LEG REG REVIEW 2012, 30th Issue November 7, 2012

LEG REG REVIEW is a periodic newsletter produced by PHILLIPS ASSOCIATES, a professional lobbying and consultant firm located near the State Capitol. It contains news on the legislative and regulatory scene in that may be of interest to the Insurance and Business Communities. It is a free member benefit for those who are members of the Pennsylvania Association of Health Underwriters (PAHU) or Manufacturers Association of South Central PA (MASCPA). Subscription information may be obtained by contacting PHILLIPS ASSOCIATES at 717/728-1217 FAX 717/728-1164 or e-mail to [email protected]. Please email [email protected] supplying both your name and e-mail address if you wish to be removed from this list.

DEMOCRATS TAKE TOP OFFICES In addition to winning the state for , Pennsylvania Democrats carried the day in the other top races. Senator Bob Casey, Jr. won with 53.6% over Tom Smith (44.7%). Kathleen Kane triumphed over David Freed 56.1% to 41.6% in the race for Attorney General. A Democrat has never held the office of Attorney General. State Treasurer Rob McCord won re-election 52.5% to 44% over Diana Irey Vaughan. The closest race pitted two incumbent House members against each other but ultimately Democrat Eugene DePasquale from York overpowered Republican John Maher (Allegheny/Washington) 49.7% to 46.5%. In this race, the Libertarian candidate Betsy Elizabeth Summers drew 3.8% of the vote, potentially enough to swing the decision.

REPUBLICAN CONSOLATION PRIZE: The PA Congressional Delegation In one of the hottest races nationally, Republican took incumbent ’ western and southwestern PA congressional seat with 51.5% of the vote. This changes the congressional ratio to 13 Republicans and 5 Democrats in Pennsylvania’s delegation. It was 12R and 7D previously. PA lost one congressional seat through the redistricting process. The US House Democratic delegation from PA does have a more liberal tilt thanks to the 2012 primary defeat of central PA’s centrist Democrat by Democratic candidate Matthew Cartwright who garnered 60.5% of the vote in the general election.

Incumbent Republican Mike Kelly from northwest PA defeated Missa Eaton 54.7% to 41.1% in a hotly contested race. An open seat in south central PA vacated by retiring Republican Todd Platts was retained by the GOP with winning 59.7% over Harry Perkinson (34.5%). Other incumbents won 55% or more of the vote.

GOP KEEPS LEGISLATIVE CONTROL SENATE… Senate Republicans lost three open seats to Democrats: Sean Wiley (Erie) over Republican Janet Anderson 60.5% to 39.5%; Matt Smith (Allegheny) over Republican D. Raja 52.7% to 47.3%; and Democrat Rob Teplitz (Dauphin) over John McNally in south central PA 51.6% to 48.4%. Incumbent Senators of both parties won by 55% or better but incumbent Democrat John Wozniak (Cambria) survived a scare by eking out a 51.2% to 48.8% margin over Republican Timothy Houser. Two races thought by some to be close ended up with a strong 57.1% victory by Republican (Beaver) and incumbent Republican (Schuylkill) with 56.1%. The open GOP seat in Venango County was filled by Republican who was unopposed. The new ratio will be 27 Republicans and 23 Democrats.

Eight Senate incumbents had no opposition from the other party and were unopposed. They were four Democrats (Phila.), (Allegheny), James Brewster (Westmoreland/Allegheny), and Shirley Kitchen (Phila.)… and four Republicans: Don White (Indiana), Joe Scarnati (Jefferson), (Columbia), and Pat Vance (Cumberland)

1 HOUSE RESULTS DEMOCRAT WINS…  Democrats did not lose a single incumbent.  Steven Santarsiero, who won in 2010 by fewer than 300 votes won this time 57.7% over Republican Anne Chapman, a Tea Party favorite who won a bruising Republican primary.  Targeted Westmoreland County incumbent Democrat Joe Markosek won with 54.8%.  Democrats retained the seat held by Erie Rep. Hornaman with a victory by Ryan Bizzaro by 53.8% and Joe Brennan’s (Lehigh/Northampton) seat with a race won by Daniel McNeill (64.6%).  Republican incumbent Tom Quigley (Montgomery) lost to Mark Painter (50.4%).

REPUBLICAN WINS…  Sue Helms (Dauphin) won over Democrat Christopher Dietz 54.5% to 45.5%. Because of a tough primary, Helm had been regarded as vulnerable.  The GOP retained the Erie seat of John Evans via a win by Greg Lucas (55.1%) and the Chester County seat of Curt Schroder via a victory by Becky Corbin (53.6%).  Republican John Taylor survived a Philadelphia Democratic surge by winning 57.4% of the vote.  The seat held by retiring Democrat Bud George (Clearfield) was picked up by Republicans with a victory by Thomas Sankey (60.9%).  Incumbent Warren Kampf (Montgomery) beat former Rep. Paul Drucker again with 51/7%.

UNCERTAIN … NOTE: Several of the closest races have not been officially called at time of publication.  Incumbent Republican Rep. Justin Simmons (Lehigh) may have lost to Democrat Kevin Deeley 12,841 to 12,674.  Incumbent Republican Nick Micozzie (Delaware) holds a razor thin 12,871 to 12,752 edge over Shaeamus Bonner.  Former Rep. Dave Levdansky has a slight lead over incumbent Rick Saccone 13,937 to 13,873.

95 House races took place where a candidate was unopposed (43 Republicans and 43 Democrats). In nine races, the candidate had secured the nominations from both parties from the following counties: Mercer, Butler, Beaver, Allegheny, Armstrong, Bedford, Lackawanna, Columbia, and Delaware. The political ratio before the election was 109 Republicans, 91 Democrats and three vacancies. Even with democratic pickups, the GOP will still control the House.

There will be two vacancies at the start of the 2013-14 session of the General Assembly. Democratic seats held by Matt Smith (Allegheny), elected to Senator, and Eugene DePasquale (York), elected to Auditor General, will need to have special elections.

REGULATORY NOTE: SANDY NOT CONSIDERED HURRICANE PER REGULATORS Regulators in several states including Pennsylvania have ruled that insurers may NOT apply a hurricane deductible for claims arising from Sandy’s damages because the storm was downgraded from hurricane status. A hurricane deductible, if applicable, would have subjected property owners to a much higher deductible, a percentage of the structure’s value instead of a flat deductible that must be met.

In addition, PA Insurance Commissioner Michael Consedine convened a conference call November 1 with insurers to present the Department’s view of claims procedures and suggesting that insurance companies exercise leniency when adjusting claims. There is also going to be a data call to determine the scope of insurance claims.

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