H-4653.1          _______________________________________________

                            SUBSTITUTE HOUSE BILL 2651

                  _______________________________________________

State of Washington              52nd Legislature             1992 Regular Session

By House Committee on Financial Institutions & Insurance (originally sponsored by Representatives Heavey and Fuhrman)

Read first time 02/07/92.  Limiting surety liability.

     AN ACT Relating to insurance coverage; and adding new sections to chapter 19.72 RCW.

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

NEW SECTION. Sec. 1.  A new section is added to chapter 19.72 RCW to read as follows:

     (1) Except under RCW 19.72.109, surety bond means any form of surety insurance as defined in RCW 48.11.080.  A surety bond may not provide any other type of insurance coverage defined in chapter 48.11 RCW.  Language in any statute, ordinance, contract, or surety bond to the contrary is void.

     (2) A surety bond shall not be liable for damages based upon or arising out of any:

     (a) Tortious injury, including death, to:

     (i) Any person; or

     (ii) Any real or personal property; or

     (b) Failure to have any or adequate insurance coverage, even if liability under (a) or (b) of this subsection is imposed on the surety's principal or the surety by contract, surety bond, strict liability, ordinance, statute, or common law.

NEW SECTION. Sec. 2.  A new section is added to chapter 19.72 RCW to read as follows:

     This chapter applies to all sureties, regardless of whether the sureties are compensated or uncompensated.