SENATE BILL REPORT

                   SB 6293

              As Reported By Senate Committee On:

      Financial Institutions & Housing, January 19, 1996

Title:  An act relating to the filing of corporate documents by insurance companies, health care service contractors, and health maintenance organizations.

Brief Description:  Filing documents with the insurance commissioner.

Sponsors:  Senators Prentice, Hale, Fraser, Sellar, Quigley, Winsley and Roach; by request of Secretary of State and Insurance Commissioner.

Brief History:

Committee Activity:  Financial Institutions & Housing:  1/11/96, 1/19/96 [DPS].

SENATE COMMITTEE ON FINANCIAL INSTITUTIONS & HOUSING

Majority Report:  That Substitute Senate Bill No. 6293 be substituted therefor, and the substitute bill do pass.

  Signed by Senators Prentice, Chair; Fraser, Vice Chair; Hale, Roach and Sutherland.

Staff:  David Cheal (786-7576)

Background:  Currently, anyone organizing an insurance company to be incorporated in the state of Washington must file corporate documents with both the Secretary of State and the office of the Insurance Commissioner.  These documents include the articles of incorporation and any amendments to the articles.  As with other corporations, the Secretary of State checks for duplication of the proposed name with existing corporations or any similarity of names that might be confusing to the public.  The office of the Insurance Commissioner also checks proposed names for duplication or possible confusion.

These filing requirements apply to corporations seeking a certificate of authority to issue insurance policies, health care service corporations, and health maintenance organizations.

Summary of Substitute Bill:  The requirement for filing corporate documents in both the office of the Insurance Commissioner and the Secretary of State by insurance companies, health care service corporations, and health maintenance organizations is amended to require filing only with the office of the Insurance Commissioner.

The office of the Insurance Commissioner and Secretary of State are required to cooperate in registering or reserving new corporate names to avoid duplication with existing corporate names.

Substitute Bill Compared to Original Bill:  An inadvertently omitted existing section that requires double filing is included and amended to eliminate the requirement filing with the Secretary of State.

Appropriation:  None.

Fiscal Note:  Requested on January 9, 1996.

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

Testimony For:  Eliminating the requirement of filing corporate documents with two agencies will streamline the process and save tax dollars.

Testimony Against:  None.

Testified:  Linda MacIntosh, SOS (pro); Mary Clogston, OIC (pro).