SENATE BILL REPORT

                            SB 6377

              AS PASSED SENATE, FEBRUARY 15, 1994

Brief Description:  Compensating insurance brokers.

SPONSORS: Senator Moore

SENATE COMMITTEE ON LABOR & COMMERCE

Majority Report:  Do pass. 

     Signed by Senators Moore, Chairman; Prentice, Vice Chairman; Amondson, Deccio, Fraser, McAuliffe, Newhouse, Pelz, Prince, Sellar, Sutherland, Vognild and Wojahn.

Staff:  Blaine Gibson (786‑7375)

Hearing Dates: February 1, 1994; February 2, 1994

HOUSE COMMITTEE ON FINANCIAL INSTITUTIONS & INSURANCE

BACKGROUND:

Present law does not state that an insurance agent licensed as a broker can receive both commissions from the insurer and fees paid by the insured.

SUMMARY:

Insurance agents licensed as brokers may receive commissions paid by the insurer, fees paid by the insured, or a combination of the two.

Appropriation:  none

Revenue:  none

Fiscal Note:  requested

TESTIMONY FOR:

This legislation is needed to make clear that common practice in the brokerage industry is permitted under law.

TESTIMONY AGAINST:  None

TESTIFIED:  Steve Wehrly, Jesse Gary, Western Association of Insurance Brokers (pro)

HOUSE AMENDMENT(S):

Application of the bill is limited to property and casualty insurance.  The fees may be charged unless the agreement provides to the contrary.  Proper disclosures must be made.