SENATE BILL REPORT

SB 6326

As Reported By Senate Committee On:

Labor, Commerce & Financial Institutions, January 29, 2002

Title:  An act relating to filing reports with the insurance commissioner.

Brief Description:  Filing reports with the insurance commissioner.

Sponsors:  Senators Prentice and Winsley.

Brief History:

Committee Activity:  Labor, Commerce & Financial Institutions:  1/29/02. [DPS]

SENATE COMMITTEE ON LABOR, COMMERCE & FINANCIAL INSTITUTIONS

Majority Report:  That Substitute Senate Bill No. 6326 be substituted therefor, and the substitute bill do pass.

Signed by Senators Prentice, Chair; Keiser, Vice Chair; Benton, Fairley, Franklin, Gardner, Hochstatter, Honeyford, Rasmussen, Regala and Winsley.

Staff:  Matthew Adams (786‑7784)

Background:  The Insurance Commissioner requires property and casualty insurers to record and report their Washington State losses and expenses.  The report must include the types of insurance written by the insurer for policies pertaining to medical and professional malpractice, products liability, municipal liability, and day care center liability.  In addition, the report must include the total premium dollars collected, losses, expenses and net income, and the amount of outstanding insurance in effect for each type of insurance written by the insurer.

Insurers must file their reports annually with the Insurance Commissioner no later than May 1.  Failure to file the report, or filing the report late, is a violation of Office of the Insurance Commissioner regulations and subjects the insurance company to a possible fine of $2,000.

Summary of Substitute Bill:  Insurers are no longer required to file reports with the Insurance Commissioner when the insurer does not offer or have policies pertaining to medical and professional malpractice, product liability, municipal liability, and day care center liability.

The Insurance Commissioner's rules may not require a report to be submitted by an insurer that has no data or experience to report.

Substitute Bill Compared to Original Bill:  The original bill was not considered.

Appropriation:  None.

Fiscal Note:  Available.

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

Testimony For:  The Insurance Commissioner requires property and casualty insurers to report information about their policies.  Although an insurer may not offer policies that cover malpractice insurance, the insurer is required to file a report and is subject to a penalty for late filing. This bill saves time, money, and paperwork.

Testimony Against:  None.

Testified:  PRO:  Gary Gardner, American Share Insurance; Carrie Tellefson, Office of the Insurance Commissioner.