FINAL BILL REPORT
HB 2098
C 110 L 97
Synopsis as Enacted
Brief Description: Making longshore and harbor workers' compensation insurance available.
Sponsors: Representative L. Thomas.
House Committee on Financial Institutions & Insurance
Senate Committee on Financial Institutions, Insurance & Housing
Background: Federal law requires that employers of longshore and harbor workers obtain workers' compensation coverage for their employees. Longshore and harbor workers are not eligible for coverage under the Washington state workers' compensation insurance program.
The Legislature adopted a temporary insurance plan in 1992 to provide insurance for those employers unable to obtain coverage in the private market for their longshore and harbor workers. This state plan, called the United States Longshore and Harbor Workers Assigned Risk Plan, was extended for two years in 1993 and again in 1995. Under the plan, all insurers writing longshore and harbor workers' compensation insurance and the state Department of Labor and Industries' workers' compensation fund participate in underwriting the losses for this coverage. Liability for plan losses is split equally between private insurers writing longshore and harbor workers' compensation insurance and the state workers' compensation fund. Premiums are not paid to the state workers' compensation fund for this potential liability. The state workers' compensation fund is authorized to reinsure the longshore and harbor workers' plan.
The program is scheduled to expire July 1, 1997.
Summary: The expiration of the United States Longshore and Harbor Workers Assigned Risk Plan is repealed. The program is continued indefinitely.
The governing committee of the plan determines underwriting losses and surpluses, which are shared by the plan=s participants (half to private insurers involved in the plan and half to the state workers= compensation fund).
Votes on Final Passage:
House 96 0
Senate 43 4
Effective:April 21, 1997