HOUSE BILL REPORT

                  HB 1480

             As Reported By House Committee on:

             Financial Institutions & Insurance

Title:  An act relating to the maintenance and investment of assets by reciprocal exchanges.

Brief Description:  Allowing reciprocal insurer to affect title to real property.

Sponsor(s):  Representatives R. Meyers, Mielke, Heavey, Broback, Zellinsky and Paris.

Brief History:

  Reported by House Committee on:

Financial Institutions & Insurance, February 19, 1991, DP.

HOUSE COMMITTEE ON

FINANCIAL INSTITUTIONS & INSURANCE

Majority Report: Do pass.  Signed by 13 members:  Representatives Dellwo, Chair; Zellinsky, Vice Chair; Broback, Ranking Minority Member; Mielke, Assistant Ranking Minority Member; Anderson; Dorn; Inslee; R. Johnson; R. Meyers; Paris; Schmidt; Scott; and Winsley.

Staff:  John Conniff (786-7119).

Background:  A reciprocal insurer, often referred to as an exchange, is an unincorporated group of persons who join together to insure each other.  The group of persons execute a power of attorney agreement authorizing a person or organization to act as the attorney in fact to transact the day to day business of the group.

Summary of Bill:  The insurance code governing reciprocal insurers is amended to authorize real estate transactions conducted by and through the reciprocal's attorney in fact.

Fiscal Note:  Not requested.

Effective Date:  Ninety days after adjournment of session in which bill is passed.

Testimony For:  The changes are necessary to clarify existing authority of reciprocal insurers to own and transfer real property.

Testimony Against:  None.

Witnesses:  Mike Kapphahn, Farmers Insurance (Pro).