BP BHEAD INT H

AN ACT Relating to declinations or terminations of automobile insurance applications or policies; and adding a new section to chapter 48.30 RCW.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1. A new section is added to chapter 48.30 RCW to read as follows:

(1) As used in this section:

(a) "Decline or declination" means either the refusal of an insurer to issue an automobile insurance policy upon receipt of a written nonbinding application or written request for coverage from its agent or an applicant, or the refusal of an agent or broker to transmit to an insurer a written nonbinding application or written request for coverage received from an applicant. For the purposes of this section, the offering of insurance coverage with a company within an insurance group that is different from the company requested on the nonbinding application or written request for coverage, or the offering of policy coverage or rates substantially less favorable than requested in the nonbinding application or written request for coverage, shall be considered a declination.

(b) "Automobile insurance policy" means a policy delivered or issued for delivery in this state, insuring a natural person as named insured, or one or more individual residents of the same household, and under which the insured vehicles designated in the policy are of the following types only:

(i) An individually owned motor vehicle as defined in RCW 48.18.297 that is not used as a public or livery conveyance for passengers, nor rented to others; or

(ii) Any other four-wheel motor vehicle with a load capacity of one thousand five hundred pounds or less that is not rated by the insurer as a commercial motor vehicle whether or not used in the occupation, profession, or business of the insured.

(c) "Termination" means, but is not limited to, the cancellation or refusal to renew an insurance policy, except for nonpayment of premiums.

(2)(a) Except as provided in (b) of this subsection, upon declining an application or written request for an automobile insurance policy subject to this section the insurer, agent, or broker making the declination shall provide to the insurance applicant, in writing and at the time of declination, all the specific reasons for the declination.

(b) In the event of a declination by an insurer of a risk submitted by an agent or broker on behalf of the applicant, the insurer shall provide the agent or broker with all the specific written reasons for the declination. In the event the agent or broker is unable to effect insurance for the applicant through an admitted insurer other than a residual market mechanism, the agent or broker shall submit all the specific written reasons to the applicant for all those declinations.

(c) An agent, broker, or insurer not represented by an agent or broker, shall provide an insurance application form or other means of making a written request for insurance to a prospective applicant who requests insurance coverage from the agent, broker, or insurer.

(3) The declination of an application for, or the termination of, a policy of automobile insurance subject to this section by an insurer, agent, or broker is prohibited if the declination or termination is based on (a) through (j) of this subsection as follows:

(a) Upon the age, sex, or marital status or sexual orientation of an applicant or an insured;

(b) Upon the fact that the applicant or named insured previously obtained insurance coverage through a residual market insurance mechanism or any other particular insurance carrier;

(c) Upon the fact that another insurer previously declined to insure the applicant or terminated an existing policy in which the applicant was the named insured;

(d) Upon the fact that the applicant had no prior insurance or concurrent insurance;

(e) Upon applicant or insured's credit history;

(f) Upon any number of nonmoving traffic violations, or, a single traffic infraction;

(g) Upon employment history of applicant or insured;

(h) Upon only one traffic accident per insured driver within the last three years;

(i) Upon age of vehicle where liability insurance is concerned; or

(j) Upon the insured's or applicant's number of years at a given address.

This subsection does not prohibit rating differentials otherwise permitted by law.