SENATE BILL REPORT

                            HB 1041

AS REPORTED BY COMMITTEE ON LABOR & COMMERCE, MARCH 24, 1993

Brief Description:  Altering a limit on family member group life insurance coverage.

SPONSORS: Representatives Zellinsky and Mielke

HOUSE COMMITTEE ON FINANCIAL INSTITUTIONS & INSURANCE

SENATE COMMITTEE ON LABOR & COMMERCE

Majority Report:  Do pass. 

     Signed by Senators Moore, Chairman; Prentice, Vice Chairman; Barr, Cantu, Fraser, McAuliffe, Newhouse, Pelz, Prince, and Sutherland.

Staff:  Erika Lim (786‑7488)

Hearing Dates: March 18, 1993; March 24, 1993

BACKGROUND:

Group life insurance may be provided by an employer to an employee's spouse or dependents.  A dependent's coverage is limited to no more than 50 percent of the amount of the employee's coverage or $2000, whichever is less.  A spouse's coverage is limited to no more than 50 percent of the amount of the employee's coverage.

SUMMARY:

The $2000 group life insurance coverage limit for dependents of an employee is repealed.

Appropriation:  none

Revenue:  none

Fiscal Note:  none requested

TESTIMONY FOR:

The $2,000 limit was imposed in the 1940's and no one can remember why.  It is an arbitrary limit.

Even if a fund is large enough to provide an increase in coverage for dependents, current law prohibits it.

TESTIMONY AGAINST:  None

TESTIFIED:  Sam Kinville, Washington State Council of City and County Employees (pro); Melodie Bankers, Office of the Insurance Commissioner (pro)