SENATE BILL REPORT

                            SB 5189

                    AS OF FEBRUARY 1, 1993

Brief Description:  Changing the process for acquiring insurance holding companies.

SPONSORS: Senator Moore

SENATE COMMITTEE ON LABOR & COMMERCE

Staff:  Blaine Gibson (786‑7457)

Hearing Dates: February 3, 1993

BACKGROUND:

Prior to 1983, acquisitions of domestic insurance companies could proceed unless the Insurance Commissioner disapproved them within 20 days.  In 1983, the law was changed to require that the Insurance Commissioner approve the acquisition of any domestic insurance company.

SUMMARY:

The pre-1983 law is reinstated.  The acquisition of a domestic insurance company may proceed unless the Insurance Commissioner disapproves it within 20 days.  In making the determination the Insurance Commissioner is to be guided by the effects on competition, financial stability, insurance availability, and the financial condition, competence, and integrity of the acquirer.

Appropriation:  none

Revenue:  none

Fiscal Note:  none requested