HOUSE BILL REPORT
SB 5679
BYSenators von Reichbauer, Moore, Sellar and McMullen; by request of Insurance Commissioner
Revising provisions for industrial insurance funds.
House Committe on Commerce & Labor
Majority Report: Do pass. (11)
Signed by Representatives Vekich, Chair; Cole, Vice Chair; Patrick, Ranking Republican Member; Jones, R. King, Leonard, O'Brien, Prentice, Smith, Walker and Wolfe.
House Staff:Chris Cordes (786-7117)
AS PASSED HOUSE APRIL 13, 1989
BACKGROUND:
In the event of death or total permanent disability of a worker, the Department of Labor and Industries transfers money from the accident fund to the reserve fund. The amount is based on the present cash value of the amount needed to make the monthly pension payments. Self-insurers must also make a similar payment to the reserve fund. The Insurance Commissioner's office is responsible for determining and reviewing the annuity values on which the reserve amounts are based. The Insurance Commissioner also determines the amount that a self-insurer must file with the Department of Labor and Industries for paying a pension claim under an alternative payment method. The Department of Labor and Industries pays approximately $10,000 annually to the Insurance Commissioner for these services.
SUMMARY:
The responsibility for determining and reviewing the annuity values used for calculating reserve payments in the event of death or permanent total disability of a worker covered by industrial insurance is transferred from the Insurance Commissioner to the Department of Labor and Industries. The responsibility is also transferred to the Department of Labor and Industries for determining amounts that self-insurers must file with the department under the alternative pension payment method.
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.