| Passed by the House March 11, 2003 Yeas 93 FRANK CHOPP ________________________________________ Speaker of the House of Representatives Passed by the Senate April 15, 2003 Yeas 46 BRAD OWEN ________________________________________ 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 1654 as passed by the House of Representatives and the Senate on the dates hereon set forth. CYNTHIA ZEHNDER ________________________________________ Chief Clerk | |
| Approved May 12, 2003. GARY LOCKE ________________________________________ Governor of the State of Washington | May 12, 2003 - 4:28 p.m. Secretary of State State of Washington |
| State of Washington | 58th Legislature | 2003 Regular Session |
Read first time 02/04/2003. Referred to Committee on Financial Institutions & Insurance.
AN ACT Relating to borrowing money by domestic mutual insurers; and amending RCW 48.09.320.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1 RCW 48.09.320 and 1947 c 79 s .09.32 are each amended to
read as follows:
(1) A domestic mutual insurer ((on the cash premium plan)) may,
with the commissioner's advance approval and without the pledge of any
of its assets, borrow money to defray the expenses of its organization
or for any purpose required by its business, upon an agreement that
such money and such fair and reasonable interest thereon as may be
agreed upon, ((but not exceeding six percent per annum,)) shall be
repaid only out of the insurer's earned surplus in excess of its
required minimum surplus.
(2) ((Any money so borrowed shall not form a part of the insurer's
legal liabilities or be the basis of any setoff; but until repaid,
financial statements filed or published by the insurer shall show as a
footnote thereto the amount thereof then unpaid together with interest
thereon accrued but unpaid.)) An insurer borrowing funds under this
section must comply with the national association of insurance
commissioner's - accounting practices and procedures manual which sets
forth requirements for borrowed money to be treated as surplus notes
for financial accounting purposes.
(3) The commissioner's approval of such ((loan)) borrowed funds, if
granted, shall specify the amount to be borrowed, the purpose for which
the money is to be used, the terms and form of the loan agreement, the
date by which the loan must be completed, fair and reasonable
commissions or promotional expenses to be incurred or to be paid, and
such other related matters as the commissioner shall deem proper. If
the money is to be borrowed upon multiple agreements, the agreements
shall be serially numbered. No loan agreement or series thereof shall
have or be given any preferential rights over any other such loan
agreement or series. ((No commission or promotional expense shall be
incurred or be paid on account of any such loan.))