Washington State House of Representatives Office of Program Research |
BILL ANALYSIS |
Financial Institutions & Insurance Committee |
|
SSB 6166
Brief Description: Funding group life insurance.
Sponsors: Senate Committee on Financial Services, Insurance & Housing (originally sponsored by Senator Benton).
Brief Summary of Substitute Bill |
• Authorizes employers to offer group life insurance policies in which the entire premium for the policy is paid by the employee. |
• Authorizes an employee to purchase a life insurance policy on a family member in the same amount purchased by the insured employee on his or her own life. |
Hearing Date: 2/24/04
Staff: Carrie Tellefson (786-7127).
Background:
The Insurance Commissioner (Commissioner) is authorized to regulate both the form and content of life insurance contracts that are issued or delivered in Washington.
An employer may purchase a group life insurance policy for the benefit of employees and their families. Employers may pay the premium in full or may require partial contributions from employees. Employees may not pay the entire premium.
An employee may purchase life insurance on a family member in an amount not to exceed 50 percent of the insurance on the life of the employee.
Summary of Bill:
Employees may pay the entire premium for life insurance under a group life insurance policy.
Employees may purchase a life insurance policy on a family member in the same amount purchased by the insured employee on his or her own life.
Appropriation: None.
Fiscal Note: Not requested.
Effective Date: The bill takes effect 90 days after adjournment of session in which bill is passed.