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Senate Bill Report SB 5720 (As of February 10, 2023)

Summary

A Senate Bill Report on SB 5720, as of February 10, 2023, describes a bill concerning risk mitigation in property insurance, with Senator Stanford named as sponsor. Its summary says the bill removes the exclusion on commercial property insurance, allowing commercial property insurance policies to provide up to $1,500 total per 12-month period in certain goods and services to reduce the probability of loss. It states that commercial property insurers may conduct a two-year pilot program as a risk mitigation strategy, in accordance with rules adopted by OIC. The report lists Appropriation: None and Fiscal Note: Available, with an effective date ninety days after adjournment of the session in which the bill is passed.

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
2023-02-14
Case
2023 02 14 A30798 D253034 Bill Report 5720 Sba Bfgt 23

Cite this document

“Senate Bill Report SB 5720 (As of February 10, 2023).” Original at app.leg.wa.gov, dated 2023-02-14. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2023-02-14-2023-02-14-a30798-d253034-bill-report-5720-sba-bfgt-23/, SHA-256 da5a63dddc66f0e2cb1e623771af97429aa75c553e62f5183970473ab1bee57c.

Full text

                            SENATE BILL REPORT
                                  SB 5720

                                     As of February 10, 2023

Title: An act relating to risk mitigation in property insurance.

Brief Description: Concerning risk mitigation in property insurance.

Sponsors: Senator Stanford.

Brief History:
     Committee Activity: Business, Financial Services, Gaming & Trade: 2/14/23.


                                     Brief Summary of Bill
           • Allows insurers to provide certain goods and services intended to reduce
             the probability of loss as part of a commercial property insurance
             policy.


SENATE COMMITTEE ON BUSINESS, FINANCIAL SERVICES, GAMING & TRADE

     Staff: Kellee Gunn (786-7429)

     Background: Risk Mitigation in Property Insurance. Except for commercial property
     insurance policies, property insurance may provide goods and services intended to reduce
     the probability of loss as part of the insurance policy. The following goods and services may
     be provided with the prior approval by the Office of the Insurance Commissioner (OIC):
         • goods, including a water monitor;
         • foundation strapping to mitigate losses due to an earthquake;
         • ongoing services, including home monitoring or brush clearing to mitigate losses due
           to wildfires; and
         • other goods and services as OIC may identify in rule.

     Information on the goods and services must be specified to OIC in the rate filing, and the
     filing must demonstrate its rate accounts for its expected costs and reduction in claims. In



     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 5720
     any 12-month period, the value of the goods and services cannot exceed a total of $1,500.

     Except for commercial property insurance policies, a property insurer may also conduct a
     two-year pilot program as a risk mitigation strategy, in accordance with rules adopted by
     OIC. These goods and services do not constitute a violation on illegal inducements or
     rebates.

     Summary of Bill: Removes the exclusion on commercial property insurance, allowing
     commercial property insurance policies to provide up to $1,500 total per 12-month period in
     certain goods and services to reduce the probability of loss. Certain information on the costs
     and reduction in claims relating to the goods and services provided must be included in its
     rate filing to the OIC.

     Commercial property insurers may conduct a two-year pilot program as a risk mitigation
     strategy, in accordance with rules adopted by OIC.

     Appropriation: None.

     Fiscal Note: Available.

     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 5720

File and source

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2023-02-14_a30798_d253034_bill-report-5720-sba-bfgt-23.pdf
Size
3,990 bytes
SHA-256
da5a63dddc66f0e2cb1e623771af97429aa75c553e62f5183970473ab1bee57c
Our copy
2023-02-14_a30798_d253034_bill-report-5720-sba-bfgt-23.pdf
Original
app.leg.wa.gov
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