FINAL BILL REPORT

                 SHB 1582

                         C 455 L 93

                     Synopsis as Enacted

Brief Description:  Permitting certain transactions by insurance agent‑brokers.

By House Committee on Financial Institutions & Insurance (originally sponsored by Representatives Zellinsky, Mielke, R. Meyers, Dellwo, Campbell, Dorn, Dyer and Basich).

House Committee on Financial Institutions & Insurance

Senate Committee on Labor & Commerce

Background: Some agents and brokers hold dual agent/broker licenses.  When such persons are placing business with an insurance company that has appointed the person as an agent, the person may only act in an agency capacity and may not act as a broker to place business with the company.  As a result, if the insurance company markets a particular insurance product that is authorized for sale by brokers only, the company's agents are unable to place the business even if the agents are also licensed brokers.

Summary:  With the approval of the insurer, an agent of the insurer who also holds a broker's license may place business with the insurer on a brokerage basis if a full disclosure of such circumstances are made to the insured or applicant for insurance.

Votes on Final Passage:

House  97 0

Senate 42 0

Effective:  July 25, 1993