FINAL BILL REPORT

SB 5882

                                  C 303 L 87

BYSenators Moore and Patterson

Authorizing contractors to deposit cash or securities to meet insurance requirements.

Senate Committee on Commerce & Labor

House Committe on Commerce & Labor

SYNOPSIS AS ENACTED

BACKGROUND:

The Contractors Registration Act, Chapter 18.27 RCW, requires every contractor to furnish at the time of registration public liability and property damage insurance of at least $25,000 for property damage, $50,000 for personal injury or death involving one person and $100,000 for injury or death involving more than one person.

SUMMARY:

A choice is given to contractors to meet the liability insurance requirement by either obtaining insurance or providing the Department with an assigned account of the same amount as the insurance levels.

If the contractor chooses the assigned account option, the contractor must enter into an assigned account agreement with the Department which is acceptable to the Department, and indicates the assigned account is held to satisfy judgments against the contractor.  The Department is excused from any liability beyond the limits of the assigned account.

The account may be cancelled three years after either (1) license revocation, (2) the contractor furnishes proof of insurance, and in either case, no lawsuit has been filed.

Contractors are required to notify all clients if the contractor chooses the assigned account option, and that recovery from the account can only be obtained following a court judgment in favor of the claimant.

VOTES ON FINAL PASSAGE:

      Senate    49     0

      House 95   0 (House amended)

      Senate    38     0 (Senate concurred)

EFFECTIVE:July 26, 1987