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Legal Opinion

Employe Benefit Plans

Pennsylvania Department of Justice

Decided June 30, 1975No. Official Opinion no. 75-22Published

1Opinion of the Court

KANE, Attorney General,

You have requested our advice as to the legality of two types of transactions engaged in by insurance companies: minimum premium agreements and administrative service plans. It is our opinion, and you are hereby advised, that the self-insurance aspect of these programs does not constitute the transaction of insurance business, and that insurance companies may legally enter into minimum premium agreements and administrative service plans under applicable State and Federal laws.

Minimum premium agreements are basically insurance contracts with large deductibles. Such…

2Cases cited11 opinions

  1. Commonwealth v. Equitable Beneficial Ass'nSupreme Court of Pennsylvania · 1890
  2. Malone v. Lancaster Gas Light & Fuel Co.Supreme Court of Pennsylvania · 1897
  3. State Tax Commission v. John Hancock Mutual Life InsuranceMassachusetts Supreme Judicial Court · 1960
  4. Danna v. Commissioner of InsuranceLouisiana Court of Appeal · 1970
  5. Mutual Life Insurance v. New York State Tax CommissionNew York Court of Appeals · 1973

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