CERTIFICATION OF ENROLLMENT

                        SENATE BILL 6396

                        52nd Legislature

                      1992 Regular Session

Passed by the Senate February 18, 1992   Yeas 47   Nays 0 President of the Senate Passed by the House March 6, 1992   Yeas 96   Nays 0

CERTIFICATE I, Gordon Golob, Secretary of the Senate of the State of Washington, do hereby certify that the attached is SENATE BILL 6396 as passed by the Senate and the House of Representatives on the dates hereon set forth.

Speaker of the        House of Representatives

Secretary

Approved Place Style On Codes above, and Style Off Codes below.

FILED

Governor of the State of Washington

Secretary of State                        State of Washington

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                                 SENATE BILL 6396

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                     Passed Legislature - 1992 Regular Session

State of Washington              52nd Legislature             1992 Regular Session

By Senators von Reichbauer, Pelz, Erwin, Moore, Vognild and Conner

Read first time 01/28/92.  Referred to Committee on Financial Institutions & Insurance.Making certain unauthorized insurance brokers personally liable for contracts of insurance.

     AN ACT Relating to persons making contracts of insurance with unauthorized insurance providers; and amending RCW 48.15.020.

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 such contract.

     (3) Each violation of this section 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.