UPDATE: 10 Year Analysis Complete for Substitute Senate Bill 6248.PL

You are receiving this email as a subscriber to the Initiative 960 email list. RCW 43.135.031 (I-960) requires that notices be sent each time a bill that raises taxes or fees is: introduced in either house; scheduled for a public hearing; approved by any legislative committee; or passed by either house of the Legislature.

Please note: This email message was sent from a notification-only address. Please do not reply to this message.

UPDATE: The 10 year analysis for SSB 6248.PL, titled AN ACT Relating to travel insurance, has been completed. The Office of Financial Management has identified this bill as requiring a ten-year projection of increased cost to the taxpayers or affected fee payers.

Ten-year projection:

Fiscal Year		Adjuster License Exemption	Travel-Only License Exemption	Total
2026		$0	$0	$0
2027		($3,710)	($40,090)	($43,800)
2028		($3,710)	($40,090)	($43,800)
2029		($3,710)	($40,090)	($43,800)
2030		($3,710)	($40,090)	($43,800)
2031		($3,710)	($40,090)	($43,800)
2032		($3,710)	($40,090)	($43,800)
2033		($3,710)	($40,090)	($43,800)
2034		($3,710)	($40,090)	($43,800)
2035		($3,710)	($40,090)	($43,800)
Total:		($33,390)	($360,810)	($394,200)

Office of Insurance Commissioner:

Section 4 states that a travel insurer shall pay premium tax as provided in RCW 48.14.020 on travel insurance premiums paid by (a) an individual primary policyholder who is a resident of WA, (b) a primary certificate holder who is a resident of WA who elects coverage under a group travel insurance policy, or (c) a blanket travel insurance policyholder that is a resident in, or has a principal place of business of the principal place of business of an affiliate or subsidiary that has purchased blanket travel insurance in this state for eligible blanket group members.  This will be an ongoing revenue source, although the work will be handled by the fiscal department, not Legal Affairs. 

Currently, approximately 2,600 licensees hold the travel line of authority. About half (1,278) hold the travel line exclusively, while the remainder hold additional lines. Travel-only licensees are most likely to benefit from exemptions in this bill, potentially reducing their licensing, appointment, and affiliation obligations. Multi-line producers are less likely to change due to regulatory compliance or operational convenience. 

Licensing and Associated Fees:

A travel license costs $20 at the time of license and each 2-year renewal. 

An affiliation costs $20 when added and at each 2-year renewal. 

An appointment costs $20 when added and at each 2-year renewal. 

Assumptions & Methodology: 

Revenue loss is primarily driven by Sections 2(11), 3(2), 3(2)(b), 3(7), and 13, which reduce or negate licensing, appointment, and affiliation requirements. 

Travel-only licensees are most likely to claim exemptions or reduce participation. Multi-line producers are assumed to largely retain the travel line for compliance or operational reasons. 

Fee amounts reflect current licensing, appointment, and affiliation fees, applied at initial issuance or biennial renewal. 

It is difficult to calculate the number of licensees who will drop licensure if the bill passes; therefore, maximum potential revenue loss is displayed. 

Since 2019, the OIC has received over 800 consumer complaints specifically related to travel insurance, indicating a significant volume of claims that may require adjusters to resolve. Section 2(11) of the bill exempts these adjusters from licensure and other regulatory requirements. Currently, there are 427 business entities licensed solely for travel. Using a conservative estimate that 25% of these entities will employ staff who adjust claims but are not required to be licensed, this would result in approximately 106 unlicensed adjusters for whom the OIC would not collect license, renewal, or affiliation fees.

Total Cash Impacts: 

Up to $43,800 (87,600 / 2) per year in lost revenue.

Ten-year projection prepared in consultation with the following agencies:

Office of Insurance Commissioner

The substitute bill was proposed by:

Senate Committee on Business, Trade & Economic Development



The original bill sponsors and contact information are:




Legislative Bill Information Website: http://apps.leg.wa.gov/billinfo/

Initiative 960 Website: http://www.ofm.wa.gov/tax/default.asp