BILL REQ. #:  S-2207.1 

READ FIRST TIME 03/02/05.   

     AN ACT Relating to the availability of subscription air ambulance services; adding a new chapter to Title 48 RCW; and creating a new section.

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

NEW SECTION.  Sec. 1   The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
     (1) "Air ambulance" means a helicopter or airplane designed and used to provide transportation for the ill and injured, and to provide personnel, facilities, and equipment to treat customers before and during transportation. "Air ambulance" as used in this chapter means a service that is in compliance with WAC 246-976-320.
     (2) "Customer" means a person or entity purchasing subscription air ambulance service from a vendor.
     (3) "Subscription air ambulance service" means coverage for air ambulance transport that is offered by a vendor that solicits membership subscriptions, accepts membership applications, charges membership fees, and furnishes prepaid or discounted air ambulance service to subscription members and designated members of their households.
     (4) "Vendor" means a person, entity, corporation, or nonprofit corporation that is a resident of this state or has offices in this state and is in the business of offering, selling, or providing subscription air ambulance service to customers.

NEW SECTION.  Sec. 2   (1) A vendor that intends to offer subscription air ambulance service under this chapter must file a vendor license application with the commissioner.
     (2) The commissioner may prescribe the subscription air ambulance service vendor application form. The initial licensing fee is two hundred fifty dollars, and the license is valid for two years. The renewal fee is fifty dollars.
     (3) Upon receipt of an application, if the commissioner is satisfied that the application is complete, the commissioner may issue a license to the vendor.

NEW SECTION.  Sec. 3   A vendor license authorizes a vendor and its employees and authorized representatives to offer, sell, bill, and collect fees for, and enroll customers in, a subscription air ambulance service.

NEW SECTION.  Sec. 4   (1) A vendor issued a license may not provide the services under section 3 of this act unless:
     (a) At every location where customers purchase subscription air ambulance service, written material regarding the service is made available to prospective customers;
     (b) It supervises a training program for its employees and authorized representatives; and
     (c) It provides the commissioner with a list of employees and authorized representatives that provide the services under section 3 of this act.
     (2) Employees and authorized representatives of a vendor issued a license may act on behalf of the vendor in the offer, sale, solicitation, or enrollment of customers of subscription air ambulance service. The conduct of these employees and authorized representatives within the scope of their employment or representation is the same as the conduct of the vendor for purposes of this chapter.

NEW SECTION.  Sec. 5   For informational purposes only, licensed vendors of subscription air ambulance service must file with the commissioner:
     (1) The standards for approval and the required content of written materials under section 4(1)(a) of this act;
     (2) The approval and required content of a training program under section 4(1)(b) of this act; and
     (3) Audited financial statements for the previous year at the time of application and annually thereafter on June 1st of each year.

NEW SECTION.  Sec. 6   (1) Every vendor licensed under this chapter shall promptly reply in writing to an inquiry of the commissioner relative to the business of subscription air ambulance service.
     (2)(a) In the event of a violation of this chapter by a vendor, the commissioner may revoke, suspend, or refuse to issue or renew a vendor's license that is issued or may be issued under this chapter for any cause specified in any other provision of this title or for any of the following causes:
     (i) For any cause that the issuance of this license could have been refused had it then existed and been known to the commissioner;
     (ii) If the licensee or applicant willfully violates or knowingly participates in a violation of this chapter;
     (iii) If the licensee or applicant has obtained or attempted to obtain a license through willful misrepresentation or fraud;
     (iv) If the licensee or applicant has misappropriated or converted funds that belong to, or should be paid to, another person as a result of, or in connection with, subscription air ambulance service;
     (v) If the licensee or applicant has, with intent to deceive, materially misrepresented the terms or effects of any subscription air ambulance service contract, or has engaged, or is about to engage, in any fraudulent transaction;
     (vi) If the licensee or applicant or officer of the licensee or applicant has been convicted by final judgment of a felony;
     (vii) If the licensee or applicant is shown to be, and is determined by the commissioner, incompetent or untrustworthy, or a source of injury and loss to the public; or
     (viii) If the vendor has dealt with, or attempted to deal with, insurances, or has exercised powers relative to insurance outside the scope of the vendor's license.
     (b) The holder of any license that has been revoked or suspended shall surrender the license to the commissioner at the commissioner's request.
     (3) The commissioner may suspend, revoke, or refuse to renew any vendor's license by an order served by mail or personal service upon the licensee not less than fifteen days prior to its effective date. The order is subject to the right of the licensee to a hearing under chapter 48.04 RCW.
     (4) The commissioner may temporarily suspend a license by an order served by mail or personal service upon the licensee not less than three days prior to its effective date. However, the order must contain a notice of revocation and include a finding that the public safety or welfare imperatively requires emergency action. These suspensions may continue only until proceedings for revocation are concluded. The commissioner may also temporarily suspend a license in cases when proceedings for revocation are pending if it is found that the public safety or welfare imperatively requires emergency action.
     (5) Service by mail under this section means posting in the United States mail, addressed to the licensee at the most recent address shown in the commissioner's licensing records for the licensee. Service by mail is complete upon deposit in the United States mail.
     (6) If any person sells subscription air ambulance service or holds himself or herself or a company out as a vendor without satisfying the requirements of this chapter, the commissioner is authorized to issue a cease and desist order.

NEW SECTION.  Sec. 7   With the exception of this chapter and chapters 48.02 and 48.04 RCW, Title 48 RCW does not apply to subscription air ambulance service as provided by this chapter.

NEW SECTION.  Sec. 8   If the insurance commissioner finds that solvency standards should apply to subscription air ambulance service under this chapter, the commissioner may report back to the legislature regarding those standards.

NEW SECTION.  Sec. 9   Sections 1 through 7 of this act constitute a new chapter in Title 48 RCW.