HOUSE BILL REPORT

                  SB 6396

                       As Passed House

                        March 6, 1992

 

Title:  An act relating to persons making contracts of insurance with unauthorized insurance providers.

 

Brief Description:  Making certain unauthorized insurance brokers personally liable for contracts of insurance.

 

Sponsor(s):  Senators von Reichbauer, Pelz, Erwin, Moore, Vognild and Conner.

 

Brief History:

  Reported by House Committee on:

Financial Institutions & Insurance, February 25, 1992, DP;

Passed House, March 6, 1992, 96-0.

 

HOUSE COMMITTEE ON

FINANCIAL INSTITUTIONS & INSURANCE

 

Majority Report:  Do pass.  Signed by 9 members:  Representatives Dellwo, Chair; Broback, Ranking Minority Member; Mielke, Assistant Ranking Minority Member; Anderson; Inslee; R. Johnson; Paris; Schmidt; and Winsley.

 

Staff:  John Conniff (786-7119).

 

Background:  Insurance companies must obtain a certificate of authority to transact business within the state. Insurance companies without such a certificate are unauthorized insurers.  Under limited circumstances, an unauthorized insurance company may provide insurance for risks within the state.  However, such insurance may only be procured or provided through a properly licensed surplus lines broker.

 

Summary of Bill:  A person, other than a duly licensed surplus line broker acting in good faith under his or her license, who makes a contract of insurance on behalf of an unauthorized insurer is personally liable for the performance of the contract.

 

Fiscal Note:  Not requested.

 

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

 

Testimony For:  None.

 

Testimony Against:  None.

 

Witnesses:  None.