FINAL BILL REPORT

SSB 5196

                                   C 51 L 87

BYSenate Committee on Financial Institutions (originally sponsored by Senators Moore, Bender and Metcalf; by request of Insurance Commissioner)

Providing civil immunity for certain actions relating to insurance.

Senate Committee on Financial Institutions

House Committe on Financial Institutions & Insurance

SYNOPSIS AS ENACTED

BACKGROUND:

The Insurance Commissioner has a consumer protection division which investigates complaints against the insurance industry, when those complaints are made by a named individual.  However, a large number of complaints remain uninvestigated each year because they are made anonymously.  The fear of civil reprisal against the complainant by either the company or the individual named in the complaint is viewed as a main reason for anonymity.  Similar fears exist when the National Association of Insurance Commissioners meets annually to discuss general problems and complaints within the insurance industry.  Specific problem areas and individuals are discussed, but generally only by those commissioners and employees from states already having statutory immunity in existence.

SUMMARY:

Immunity from civil action is available to individuals providing information required by, requested by, or useful to either the Commissioner or the National Association of Insurance Commissioners, unless actual malice, fraud or bad faith is shown.  Immunity is extended to the Insurance Commissioner, the National Association of Insurance Commissioners, and their respective agents and employees.  Publication and discussion of specific consumer complaints is permitted, provided the publication or discussion takes place without malice and in good faith.  The act supplements any current statutory and common law privileges and immunities.

VOTES ON FINAL PASSAGE:

      Senate    47     0

      House 97   0

EFFECTIVE:July 26, 1987