SENATE BILL REPORT

SB 5849

BYSenators 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 3, 1987

AS REPORTED BY COMMITTEE ON FINANCIAL INSTITUTIONS, FEBRUARY 27, 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 either the procuring agent or broker is 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 agent or broker who procured the policy for the insured.

EFFECT OF PROPOSED SUBSTITUTE:

Any notification of cancellation or nonrenewal required to be issued to the insured shall be simultaneously sent to the insured's agent or broker of record.

Fiscal Note:      none requested

Senate Committee - Testified: Senator Deccio