HOUSE BILL REPORT

SSB 5849

BYSenate Committee on Financial Institutions (originally sponsored by Senators Bottiger, Deccio, Talmadge and Sellar)

Requiring a notice of insurance cancellation be sent to agent or broker who procured the policy.

House Committe on Financial Institutions & Insurance

Majority Report:  Do pass.  (13)

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

House Staff:John Conniff (786-7119)

AS PASSED HOUSE MARCH 27, 1987

BACKGROUND:

Insurance companies are required to give 45 days notice to the insured of a decision to cancel or nonrenew a policy.  Some insurance companies send a notice to the policyholder but do not send a copy of the notice to the agent.

SUMMARY:

Whenever an insurance company is required to give the policyholder a notice of cancellation or nonrenewal, the company must provide a copy of the notice to the policyholder's agent at the same time notice is sent to the policyholder.

Fiscal Note:      Not Requested.

House Committee ‑ Testified For:    Frank Keller, Insurance Producers.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    Last year when the legislature required greater notice prior to policy cancellation, the legislature required insurers to also send notice to the policyholder's "representative".  It was intended for "representative" to mean the policyholder's agent or broker; however, an agent is the representative of the insurer.  This bill clarifies the original legislative intent.

House Committee - Testimony Against:      None Presented.