SENATE BILL REPORT
SB 5213
This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent. |
As of January 19, 2011
Title: An act relating to insurance.
Brief Description: Addressing insurance statutes, generally.
Sponsors: Senators Litzow and Hobbs; by request of Insurance Commissioner.
Brief History:
Committee Activity: Financial Institutions, Housing & Insurance: 1/19/11.
SENATE COMMITTEE ON FINANCIAL INSTITUTIONS, HOUSING & INSURANCE |
Staff: Edward Redmond (786-7471)
Background: The Office of Insurance Commissioner (OIC) is authorized to regulate all insurance business in Washington, including certification of various types of insurers, approval of rate and form contracts, licensing of agents and brokers, collection of premium taxes, and responding to consumer complaints.
The Revised Code of Washington is periodically updated and clarified by the various state agencies responsible for its implementation. This clean-up process eliminates obsolete language, makes minor substantive or technical changes, and repeals outdated sections. This is the OIC's clean-up bill.
Summary of Bill: Numerous provisions of the insurance code are modernized and clarified. Outdated sections are repealed, internal cross-references are corrected, and minor substantive or technical changes are made, as follows:
completes the 2010 modernization process by requiring various insurance providers, brokers, and adjusters that are foreign, nonresident, or unauthorized to appoint the Commissioner as its attorney to receive service of legal process;
removes requirement that OIC stock and provide insurers' annual report blanks;
changes the due dates for regulatory surcharges paid by insurers from June 15 to July 15, and the assessment of penalties for nonpayment from June 30 to July 31;
assigns the director of personnel as the correct authoritative body for setting examiner salaries;
requires healthcare service providers to report premiums and prepayments, for tax purposes, on a written basis or on a paid-for basis consistent with the basis required by the annual statement;
removes conflicting language within the Long-Term Care Partnership Act to conform with provisions in the 2005 federal Deficit Reduction Act, thereby enabling Washington to become a Long-Term Partnership state.
Appropriation: None.
Fiscal Note: Available.
Committee/Commission/Task Force Created: No.
Effective Date: Ninety days after adjournment of session in which bill is passed.