HOUSE BILL REPORT
HB
1480
As Reported By House Committee on:
Financial Institutions & Insurance
Title: An act relating to the maintenance and investment of assets by reciprocal exchanges.
Brief Description: Allowing reciprocal insurer to affect title to real property.
Sponsor(s): Representatives R. Meyers, Mielke, Heavey, Broback, Zellinsky and Paris.
Brief History:
Reported by House Committee on:
Financial Institutions & Insurance, February 19, 1991, DP.
HOUSE COMMITTEE ON
FINANCIAL INSTITUTIONS & INSURANCE
Majority Report: Do pass. Signed by 13 members: Representatives Dellwo, Chair; Zellinsky, Vice Chair; Broback, Ranking Minority Member; Mielke, Assistant Ranking Minority Member; Anderson; Dorn; Inslee; R. Johnson; R. Meyers; Paris; Schmidt; Scott; and Winsley.
Staff: John Conniff (786-7119).
Background: A reciprocal insurer, often referred to as an exchange, is an unincorporated group of persons who join together to insure each other. The group of persons execute a power of attorney agreement authorizing a person or organization to act as the attorney in fact to transact the day to day business of the group.
Summary of Bill: The insurance code governing reciprocal insurers is amended to authorize real estate transactions conducted by and through the reciprocal's attorney in fact.
Fiscal Note: Not requested.
Effective Date: Ninety days after adjournment of session in which bill is passed.
Testimony For: The changes are necessary to clarify existing authority of reciprocal insurers to own and transfer real property.
Testimony Against: None.
Witnesses: Mike Kapphahn, Farmers Insurance (Pro).