BILL REQ. #:  S-3365.1 

Read first time 01/11/10.   Referred to Committee on Financial Institutions, Housing & Insurance.

     AN ACT Relating to the exemption to the three-year active transacting requirement for foreign or alien insurer applicants; and amending RCW 48.05.105.

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

Sec. 1   RCW 48.05.105 and 1967 c 150 s 2 are each amended to read as follows:
     (1) No certificate of authority shall be granted to a foreign or alien applicant that has not actively transacted for three years the classes of insurance for which it seeks to be admitted((; except, the foregoing shall)).
     (2) Subsection (1) of this section does not apply to the following:
     (a) Any subsidiary of a seasoned, reputable insurer that has held a certificate of authority in this state for at least three years; or
     (b) Any applicant that:
     (i) Has surplus of not less than twenty-five million dollars; and
     (ii) Has made a deposit with the commissioner in the amount of one million dollars for the sole benefit of the applicant's Washington policyholders.
     (3) The commissioner shall release the deposit to an authorized insurer who originally met the requirement in subsection (2)(b)(ii) of this section, in accordance with chapter 48.16 RCW, if:
     (a) The certificate of authority was issued at least three years prior to application for release of the deposit; and
     (b) The insurer is in good standing with the commissioner.