Brief Description: Regulating homeowner's insurance.

Sponsors: Representatives Kagi, O'Brien, Clibborn, Santos, Dickerson, Schual-Berke, Morrell, Edwards and Hudgins.

Hearing Date: 1/21/04

Staff: Carrie Tellefson (786-7127).

Background:

Authority of the Insurance Commissioner. The Insurance Commissioner (Commissioner) is responsible for the licensing and regulation of insurance companies doing business in this state. The authority of the Commissioner includes the oversight of homeowner's insurance policies. Current law prohibits "unfair discrimination" between insureds that have substantially similar risk factors, exposure factors, and expense elements.

Foster parents. A "foster-family home" is defined as an agency that regularly provides care on a twenty-four hour basis to one or more children, expectant mothers, or persons with developmental disabilities in the family abode of the person or persons under whose direct care and supervision the child, expectant mother, or person with a developmental disability is placed. The state of Washington licenses foster families under the provisions of chapter 74.15 RCW.

Summary of Bill:

In making underwriting decisions, property and casualty insurers offering homeowner's policies are prohibited from discriminating against an applicant or insured because he or she is a foster parent licensed under chapter 74.15 RCW. Insurers are specifically prohibited from denying an application, as well as canceling, modifying (raising rates or premiums), or refusing to renew a policy based upon the fact that the insured is a foster parent.

Appropriation: None.

Fiscal Note: Not requested.

Effective Date: The bill takes effect 90 days after adjournment of session in which bill is passed.