SENATE BILL REPORT

HB 1385

BYRepresentatives Dellwo, Winsley, Chandler, Day, Anderson and Nutley; by request of Insurance Commissioner

Amending merger or change in insurance entity status.

House Committe on Financial Institutions & Insurance

Senate Committee on Financial Institutions & Insurance

Senate Hearing Date(s):March 28, 1989; March 31, 1989

Majority Report:  Do pass as amended.

      Signed by Senators von Reichbauer, Chairman; Johnson, Vice Chairman; Fleming, McMullen, Moore, Smitherman.

Senate Staff:Walt Corneille (786-7416)

                  April 3, 1989

AS REPORTED BY COMMITTEE ON FINANCIAL INSTITUTIONS & INSURANCE, MARCH 31, 1989

BACKGROUND:

The insurance code provides detailed regulatory procedures for the merger, rehabilitation, or liquidation of an insurance company.  Health care service contractors and health maintenance organizations are not subject to these procedures and no other specific statutory provision governs the merger, rehabilitation, or liquidation of these contractors and organizations.

SUMMARY:

Health care service contractors and health maintenance organizations are added to the definition of insurer in the provision of the insurance code governing mergers, rehabilitation or liquidation of insurance companies.

Appropriation:    none

Revenue:    none

Fiscal Note:      none requested

Effective Date:The bill contains an emergency clause and takes effect immediately.

SUMMARY OF PROPOSED SENATE AMENDMENT:

Everything after the enacting clause is stricken, including the emergency clause.  Health care service contractors and health maintenance organizations are added to the definition of domestic insurer only in the provision of the insurance code governing mergers.

Senate Committee - Testified: John Woodall, Insurance Commissioner's Office (pro); Basil Badley, Washington Dental Service (pro); Mel Sorensen, Washington Physicians Service (pro); Richard Bernstein and Gordon Walgren, Washington Health Services (con)