AN ACT Relating to insurance; adding a new section to chapter 41.06 RCW; adding new sections to chapter 43.131 RCW; adding a new chapter to Title 48 RCW; making an appropriation; providing an expiration date; and declaring an emergency.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1. The legislature finds that insurance consumers need an independent voice to advocate consumers' interests to the legislature. The purpose of this legislation is to create a board, independent of the insurance industry, who may hire professional staff to research and analyze insurance products, services and laws; to advocate for change in insurance laws and regulations; and to provide insurance information to consumers. It is not the purpose of this legislation to criticize, supersede, or duplicate the commissioner's consumer protection role. The board is intended to complement the commissioner's existing consumer protection activities in areas that are best suited to an advocacy role.

NEW SECTION. Sec. 2. (1) There is hereby created the insurance consumers board to promote the interests of insurance consumers and to disseminate insurance information to consumers. The board shall consist of the commissioner, or the commissioner's designee, and six members appointed by the governor.

(2) No person who serves on the board shall be employed by or accept any gratuity from any group, individual, or association that is part of or associated with the insurance industry while serving on the board. No person employed by the board to carry out the purposes of this chapter shall be employed by or accept any gratuity from any group, individual, or association that is part of or associated with the insurance industry while employed by the board or for a period of one year following termination of employment.

NEW SECTION. Sec. 3. (1) The initial members of the board other than the commissioner shall be appointed as follows:

(a) Three members appointed by the governor shall be appointed for a period of four years commencing October 1, 1987; and

(b) Three members appointed by the governor shall be appointed for a period of three years commencing October 1, 1987.

(2) Upon expiration of the initial appointments, members other than the commissioner or the commissioner's designee, shall be appointed to two-year terms. No person shall serve more than four years with the exception of the initial members appointed by the governor for a three-year term who may serve a maximum of five years.

(3) Members of the board who are not currently being compensated by public moneys, shall be compensated as provided in RCW 43.03.240 and reimbursed for travel expenses as provided in RCW 43.03.050 and 43.03.060.

NEW SECTION. Sec. 4. (1) A quorum to conduct the business of the insurance consumers board consists of three members of the board. No action may be taken with regard to employment of staff or with regard to contracting for services without the affirmative vote of five members of the board. No action may be taken with respect to advocating or promoting the interest of consumers before the legislative, executive, or judicial branches of state government without the affirmative vote of four members of the board.

(2) The board shall meet at least quarterly at such times as it may fix. The board shall elect a chairperson and vice-chairperson annually.

NEW SECTION. Sec. 5. Members of the insurance consumers board and their staff shall be immune from liability in any civil action or suit arising from the publication of any report or bulletin or dissemination of information related to the official activities of the board unless actual malice, fraud, or bad faith is shown.

NEW SECTION. Sec. 6. The insurance consumers board shall maintain appropriate offices and employ such personnel as may be necessary to perform its duties. Employment by the board shall include but not be limited to an executive director, a research analyst, and a confidential secretary, which positions are exempt from classified service under chapter 41.06 RCW.

NEW SECTION. Sec. 7. A new section is added to chapter 41.06 RCW to read as follows:

In addition to exemptions set forth in RCW 41.06.070, the provisions of this chapter shall not apply to the executive director, a research analyst, and a confidential secretary of the insurance consumers board.

NEW SECTION. Sec. 8. In addition to performing various duties specified elsewhere in this chapter, the insurance consumers board shall:

(1) Collect, analyze, and disseminate consumer-related insurance information;

(2) Advocate and promote the collective interest of consumers in relation to insurance. However, the board may not involve itself in the rate approval process of the commissioner;

(3) Recommend creation and modification of laws to elected officials; and

(4) Prepare an annual report to the governor and the legislature of the activities and finances of the board.

NEW SECTION. Sec. 9. In addition to any other powers provided in this chapter, the insurance consumers board may:

(1) Prepare and disseminate public information brochures describing insurance matters of interest to consumers;

(2) Employ such staff as is necessary to accomplish its purposes; and

(3) Contract with other state agencies and private persons and businesses to accomplish its purposes.

NEW SECTION. Sec. 10. (1) The operations of the insurance consumers board shall be funded by assessments of fees upon all insurers, health care service contractors, and health maintenance organizations authorized to do business in this state. The annual cost of operations of the board shall be determined by legislative appropriation.

(2) The commissioner shall annually, on or before June 1, calculate and bill each authorized insurer, contractor, or organization for an equal share of the annual appropriation for the operations of the board. Such amount billed shall not exceed three hundred dollars annually per insurer, contractor, or organization.

(3) All moneys collected shall be deposited in the insurance consumers board's operation account in the state treasury which is hereby created.

(4) Unexpended funds in the account at the close of a fiscal year shall be carried forward in the account to the succeeding fiscal year and shall be used to reduce future assessments for support of the insurance consumers board.

(5) All funds collected under this section shall be used solely for the purposes of funding the insurance consumers board and shall not be included in the calculation of assessments authorized under RCW 48.02.190.

(6) The penalties for failure to pay fees when due shall be the same as penalties for failure to pay taxes pursuant to RCW 48.14.060. The fees required by this section are in addition to all other taxes and fees now imposed or that may be subsequently imposed.

NEW SECTION. Sec. 11. Sections 1 through 6 and 8 through 10 of this act shall constitute a new chapter in Title 48 RCW.

NEW SECTION. Sec. 12. There is appropriated from the insurance consumers board's operation account to the insurance consumers board for the biennium ending June 30, 1989, the sum of five hundred thousand dollars, or so much thereof as may be necessary, to carry out the purposes of the board.

NEW SECTION. Sec. 13. This act is necessary for the immediate preservation of the public peace, health, and safety, the support of the state government and its existing public institutions, and shall take effect immediately.

NEW SECTION. Sec. 14. A new section is added to chapter 43.131 RCW to read as follows:

The insurance consumers board and its powers and duties shall be terminated on June 30, 1993, as provided in section 15 of this act.

NEW SECTION. Sec. 15. A new section is added to chapter 43.131 RCW to read as follows:

The following acts or parts of acts, as now existing or hereafter amended, are each repealed, effective June 30, 1994:

(1) Section 1 of this act and RCW 48.__.___;

(2) Section 2 of this act and RCW 48.__.___;

(3) Section 3 of this act and RCW 48.__.___;

(4) Section 4 of this act and RCW 48.__.___;

(5) Section 5 of this act and RCW 48.__.___;

(6) Section 6 of this act and RCW 48.__.___;

(7) Section 7 of this act and RCW 41.06.___;

(8) Section 8 of this act and RCW 48.__.___;

(9) Section 9 of this act and RCW 48.__.___; and

(10) Section 10 of this act and RCW 48.__.___.