SENATE BILL REPORT

SB 6564

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

Senate Hearing Date(s):January 23, 1990

Majority Report:     Do pass.

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

Senate Staff:Gerard S. Poliquin (786-7403)

                February 9, 1990

AS PASSED SENATE, FEBRUARY 9, 1990

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 "issuers" 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.

Appropriation:  none

Revenue:   none

Fiscal Note:    none requested

Senate Committee - Testified:   Linda Christophersen, fisher pools; Charles Rockness, West Coast Marine Fund; Scott Jarvis, Insurance Department