SENATE BILL REPORT
ESHB
2036
As Reported By Senate Committee On:
Financial Institutions & Housing, March 28, 1995
Title: An act relating to credit involuntary unemployment insurance.
Brief Description: Concerning the sale of consumer credit unemployment insurance.
Sponsors: House Committee on Financial Institutions & Insurance (originally sponsored by Representative L. Thomas).
Brief History:
Committee Activity: Financial Institutions & Housing: 3/24/95, 3/28/95 [DP].
SENATE COMMITTEE ON FINANCIAL INSTITUTIONS &
HOUSING
Majority Report: Do pass.
Signed by Senators Prentice, Chair; Fraser, Vice Chair; Hale, Roach, Sellar, Smith and Sutherland.
Staff: Erika Lim (786-7488)
Background: The Office of the Insurance Commissioner regulates insurance and licenses insurance agents and brokers. The commissioner may issue a limited license for transacting credit life and disability insurance. Credit life insurance generally covers borrowers and pays off a loan balance in the event of the death of a borrower. Credit accident and disability insurance generally covers part or all of a monthly payment in the event of an accident or disability that interferes with a borrower's ability to repay the loan.
Summary of Bill: A person may obtain information related to processing a credit casualty insurance request without being a licensed agent or broker. The commissioner may issue a limited license to allow transaction of credit casualty insurance.
Appropriation: None.
Fiscal Note: Not requested.
Effective Date: Ninety days after adjournment of session in which bill is passed.
Testimony For: Consumer credit unemployment insurance covers loan payments in case borrowers become unemployed through no fault of their own. This bill will make this product, and other similar credit-related insurance products, more accessible to Washington borrowers.
Testimony Against: None.
Testified: Representative Les Thomas, original prime sponsor; Jim Clark, Balboa Insurance Company (pro); Brian L. Vance, West One Bank (pro).