FINAL BILL REPORT

                  HB 1330

FULL VETO

Brief Description:  Modifying the administration of the responsibilities of self‑insurers.

Sponsors:  Representatives L. Thomas, Grant, Zellinsky, Sheldon and Mielke.

House Committee on Financial Institutions & Insurance

Senate Committee on Commerce & Labor

Background:  Employers covered by industrial insurance law must insure their responsibilities under the law by self-insuring or by purchasing insurance from the Department of Labor and Industries.  Employers that self-insure must meet statutory requirements.

An employer who self-insures may reinsure up to 80 percent of its liabilities with any company authorized to transact reinsurance in Washington.  The reinsurer may not participate in the administration of the employer's self-insurance program.

Summary:  Until July 1, 2001, a subsidiary, holding company, or affiliated legal entity of a reinsurer of a self-insurer's liability under industrial insurance law may participate in the administration of the self-insurance program if the subsidiary, holding company, or affiliated legal entity does not provide reinsurance.

By January 1, 2000, the Department of Labor and Industries must report to the Legislature on the adjudication of claims by self-insurers and the impact this act has on the adjudication of claims by self-insurers. The department is given authority to adopt rules to implement this act.

Votes on Final Passage:

House  54 40

Senate 29 19 (Senate amended)

House  54 42 (House concurred)