H-3985.1 _______________________________________________
HOUSE BILL 2694
_______________________________________________
State of Washington 52nd Legislature 1992 Regular Session
By Representatives Van Luven, Anderson, Mielke, Broback, Schmidt, Ferguson, Dorn, Zellinsky, Winsley, May, Wynne and Mitchell
Read first time 01/24/92. Referred to Committee on Financial Institutions & Insurance.
AN ACT Relating to cancellation and nonrenewal of individual health insurance polices; adding a new section to chapter 48.20 RCW; adding a new section to chapter 48.44 RCW; and adding a new section to chapter 48.46 RCW.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1. A new section is added to chapter 48.20 RCW to read as follows:
(1) Every policy of disability insurance issued, amended, or renewed after December 31, 1992, shall contain a provision guaranteeing renewability except for nonpayment of premium; however, upon obtaining the written approval of the commissioner, an insurer may discharge its obligation to renew by obtaining for the insured coverage with another insurer which coverage provides equivalent benefits for value paid.
(2) The commissioner shall adopt rules prohibiting insurers from introducing and using new policy forms which have the effect of isolating high risk policyholders under a prior or alternative policy form subject to substantial rate increases.
(3) A violation of this section constitutes an unfair and deceptive act or practice under RCW 48.30.010.
NEW SECTION. Sec. 2. A new section is added to chapter 48.44 RCW to read as follows:
(1) Every individual health care service contract issued, amended, or renewed after December 31, 1992, shall contain a provision guaranteeing renewability except for nonpayment of premium; however, upon obtaining the written approval of the commissioner, a contractor may discharge its obligation to renew by obtaining for the persons covered under the contract coverage with another contractor which coverage provides equivalent benefits for value paid.
(2) The commissioner shall adopt rules prohibiting health care service contractors from introducing and using new contract forms which have the effect of isolating high risk persons under a prior or alternative contract form subject to substantial rate increases.
(3) A violation of this section constitutes an unfair and deceptive act or practice under RCW 48.30.010.
NEW SECTION. Sec. 3. A new section is added to chapter 48.46 RCW to read as follows:
(1) Every individual health maintenance agreement issued, amended, or renewed after December 31, 1992, shall contain a provision guaranteeing renewability except for nonpayment of premium; however, upon obtaining the written approval of the commissioner, a health maintenance organization may discharge its obligation to renew by obtaining for the persons covered under the agreement coverage with another health maintenance organization which coverage provides equivalent benefits for value paid.
(2) The commissioner shall adopt rules prohibiting health maintenance organizations from introducing and using new agreement forms which have the effect of isolating high risk persons under a prior or alternative agreement form subject to substantial rate increases.
(3) A violation of this section constitutes an unfair and deceptive act or practice under RCW 48.30.010.