S-1025               _______________________________________________

                                                   SENATE BILL NO. 3823

                        _______________________________________________

State of Washington                              49th Legislature                              1985 Regular Session

By Senator Sellar

Read first time 2/7/85 and referred to Committee on Financial Institutions.

AN ACT Relating to insurance; and amending RCW 48.18A.050.

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

        Sec. 1.  Section 5, chapter 104, Laws of 1969 as last amended by section 150, chapter 3, Laws of 1983 and RCW 48.18A.050 are each amended to read as follows:

          The provisions of RCW 48.23.020, 48.23.030, 48.23.080 through 48.23.120, 48.23.140, 48.23.150, 48.23.200 through 48.23.240, 48.23.310, ((48.23.350,)) and 48.23.360, and the provisions of chapters 48.24 and 48.76 RCW shall be inapplicable to variable contracts; nor shall any provision in the code requiring contracts to be participating be deemed applicable to variable contracts.  Except as otherwise provided in this chapter, all pertinent provisions of the insurance code shall apply to separate accounts and contracts relating thereto.  Any individual variable life insurance or individual variable annuity contract delivered or issued for delivery in this state shall contain grace, reinstatement, and nonforfeiture provisions appropriate to such contracts((, and any such variable life insurance contract shall provide that the investment experience of the separate account shall in no event operate to reduce the death benefit below an amount equal to the face amount of the contract at the time the contract was issued)).  Any individual variable life insurance contract may contain a provision for deduction from the death proceeds of amounts of due and unpaid premiums or of indebtedness which are appropriate to such contracts.  The reserve liability for variable annuities shall be established in accordance with actuarial procedures that recognize the variable nature of the benefits provided and any mortality guarantees.