BILL REQ. #:  H-4452.1 

READ FIRST TIME 01/21/10.   

     AN ACT Relating to group life insurance; amending RCW 48.24.030 and 48.21.010; and adding a new section to chapter 48.24 RCW.

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

NEW SECTION.  Sec. 1   A new section is added to chapter 48.24 RCW to read as follows:
     (1) Group life insurance offered to a resident of this state under a group life insurance policy may be issued to a group other than one described in RCW 48.24.020, 48.24.035, 48.24.040, 48.24.045, 48.24.050, 48.24.060, 48.24.070, 48.24.080, 48.24.090, or 48.24.095 subject to the requirements in this subsection. No such group life insurance policy may be delivered in this state unless the commissioner finds that:
     (a) The issuance of the group policy is not contrary to the best interest of the public;
     (b) The issuance of the group policy would result in economies of acquisition or administration; and
     (c) The benefits are reasonable in relation to the premiums charged.
     (2) No such group life insurance coverage may be offered under this section in this state by an insurer under a policy issued in another state unless the commissioner or the insurance commissioner of another state having requirements substantially similar to those contained in subsection (1)(a) through (c) of this section has made a determination that the requirements have been met.
     (3) The premium for the policy shall be paid either from the policyholder's funds or from funds contributed by the covered persons, or from both.

Sec. 2   RCW 48.24.030 and 2006 c 25 s 14 are each amended to read as follows:
     (1) Insurance under any group life insurance policy issued under RCW 48.24.020, 48.24.050, 48.24.060, 48.24.070, ((or)) 48.24.090, or section 1 of this act may be extended to insure the spouse and dependent children, or any class or classes thereof, of each insured employee or member who so elects, in amounts in accordance with a plan that precludes individual selection by the employees or members or by the employer or labor union or trustee, and which insurance on the life of any one family member including a spouse shall not be in excess of the amount on the life of the insured employee or member.
     Premiums for the insurance on the family members shall be paid by the policyholder, either from the employer's funds, funds contributed to him or her, employee's funds, trustee's funds, or labor union funds.
     (2) A spouse insured under this section has the same conversion right as to the insurance on his or her life as is vested in the employee or member under this chapter.

Sec. 3   RCW 48.21.010 and 1992 c 226 s 2 are each amended to read as follows:
     Group disability insurance is that form of disability insurance, including stop loss insurance as defined in RCW 48.11.030, provided by a master policy issued to an employer, to a trustee appointed by an employer or employers, or to an association of employers formed for purposes other than obtaining such insurance, covering, with or without their dependents, the employees, or specified categories of the employees, of such employers or their subsidiaries or affiliates, or issued to a labor union, or to an association of employees formed for purposes other than obtaining such insurance, covering, with or without their dependents, the members, or specified categories of the members, of the labor union or association, or issued pursuant to RCW 48.21.030. Group disability insurance ((shall also)) includes ((such other)) the following groups ((as)) that qualify for group life insurance ((under the provisions of this code)):
     RCW 48.24.020, 48.24.035, 48.24.040, 48.24.045, 48.24.050, 48.24.060, 48.24.070, 48.24.080, 48.24.090, and 48.24.095. A group under section 1 of this act does not qualify as a group for the purposes of this chapter.