Washington State House of Representatives Office of Program Research	BILL ANALYSIS
Financial Institutions & Insurance Committee

HB 1729

Brief Description:  Licensing surplus line brokers.

Sponsors:  Representatives Benson, Hatfield, McIntire, Cairnes, Roach, Simpson and Keiser.

Brief Summary of Bill

$A nonresident may be licensed by the Insurance Commissioner as a "surplus lines" broker.

Hearing Date:  2/16/01

Staff:  Thamas Osborn (786‑7129).

Background: 

A "surplus lines" insurer is an insurance company that does not have a certificate of authority issued by the Insurance Commissioner to transact business in the state, and may only operate under certain rules, specified by statute.  The insurance offered by such a broker must be of a type  that is not available from other authorized insurers, and the broker must be licensed as a surplus lines broker.

Currently, an individual must be a resident of the state to be licensed as a surplus lines broker.

Summary of Bill: 

The Insurance Commissioner is authorized to license a nonresident person as a surplus lines broker if he or she meets all other requirements of the law, and if his or her state or province of residence extends a similar privilege to Washington residents.  A nonresident surplus lines licensee is subject to the commissioner's supervision as though he or she were a resident of this state.

Appropriation:  None.

Fiscal Note:  Not Requested.

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