HOUSE BILL REPORT

                  HB 2108

             As Reported By House Committee On:

             Financial Institutions & Insurance

Title:  An act relating to continuing education requirements for insurance agents and brokers.

Brief Description:  Establishing minimum education requirements for insurance agents and brokers.

Sponsors:  Representative L. Thomas.

Brief History:

  Committee Activity:

Financial Institutions & Insurance:  1/22/96, 1/25/96, 1/31/96 [DP].

HOUSE COMMITTEE ON FINANCIAL INSTITUTIONS & INSURANCE

Majority Report:  Do pass.  Signed by 10 members:  Representatives L. Thomas, Chairman; Beeksma, Vice Chairman; Smith, Vice Chairman; Scheuerman, Assistant Ranking Minority Member; Benton; Grant; Huff; Kessler; Pelesky and D. Sommers.

Minority Report:  Do not pass.  Signed by 4 members:  Representatives Wolfe, Ranking Minority Member; Dellwo; Dyer and Keiser.

Staff:  Charlie Gavigan (786-7340).

Background:  Insurance agents and brokers are licensed by the Office of the Insurance Commissioner.  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.

Agents and brokers must comply with continuing education requirements established by the Office of the Insurance Commissioner by rule.  The current rule requires a minimum of 32 hours every two years.

Summary of Bill:  The minimum required number of continuing education hours for agents and brokers to renew their licenses is established by statute at 24 hours every two years.

Appropriation:  None.

Fiscal Note:  Not requested.

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

Testimony For:  None.

Testimony Against:  The minimum number of continuing education hours should be set by rule, as is the usual practice, not by statute.  The current 32-hour requirement was a compromise reached through the rule-making process.

Testified:  Erika Turner, Office of the Insurance Commissioner (opposes); Nancee Wildermuth, Washington Association of Health Underwriters (opposes); and Clark Sitzes, Independent Insurance Agents (opposes).