SUBSTITUTE HOUSE BILL 2775
State of Washington 52nd Legislature 1992 Regular Session
By House Committee on Financial Institutions & Insurance (originally sponsored by Representatives Dellwo, Broback and Paris)
Read first time 02/07/92.
AN ACT Relating to life insurance and annuities; amending RCW 48.23.300; and providing an effective date.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1. RCW 48.23.300 and 1985 c 264 s 23 are each amended to read as follows:
(1) Any life insurer shall have the power to hold under agreement the proceeds of any policy issued by it, upon such terms and restrictions as to revocation by the policyholder and control by beneficiaries, and with such exemptions from the claims of creditors of beneficiaries other than the policyholder as set forth in the policy or as agreed to in writing by the insurer and the policyholder. Upon maturity of a policy in the event the policyholder has made no such agreement, the insurer shall have the power to hold the proceeds of the policy under an agreement with the beneficiaries. The insurer shall not be required to segregate funds so held but may hold them as part of its general assets.
An insurer shall pay interest on death benefits payable under the terms of a
life insurance policy insuring the life of any person who was a resident of
this state at the time of death. Such interest shall accrue commencing on the
date of death at the larger of: (a) The rate then paid by the insurer
on other withdrawable policy proceeds left with the company((
, but not less
than eight percent)); or (b) average bill rate for ninety-day United
States treasury bills as determined at the first bill market auction conducted
during the month immediately preceding the date on which interest shall begin
to accrue. Benefits payable that have not been tendered to the beneficiary
within ninety days of the receipt of proof of death shall accrue interest,
commencing on the ninety-first day, at the aforementioned rate plus three
percent. This section applies to death of insureds that occur on or after (( September
1, 1985)) July 1, 1992.