H-1480              _______________________________________________

                                                   HOUSE BILL NO. 1172

                        _______________________________________________

State of Washington                              49th Legislature                              1985 Regular Session

By Representatives Lux and Wang

Read first time 2/8/85 and referred to Committee on Financial Institutions & Insurance.

AN ACT Relating to insurance; adding a new section to chapter 48.30 RCW; and providing an effective date.

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

NEW SECTION. Sec. 1.  A new section is added to chapter 48.30 RCW to read as follows:

          (1) Notwithstanding the provisions of RCW 48.30.140, 48.30.150, and 48.30.155, the commissioner shall adopt rules permitting an agent or broker to enter into reasonable agreements with insureds or prospective insureds, which agreements provide that, in lieu of a commission or potential commission to be earned from the sale of an insurance product, the agent or broker may charge a reasonable fee for services provided for, or in connection with, the procurement of insurance for the insured or prospective insured.

          (2) No insurer shall refuse to disclose, when requested by an agent, broker, insured or prospective insured, information that clearly reveals the amounts of the total premium cost of a policy, charged for or applied to, agent or broker commission, agency expenses, and the insurance risk.

          (3) No insurer shall refuse to appoint or reappoint, or revoke the appointment of an agent solely on the grounds that the agent is conducting business or intends to conduct business in the manner permitted under subsection (1) of this section.

          (4) No insurer shall refuse to conduct business with a broker solely on the grounds that the broker is conducting business or intends to conduct business in the manner permitted under subsection (1) of this section.

          (5) The commissioner shall adopt rules to establish reasonable limits on the amount or amounts that an agent or broker may charge for services provided to an insured or prospective insured, and shall adopt all rules necessary to effectuate the provisions of this section and necessary for the protection of the public.

NEW SECTION. Sec. 2.     This act shall take effect January 1, 1986.

NEW SECTION. Sec. 3.     If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.