HOUSE BILL REPORT

SHB 281

BYHouse Committee on Financial Institutions & Insurance (originally sponsored by Representatives Ballard, Lux and Miller)

Restricting insurance cancellations and nonrenewals.

House Committe on Financial Institutions & Insurance

Majority Report:     The substitute bill be substituted therefor and the substitute bill do pass.  (8)

     Signed by Representatives Zellinsky, Vice Chair; Betrozoff, Crane, Day, Ferguson, P. King, Silver and Winsley.

Minority Report:     Do not pass.  (6)

     Signed by Representatives Lux, Chair; Dellwo, Grimm, Meyers, Niemi and Nutley.

House Staff:John Conniff (786-7119)

AS PASSED HOUSE MARCH 11, 1987

BACKGROUND:

Last year the Legislature amended provisions governing the time periods for notice before the insurer can cancel or nonrenew policies. Among these changes was a requirement that when insurers cancel a policy they give written notice of the actual reason for the cancellation.

SUMMARY:

Insurers are prohibited from cancelling certain commercial liability policies after the policy has been in effect more than sixty days unless one of several enumerated reasons for cancellation exist.

Fiscal Note:    Not Requested.

House Committee ‑ Testified For:     None Presented.

House Committee - Testified Against: None Presented.

House Committee - Testimony For:     None Presented.

House Committee - Testimony Against: None Presented.