SENATE BILL REPORT
HB 1547
As Reported By Senate Committee On:
Labor, Commerce & Financial Institutions, March 26, 2001
Title: An act relating to licensing insurance agents, brokers, solicitors, and adjusters.
Brief Description: Licensing insurance agents, brokers, solicitors, and adjusters.
Sponsors: By Representatives Simpson, Bush, Benson, Hatfield, Santos and Keiser; by request of Insurance Commissioner.
Brief History:
Committee Activity: Labor, Commerce & Financial Institutions: 3/19/01, 3/26/01 [DP].
SENATE COMMITTEE ON LABOR, COMMERCE & FINANCIAL INSTITUTIONS
Majority Report: Do pass.
Signed by Senators Prentice, Chair; Gardner, Vice Chair; Franklin, Hochstatter, Honeyford, Patterson, Rasmussen, Regala and Winsley.
Staff: Elizabeth Mitchell (786‑7430)
Background: Insurance agents, brokers, solicitors, and adjusters are required to be licensed by the Insurance Commissioner. The 1999 Gramm-Leach-Bliley Act called for at least a majority of state insurance commissioners to make their nonresident licensing procedures more uniform. If at least a majority of states do not achieve such uniformity by 2002, certain provisions of the act will go into effect.
Currently, the commissioner may license qualified nonresident agents and brokers if their state or province has a reciprocal law allowing the licensing of qualified Washington agents and brokers.
Residents of other states who wish to be licensed as agents, brokers, solicitors, or adjusters must complete an application provided by the commissioner.
Summary of Bill: Requirements for the licensing of nonresidents are changed to more closely conform to the provisions of the Gramm-Leach-Bliley Act.
The commissioner may license nonresident agents and brokers: (1) if their state or province has a reciprocal law allowing the licensing of qualified Washington agents and brokers; and (2) if the agent or broker holds a license issued by his or her state or province.
Residents of other states who wish to be licensed as agents, brokers, solicitors, or adjusters may apply to the commissioner on a form prepared by the National Association of Insurance Commissioners or other forms approved by the commissioner by rule.
Appropriation: None.
Fiscal Note: Available.
Effective Date: Ninety days after adjournment of session in which bill is passed.
Testimony For: Twenty-nine states need to conform to the reciprocity provisions of the Gramm‑Leach‑Bliley Act to avoid federal regulation of agents and brokers. This bill is designed to maximize consumer protection, and the Insurance Commissioner retains the discretion to not license non‑qualified applicants.
Testimony Against: None.
Testified: Representative Simpson, prime sponsor (pro); Bill Staufflicher, Independent Insurance Agents and Brokers (pro); Bill Daley, Office of the Insurance Commissioner (pro).