HOUSE BILL REPORT

HB 140

BYRepresentatives Lux, P. King, Nutley, Holland and Ferguson; by request of Insurance Commissioner

Providing civil immunity for certain actions relating to insurance.

House Committe on Financial Institutions & Insurance

Majority Report:     The substitute bill be substituted therefor and the substitute bill do pass.  (12)

     Signed by Representatives Lux, Chair; Zellinsky, Vice Chair; Betrozoff, Chandler, Crane, Ferguson, P. King, Meyers, Niemi, Nutley, Silver and Winsley.

House Staff:John Conniff (786-7119)

AS REPORTED BY COMMITTEE ON FINANCIAL INSTITUTIONS & INSURANCE

FEBRUARY 5, 1987

BACKGROUND:

Various provisions of the insurance code provide immunity from libel and slander lawsuits to certain persons who are engaging in an activity required by the insurance code. The most prominent example of this immunity can be found in several chapters of the insurance code that require notice by the insurer to the insured of the reasons for cancellation or nonrenewal of an insurance policy. Another example is the Arson Reporting Immunity Act designed to encourage investigation and reporting of fire claims that may be the result of arson.

SUMMARY:

SUBSTITUTE BILL:  Any person who files a report or furnishes information required by the insurance code, required by the Insurance Commissioner, useful to the Insurance Commissioner in the administration of the insurance code, or furnished to the National Association of Insurance Commissioners (NAIC), cannot be sued for libel, slander or for any other reason related to the information unless malice, fraud, or bad faith is shown.

The Commissioner and his employees, and agents and employees of the NAIC are also immune from suit for publication of any report or bulletin related to official activities of the Commissioner or the NAIC.

Nothing contained in the Act is deemed to affect any immunity currently available by statute or common law.

SUBSTITUTE BILL COMPARED TO ORIGINAL:  The original bill contained broader immunities that were replaced with narrower and more specific immunities.

Fiscal Note:    Not Requested.

House Committee ‑ Testified For:     Scott Jarvis, Insurance Commissioner's Office.

House Committee - Testified Against: None Presented.

House Committee - Testimony For:     Although common law may provide sufficient immunity from suit for persons who provide information to the Insurance Commissioner, nevertheless some persons do not report insurance code violations for fear of a lawsuit.  In addition, the NAIC often will not share information with the Washington Commissioner because of similar concerns over civil liability.  This bill will encourage reporting of potential violations of the insurance code.

House Committee - Testimony Against: None Presented.