Z-0461.3 _______________________________________________
SENATE BILL 5714
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State of Washington 56th Legislature 1999 Regular Session
By Senators Prentice and Winsley; by request of Insurance Commissioner
Read first time 02/04/1999. Referred to Committee on Commerce, Trade, Housing & Financial Institutions.
AN ACT Relating to the application of the insurer holding company act to health carriers, health care service contractors, and health maintenance organizations; and amending RCW 48.31B.005.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1. RCW 48.31B.005 and 1993 c 462 s 2 are each amended to read as follows:
As used in this chapter, the following terms have the meanings set forth in this section, unless the context requires otherwise.
(1) An "affiliate" of, or person "affiliated" with, a specific person, is a person who directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, the person specified.
(2) The term "control," including the terms "controlling," "controlled by," and "under common control with," means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a person, whether through the ownership of voting securities, by contract other than a commercial contract for goods or nonmanagement services, or otherwise, unless the power is the result of an official position with or corporate office held by the person. Control is presumed to exist if a person, directly or indirectly, owns, controls, holds with the power to vote, or holds proxies representing, ten percent or more of the voting securities of any other person. This presumption may be rebutted by a showing made in a manner similar to that provided by RCW 48.31B.025(11) that control does not exist in fact. The commissioner may determine, after furnishing all persons in interest notice and opportunity to be heard and making specific findings of fact to support such determination, that control exists in fact, notwithstanding the absence of a presumption to that effect.
(3) An "insurance holding company system" consists of two or more affiliated persons, one or more of which is an insurer.
(4)
The term "insurer" has the same meaning as set forth in RCW
48.01.050((; it)). "Insurer" as defined in RCW 48.01.050
includes health carriers regulated under chapter 48.43 RCW, health care service
contractors regulated under chapter 48.44 RCW, and health maintenance
organizations regulated under chapter 48.46 RCW. "Insurer" does
not include agencies, authorities, or instrumentalities of the United States,
its possessions and territories, the commonwealth of Puerto Rico, the District
of Columbia, or a state or political subdivision of a state.
(5) A "person" is an individual, a corporation, a partnership, an association, a joint stock company, a trust, an unincorporated organization, a similar entity, or any combination of the foregoing acting in concert, but does not include a joint venture partnership exclusively engaged in owning, managing, leasing, or developing real or tangible personal property.
(6) A "securityholder" of a specified person is one who owns a security of that person, including common stock, preferred stock, debt obligations, and any other security convertible into or evidencing the right to acquire any of the foregoing.
(7) A "subsidiary" of a specified person is an affiliate controlled by that person directly or indirectly through one or more intermediaries.
(8) The term "voting security" includes a security convertible into or evidencing a right to acquire a voting security.
(9) "Surplus" and "surplus as regards policyholders" means net worth when applied to a health carrier, health care service contractor, and health maintenance organization.
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