|Passed by the House February 28, 2003|
Speaker of the House of Representatives
Passed by the Senate April 15, 2003
President of the Senate
I, Cynthia Zehnder, Chief Clerk of the House of Representatives of the State of Washington, do hereby certify that the attached is HOUSE BILL 1150 as passed by the House of Representatives and the Senate on the dates hereon set forth.
Governor of the State of Washington
Secretary of State
State of Washington
|State of Washington||58th Legislature||2003 Regular Session|
Read first time 01/20/2003. Referred to Committee on Financial Institutions & Insurance.
AN ACT Relating to the sale of single premium credit insurance; and adding a new section to chapter 48.18 RCW.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1 A new section is added to chapter 48.18 RCW
to read as follows:
(1) For the purposes of this section:
(a) "Licensee" means every insurance agent, broker, or solicitor licensed under chapter 48.17 RCW.
(b) "Residential mortgage loan" means any loan primarily for personal, family, or household use secured by a mortgage or deed of trust on residential real estate upon which is constructed or intended to be constructed a single-family dwelling or multiple family dwelling of four or less units.
(c) "Single premium credit insurance" means credit insurance purchased with a single premium payment at inception of coverage.
(2) An insurer or licensee may not issue or sell any single premium credit insurance product in connection with a residential mortgage loan unless:
(a) The term of the single premium credit insurance policy is the same as the term of the loan;
(b) The debtor is given the option to buy credit insurance paid with monthly premiums; and
(c) The single premium credit insurance policy provides for a full refund of premiums to the debtor if the credit insurance is canceled within sixty days of the date of the loan.
(3) This section does not apply to residential mortgage loans if:
(a) The loan amount does not exceed ten thousand dollars, exclusive of fees;
(b) The repayment term of the loan does not exceed five years; and
(c) The term of the single premium credit insurance does not exceed the repayment term of the loan.