FINAL BILL REPORT

HB 432

                                  C 366 L 87

BYRepresentatives Chandler, Lux, Ballard, McMullen, Winsley and Zellinsky

Regulating fraternal benefit societies.

House Committe on Financial Institutions & Insurance

Senate Committee on Financial Institutions

SYNOPSIS AS ENACTED

BACKGROUND:

Fraternal benefit societies are regulated under the insurance code. Fraternal benefit societies are distinguished from other fraternal organizations by the fact that benefit societies are licensed insurers under supervision of the insurance commissioner.  Fraternal benefit societies may only insure members of the society.  These societies typically provide life insurance benefits but may provide other insurance benefits, such as disability benefits.

SUMMARY:

The insurance code provisions governing fraternal benefit societies are revised.  The insurance aspects of the societies have been updated to grant more flexibility in structuring operations; permit modern insuring powers; and require greater financial resources before providing insurance.  In addition, societies must comply with the unfair practices provisions of the Washington State Insurance Code.

VOTES ON FINAL PASSAGE:

      House 93   4

      Senate    45     2(Senate amended)

      House 68  28(House concurred)

EFFECTIVE:January 1, 1988