AN ACT Relating to
insurance licensing requirements; and amending RCW 48.36A.270, 48.14.010,
48.15.070, 48.17.150, 48.17.160, 48.17.563, 48.05.390, and 48.19.040.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF
WASHINGTON:
Sec. 1. RCW 48.36A.270 and 1987
c 366 s 27 are each amended to read as follows:
((Societies which
are now authorized to transact business in this state may continue the business
until April 1, 1988. The authority of the societies and all societies licensed
under this chapter, may be renewed annually, but in all cases to terminate on
April 1st each year. However, a license so issued shall continue in full force
and effect until the new license is issued or specifically refused.)) A
license under this chapter continues in force until suspended, revoked, or not
renewed. A license is subject to renewal annually on the first day of July
upon payment of the fee for the license. If not so renewed, the certificate
expires as of the thirtieth day of June of the same year. Licenses existing on
the effective date of this act continue in force until July 1, 1995, unless
revoked or suspended. For each license or renewal the society shall pay
the commissioner the fee established pursuant to RCW 48.14.010, subject to the
retaliatory provision of RCW 48.14.040. A certified copy or duplicate of the
license shall be prima facie evidence that the licensee is a fraternal benefit
society within the meaning of this chapter.
Sec. 2. RCW 48.14.010 and 1993 c
462 s 57 are each amended to read as follows:
(1) The commissioner
shall collect in advance the following fees:
(a)For filing charter documents:
(i)
Original charter documents, bylaws or record of organization of insurers, or
certified copies thereof, required to be filed................. $250.00
(ii)
Amended charter documents, or certified copy thereof, other than amendments of
bylaws............... $ 10.00
(iii)
No additional charge or fee shall be required for filing any of such documents
in the office of the secretary of state.
(b)Certificate of authority:
(i) Issuance........................................ $
25.00
(ii)
Renewal........................................ $ 25.00
(c)Annual
statement of insurer, filing.................... $
20.00
(d)Organization or financing of domestic insurers
and affiliated corporations:
(i) Application for solicitation permit,
filing..... $100.00
(ii)
Issuance of solicitation permit................ $ 25.00
(e)Agents' licenses:
(i) Agent's qualification licenses ((each
year)) every two years $ ((25.00))
50.00
(ii)
Filing of appointment of each such agent, ((each year)) every two
years........................... $ ((10.00))
20.00
(iii)
Limited license issued pursuant to RCW 48.17.190, ((each year)) every
two years............. $ ((10.00))
20.00
(f)Reinsurance intermediary licenses:
(i) Reinsurance intermediary-broker, each
year...... $ 50.00
(ii) Reinsurance intermediary-manager, each
year.... $100.00
(g)Brokers' licenses:
(i) Broker's license, ((each year)) every
two years....... $ ((50.00))
100.00
(ii) Surplus line broker, ((each year))
every two years.......................................... $((100.00))
200.00
(h)Solicitors'
license, ((each year)) every two years. $ ((10.00))
20.00
(i)Adjusters' licenses:
(i) Independent adjuster, ((each year))
every two years... $ ((25.00))
50.00
(ii) Public adjuster, ((each year)) every
two years....... $ ((25.00))
50.00
(j)Resident
general agent's license, ((each year)) every two years $ ((25.00))
50.00
(k)Managing general agent appointment, ((each
year)) every two years.................................................. $((100.00))
200.00
(l)Examination for license, each examination:
All examinations, except examinations
administered by an independent testing service, the fees for which are to be
approved by the commissioner and collected directly by and retained by such
independent testing service................................... $ ((10.00))
20.00
(m)Miscellaneous services:
(i)
Filing other documents.......................... $ 5.00
(ii)
Commissioner's certificate under seal.......... $ 5.00
(iii)
Copy of documents filed in the commissioner's office, reasonable charge
therefor as determined by the commissioner.
