change with respect to clause (1), (2), (3), (4) or (5) of this subdivision or of any material order or other action affecting its certificate of authority.
(c) Upon satisfactory evidence of the violation of this section by an insurance company, the Insurance Commissioner may in the Insurance Commissioner's discretion pursue any one or more of the following courses of action:(1) suspend or revoke the certificate of authority of such offending company;(2) refuse for a period not to exceed one year thereafter, to issue a new certificate of authority to such offending company;(3) impose a penalty of not less than five thousand dollars ($5,000) nor more than twenty-five thousand dollars ($25,000) for each action in violation of this section.1921, May 17, P.L. 682, art. III, § 300, added 1959, July 17, P.L. 545, § 1. Amended 1998, Dec. 21, P.L. 1108, No. 150, § 1, imd. effective.