HOUSE BILL REPORT

HB 281

BYRepresentatives 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 REPORTED BY COMMITTEE ON FINANCIAL INSTITUTIONS & INSURANCE

FEBRUARY 16,1987

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:

SUBSTITUTE BILL: 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.

SUBSTITUTE BILL COMPARED TO ORIGINAL:  The substitute bill addresses a different problem than was addressed in the original bill.  The original bill prohibited the cancellation and non-renewal of liability policies under certain circumstances.

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.