SENATE BILL REPORT

                  SHB 1065

              As Reported By Senate Committee On:

  Financial Institutions, Insurance & Housing, March 27, 1997

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

Brief Description:  Filing certain insurance related corporate documents.

Sponsors:  House Committee on Financial Institutions & Insurance (originally sponsored by Representatives L. Thomas, Wolfe and Mason; by request of Insurance Commissioner).

Brief History:

Committee Activity:  Financial Institutions, Insurance & Housing:  3/27/97 [DP].

SENATE COMMITTEE ON FINANCIAL INSTITUTIONS, INSURANCE & HOUSING

Majority Report:  Do pass.

  Signed by Senators Winsley, Chair; Benton, Vice Chair; Finkbeiner, Hale, Heavey, Kline and Prentice.

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 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.

Appropriation:  None.

Fiscal Note:  Requested on January 21, 1997.

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

Testimony For:  This will save the needless public and private expense of double filing certain corporate documents.

Testimony Against:  None.

Testified:  Representative Les Thomas, prime sponsor (pro).