CERTIFICATION OF ENROLLMENT

 

                  SUBSTITUTE SENATE BILL 6193

 

                   Chapter 226, Laws of 1992

 

                               

 

 

                        52nd Legislature

                      1992 Regular Session

 

 

                      STOP LOSS INSURANCE

 

 

                    EFFECTIVE DATE:  6/11/92

Passed by the Senate February 18, 1992

  Yeas 49   Nays 0

 

 

 

               JOEL PRITCHARD

President of the Senate

 

Passed by the House March 4, 1992

  Yeas 88   Nays 0

               CERTIFICATE

 

I, Gordon Golob, Secretary of the Senate of the State of Washington, do hereby certify that the attached is SUBSTITUTE SENATE BILL 6193 as passed by the Senate and the House of Representatives on the dates hereon set forth.

 

 

 

                   JOE KING

Speaker of the

       House of Representatives

             GORDON A. GOLOB

                                 Secretary

 

 

Approved April 2, 1992 Place Style On Codes above, and Style Off Codes below.

                                     FILED          

 

                April 2, 1992 - 12:22 p.m.

 

 

 

               BOOTH GARDNER

Governor of the State of Washington

                        Secretary of State

                       State of Washington


                  _______________________________________________

 

                            SUBSTITUTE SENATE BILL 6193

                  _______________________________________________

 

                     Passed Legislature - 1992 Regular Session

 

 

State of Washington              52nd Legislature             1992 Regular Session

 

By Senate Committee on Financial Institutions & Insurance (originally sponsored by Senators von Reichbauer and Pelz)

 

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.


     Passed the Senate February 18, 1992.

     Passed the House March 4, 1992.

Approved by the Governor April 2, 1992.

     Filed in Office of Secretary of State April 2, 1992.