(2) All fees so collected
shall be remitted by the commissioner to the state treasurer not later than the
first business day following, and shall be placed to the credit of the general
fund: PROVIDED, That fees for examinations administered by an independent
testing service which are approved by the commissioner pursuant to subsection
(1)(l) of this section shall be collected directly by such independent testing
service and retained by it.
Sec. 3. RCW 48.15.070 and 1983
1st ex.s. c 32 s 24 are each amended to read as follows:
Any individual while a
resident of this state, or any firm or any corporation that has in its employ a
qualified individual who is a resident of this state and who is authorized to
exercise the powers of the firm or corporation, deemed by the commissioner to
be competent and trustworthy, and while maintaining an office at a designated
location in this state, may be licensed as a surplus line broker in accordance
with this section.
(1) Application to the
commissioner for the license shall be made on forms furnished by the
commissioner.
(2) ((The license
fee shall be one hundred dollars for each license year during any part of which
the license is in force. The annual renewal date shall be determined by the
commissioner. The commissioner shall adopt a rule providing for the proration,
on a quarterly basis, of the license fee. The proration shall be applicable
only: (a) To applicants who apply for a license after the expiration of the
first quarter of any license year, or (b) to licensees whose licenses would
exist for less than nine months as a result of the adoption of the annual renewal
date.)) The license shall expire if not timely renewed. Surplus line
brokers licenses shall be valid for the time period established by the
commission unless suspended or revoked at an earlier date.
(3) Prior to issuance
of license the applicant shall file with the commissioner a bond in favor of
the state of Washington in the penal sum of twenty thousand dollars, with
authorized corporate sureties approved by the commissioner, conditioned that he
will conduct business under the license in accordance with the provisions of
this chapter and that he will promptly remit the taxes provided by RCW
48.15.120. The licensee shall maintain such bond in force for as long as the
license remains in effect.
(4) Every applicant for
a surplus line broker's license or for the renewal of a surplus line broker's
license shall file with the application or request for renewal a bond in favor
of the people of the state of Washington, executed by an authorized corporate
surety approved by the commissioner, in the amount of one hundred thousand
dollars and shall be the bonding requirement for new licensees. The licensee
shall maintain such bond in force while so licensed. The bond may be
continuous in form, and total aggregate liability on the bond may be limited to
the amount stated in the bond. The bond shall be contingent on the accounting
by the surplus line broker to any person requesting such broker to obtain
insurance, for moneys or premiums collected in connection therewith. A bond
issued in accordance with RCW 48.17.250 or with this subsection will satisfy
the requirements of both RCW 48.17.250 and this subsection if the limit of
liability is not less than the greater of the requirement of RCW 48.17.250 or
the requirement of this subsection.
(5) Any bond issued
pursuant to subsection (3) or (4) of this section shall remain in force until
the surety is released from liability by the commissioner, or until the bond is
canceled by the surety. Without prejudice to any liability accrued prior to
such cancellation, the surety may cancel the bond upon thirty days' advance
notice in writing filed with the commissioner.
(6) For the purposes of
this section, a "qualified individual" is a natural person who has
met all the requirements that must be met by an individual surplus line broker.
Sec. 4. RCW 48.17.150 and 1988 c
248 s 9 are each amended to read as follows:
(1) To qualify for an
agent's or broker's license an applicant must otherwise comply with this code
therefor and must
(a) be eighteen years
of age or over, if an individual;
(b) be a bona fide
resident of and actually reside in this state, or if a corporation, be other
than an insurer and maintain a lawfully established place of business in this
state, except as provided in RCW 48.17.330;
(c) be empowered to be
an agent or broker, as the case may be, under its members' agreement, if a
firm, or by its articles of incorporation, if a corporation;
(d) complete such
minimum educational requirements for the issuance of an agent's license for the
kinds of insurance specified in RCW 48.17.210 as may be required by regulation
issued by the commissioner;
(e) successfully pass
any examination as required under RCW 48.17.110;
(f) be a trustworthy
person;
(g) if for an agent's
license, be appointed as its agent by one or more authorized insurers, subject
to issuance of the license; and
(h) if for broker's
license, have had at least two years experience either as an agent, solicitor,
adjuster, general agent, broker, or as an employee of insurers or
representatives of insurers, and special education or training of sufficient
duration and extent reasonably to satisfy the commissioner that he possesses
the competence necessary to fulfill the responsibilities of broker.
