H-4006.2  _______________________________________________

                          HOUSE BILL 2825

          _______________________________________________

State of Washington      55th Legislature     1998 Regular Session

By Representatives L. Thomas, Wolfe, Zellinsky, Grant, Benson, DeBolt, Keiser, Smith, Sullivan, Constantine, Wensman and Thompson

Read first time 01/21/98.  Referred to Committee on Financial Institutions & Insurance.

Clarifying fees charged by general agents.

    AN ACT Relating to fees charged by general agents; amending RCW 48.18.180; and adding a new section to chapter 48.17 RCW.

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

    Sec. 1.  RCW 48.18.180 and 1994 c 203 s 2 are each amended to read as follows:

    (1) The premium stated in the policy shall be inclusive of all fees, charges, premiums, or other consideration charged for the insurance or for the procurement thereof.

    (2) No insurer or its officer, employee, agent, solicitor, or other representative shall charge or receive any fee, compensation, or consideration for insurance which is not included in the premium specified in the policy.

    (3) Each violation of this section is a gross misdemeanor.

    (4) This section does not apply to a fee paid to a broker by an insured as provided in RCW 48.17.270 or to a fee paid to a general agent by an insured as provided in section 2 of this act.

NEW SECTION. Sec. 2.  A new section is added to chapter 48.17 RCW to read as follows:

    A general agent may receive fees paid by the insurer for services provided by the general agent that:

    (1) Are unique to general agents; and

    (2) Are not part of the payment for the insurance policy itself.

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