Washington State House of Representatives Office of Program Research	BILL ANALYSIS
Financial Institutions & Insurance Committee

ESSB 6326

Brief Description:  Filing reports with the insurance commissioner.

Sponsors:  Senate Committee on Labor, Commerce & Financial Institutions (originally sponsored by Senators Prentice and Winsley).

Brief Summary of Engrossed Substitute Bill

$An insurer is exempt from the statutory annual reporting requirement if it has neither data nor experience to report with respect to the covered categories of property and casualty insurance.

Hearing Date:  2/22/02

Staff:  Thamas Osborn (786‑7129).

Background:

Under current law, an insurer must file an annual report with the state Insurance Commissioner (commissioner) stating its loss and expense experience as well as other specified data pertaining to various types of property and casualty insurance, including:

$Medical malpractice;

$Products liability;

$Attorneys' malpractice;

$Architects' and engineers' malpractice;

$Municipal liability; and

$Daycare center liability.

The annual report must contain specific types of data relating to each category of insurance, including:

$Premiums written and earned;

$Net investment income;

$Incurred claims;

$Reserves for claims and losses;

$Net underwriting gain or loss;

$Net operation gain or loss; and

$Actual incurred expenses, etc.

The annual report must be filed with the commissioner not later than May 1 of each year.  An insurer's failure to timely file the report can result in a fine of up to $2,000.

The commissioner is authorized to adopt the  rules necessary to implement the reporting requirement.

Summary of Bill:

An insurer is not subject to the annual reporting requirement  if it has no experience or data to report.

Appropriation:  None.

Fiscal Note:  Not Requested.

Effective Date:  Ninety days after adjournment of session in which bill is passed.