SENATE BILL REPORT

                  SHB 2767

                    As of February 16, 2000

Title:  An act relating to exempting certain insurance documents from the filing requirements.

Brief Description:  Exempting certain insurance documents from the filing requirements.

Sponsors:  House Committee on Financial Institutions & Insurance (originally sponsored by Representatives Benson and Santos; by request of Insurance Commissioner).

Brief History:

Committee Activity:  Commerce, Trade, Housing & Financial Institutions:  2/17/2000.

SENATE COMMITTEE ON COMMERCE, TRADE, HOUSING & FINANCIAL INSTITUTIONS

Staff:  Elizabeth Mitchell (786-7430)

Background:  An insurer must generally file policy forms with the Office of the Insurance Commissioner before using them.  After receiving a form, the commissioner has a 30‑day period to review it.  The commissioner may extend the 30‑day period for an additional 15 days if the commissioner notifies the insurance company of the extension within the 30‑day waiting period.

Commercial property casualty policies are exempt from these filing requirements.

Summary of Bill:  In order to be classified as a commercial property casualty policyholder, the policyholder must use the services of an insurance agent/broker to purchase insurance, have a risk manager, and meet at least two of the following policyholder criteria:  (1) pays a $150,000 annual premium; (2) has 200 or more employees; (3) has a net worth exceeding $50 million; or (4) generates annual net revenues or sales in excess of $100 million.

Policies issued to a commercial property casualty policyholder are to contain a disclaimer that the policy is exempt from form filing and approval requirements.

Appropriation:  None.

Fiscal Note:  Not requested.

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