SENATE BILL REPORT

                                   SHB 1971

        AS REPORTED BY COMMITTEE ON FINANCIAL INSTITUTIONS & INSURANCE,

                                 APRIL 5, 1991

Brief Description:  Regulating alien insurers.

SPONSORS:House Committee on Financial Institutions & Insurance (originally sponsored by Representatives Dellwo, Paris, Zellinsky, Mielke, Inslee, Day, Schmidt, Prince and Scott).

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, Owen, Pelz, Rasmussen, Sellar, Vognild, and West. 

Staff:  Mark Hutson (786‑7488)

Hearing Dates:April 2, 1991; April 5, 1991

BACKGROUND:

Alien insurers, as defined under the insurance code, are simply insurance companies that were formed under the laws of another country.  An alien insurer wishing to do business in the United States must use one of the 50 states as a state of entry and maintain a trust account for the benefit of United States policyholders.  Washington State has no law establishing procedures for the use of this state as a state of entry.

SUMMARY:

Alien insurers may use the state of Washington as a state of entry for purposes of doing business in the United States by making and maintaining a deposit of assets in a trust account within Washington in accordance with established procedures and standards.

Appropriation:  none

Revenue:  none

Fiscal Note:  none requested

Effective Date: The bill contains an emergency clause and takes effect immediately. 

TESTIMONY FOR:

Washington should allow alien insurance companies to choose Washington as its state of entry to do business in the United States.  Such a law promotes economic development.

TESTIMONY AGAINST:  None

TESTIFIED:  Basil Badley, Commonwealth Insurance Company (pro)