S-1691.1 _______________________________________________
SENATE BILL 5887
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State of Washington 55th Legislature 1997 Regular Session
By Senator Loveland
Read first time 02/18/97. Referred to Committee on Financial Institutions, Insurance & Housing.
AN ACT Relating to property insurance on the security interest in a real estate contract; and adding a new section to chapter 61.30 RCW.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1. A new section is added to chapter 61.30 RCW to read as follows:
(1) Prior to executing a real estate contract secured by a mobile home or single-family home to be used for residential purposes, the purchaser shall procure property insurance satisfactory to the seller to cover the mobile home or single-family home serving as security interest and naming the seller as the named insured. The purchaser shall maintain the insurance so long as the mobile home or single-family home serves as security for the real estate contract. The insurance must include a long-form loss payable endorsement.
(2) Not later than the execution of the real estate contract, the purchaser of a mobile home or single-family home for residential purposes under a real estate contract shall provide the seller with satisfactory evidence of the property insurance required under subsection (1) of this section. The purchaser shall provide the seller with ongoing evidence of the insurance not later than thirty days prior to each subsequent policy or binder renewal date.
(3) The requirements of this section may be altered by written agreement between the purchaser and seller.
(4) Nothing in this section shall be interpreted as exempting the procurement of insurance required under this section from the provisions of RCW 48.30.260.
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