SENATE BILL REPORT

HB 2550

 

As Reported By Senate Committee On:

Labor, Commerce & Financial Institutions, February 25, 2002

 

Title:  An act relating to the process of applying for a license or solicitation permit from the insurance commissioner.

 

Brief Description:  Applying for a license or solicitation permit from the insurance commissioner.

 

Sponsors:  Representatives McIntire, Benson, Santos and Kenney; by request of Insurance Commissioner.

 

Brief History: 

Committee Activity:  Labor, Commerce & Financial Institutions:  2/25/02 [DP].

SENATE COMMITTEE ON LABOR, COMMERCE & FINANCIAL INSTITUTIONS

 

Majority Report:  Do pass.

Signed by Senators Prentice, Chair; Keiser, Vice Chair; Fairley, Franklin, Gardner, Rasmussen, Regala and Winsley.

 

Staff:  Joanne Conrad (786‑7472)

 

Background:  The Office of the Insurance Commissioner currently requires fingerprints for some types of license applications in order to obtain a criminal history background check.  However, the law does not specify that law enforcement professionals, such as the Washington State Patrol and the Federal Bureau of Investigation, are responsible for processing the fingerprints.  In addition, some types of licensees were explicitly subject to the fingerprinting requirement, while others were not.

 

Summary of Bill:  As part of the license application process, the Office of the Insurance Commissioner requires fingerprints from agents, brokers, solicitors, surplus line brokers, those in the business of financing insurance premiums, and viatical settlement brokers and providers.  Applications for solicitation permits also require fingerprints.

 

Other disclosure requirements are established for applications for surplus line brokers and those in the business of financing insurance premiums.

 

Fingerprints are submitted to the Washington State Patrol, the Federal Bureau of Investigation or other entities authorized to receive information for criminal history background checks.

 

Background check fees are required of applicants.

 

Appropriation:  None.

 

Fiscal Note:  Available.

 

Effective Date:  The bill contains an emergency clause and takes effect immediately.

 

Testimony For:  Concerns by the FBI require statutory authority to process fingerprints.  This bill is needed by May 2002, or the OIC will not be able to process applicants' fingerprints.

 

Testimony Against:  None.

 

Testified:  Carrie Tellefson, Office of Insurance Commissioner (pro).