FINAL BILL REPORT

HB 51

                                  C 128 L 87

BYRepresentatives Lux, Winsley, P. King, Crane, Niemi, Wang, Brooks, Locke and Meyers;by request of Insurance Commissioner

Authorizing the continuation of the Washington Essential Property Insurance Inspection and Placement Program.

House Committe on Financial Institutions & Insurance

Senate Committee on Financial Institutions

SYNOPSIS AS ENACTED

BACKGROUND:

The Fair Access to Insurance Requirements (FAIR) Plan was created by Congress as part of the Urban Property Protection and Reinsurance Act of 1968.  This plan was a reaction to the riots and civil disorders of the 1960s.  The purpose of the plan was to provide a method for business and property owners in high-risk areas to obtain property insurance.  Under provisions of the act, the U.S. Department of Housing and Urban Development was directed to approve and oversee state-supervised plans to provide such property insurance.  In response, Washington created the Washington Essential Property Insurance Inspection and Placement Program in 1969.

The Washington program provides for an insurance industry administrative group to review applications for insurance and assign property to insurance companies authorized to write property insurance in this state.

The federal program (FAIR) was recently terminated.  Since the state law authorizing the state insurance commissioner to operate a FAIR plan referenced this federal program, the commissioner's authority was similarly terminated.

SUMMARY:

The insurance commissioner is reauthorized to operate the Washington Essential Property Insurance Inspection and Placement Program.

VOTES ON FINAL PASSAGE:

      House 90   0

      Senate    48     0

EFFECTIVE:July 26, 1987