SENATE BILL REPORT

                                    HB 1480

        AS REPORTED BY COMMITTEE ON FINANCIAL INSTITUTIONS & INSURANCE,

                                 APRIL 5, 1991

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

SPONSORS:Representatives R. Meyers, Mielke, Heavey, Broback, Zellinsky and Paris.

HOUSE COMMITTEE ON FINANCIAL INSTITUTIONS & INSURANCE

SENATE COMMITTEE ON FINANCIAL INSTITUTIONS & INSURANCE

Majority Report:  Do pass.

      Signed by Senators von Reichbauer, Chairman; Johnson, Vice Chairman; McCaslin, Moore, Owen, Pelz, Rasmussen, Sellar, and West. 

Staff:  Mark Hutson (786‑7488)

Hearing Dates:March 28, 1991; April 5, 1991

BACKGROUND:

A reciprocal insurer, often referred to as an exchange, is an unincorporated group of 25 or more 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:

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

Appropriation:  none

Revenue: none 

Fiscal Note:  none requested

TESTIMONY FOR:

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

TESTIMONY AGAINST:  None

TESTIFIED:  Mike Kapphahn, Farmers Insurance Group (pro)