Z-1414.1 _______________________________________________
SENATE BILL 6526
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State of Washington 57th Legislature 2002 Regular Session
By Senators Keiser and Winsley; by request of Insurance Commissioner
Read first time 01/21/2002. Referred to Committee on Labor, Commerce & Financial Institutions.
AN ACT Relating to renewing contracts of insurance that are subject to RCW 48.18.290; and amending RCW 48.18.2901.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1. RCW 48.18.2901 and 1993 c 186 s 1 are each amended to read as follows:
(1) Each insurer shall be required to renew any contract of insurance subject to RCW 48.18.290 unless one of the following situations exists:
(a) The insurer gives
the named insured at least forty-five days' notice in writing as provided for
in RCW 48.18.290, that it proposes to refuse to renew the insurance contract
upon its expiration date; and sets forth ((therein)) in that writing
the actual reason for refusing to renew; ((or))
(b) At least twenty
days prior to its expiration date, the insurer has communicated, either
directly or through its agent, its willingness to renew in writing to the named
insured and has included ((therein)) in that writing a statement
of the amount of the premium or portion thereof required to be paid by the
insured to renew the policy, and the insured fails to discharge when due his or
her obligation in connection with the payment of such premium or portion thereof;
((or))
(c) The insured has
procured equivalent coverage prior to the expiration of the policy period; ((or))
(d) The contract is evidenced by a written binder containing a clearly stated expiration date which has expired according to its terms; or
(e) The contract clearly states that it is not renewable, and is for a specific line, subclassification, or type of coverage that is not offered on a renewable basis. This subsection (1)(e) does not restrict the authority of the insurance commissioner under this code.
(2) Any insurer failing
to include in the notice required by subsection (1)(b) of this section the
amount of any increased premium resulting from a change of rates and an
explanation of any change in the contract provisions shall renew the policy if
so required by that subsection according to the rates and contract provisions
applicable to the expiring policy((: PROVIDED, That)). However,
renewal based on the rates and contract provisions applicable to the expiring
policy shall not prevent the insurer from making changes in the rates and/or
contract provisions of the policy once during the term of its renewal after at
least twenty days' advance notice of such change has been given to the named
insured.
(3) Renewal of a policy shall not constitute a waiver or estoppel with respect to grounds for cancellation which existed before the effective date of such renewal, or with respect to cancellation of fire policies under chapter 48.53 RCW.
(4) "Renewal"
or "to renew" means the issuance and delivery by an insurer of a
contract of insurance replacing at the end of the contract period a contract of
insurance previously issued and delivered by the same insurer, or the issuance
and delivery of a certificate or notice extending the term of a contract beyond
its policy period or term((: PROVIDED, HOWEVER, That)). However,
(a) any contract of insurance with a policy period or term of six months or
less whether or not made continuous for successive terms upon the payment of
additional premiums shall for the purpose of RCW 48.18.290 and 48.18.293
through 48.18.295 be considered as if written for a policy period or term of
six months((: PROVIDED, FURTHER, That)); and (b) any policy
written for a term longer than one year or any policy with no fixed expiration
date, shall, for the purpose of RCW 48.18.290 and 48.18.293 through 48.18.295,
be considered as if written for successive policy periods or terms of one year.
(5) A midterm blanket reduction in rate, approved by the commissioner, for medical malpractice insurance shall not be considered a renewal for purposes of this section.
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