FINAL BILL REPORT

SB 6564

                              C 130 L 90

BYSenators von Reichbauer, McMullen and Johnson

Removing the pooling of funds by commercial fishers from the definition of insurer under the insurance code.

Senate Committee on Financial Institutions & Insurance

House Committe on Financial Institutions & Insurance

SYNOPSIS AS ENACTED

BACKGROUND:

Under present state insurance laws, every person engaged in the business of making contracts of insurance, with certain exceptions, is considered an "insurer."  An "insurer" must be authorized by the Commissioner of Insurance, and comply with the state insurance laws.

SUMMARY:

Two or more persons engaged in the business of commercial fishing are not considered "insurers" when:  (1) these persons enter into an arrangement to pool funds to pay claims or losses arising out of loss or damage to a vessel or machinery used in the business of commercial fishing; and (2) the vessel or machinery which is lost or damaged is owned by a member of the pool.

VOTES ON FINAL PASSAGE:

     Senate   45    0

     House 97  0

EFFECTIVE:June 7, 1990