HOUSE BILL REPORT

SSB 6589

BYSenate Committee on Financial Institutions & Insurance (originally sponsored by Senators von Reichbauer, Moore and Johnson)

Changing provisions relating to which county a title insurer may do business.

House Committe on Financial Institutions & Insurance

Majority Report:  Do pass.  (9)

      Signed by Representatives Dellwo, Chair; Zellinsky, Vice Chair; Baugher, Beck, Crane, Day, Dorn, Inslee and Winsley.

House Staff:John Conniff (786-7119)

AS PASSED HOUSE MARCH 2, 1990

BACKGROUND:

To obtain a certificate of authority to transact business in a particular county in Washington, a title insurance company must maintain a complete set of tract indexes for the county and must make a deposit with the Insurance Commissioner guaranteeing performance of title insurance obligations in that county.

SUMMARY:

A title insurance company wishing to provide a single title insurance policy for properties located in more than one county for which the company is not authorized to do business may purchase title insurance from a company authorized in another county and may combine the insurance coverage into a single policy. The price for the policy combining coverage from other title insurance companies must be based upon rates filed for these other companies and must be of the same amount as other companies charge the title insurer combining the coverage.

Fiscal Note:      Not Requested.

House Committee ‑ Testified For:    Warren Olson, Washington Land Title Association.

House Committee - Testified Against:      No one.

House Committee - Testimony For:    No title insurer in Washington is authorized to do business in every county of Washington.  A person with property in several counties is thus forced to purchase title insurance from several insurers.  This measure would allow such a person to purchase one title policy covering all properties wherever located in Washington.

House Committee - Testimony Against:      None.