HOUSE BILL ANALYSIS

                  HB 2767

Title:  An act relating to exempting certain insurance documents from the filing requirements.

Brief Description:  Exempting certain insurance documents from the filing requirements.

Sponsors:  Representatives Benson and Santos; by request of Insurance Commissioner.

HOUSE COMMITTEE ON FINANCIAL INSTITUTIONS & INSURANCE

Meeting Date: February 3, 2000.

Bill Analysis Prepared by: Charlie Gavigan (786-7340).

Background: Generally, an insurer must file its policy forms and rates with the Office of the Insurance Commissioner before using the forms and rates.  After receiving the filing, the commissioner has a 30-day period to review it.  The commissioner may extend the 30-day period for an additional 15 days if the commissioner notifies the insurance company of the extension within the 30-day waiting period.  A filing meets the requirements of the law unless it is disapproved by the commissioner within the 30-day waiting period, or during the 15-day extension.  The commissioner can withdraw approval at any time for cause after a hearing and other requirements are met.  The commissioner may exempt non-commercial policy forms from the filing requirements.

Commercial property casualty policies may be issued prior to filing the rates and forms with the commissioner.  Commercial property casualty rates and forms must be filed within 30 days of issuing the policies.  Within 30 days after receiving the filing, the commissioner may disapprove the filing.  The commissioner is permitted to extend the 30-day period an additional 15 days if notice is given to the insurer prior to expiration of the 30-day period.

Summary of Bill:  The commissioner may exempt any policy form from the filing requirements, including commercial property casualty policy forms.

Appropriation:  None.

Fiscal Note: Not requested.

Effective Date: Ninety days after the session in which the bill passes.