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                             ENGROSSED HOUSE BILL 1366

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State of Washington              52nd Legislature             1991 Regular Session

By Representatives Zellinsky, Broback, Dellwo, Paris, R. Johnson, Winsley, Sheldon, Anderson, Inslee, R. Meyers, Schmidt, Dorn, Scott, Wynne, Ferguson, Mielke, Wood, Bowman, May, Betrozoff, Sprenkle, McLean, Lisk, Silver and Wang.

Read first time January 28, 1991.  Referred to Committee on Financial Institutions & Insurance.Exempting terrorism from an insurer's limitations of liability.

     AN ACT Relating to the effects of terrorism on insurance liability; amending RCW 48.23.260 and 48.24.210; and adding a new section to chapter 48.21 RCW.

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

     Sec. 1.  RCW 48.23.260 and 1947 c 79 s .23.26 are each amended to read as follows:

     (1) The insurer may in any life insurance policy or annuity or pure endowment contract limit its liability to a determinable amount not less than the full reserve of the policy and of dividend additions thereto in event only of death occurring:

     (a) As a result of war, or any act of war, declared or undeclared, not including any act of terrorism, or of service in the military, naval or air forces or in civilian forces auxiliary thereto, or from any cause while a member of any such military, naval or air forces of any country at war, declared or undeclared.

     (b) As a result of suicide of the insured, whether sane or insane, within two years from date of issue of the policy.

     (c) As a result of aviation under conditions specified in the policy.

     (2) An insurer may specify conditions pertaining to the items of subsection (1) of this section which in the commissioner's opinion are more favorable to the policyholder.

     Sec. 2.  RCW 48.24.210 and 1947 c 79 s .24.21 are each amended to read as follows:

     (1) The insurer may in any group life insurance contract provide that it is not liable, or is liable only in a reduced amount, for losses resulting:

     (a) From war or any act of war, declared or undeclared, not including any act of terrorism, or of service in the military, naval or air forces or in civilian forces auxiliary thereto, or from any cause while a member of any such military, naval or air forces, of any country at war, declared or undeclared.

     (b) From aviation under conditions specified in the policy.

     (2) The insurer may in any such contract provide that any amount of insurance in excess of one thousand dollars on an individual life may be reduced to one thousand dollars or to any greater amount upon attainment of any age not less than age sixty-five or upon the anniversary of the policy nearest attainment of such age.

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

     No accidental death and dismemberment policy providing coverage pertaining to travel may contain an exclusion against loss or damage resulting from death or bodily injury directly or indirectly arising from any act of terrorism.