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The $2000 group life insurance coverage limit for dependents of an employee is repealed.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