SENATE BILL REPORT

SSB 5849

BYSenate Committee on Financial Institutions (originally sponsored by Senators Bottiger, Deccio, Talmadge and Sellar)

Requiring a notice of insurance cancellation be sent to agent or broker who procured the policy.

Senate Committee on Financial Institutions

Senate Hearing Date(s):February 27, 1987

Majority Report:  That Substitute Senate Bill No. 5849 be substituted therefor, and the substitute bill do pass.

      Signed by Senators Moore, Chairman; Bender, Vice Chairman; Bottiger, Fleming, McDermott, Metcalf, Pullen, von Reichbauer.

Senate Staff:Phil Sorensen (786-7470)

                  March 12, 1987

AS PASSED SENATE, MARCH 11, 1987

BACKGROUND:

In 1985 the Legislature determined when an insurer cancels a policy, notification must be delivered to the insured, and the insurance representative not less than 45 days prior to the cancellation.  Occasionally the procuring agents or brokers are not notified of the cancellation because they are not considered the representative in charge of the subject matter.

SUMMARY:

Whenever an insurer is required to give notification of cancellation or nonrenewal to an insured, a copy of that notification must also be sent simultaneously to the insured's agent or broker of record.

Fiscal Note:      none requested

Senate Committee - Testified: Senator Deccio