SENATE BILL REPORT

SB 6518

BYSenators Sellar, Kreidler, von Reichbauer and Matson; by request of Pollution Liability Reinsurance Agency

Revising provisions for the Washington pollution liability insurance program.

Senate Committee on Financial Institutions & Insurance

Senate Hearing Date(s):January 30, 1990

Senate Staff:Walt Corneille (786-7416)

JANUARY 29, 1990

BACKGROUND:

In 1989 the Legislature provided for the creation of an independent state agency to provide discounted reinsurance for an insurance company or risk retention group to sell pollution insurance to owners and operators of underground petroleum storage tanks.  The program designed by the Pollution Liability Reinsurance Agency was to provide coverage up to $1 million per occurrence and $2 million in the annual aggregate for owners and operators of underground storage tanks.

The reinsurance program administrator was directed to report to the Legislature by January 1, 1990 on the estimated costs of implementing the reinsurance program.  The administrator was restricted from entering into any contracts binding the state to provide pollution liability insurance until authorized by the Legislature.

SUMMARY:

The title of the head of the Pollution Liability Insurance Agency is changed from administrator to director.  The name of the Washington Pollution Liability Reinsurance Program is changed to the Washington Pollution Liability Insurance Program and all reference to reinsurance is changed to insurance.  Washington Pollution Liability Insurance Program still means the excessive loss reinsurance program created by the 1989 legislation.  The prohibition against the administrator from taking action or entering into any contract to provide pollution liability insurance is stricken.  The director may, when necessary, take action or enter into a contract to provide pollution liability insurance.

Appropriation:  none

Revenue:   none

Fiscal Note:    requested