CERTIFICATION OF ENROLLMENT

HOUSE BILL 1236



60th Legislature
2007 Regular Session

Passed by the House February 14, 2007
  Yeas 98   Nays 0


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Speaker of the House of Representatives


Passed by the Senate April 5, 2007
  Yeas 46   Nays 0



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President of the Senate
CERTIFICATE

I, Richard Nafziger, Chief Clerk of the House of Representatives of the State of Washington, do hereby certify that the attached is HOUSE BILL 1236 as passed by the House of Representatives and the Senate on the dates hereon set forth.



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Chief Clerk
Approved 









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Governor of the State of Washington
FILED







Secretary of State
State of Washington


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HOUSE BILL 1236
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Passed Legislature - 2007 Regular Session
State of Washington60th Legislature2007 Regular Session

By Representatives Roach, Kirby, Simpson and Moeller; by request of Insurance Commissioner

Read first time 01/15/2007.   Referred to Committee on Insurance, Financial Service & Consumer Protection.



     AN ACT Relating to the capital and surplus requirements necessary to transact insurance; and amending RCW 48.05.340.

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

Sec. 1   RCW 48.05.340 and 2005 c 223 s 2 are each amended to read as follows:
     (1) Subject to RCW 48.05.350 to qualify for authority to transact any one kind of insurance as defined in chapter 48.11 RCW or combination of kinds of insurance as set forth in this subsection, a foreign or alien insurer, whether stock or mutual, or a domestic insurer ((formed after July 24, 2005,)) must possess unimpaired paid-in capital stock, if a stock insurer, or unimpaired surplus if a mutual insurer, and additional funds in surplus, as follows, and must thereafter maintain unimpaired a combined total of: (a) The paid-in capital stock if a stock insurer or surplus if a mutual insurer, plus (b) additional funds in surplus equal to the total of the following initial requirements:


Kind or kinds
of insurance		Paid-in capital
stock or
basic surplus
Additional
surplus
Life . . . . . . . . . . . . $2,000,000 $2,000,000 
Disability . . . . . . . . . . . . 2,000,000 2,000,000 
Life and disability . . . . . . . . . . . . 2,400,000 2,400,000 
Property . . . . . . . . . . . . 2,000,000 2,000,000 
Marine & transportation . . . . . . . . . . . . 2,000,000 2,000,000 
General casualty . . . . . . . . . . . . 2,400,000 2,400,000 
Vehicle . . . . . . . . . . . . 2,000,000 2,000,000 
Surety . . . . . . . . . . . . 2,000,000 2,000,000 
Ocean marine and foreign trade . . . . . . . . . . . .
2,000,000
2,000,000		 
Any two of the following kinds of insurance: Property, marine & transportation, general casualty, vehicle, surety, ocean marine and foreign trade, disability . . . . . . . . . . . . 3,000,000 3,000,000 
Multiple lines (all insurances except life and title insurance) . . . . . . . . . . . . 3,000,000 3,000,000 
Title 2,000,000 2,000,000 

     (2) Capital and surplus requirements are based upon all the kinds of insurance transacted by the insurer wherever it operates or proposes to operate, whether or not only a portion of the kinds are to be transacted in this state.
     (3) Until December 31, 1996, a foreign or alien insurer holding a certificate of authority to transact insurance in this state immediately prior to June 9, 1994, may continue to be authorized to transact the same kinds of insurance as long as it is otherwise qualified for that authority. A domestic insurer, except a title insurer, holding a certificate of authority to transact insurance in this state immediately prior to June 9, 1994, may continue to be authorized to transact the same kinds of insurance as long as it is otherwise qualified for such an authority and thereafter maintains unimpaired the amount of paid-in capital stock, if a stock insurer, or basic surplus, if a mutual or reciprocal insurer, and special or additional surplus as required of it under laws in force immediately prior to June 9, 1994. A domestic insurer that is acquired or merged must, immediately after completion of an acquisition or merger, meet the capital and surplus requirements of subsection (1) of this section. A domestic insurer, upon attaining the capital and surplus requirements of subsection (1) of this section, may not return to the capital and surplus requirements existing before June 9, 1994.

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