H-4244.1          _______________________________________________

                                  HOUSE BILL 2822

                  _______________________________________________

State of Washington              52nd Legislature             1992 Regular Session

By Representatives Dellwo, Broback, Zellinsky, Winsley, Mielke, R. Johnson, Paris and R. Meyers

Read first time 01/28/92.  Referred to Committee on Financial Institutions & Insurance.Making certain persons personally liable for the performance of insurance policies with unauthorized insurers.

     AN ACT Relating to unauthorized insurers; amending RCW 48.15.020; and prescribing penalties.

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

     Sec. 1.  RCW 48.15.020 and 1983 1st ex.s. c 32 s 3 are each amended to read as follows:

     (1) An insurer not thereunto authorized by the commissioner shall not solicit insurance business in this state, nor transact insurance business in this state except as provided in this chapter.

     (2)(a) No person shall, in this state, represent an unauthorized insurer except as provided in this chapter.  This provision shall not apply to any adjuster or attorney at law representing such an insurer from time to time in this state in his or her professional capacity.

(b) A person, other than a duly licensed surplus line broker acting in good faith under his or her license, who makes a contract of insurance in this state, directly or indirectly, on behalf of an unauthorized insurer, without complying with the provisions of this chapter, is personally liable for the performance of the contract.

     (3) Each violation of this ((section)) chapter shall constitute a separate offense punishable by a fine of not more than twenty-five thousand dollars, and the commissioner, at the commissioner's discretion, may order replacement of policies improperly placed with an unauthorized insurer with policies issued by an authorized insurer.  Violations may result in suspension or revocation of a license.