H-571                _______________________________________________

                                                    HOUSE BILL NO. 779

                        _______________________________________________

State of Washington                              50th Legislature                              1987 Regular Session

By Representatives Niemi, P. King, Meyers, Jacobsen and Lux

Read first time 2/9/87 and referred to Committee on Financial Institutions & Insurance.

AN ACT Relating to rebate of excessive insurance rates; and adding a new section to chapter 48.19 RCW.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1.  A new section is added tochapter 48.19 RCW to read as follows:

          If the insurance commissioner has reason to believe that a rate is excessive, the insurance commissioner shall request a hearing to determine the adequate rate.  If, as a result of the hearing, it is determined that the insurer is charging excessive rates, the commissioner shall issue an order specifying that a new rate or schedule be filed by the insurer which responds to the findings made as a result of the hearing.  The commissioner shall further order that premiums charged each policyholder constituting a portion of the rate above that which is actuarially justified be returned to such policyholder in the form of a rebate or credit.