BILL REQ. #: S-3795.2
| State of Washington | 61st Legislature | 2010 Regular Session |
READ FIRST TIME 01/20/10.
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.