FINAL BILL REPORT

EHB 2364

C 84 L 04

Synopsis as Enacted

Brief Description: Regulating homeowner's insurance.

Sponsors: By Representatives Kagi, O'Brien, Clibborn, Santos, Dickerson, Schual-Berke, Morrell, Edwards and Hudgins.

House Committee on Financial Institutions & Insurance

Senate Committee on Financial Services, Insurance & Housing

Background:

Authority of the Insurance Commissioner. The Insurance Commissioner (Commissioner) is responsible for the licensing and regulation of insurance companies doing business in this state. The authority of the Commissioner includes the oversight of homeowner's insurance policies. "Unfair discrimination" between insureds that have substantially similar risk factors, exposure factors, and expense elements is prohibited.

Foster parents. A "foster-family home" is defined as an agency that regularly provides care on a 24-hour basis to one or more children, expectant mothers, or persons with developmental disabilities in the family abode of the person or persons under whose direct care and supervision the child, expectant mother, or person with a developmental disability is placed. Washington requires foster families to obtain a license.

Summary:

In making underwriting decisions, property and casualty insurers offering homeowner's policies are prohibited from discriminating against an applicant or insured because he or she is a licensed foster parent. Insurers are specifically prohibited from denying an application, as well as canceling, modifying (raising rates or premiums), or refusing to renew a policy based upon the fact that the insured is a foster parent.

Votes on Final Passage:

House 97  0

Senate 48  0

Effective: June 10, 2004