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Senate Bill Report SB 5053 — Adding Sublimits of Coverage to an Insurance Policy's Declaration Page

Summary

Senate Bill Report on SB 5053, as of January 13, 2023, for the Senate Committee on Business, Financial Services, Gaming & Trade, with committee activity listed as 1/17/23. The bill, sponsored by Senators Wellman, Keiser, Kuderer, Nobles and Saldaña, requires a statement on the declarations page of residential insurance policies regarding sublimits of coverage. The summary of the bill states that the statement must say the policy may limit the amount of coverage available for certain losses and that the insured should review the policy carefully, that the entire declarations page must be delivered to the insured at every policy renewal, and that surplus lines insurance policies are exempt. The report lists the appropriation as None and the fiscal note as Not requested.

Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used

Issuer
Congressional materials
Document type
Report
Date
2023-01-17
Case
2023 01 17 A30403 D247624 Bill Report 5053 Sba Bfgt 23

Cite this document

“Senate Bill Report SB 5053 — Adding Sublimits of Coverage to an Insurance Policy's Declaration Page.” Original at app.leg.wa.gov, dated 2023-01-17. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2023-01-17-2023-01-17-a30403-d247624-bill-report-5053-sba-bfgt-23/, SHA-256 bc5be90fd4977f252120818398d24f37207ad83ed84bdb41b4ae335e000ec722.

Full text

                            SENATE BILL REPORT
                                  SB 5053

                                      As of January 13, 2023

Title: An act relating to adding sublimits of coverage to an insurance policy's declaration page.

Brief Description: Adding sublimits of coverage to an insurance policy's declaration page.

Sponsors: Senators Wellman, Keiser, Kuderer, Nobles and Saldaña.

Brief History:
     Committee Activity: Business, Financial Services, Gaming & Trade: 1/17/23.


                                     Brief Summary of Bill
           • Requires a statement to be included on the declarations page of
             residential insurance policies regarding sublimits of coverage.


SENATE COMMITTEE ON BUSINESS, FINANCIAL SERVICES, GAMING & TRADE

     Staff: Kellee Gunn (786-7429)

     Background: Insurance Contract. An insurance policy is a contract between the insured
     and the insurance company that establishes what the company agrees to do in exchange for
     the premium paid by the insured. The contract also describes the insured's responsibilities
     and general terms of coverage. The contract is divided into a declarations page and the
     policy itself.

     Declarations Page. The declarations page, commonly referred to as a dec sheet, includes
     basic details of the insurance contract and typically includes the policy number, the
     effective dates, the address of the insured property, the mortgage holder, the coverages,
     coverage limits, the premium, and any discounts.

     Insurance Policy and Limits of Coverage. The insurance policy is the entire insurance
     contract, and includes the insuring agreements, definitions, and conditions. For a



     This analysis was prepared by non-partisan legislative staff for the use of legislative
     members in their deliberations. This analysis is not part of the legislation nor does it
     constitute a statement of legislative intent.

Senate Bill Report                              -1-                                             SB 5053
     homeowner's insurance policy, a description of the property coverage and the loss it covers,
     as well as liability coverage, will be provided. There may be an exclusions section of the
     policy, which outlines specific coverages or perils not covered by the policy. Typically
     flood and earthquake coverage are excluded from homeowners and renter's policies unless
     purchased as an endorsement or rider. An endorsement or rider addresses issues or items
     not in the original contract and can be added to a homeowner or renter's policy, life
     insurance policy, or auto insurance policy.

     Insurance policies may also have limits of coverage providing the insured the largest dollar
     amount covered for different types of losses, and sublimits which further limit that
     coverage. For example, a policy may have a dollar limit for personal property, with an
     additional limit within that amount for certain items, such as computers.

     Summary of Bill: The declarations page on residential policies must include a statement
     that the policy may limit the amount of coverage available for certain losses, and that the
     insured should review the policy carefully. The entire declarations page must be delivered
     to the insured at every policy renewal. Surplus lines insurance policies are exempt from this
     requirement.

     Appropriation: None.

     Fiscal Note: Not requested.

     Creates Committee/Commission/Task Force that includes Legislative members: No.

     Effective Date: Ninety days after adjournment of session in which bill is passed.




Senate Bill Report                             -2-                                        SB 5053

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2023-01-17_a30403_d247624_bill-report-5053-sba-bfgt-23.pdf
Original
app.leg.wa.gov
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