HOUSE BILL REPORT

                 ESHB 2036

                    As Passed Legislature

Title:  An act relating to credit involuntary unemployment insurance.

Brief Description:  Concerning the sale of consumer credit unemployment insurance.

Sponsors:  By House Committee on Financial Institutions & Insurance (originally sponsored by Representative L. Thomas).

Brief History:

  Committee Activity:

Financial Institutions & Insurance:  3/1/95 [DPS].

Floor Activity:

Passed House:  3/9/95, 95-0.

Passed Legislature.

HOUSE COMMITTEE ON FINANCIAL INSTITUTIONS & INSURANCE

Majority Report:  The substitute bill be substituted therefor and the substitute bill do pass.  Signed by 15 members:  Representatives L. Thomas, Chairman; Beeksma, Vice Chairman; Smith, Vice Chairman; Wolfe, Ranking Minority Member; Grant, Assistant Ranking Minority Member; Benton; Campbell; Costa; Dellwo; Dyer; Huff; Kessler; Mielke; Ogden and Pelesky.

Staff:  Charlie Gavigan (786-7340).

Background:  The Office of the Insurance Commissioner regulates insurance in Washington.  Agents and brokers must be licensed by the Insurance Commissioner.  The Insurance Commissioner may issue a limited license for transacting credit life and disability insurance.  Credit life insurance generally covers the borrowers and pays off the loan balance in the event of the death of a borrower.  Credit accident and disability insurance generally covers part or all of the monthly payment in the event of an accident or disability that interferes with the borrowers ability to repay the loan.

Summary of Bill:  A person may obtain information related to processing a credit  casualty insurance request without being a licensed agent or broker.  The Insurance Commissioner may issue a limited license to allow transaction of credit casualty insurance.

Appropriation:  None.

Fiscal Note:  Not requested.

Effective Date of  Bill:  Ninety days after adjournment of session in which bill is passed.

Testimony For:  This bill allows new credit-related insurance products to be sold to Washington borrowers.

Testimony Against:  None.

Testified:  Allen Morrow, Office of the Insurance Commissioner (pro); and Jim Clark, Balboa Insurance Company (pro).