H-4654.1          _______________________________________________

                            SUBSTITUTE HOUSE BILL 2886

                  _______________________________________________

State of Washington              52nd Legislature             1992 Regular Session

By House Committee on Financial Institutions & Insurance (originally sponsored by Representatives Dellwo, Broback, Scott, R. Johnson, Paris, Jacobsen and Winsley)

Read first time 02/07/92.  Creating the insurance fraud advisory board.

     AN ACT Relating to insurance fraud; adding a new section to chapter 48.30 RCW; and providing an effective date.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1.  A new section is added to chapter 48.30 RCW to read as follows:

     (1) The insurance fraud advisory board is created, consisting of the insurance commissioner or the commissioner's designee, as ex officio member and eight members appointed by the insurance commissioner on the basis of their experience and knowledge in matters pertaining to insurance claims.  In addition, three members representing the general public are to be appointed by the insurance commissioner to the board.  The board shall include one person representing each of the following interests:

     (a) Property and casualty insurers;

     (b) Health care service contractors and health maintenance organizations;

     (c) Life and disability insurers;

     (d) Insurance agents and brokers;

     (e) Health care providers;

     (f) Public adjusters;

     (g) County prosecutors; and

     (h) Insurance claimants.

     (2) The board shall assist the insurance commissioner in:

     (a) Identifying and quantifying the nature and amount of insurance fraud in Washington;

     (b) Developing a plan for a statistical and informational data base in the office of the insurance commissioner to assist in the prosecution of insurance fraud;

     (c) Developing any legislation necessary to permit the establishment of the statistical and informational data base described in (b) of this subsection;

     (d) Recommending appropriate criminal penalties for insurance fraud and developing any necessary legislation in that regard; and

     (e) Reviewing the effectiveness of chapter 48.80 RCW and developing any legislation required to improve the effectiveness of that chapter.

     (3) The board shall annually elect a chair and a vice-chair from its members.  The board shall meet at least semiannually at such times as it may fix.  A person appointed to the board shall not receive a salary or other compensation as a member of the board.

     (4) A majority of the board constitutes a quorum for the transaction of business.

     (5) The board shall keep public records of its proceedings.

     (6) The board shall cease to exist on January 1, 1996.

NEW SECTION. Sec. 2.      This act shall take effect January 1, 1993.