04/12/2000 03:25 PM House L&C

SB 177-INSURANCE TRADE PRACTICES & ACTS                                                                                       
                                                                                                                                
CHAIRMAN ROKEBERG  announced the first order of  business would be                                                              
CS FOR  SENATE BILL  NO. 177(L&C), "An  Act relating  to insurance                                                              
trade practices; and providing for an effective date."                                                                          
                                                                                                                                
REPRESENTATIVE  HALCRO  made  a   motion  to  adopt  the  proposed                                                              
committee substitute (CS), Version  K [1-LS0902\K, Ford, 4/11/00],                                                              
as a work draft.  There being no objection, it was so ordered.                                                                  
                                                                                                                                
Number 0102                                                                                                                     
                                                                                                                                
SENATOR DAVE DONLEY  came forward to testify as the  sponsor of SB
, Version K.   He stated that he does support  Version K of the                                                              
bill.  There are  two changes in the bill.  The  first changes the                                                              
standard for a  third-party claimant.  This change  occurs on page                                                              
3, lines 3 through 6, and reads:                                                                                                
                                                                                                                                
          (B) a third-party claimant regarding a claim in                                                                   
     which  liability  is  not  at   issue  to  litigate  for                                                               
     recovery of an  amount due under an insurance  policy by                                                               
     offering  an  amount that  does  not have  a  reasonable                                                               
     basis in law and fact [THOSE INSUREDS];                                                                                
                                                                                                                                
SENATOR  DONLEY  explained  that   it  is  a  different  standard,                                                              
suggested by  representatives in  the industry,  who wanted  it to                                                              
also apply to a first-party [claimant].   However, he supports its                                                              
applying to  a third-party claimant,  the change made  [in Version                                                              
K].                                                                                                                             
                                                                                                                                
He indicated  the second  change occurs in  Section 6,  which adds                                                              
"or imply" on page 3, line 29.  Section 6 now reads:                                                                            
                                                                                                                                
     (b)   The provisions  of this section  do not create  or                                                                   
     imply a private cause of action  for a violation of this                                                                   
     section.                                                                                                                   
                                                                                                                                
SENATOR DONLEY commented,  "We all agree that we're  not trying to                                                              
create a private cause of action by any of these changes."                                                                      
                                                                                                                                
CHAIRMAN  ROKEBERG pointed  out that  SB 177,  Version K, has  two                                                              
further  committees of  referral, and  he would  like to move  the                                                              
bill out of committee.                                                                                                          
                                                                                                                                
Number 0290                                                                                                                     
                                                                                                                                
REPRESENTATIVE BRICE  made a motion to move the  proposed House CS                                                              
for  SB  177,   Version  K,  out  of  committee   with  individual                                                              
recommendations and the attached fiscal note.                                                                                   
                                                                                                                                
CHAIRMAN  ROKEBERG objected  for the  purpose of  discussion.   He                                                              
said he had asked the commissioner  of the Department of Community                                                              
and  Economic   Development  to  draft  some   language  regarding                                                              
"sideboards on the single-act investigation."   Due to the limited                                                              
time,  he indicated  he  would  take the  issue  up  in the  House                                                              
Judiciary Standing Committee.  He withdrew his objection.                                                                       
                                                                                                                                
REPRESENTATIVE   HALCRO   also  objected   for   the  purpose   of                                                              
discussion.  He said:                                                                                                           
                                                                                                                                
     I know  the hour is  late, and the  days in the  session                                                                   
     are late, but,  ... like I said yesterday  on the floor,                                                                   
     I've got  a real hard time  when we put these  things in                                                                   
     the laundry  chute and  let them go,  and we don't  have                                                                   
     time to digest before they move out of committee.                                                                          
                                                                                                                                
     And it's becoming  increasingly on a regular  basis that                                                                   
     we do that in this committee,  and I just have some real                                                                   
     hard times with that.  I'd like  to spend some more time                                                                   
     on this bill.                                                                                                              
                                                                                                                                
CHAIRMAN ROKEBERG  restated that the bill has  two more committees                                                              
of referral.                                                                                                                    
                                                                                                                                
REPRESENTATIVE HALCRO said he understands,  but he does not sit on                                                              
either of those two committees.  He withdrew his objection.                                                                     
                                                                                                                                
[There being  no further objection,  HCS CSSB 177(L&C)  moved from                                                              
the House Labor and Commerce Standing Committee.]