FINAL BILL REPORT

                   SB 5809

                           C 89 L 97

                      Synopsis as Enacted

 

Brief Description:  Requiring unauthorized insurers to be financially sound.

 

Sponsors:  Senators Fraser, Hale, Winsley and Prentice.

 

Senate Committee on Financial Institutions, Insurance & Housing

House Committee on Financial Institutions & Insurance

 

Background:   Unauthorized insurers are foreign or alien insurance companies that do not apply for a certificate of authority in Washington.  Washington requires unauthorized insurers to have a certain amount of capital and surplus held in the state or foreign country where these companies conduct business.  In addition, an alien insurer must obtain a trust account placed in the United States in the amount of $2,500,000.  The trust fund pays the claims of policy­holders in the United States in the event of an insolvency.

 

Summary:  The amount of the alien insurer's trust account in the United States is increased to $5,400,000.

 

Votes on Final Passage:

 

Senate 49 0

House     98 0

 

Effective:  June 1, 1998