H-3408.2          _______________________________________________

 

                                  HOUSE BILL 2503

                  _______________________________________________

 

State of Washington              52nd Legislature             1992 Regular Session

 

By Representatives Dellwo, Zellinsky, Broback, Mielke, Winsley and Paris

 

Read first time 01/20/92.  Referred to Committee on Financial Institutions & Insurance.Providing for stop loss insurance.


     AN ACT Relating to stop loss insurance; amending RCW 48.11.030 and 48.21.010; and adding a new section to chapter 48.21 RCW.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

 

     Sec. 1.  RCW 48.11.030 and 1947 c 79 s .11.03 are each amended to read as follows:

     "Disability insurance" is insurance against bodily injury, disablement or death by accident, against disablement resulting from sickness, and every insurance appertaining thereto, including stop loss insurance.  Stop loss insurance means an arrangement whereby an insurer insures against the risk that, under a self-funded employee health benefit plan, any one claim will exceed one hundred thousand dollars or that the entire loss under such a plan will exceed two hundred fifty thousand dollars.

 

     Sec. 2.  RCW 48.21.010 and 1949 c 190 s 27 are each amended to read as follows:

     Group disability insurance is that form of disability insurance provided by a master policy issued to an employer, to a trustee appointed by an employer or employers, or to an association of employers formed for purposes other than obtaining such insurance, covering, with or without their dependents, the employees, or specified categories of the employees, of such employers or their subsidiaries or affiliates, or issued to a labor union, or to an association of employees formed for purposes other than obtaining such insurance, covering, with or without their dependents, the members, or specified categories of the members, of the labor union or association, or issued pursuant to RCW 48.21.030, or stop loss insurance as defined under RCW 48.11.030.  Group disability insurance shall also include such other groups as qualify for group life insurance under the provisions of this code.

 

     NEW SECTION.  Sec. 3.  A new section is added to chapter 48.21 RCW to read as follows:

     Except for RCW 48.21.010, this chapter does not apply to group stop loss insurance.