Z-0329.1  _______________________________________________

 

                         SENATE BILL 5434

          _______________________________________________

 

State of Washington      54th Legislature     1995 Regular Session

 

By Senators Prentice, Hale and Fraser; by request of Insurance Commissioner

 

Read first time 01/23/95.  Referred to Committee on Financial Institutions & Housing.

 

Amending licensing requirements of general agents.



    AN ACT Relating to the licensing of general agents; and amending RCW 48.05.310.

 

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

 

    Sec. 1.  RCW 48.05.310 and 1982 c 181 s 17 are each amended to read as follows:

    (1) An insurer appointing any person as its general agent or manager to represent it as such in this state shall file notice of the appointment with the commissioner on forms prescribed and furnished by the commissioner.

    (2) Any such general agent or manager shall have such authority, consistent with this code, as may be conferred by the insurer.  A general agent resident in this state and licensed, as in this section provided, may exercise the powers conferred by this code upon agents licensed for the kinds of insurance which the general agent is authorized to transact for the insurer so appointing him.

    (3) Any such general agent may accept applications for insurance from licensed agents who are not appointed by the insurer of such general agent where the risk involved is placed in a nonstandard or specialty market of an authorized insurer as defined by regulation of the commissioner.  Such nonstandard or specialty business shall not be bound by any agent not appointed by the insurer.  A general agent may supply such licensed, nonappointed agent with material to write nonstandard or specialty insurance business including, but not limited to, applications for insurance, underwriting criteria, and rates.  A general agent shall not provide any licensed, nonappointed agent with indicia of authority to bind an insurance risk and the general agent and nonappointed agent shall provide written disclaimers of binding authority to an applicant or prospective insured in such form as prescribed by the commissioner.

    (4) The appointment of a resident general agent shall not be effective unless the person so appointed is licensed as the general agent of such insurer by the commissioner upon application and payment of the fee therefor as provided in RCW 48.14.010.

    (5) ((Every such license shall expire as at close of business on the thirty-first day of March next following the date of issue, and may be renewed for an additional year upon application and payment of the fee therefor)) A general agent's license and its renewal shall be in accordance with chapter 48.17 RCW as applicable to agents and brokers.

    (6) The commissioner may deny, suspend, or revoke any such license for any cause specified in RCW 48.17.530 and in the manner provided in RCW 48.17.540.

 


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