FINAL BILL REPORT

HB 1729

 

 

C 91 L 01

Synopsis as Enacted

 

Brief Description:  Licensing surplus line brokers.

 

Sponsors:  By Representatives Benson, Hatfield, McIntire, Cairnes, Roach, Simpson and Keiser.

 

House Committee on Financial Institutions & Insurance

Senate Committee on Labor, Commerce & Financial Institutions

 

Background:

 

A surplus lines insurer is an insurance company that does not have a certificate of authority issued by the Insurance Commissioner to transact business in the state and may only operate under certain rules, specified by statute.  The insurance offered by such a broker must be of a type that is not available from other authorized insurers, and the broker must be licensed as a surplus lines broker.

 

In Washington an individual must be a resident of the state to be licensed as a surplus lines broker.

 

Summary:

 

The Insurance Commissioner is authorized to license a nonresident person as a surplus lines broker if he or she meets all other requirements of the law, and if his or her state or province of residence extends a similar privilege to Washington residents.  A nonresident surplus lines licensee is subject to the commissioner's supervision as though he or she were a resident of this state.

 

Votes on Final Passage:

 

House980

Senate470

 

Effective:  July 22, 2001