State of Washington
67th Legislature
2022 Regular Session
BySenators Wellman, Kuderer, Frockt, Nobles, and C. Wilson
Prefiled 12/10/21.Read first time 01/10/22.Referred to Committee on Business, Financial Services & Trade.
AN ACT Relating to adding sublimits of coverage to an insurance policy's declaration page; and amending RCW 48.18.140.
Sec. 1. RCW 48.18.140 and 2002 c 344 s 1 are each amended to read as follows:
(1) The written instrument, in which a contract of insurance is set forth, is the policy.
(2) A policy shall specify:
(a) The names of the parties to the contract. The insurer's name shall be clearly shown in the policy.
(b) The subject of the insurance.
(c) The risk insured against.
(d) The time at which the insurance thereunder takes effect and the period during which the insurance is to continue.
(e) A statement of the premium, and if other than life, disability, or title insurance, the premium rate where applicable.
(f) The conditions pertaining to the insurance.
(3) If under the contract the exact amount of premiums is determinable only at termination of the contract, a statement of the basis and rates upon which the final premium is to be determined and paid shall be specified in the policy.
(4)(a) Periodic payment plans for private passenger automobile insurance shall allow a specific day of the month for a due date for payment of premiums. A late charge may not be required if payment is received within five days of the date payment is due.
(b) The commissioner shall adopt rules to implement this subsection and shall take no disciplinary action against an insurer until ninety days after the effective date of the rule.
(5)(a) The declarations page on residential policies must include a listing of all sublimits of coverage within the insurance policy, including any endorsements, and show either the amount of coverage, the percentage of coverage, or both, that is being limited below the overall policy coverage limits.
(b) For the purposes of this subsection (5) only:
(i) "Residential policies" include all homeowners, renters, condominium, mobile home, and manufactured home noncommercial coverage.
(ii) "Sublimit" means a limitation in an insurance policy on the amount of coverage available to cover a specific type of loss that is lower than the overall coverage amount.
(c) The entire declarations page must be delivered to the insured at every policy renewal.
(6) This section shall not apply to surety insurance contracts.
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