(2) The commissioner
shall by regulation establish minimum continuing education requirements for the
renewal or reissuance of a license to an agent or a broker: PROVIDED, That the
commissioner shall require that continuing education courses will be made
available on a state-wide basis in order to ensure that persons residing in all
geographical areas of this state will have a reasonable opportunity to attend
such courses. The continuing education requirements shall be appropriate to
the license for the kinds of insurance specified in RCW 48.17.210: PROVIDED
FURTHER, That the continuing education requirements may be waived by the
commissioner for good cause shown.
(3) If the commissioner
finds that the applicant is so qualified and that the license fee has been
paid, ((he shall issue)) the license shall be issued. Otherwise,
the commissioner shall refuse to issue the license.
Sec. 5. RCW 48.17.160 and 1990
1st ex.s. c 3 s 3 are each amended to read as follows:
(1) Each insurer on
appointing an agent in this state shall file written notice thereof with the
commissioner on forms as prescribed and furnished by the commissioner, and
shall pay the filing fee therefor as provided in RCW 48.14.010. The
commissioner shall return the appointment of agent form to the insurer for
distribution to the agent. The commissioner may adopt regulations establishing
alternative appointment procedures for individuals within licensed firms,
corporations, or sole proprietorships who are empowered to exercise the
authority conferred by the firm, corporate, or sole proprietorship license.
(2) Each appointment
shall be effective until the agent's license expires or is revoked, the
appointment has expired, or written notice of termination of the appointment is
filed with the commissioner, whichever occurs first.
(3) When the
appointment is revoked by the insurer, written notice of such revocation shall
be given to the agent and a copy of the notice of revocation shall be mailed to
the commissioner.
(4) Revocation of an
appointment by the insurer shall be deemed to be effective as of the date
designated in the notice as being the effective date if the notice is actually
received by the agent prior to such designated date; otherwise, as of the
earlier of the following dates:
(a) The date such
notice of revocation was received by the agent.
(b) The date such
notice, if mailed to the agent at his last address of record with the insurer,
in due course should have been received by the agent.
(5) Appointments ((shall
be for one year and shall)) expire if not timely renewed. Each insurer
shall ((annually)) pay the renewal fee set forth for each agent holding
an appointment on the ((annual)) renewal date assigned the agents of the
insurer by the commissioner. The commissioner, by rule, shall determine
renewal dates. If a staggered system is used, fees shall be prorated in the
conversion to a staggered system.
Sec. 6. RCW 48.17.563 and 1989 c
323 s 7 are each amended to read as follows:
(1) The commissioner
may require insurance education providers to furnish specific information
regarding their curricula, faculty, methods of monitoring attendance, and other
matters reasonably related to providing insurance education under this
chapter. The commissioner may grant approvals to such providers who
demonstrate the ability to conduct and certify completion of one or more
courses satisfying the insurance education requirements of RCW 48.17.150.
(2) Provider and
course approvals are valid for the time period established by the commissioner
and shall expire if not timely renewed. Each provider shall pay the renewal
fee set forth in RCW 48.14.010(1)(n).
(3) In granting
approvals for courses required by RCW 48.17.150(1)(d):
(a) The commissioner
may require the availability of a licensed agent with appropriate experience on
the premises whenever instruction is being offered; and
(b) The commissioner
shall not deny approval to any provider on the grounds that the proposed method
of education employs nontraditional teaching techniques, such as substituting
taped lectures for live instruction, offering instruction without fixed
schedules, or providing education at individual learning rates.
