S-2169.1 _______________________________________________
SUBSTITUTE SENATE BILL 5797
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State of Washington 53rd Legislature 1993 Regular Session
By Senate Committee on Labor & Commerce (originally sponsored by Senator Moore)
Read first time 03/03/93.
AN ACT Relating to the fiduciary duty of certain agents or brokers; amending RCW 48.17.480; adding a new section to chapter 48.17 RCW; and creating a new section.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1. A new section is added to chapter 48.17 RCW to read as follows:
Every person who receives collateral or security for any bail bond issued to insure the appearance of a criminal defendant before the courts of this state or the United States is a fiduciary of the property and shall keep adequate records for three years of the receipt, safekeeping, and disposition of the collateral or security. The records are subject to the requirements of RCW 48.17.470. Each such person shall maintain a trust account in a federally insured financial institution located in this state. All moneys, including cash, checks, money orders, wire transfers, and credit card sales drafts received as collateral or security for a bail bond or otherwise held for a client shall be deposited in the trust account not later than the third banking day following receipt of the funds or money. A person shall not in any way encumber the corpus of the trust account or commingle any other moneys with moneys properly maintained in the trust account. Each person required to maintain a trust account shall report annually under oath to the commissioner the account number and balance of the trust account, and the name and address of the institution that holds the trust account, and shall report to the commissioner within ten business days whenever the trust account is changed or relocated or a new trust account is opened.
Sec. 2. RCW 48.17.480 and 1988 c 248 s 12 are each amended to read as follows:
(1) An agent or any other representative of an insurer involved in the procuring or issuance of an insurance contract shall report to the insurer the exact amount of consideration charged as premium for such contract, and such amount shall likewise be shown in the contract and in the records of the agent. Each willful violation of this provision shall constitute a misdemeanor.
(2) All funds representing premiums or return premiums received by an agent, solicitor or broker, shall be so received in his or her fiduciary capacity, and shall be promptly accounted for and paid to the insured, insurer, or agent as entitled thereto.
(3) Any person licensed under this chapter who receives funds which belong to or should be paid to another person as a result of or in connection with an insurance transaction is deemed to have received the funds in a fiduciary capacity. The licensee shall promptly account for and pay the funds to the person entitled to the funds.
(((4) Any agent, solicitor, broker, adjuster
or other person licensed under this chapter who, not being lawfully entitled
thereto, diverts or appropriates funds received in a fiduciary capacity or any
portion thereof to his or her own use, shall be guilty of larceny by
embezzlement, and shall be punished as provided in the criminal statutes of
this state.))
NEW SECTION. Sec. 3. Failure to fulfill the fiduciary duties and other duties as prescribed in section 1 of this act is not reasonable in relation to the development and preservation of business. A violation of section 1 of this act is an unfair or deceptive act in trade or commerce for the purpose of applying the consumer protection act, chapter 19.86 RCW.
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