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                                 ENGROSSED SUBSTITUTE HOUSE BILL NO. 1172

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State of Washington                              49th Legislature                              1985 Regular Session

By House Committee on Financial Institutions & Insurance (originally sponsored by Representatives Lux and Wang)

Read first time 3/8/85 and passed to Committee on Rules.

AN ACT Relating to insurance; and creating new sections.

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

NEW SECTION. Sec. 1.     The insurance commissioner shall conduct a study as specified in section 2 of this act in consultation with one member of each political party in the senate, appointed by the majority leader of the senate; one member of each political party in the house of representatives, appointed by the speaker of the house of representatives; and a representative of insurance agents, insurance brokers, financial planners, life insurers, and property-casualty insurers, each selected by the commissioner.

NEW SECTION. Sec. 2.     The commissioner shall study insurance industry methods and practices in setting and negotiating agent and broker compensation.  In conducting the study, the commissioner shall objectively consider the effects of agent and broker control of their compensation upon competition in the marketplace, insurance pricing and availability, and insurance regulation.  In conducting the study, the commissioner may employ outside experts in economics, business, insurance or other fields to the extent necessary to complete the study. The commissioner shall report his findings and recommendations to the legislature by January 1, 1986.