Sec. 7. RCW 48.05.390 and 1988 c
248 s 6 are each amended to read as follows:
(1) The report required
by RCW 48.05.380 shall include the types of insurance written by the insurer
for policies pertaining to:
(a) Medical malpractice
for physicians and surgeons, hospitals, other health care professions, and
other health care facilities individually;
(b) Products liability.
However, if comparable information is included in the annual statement required
by RCW 48.05.250, products liability data must not be reported under RCW
48.05.380;
(c) Attorneys'
malpractice;
(d) Architects' and
engineers' malpractice;
(e) Municipal
liability; and
(f) Day care center
liability.
(2) The report shall
include the following data by the type of insurance for the previous year
ending on the thirty-first day of December:
(a) Direct premiums
written;
(b) Direct premiums
earned;
(c) Net investment
income, including net realized capital gain and losses, using appropriate
estimates where necessary;
(d) Incurred claims,
development as the sum of the following:
(i) Dollar amount of
claims closed with payments; plus
(ii) Reserves for
reported claims at the end of the current year; minus
(iii) Reserves for
reported claims at the end of the previous year; plus
(iv) Reserves for
incurred but not reported claims at the end of the current year; minus
(v) Reserves for
incurred but not reported claims at the end of the previous year; plus
(vi) Reserves for loss
adjustment expense at the end of the current year; minus
(vii) Reserves for loss
adjustment expense at the end of the previous year.
(e) Actual incurred
expenses allocated separately to loss adjustment, commissions, other
acquisition costs, advertising, general office expenses, taxes, licenses and
fees, and all other expenses;
(f) Net underwriting
gain or loss;
(g) Net operation gain
or loss, including net investment income; and
(h) ((The number and
dollar amount of claims closed with payment, by year incurred and the amount
reserved for them;
(i) The number of
claims closed without payment and the dollar amount reserved for those claims;
and
(j))) Other information requested by the insurance
commissioner.
(3) The report shall be
filed annually with the commissioner, no later than the first day of May.
Sec. 8. RCW 48.19.040 and 1989 c
25 s 4 are each amended to read as follows:
(1) Every insurer or
rating organization shall, before using, file with the commissioner every
classifications manual, manual of rules and rates, rating plan, rating
schedule, minimum rate, class rate, and rating rule, and every modification of
any of the foregoing which it proposes. The insurer need not so file any rate
on individually rated risks as described in subdivision (1) of RCW 48.19.030;
except that any such specific rate made by a rating organization shall be
filed.
(2) Every such filing
shall indicate the type and extent of the coverage contemplated and must be
accompanied by sufficient information to permit the commissioner to determine
whether it meets the requirements of this chapter. An insurer or rating
organization shall offer in support of any filing:
(a) The experience or
judgment of the insurer or rating organization making the filing;
(b) An exhibit
detailing the major elements of operating expense for the types of insurance
affected by the filing;
(c) An explanation of
how investment income has been taken into account in the proposed rates; and
(d) Any other
information which the insurer or rating organization deems relevant.
(3) If an insurer has
insufficient loss experience to support its proposed rates, it may submit loss
experience for similar exposures of other insurers or of a rating organization.
(4) Every such filing
shall state its proposed effective date.
(5) ((General
liability, professional liability, and commercial automobile insurance rate
filings must be submitted or updated at least once in each fifteen-month
interval so that the commissioner has timely supporting information necessary
to determine that the current schedules, manuals, rules, rates, and rating
plans meet the requirements of RCW 48.19.020.
(6))) A filing made pursuant to this chapter shall
be exempt from the provisions of RCW 48.02.120(3). However, the filing and all
supporting information accompanying it shall be open to public inspection only
after the filing becomes effective.
(((7)))
(6) Where a filing is required no insurer shall make or issue an
insurance contract or policy except in accordance with its filing then in
effect, except as is provided by RCW 48.19.090.
