SENATE BILL REPORT

SB 5679

BYSenators von Reichbauer, Moore, Sellar and McMullen; by request of Insurance Commissioner

Revising provisions for industrial insurance funds.

Senate Committee on Financial Institutions & Insurance

Senate Hearing Date(s):February 16, 1989

Majority Report:  Do pass.

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

Senate Staff:Beverly Tweddle (786-7403)

                  March 15, 1989

AS PASSED SENATE, MARCH 14, 1989

BACKGROUND:

In the event of death or total permanent disability of a worker, the Department of Labor and Industries establishes an annuity to cover the payments to be paid to the worker or survivors.  An actuary from the Insurance Commissioner's office performs periodic review of these annuities to determine if the level of reserve is in line with the current claim history.  The Department of Labor and Industries pays approximately $10,000 annually to the Insurance Commissioner for this service.  Because of workload requirements, the Insurance Commissioner's office is not always able to meet the financial reporting time lines of the Department of Labor and Industries, causing these reports to be delayed.

SUMMARY:

The Department of Labor and Industries assumes responsibility for actuarial review of annuities established for payments in the event of death or permanent total disability of a worker covered by industrial insurance.

Appropriation:    none

Revenue:    none

Fiscal Note:      none requested

Senate Committee - Testified: Joe Dear, Director, Department of Labor and Industries (pro)