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ENGROSSED SENATE BILL NO. 5882
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AS AMENDED BY THE HOUSE
C 303 L 87
State of Washington 50th Legislature 1987 Regular Session
By Senators Moore and Patterson
Read first time 2/18/87 and referred to Committee on Commerce & Labor.
AN ACT Relating to contractors insurance; and amending RCW 18.27.050.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1. Section 5, chapter 77, Laws of 1963 and RCW 18.27.050 are each amended to read as follows:
((At the
time of registration the applicant shall furnish to the director satisfactory
evidence that the applicant has procured and has in effect public liability and
property damage insurance covering the applicant's contracting operations in
the sum of not less than twenty thousand dollars for injury or damage to
property and fifty thousand dollars for injury or damage including death to any
one person and one hundred thousand dollars for injury or damage including
death to more than one person.
In the event
that such insurance shall cease to be effective the registration of the
contractor shall be suspended until such insurance shall be reinstated.))
(1) At the time of registration and subsequent re-registration, the applicant shall furnish insurance or financial responsibility in the form of an assigned account in the amount of twenty thousand dollars for injury or damages to property, and fifty thousand dollars for injury or damage including death to any one person, and one hundred thousand dollars for injury or damage including death to more than one person or financial responsibility to satisfy these amounts.
(2) Failure to maintain insurance or financial responsibility relative to the contractor's activities shall be cause to suspend or deny the contractor his or her or their registration.
(3)(a) Proof of financial responsibility authorized in this section may be given by providing, in the amount required by subsection (1) of this section, an assigned account acceptable to the department. The assigned account shall be held by the department to satisfy any execution on a judgment issued against the contractor for damage to property or injury or death to any person occurring in the contractor's contracting operations, according to the provisions of the assigned account agreement. The department shall have no liability for payment in excess of the amount of the assigned account.
(b) The assigned account filed with the director as proof of financial responsibility shall be canceled at the expiration of three years after:
(i) The contractor's registration has expired or been revoked; or
(ii) The contractor has furnished proof of insurance as required by subsection (1) of this section;
if, in either case, no legal action has been instituted against the contractor or on the account at the expiration of the three-year period.
(c) If a contractor chooses to file an assigned account as authorized in this section, the contractor shall, on any contracting project, notify each person with whom the contractor enters into a contract or to whom the contractor submits a bid that the contractor has filed an assigned account in lieu of insurance and that recovery from the account for any claim against the contractor for property damage or personal injury or death occurring in the project requires the claimant to obtain a court judgment.