HOUSE BILL REPORT

                 SHB 2846

                      As Passed House:

                      February 9, 2000

Title:  An act relating to certain notices to agents or brokers.

Brief Description:  Providing certain notices to agents or brokers.

Sponsors:  By House Committee on Financial Institutions & Insurance (originally sponsored by Representatives Benson, Hatfield, Sullivan, DeBolt, Barlean, Cairnes, Quall, McIntire and Delvin).

Brief History:

  Committee Activity:

Financial Institutions & Insurance:  2/1/00, 2/4/00 [DPS].

Floor Activity:

Passed House:  2/9/00, 97-0.

           Brief Summary of Substitute Bill

$The copy of the notice that must be provided to the agent or broker regarding cancellation, renewal or non-renewal of  an insurance policy can be sent electronically.

HOUSE COMMITTEE ON FINANCIAL INSTITUTIONS & INSURANCE

Majority Report:  The substitute bill be substituted therefor and the substitute bill do pass.  Signed by 12 members:  Representatives Benson, Republican Co-Chair; Hatfield, Democratic Co-Chair; Bush, Republican Vice Chair; McIntire, Democratic Vice Chair; Barlean; Cairnes; DeBolt; Keiser; Quall; Santos; Sullivan and Talcott.

Staff:  Charlie Gavigan (786-7340).

Background:

Whenever a cancellation notice or a notice regarding the renewal or non-renewal of an insurance policy is provided to an insured person, a copy of the notice must be provided at the same time to the agent or broker.

Summary of Bill:

The copy of the notice that must be provided to the agent or broker regarding cancellation, renewal or non-renewal of an insurance policy must be sent within five days of the notice going to the policyholder and can be sent electronically.

Substitute Bill Compared to Original Bill:  Allows the notice to be sent to the agent/broker within five working days, allows use of electronic notice when possible, and removes bulk mail as a means of notification.

Appropriation:  None.

Fiscal Note:  Not requested.

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

Testimony For:  This bill updates an old statute by allowing electronic mailing of certain notices to agents and brokers.  A concern is that some agents, particularly in rural areas, may not be proficient in new technology.

Testimony Against:  None.

Testified:  (In support) Clark Sitzes, Allstate.

(In support with concerns) Bill Stauffacher, Independent Insurance Agents and Brokers.