Washington State

House of Representatives

Office of Program Research

BILL

ANALYSIS

Business & Financial Services Committee

HB 2188

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

Brief Description: Regulating air rescue or evacuation services.

Sponsors: Representatives Ryu and Parker.

Brief Summary of Bill

  • Exempts certain air rescue services providers from the Insurance Code.

Hearing Date: 1/12/12

Staff: Jon Hedegard (786-7127).

Background:

The Insurance Code (Code) governs all insurance transactions that occur in this state or affect subjects located within this state. "Insurance" is defined as "a contract whereby one undertakes to indemnify another or pay a specified amount upon determinable contingencies." Among other duties for insurers, the Code requires:

There are a number of services, products, persons, and entities that are regulated under the Code in a less stringent manner than a traditional insurance product, agent or broker, or insurer. There are also several exemptions from the Code. One exemption is related to private air ambulance services.

Private air ambulance services that solicit and accept membership subscriptions, charge fees, and provide services are not insurers or health carriers and are exempt from the provisions of the Code if the service:

Summary of Bill:

Rescue, evacuation, emergency transport, and crisis management and consulting services related to an emergency (rescue services), include:

A subscription service that solicits membership subscriptions, charges membership fees, and provides rescue services to its members or designated members of a member's household is not an insurer or a health carrier.

A subscription service that provides rescue services must satisfy any licensing requirements of the jurisdiction in which the services are provided.

It is not required that a subscription service own the means of transportation that will be used to provide the contracted services.

Appropriation: None.

Fiscal Note: Not requested.

Effective Date: The bill takes effect 90 days after adjournment of the session in which the bill is passed.