HOUSE BILL REPORT

                  HB 1373

             As Reported By House Committee On:

             Financial Institutions & Insurance

Title:  An act relating to the licensing of general agents.

Brief Description:  Amending licensing requirements of general agents.

Sponsors:  Representatives L. Thomas, Wolfe, Kessler, Dyer and Jacobsen; by request of Insurance Commissioner.

Brief History:

  Committee Activity:

Financial Institutions & Insurance:  2/2/95, 2/8/95 [DP].

HOUSE COMMITTEE ON FINANCIAL INSTITUTIONS & INSURANCE

Majority Report:  Do pass.  Signed by 15 members:  Representatives L. Thomas, Chairman; Beeksma, Vice Chairman; Smith, Vice Chairman; Wolfe, Ranking Minority Member; Grant, Assistant Ranking Minority Member; Benton; Campbell; Costa; Dellwo; Dyer; Huff; Kessler; Mielke; Ogden and Pelesky.

Staff:  Charlie Gavigan (786-7340).

Background:  The Office of the Insurance Commissioner licenses agents, brokers, solicitors, and other persons engaged in the business of insurance.  Generally, licenses are valid unless revoked by the insurance commissioner, provided the fees are paid timely and other requirements are met.  License fees are paid every two years.

A general agent or manager of an insurance company, a person who accepts and approves applications from licensed agents not appointed by the insurance company, must be licensed by the Office of the Insurance Commissioner.  The general agent or manager license is valid for one year; it expires March 31.  The license fee for general agents or managers is $50 for a two-year period.

Summary of Bill:  The general agent or manager license is treated the same as other insurance licenses; that is, the license is valid unless revoked by the insurance commissioner, provided the fees are paid timely and other requirements are met.

Appropriation:  None.

Fiscal Note:  Requested on January 24, 1995.

Effective Date:  Ninety days after adjournment of session in which bill is passed.

Testimony For:  This bill corrects an oversight in 1993 legislation that reduced the frequency of renewing insurance licenses.  The general agent or manager inadvertently was not included in one change.

Testimony Against:  None.

Testified:  Mary Clogsden, Office of the Insurance Commissioner (pro); and Bill Frazen, Office of the Insurance Commissioner (pro).