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SUBSTITUTE
SENATE BILL 6193
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Passed
Legislature - 1992 Regular Session
State of Washington 52nd
Legislature 1992 Regular Session
Read first time 02/07/92.Providing for stop loss insurance.
AN ACT
Relating to stop loss insurance; amending RCW 48.11.030 and 48.21.010; adding a
new section to chapter 48.21 RCW; and creating a new section.
BE IT ENACTED BY THE LEGISLATURE
OF THE STATE OF WASHINGTON:
Sec.
1. RCW
48.11.030 and 1947 c 79 s .11.03 are each amended to read as follows:
"Disability
insurance" is insurance against bodily injury, disablement or death by
accident, against disablement resulting from sickness, and every insurance
appertaining thereto including stop loss insurance. "Stop loss
insurance" is insurance against the risk of economic loss assumed under a
self-funded employee disability benefit plan.
Sec.
2. RCW
48.21.010 and 1949 c 190 s 27 are each amended to read as follows:
Group
disability insurance is that form of disability insurance, including stop
loss insurance as defined in RCW 48.11.030, provided by a master policy
issued to an employer, to a trustee appointed by an employer or employers, or
to an association of employers formed for purposes other than obtaining such
insurance, covering, with or without their dependents, the employees, or
specified categories of the employees, of such employers or their subsidiaries
or affiliates, or issued to a labor union, or to an association of employees
formed for purposes other than obtaining such insurance, covering, with or
without their dependents, the members, or specified categories of the members,
of the labor union or association, or issued pursuant to RCW 48.21.030. Group
disability insurance shall also include such other groups as qualify for group
life insurance under the provisions of this code.
NEW
SECTION. Sec. 3. A new
section is added to chapter 48.21 RCW to read as follows:
Group
stop loss insurance is exempt from all sections of this chapter, chapter 48.32A
RCW, and chapter 48.41 RCW except for RCW 48.21.010 and this section. For
purpose of this exemption, group stop loss is further defined as follows:
(1)
The policy must be issued to and insure the employer, the trustee or other
sponsor of the plan, or the plan itself, but not the employees, members, or
participants;
(2)
Payment by the insurer must be made to the employer, the trustee, or other
sponsor of the plan or the plan itself, but not to the employees, members,
participants, or health care providers;
(3)
The policy must contain a provision that establishes an aggregate attaching
point or retention that is at the minimum one hundred twenty percent of the
expected claims; and
(4)
The policy may provide for an individual attaching point or retention that is
not less than five percent of the expected claims or one hundred thousand
dollars, whichever is less.
NEW
SECTION. Sec. 4. This
act applies to policies issued or renewed on or after July 1, 1992.
