BILL REQ. #: H-0604.1
| State of Washington | 59th Legislature | 2005 Regular Session |
Read first time 01/31/2005. Referred to Committee on Financial Institutions & Insurance.
AN ACT Relating to insurers having a financial interest in automotive repair facilities; 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) The definitions in this subsection apply throughout this
section unless the context clearly requires otherwise.
(a) "Automotive repair facility" has the same meaning as in RCW
46.71.011.
(b) "Insuring entity" means an insurer, including a fraternal
mutual insurer, that is licensed to write casualty insurance.
(c) "Ownership interest" means the right to control the affairs of
a business, or the right to share in the profits of a business, and
includes a loan to the business when the interest on the loan is based
upon the income of the business or the loan carries more than a
commercially reasonable rate of interest.
(2) An insuring entity may not have any ownership interest in an
automotive repair facility. An insuring entity that has an ownership
interest in an automotive repair facility shall fully divest itself of
ownership interest by July 1, 2006.
(3) The commissioner shall enforce this section.