SENATE BILL REPORT

                                   EHB 2661

                            AS OF FEBRUARY 21, 1992

Brief Description:  Increasing the charges for insurance premium financing.

SPONSORS: Representative Beck

HOUSE COMMITTEE ON FINANCIAL INSTITUTIONS & INSURANCE

SENATE COMMITTEE ON FINANCIAL INSTITUTIONS & INSURANCE

Staff:  Tom Fender (786‑7414)

Hearing Dates: February 25, 1992

BACKGROUND:

Insurance premium finance companies are licensed and regulated by the insurance commissioner. Premium finance companies may charge $10 per $100 of the premium amount financed plus an acquisition fee of $10.  This amount is a fixed rate.

SUMMARY:

Premium finance companies may charge interest on loans at 1 1/2 percent per month and an administrative charge of $30.

Appropriation:  none

Revenue:  none

Fiscal Note:  none requested