OLYMPIA—An insurance reform that clears the way for air rescue and evacuation services to be offered again to Washington consumers was signed into law today by Gov. Chris Gregoire.
“Air evacuation and rescue services save lives and this law ensures that Washington families and businesses will be protected by these services again,” said Rep. Cindy Ryu (D-Shoreline), who sponsored House Bill 2188 and led it to unanimous approval in both the House and Senate.
Travelers, businesses, non-profit organizations, and others subscribe to rescue and evacuation services to ensure that they or their employees or students will be rescued from harm’s way in case of serious injuries, natural disasters, political instability or other unexpected threats.
Witnesses in public hearings on Ryu’s bill spoke of how these rescue services rushed in to bring people to safety after avalanches, the Haiti earthquake and political upheavals in Egypt.
But leading air rescue and evacuation companies stopped offering rescue-service contracts in Washington after the state Insurance Commissioner’s office determined that, technically, the contracts should be regulated as insurance policies. The reclassification threatened expensive lawsuits and regulatory costs that created a climate of uncertainty for the businesses.
Ryu’s bill creates a regulatory safe harbor that exempts air rescue and evacuation businesses from the insurance code, so they can again operate as subscription services in Washington.
“The bill provides certainty that Washington can again be served by the organizations that supply advisory, field rescue, and evacuation services,” said Mel Sorensen, who lobbied for the regulatory relief in Olympia.
Sorenson said he expects that rescue-service contracts will be offered again in Washington as soon as the new law officially takes effect. The law is scheduled to go into effect on June 7.
Ryu’s bill, which was worked out after extensive negotiations with stakeholders and the Insurance Commissioner’s office, earned broad support from businesses and consumers and passed the Legislature with a 95-0 vote in the House and a 45-0 vote in the Senate.
“Air rescue and evacuation services can literally mean the difference between life and death for some travelers, while providing peace of mind to many others,” said Ryu. “The unanimous support we received shows we struck the right balance for businesses and consumers and I am very pleased these rescue services will be available to help our citizens again.”