H-3845.2 _______________________________________________
HOUSE BILL 2776
_______________________________________________
State of Washington 52nd Legislature 1992 Regular Session
By Representatives Dellwo, Paris, Inslee and R. Meyers
Read first time 01/27/92. Referred to Committee on Financial Institutions & Insurance.
AN ACT Relating to the payment and financial responsibility for structured settlements; and adding new sections to chapter 4.24 RCW.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1. Unless the context clearly requires otherwise, for the purposes of sections 2 and 3 of this act, "annuity structured settlement" means a settlement for a personal injury or wrongful death claim providing for periodic payments to the claimant and funded by the purchase of an annuity by one or more defendants or one or more insurance carriers of the defendants. Annuity structured settlements include all settlements for personal injury or death claims that involve claimants who at the time of settlement are residents of this state, even though the underlying cause of action may derive from another jurisdiction or be based on federal law.
NEW SECTION. Sec. 2. Each insurance carrier, or each defendant if uninsured, remains obligated to the claimant for an annuity structured settlement in the event the annuity company fails to make payments in accordance with the terms of the annuity and settlement agreements. The obligation extends only to insurers or uninsured defendants who participate in the funding of the annuity. If more than one insurer or defendant participates in the same annuity, the respective obligations are in proportion to the relative amount contributed. The obligation does not extend to payments that are not received because of the fault of the claimant, or because of unresolved disputes over the right to receive benefits.
NEW SECTION. Sec. 3. (1) If a claimant fails to receive a periodic payment from an annuity structured settlement in a timely fashion according to the terms of the agreement, or receives only a portion of the proper payment, the responsible insurance carrier or defendant shall, upon demand, promptly pay to the claimant any due and unpaid sums according to the terms of the settlement, together with interest on late payments at the rate permitted under RCW 19.52.020.
(2) In the event an obligated insurance carrier or uninsured defendant fails to make payments required under subsection (1) of this section, the claimant may bring an action for payment of past and future benefits against the obligated carrier or uninsured defendant. In such an action the carrier or defendant is liable for the successful claimant's attorneys' fees and expenses.
NEW SECTION. Sec. 4. Sections 1 through 3 of this act are each added to chapter 4.24 RCW.