_______________________________________________
HOUSE
BILL 1832
_______________________________________________
Passed
Legislature - 1993 Regular Session
State
of Washington 53rd Legislature 1993
Regular Session
By
Read
first time 02/10/93. Referred to Committee on Financial Institutions &
Insurance.
Regulating medical malpractice insurance.
AN ACT Relating to midterm rate decreases for
medical malpractice insurance; and amending RCW 48.18.2901.
BE
IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1.
RCW 48.18.2901 and 1988 c 249 s 3 are each amended to read as follows:
(1) Each insurer shall be required to renew any
contract of insurance subject to RCW 48.18.290 unless one of the following
situations exists:
(a) The insurer gives the named insured at
least forty-five days' notice in writing as provided for in RCW 48.18.290, that
it proposes to refuse to renew the insurance contract upon its expiration date;
and sets forth therein the actual reason for refusing to renew; or
(b) At least twenty days prior to its
expiration date, the insurer has communicated, either directly or through its
agent, its willingness to renew in writing to the named insured and has
included therein a statement of the amount of the premium or portion thereof
required to be paid by the insured to renew the policy, and the insured fails
to discharge when due his or her obligation in connection with the payment of
such premium or portion thereof; or
(c) The insured has procured equivalent
coverage prior to the expiration of the policy period; or
(d) The contract is evidenced by a written
binder containing a clearly stated expiration date which has expired according
to its terms.
(2) Any insurer failing to include in the
notice required by subsection (1)(b) of this section the amount of any
increased premium resulting from a change of rates and an explanation of any
change in the contract provisions shall renew the policy if so required by that
subsection according to the rates and contract provisions applicable to the
expiring policy: PROVIDED, That renewal based on the rates and contract
provisions applicable to the expiring policy shall not prevent the insurer from
making changes in the rates and/or contract provisions of the policy once
during the term of its renewal after at least twenty days' advance notice of
such change has been given to the named insured.
(3) Renewal of a policy shall not constitute a
waiver or estoppel with respect to grounds for cancellation which existed
before the effective date of such renewal, or with respect to cancellation of fire
policies under chapter 48.53 RCW.
(4) "Renewal" or "to renew"
means the issuance and delivery by an insurer of a contract of insurance
replacing at the end of the contract period a contract of insurance previously
issued and delivered by the same insurer, or the issuance and delivery of a
certificate or notice extending the term of a contract beyond its policy period
or term: PROVIDED, HOWEVER, That any contract of insurance with a policy
period or term of six months or less whether or not made continuous for
successive terms upon the payment of additional premiums shall for the purpose
of RCW 48.18.290 and 48.18.293 through 48.18.295 be considered as if written
for a policy period or term of six months: PROVIDED, FURTHER, That any policy
written for a term longer than one year or any policy with no fixed expiration
date, shall, for the purpose of RCW 48.18.290 and 48.18.293 through 48.18.295,
be considered as if written for successive policy periods or terms of one year.
(5) A midterm blanket reduction in rate,
approved by the commissioner, for medical malpractice insurance shall not be
considered a renewal for purposes of this section.
