S-3773.1  _______________________________________________

                    SUBSTITUTE SENATE BILL 6234

          _______________________________________________

State of Washington   57th Legislature        2002 Regular Session

By Senate Committee on Labor, Commerce & Financial Institutions (originally sponsored by Senators Winsley, Prentice, Regala, Hochstatter, Honeyford, Benton, Rasmussen, Gardner, Deccio, Roach, Morton, Franklin and Hewitt)

READ FIRST TIME 02/04/2002.

Requiring a date certain for the payment of insurance premiums.

    AN ACT Relating to requiring a date certain for the payment of insurance premiums; amending RCW 48.18.140; and adding a new section to chapter 48.18 RCW.

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

    Sec. 1.  RCW 48.18.140 and 1989 c 25 s 2 are each amended to read as follows:

    (1) The written instrument, in which a contract of insurance is set forth, is the policy.

    (2) A policy shall specify:

    (a) The names of the parties to the contract.  The insurer's name shall be clearly shown in the policy.

    (b) The subject of the insurance.

    (c) The risk insured against.

    (d) The time at which the insurance thereunder takes effect and the period during which the insurance is to continue.

    (e)(i) A statement of the premium, and if other than life, disability, or title insurance, the premium rate where applicable.

(ii) For policies including only private passenger automobile insurance, a date certain on which the premium is due and a grace period of at least five days, without a late charge.

    (f) The conditions pertaining to the insurance.

    (3) If under the contract the exact amount of premiums is determinable only at termination of the contract, a statement of the basis and rates upon which the final premium is to be determined and paid shall be specified in the policy.

    (4) This section shall not apply to surety insurance contracts.

NEW SECTION. Sec. 2.  A new section is added to chapter 48.18 RCW to read as follows:

    No later than the day after the effective date of this act, all thirty-day premium payment schedules must be converted to a date certain under RCW 48.18.140(2)(e)(ii).  The commissioner shall adopt rules to implement this section.

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