57th Legislature

                      2002 Regular Session


Passed by the House March 11, 2002

  Yeas 94   Nays 0




Speaker of the House of Representatives







Passed by the Senate March 7, 2002

  Yeas 46   Nays 1



I, Cynthia Zehnder, Chief Clerk of the House of Representatives of the State of Washington, do hereby certify that the attached is ENGROSSED SUBSTITUTE HOUSE BILL 2224  as passed by the House of Representatives and the Senate on the dates hereon set forth.




                          Chief Clerk






President of the Senate




Approved Place Style On Codes above, and Style Off Codes below.               




Governor of the State of Washington

                   Secretary of State

                  State of Washington






                     AS AMENDED BY THE SENATE


             Passed Legislature - 2002 Regular Session


State of Washington      57th Legislature     2002 Regular Session


By House Committee on Financial Institutions & Insurance (originally sponsored by Representatives Benson and Hatfield)


Read first time 02/08/2002.  Referred to Committee on .

Licensing specialty producers of certain lines of insurance.  

    AN ACT Relating to licensing specialty producers of certain lines of insurance; and adding a new chapter to Title 48 RCW.




    NEW SECTION.  Sec. 1.  The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.

    (1) "Communications equipment" means handsets, pagers, personal digital assistants, portable computers, automatic answering devices, batteries, and their accessories or other devices used to originate or receive communications signals or service approved for coverage by rule of the commissioner, and also includes services related to the use of the devices.

    (2) "Communications equipment insurance program" means an insurance program as described in section 3 of this act.

    (3) "Communications service" means the service necessary to send, receive, or originate communications signals.

    (4) "Customer" means a person or entity purchasing or leasing communications equipment or communications services from a vendor.

    (5) "Specialty producer license" means a license issued under section 2 of this act that authorizes a vendor to offer or sell insurance as provided in section 3 of this act.

    (6) "Supervising agent" means an agent licensed under RCW 48.17.060 who provides training as described in section 4 of this act and is affiliated to a licensed vendor.

    (7) "Vendor" means a person or entity resident or with offices in this state in the business of leasing, selling, or providing communications equipment or communications service to customers.

    (8) "Appointing insurer" means the insurer appointing the vendor as its agent under a specialty producer license.


    NEW SECTION.  Sec. 2.  (1) A vendor that intends to offer insurance under section 3 of this act must file a specialty producer license application with the commissioner.  Before the commissioner issues such a license, the vendor must be appointed as the agent of one or more authorized appointing insurers under a vendor's specialty producer license.

    (2) Upon receipt of an application, if the commissioner is satisfied that the application is complete, the commissioner may issue a specialty producer license to the vendor.


    NEW SECTION.  Sec. 3.  A specialty producer license authorizes a vendor and its employees and authorized representatives to offer and sell to, enroll in, and bill and collect premiums from customers for insurance covering communications equipment on a master, corporate, group, or individual policy basis.


    NEW SECTION.  Sec. 4.  (1) A vendor issued a specialty producer license may not issue insurance under section 3 of this act unless:

    (a) At every location where customers are enrolled in communications equipment insurance programs, written material regarding the program is made available to prospective customers; and

    (b) The communications equipment insurance program is operated with the participation of a supervising agent who, with authorization and approval from the appointing insurer, supervises a training program for employees of the licensed vendor.

    (2) Employees and authorized representatives of a vendor issued a specialty producer license may only act on behalf of the vendor in the offer, sale, solicitation, or enrollment of customers in a communications equipment insurance program.  The conduct of these employees and authorized representatives within the scope of their employment or agency is the same as conduct of the vendor for purposes of this title.


    NEW SECTION.  Sec. 5.  (1) A vendor issued a specialty producer license under this chapter is subject to RCW 48.17.540 through 48.17.560.

    (2) The commissioner may adopt rules necessary for the implementation of this chapter, including, but not limited to, rules governing:

    (a) The specialty producer license application process, including any forms required to be used;

    (b) The standards for approval and the required content of written materials required under section 4(1)(a) of this act;

    (c) The approval and required content of training materials required under section 4(1)(b) of this act;

    (d) Establishing license fees to defray the cost of administering the specialty producer licensure program;

    (e) Establishing requirements for the remittance of premium funds to the supervising agent under authority from the program insurer; and

    (f) Determining the applicability or nonapplicability of other provisions of this title to this chapter.


    NEW SECTION.  Sec. 6.  Sections 1 through 5 of this act constitute a new chapter in Title 48 RCW.


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