H-1817              _______________________________________________

                                                   HOUSE BILL NO. 1002

                        _______________________________________________

State of Washington                              50th Legislature                              1987 Regular Session

By Representatives Lux, Chandler, Zellinsky, Crane, Winsley, Day, Dellwo, Nutley, Niemi, Meyers, Silver, Betrozoff, Fisch, R. King, May, Doty, Moyer and Schoon

Read first time 2/18/87 and referred to Committee on Financial Institutions & Insurance.

AN ACT Relating to insurance; and amending RCW 48.18.290.

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

        Sec. 1.  Section .18.29, chapter 79, Laws of 1947 as last amended by section 1, chapter 287, Laws of 1986 and RCW 48.18.290 are each amended to read as follows:

          (1) Cancellation by the insurer of any policy which by its terms is cancellable at the option of the insurer, or of any binder based on such policy, may be effected as to any interest only upon compliance with either or both of the following:

          (a) Written notice of such cancellation, accompanied by the actual reason therefor, must be actually delivered or mailed to the insured and to his or her representative in charge of the subject of the insurance not less than forty-five days prior to the effective date of the cancellation except for cancellation of insurance policies for nonpayment of premiums, which notice shall be not less than ten days prior to such date and except for cancellation of fire insurance policies under chapter 48.53 RCW, which notice shall not be less than five days prior to such date;

          (b) Like notice of not less than forty-five days must also be so delivered or mailed to each mortgagee, pledgee, or other person shown by the policy to have an interest in any loss which may occur thereunder.

          (2) The mailing of any such notice shall be effected by depositing it in a sealed envelope, directed to the addressee at his or her last address as known to the insurer or as shown by the insurer's records, with proper prepaid postage affixed, in a letter depository of the United States post office.  The insurer shall retain in its records any such item so mailed, together with its envelope, which was returned by the post office upon failure to find, or deliver the mailing to, the addressee.

          (3) The affidavit of the individual making or supervising such a mailing, shall constitute prima facie evidence of such facts of the mailing as are therein affirmed.

          (4) Whenever a notice of cancellation or nonrenewal is required to be furnished to an insured under subsection (1) of this section, a copy of such notice shall be provided at the same time to the agent or broker of record for the insured.

(5) The portion of any premium paid to the insurer on account of the policy, unearned because of the cancellation and in amount as computed on the pro rata basis, must be actually paid to the insured or other person entitled thereto as shown by the policy or by any endorsement thereon, or be mailed to the insured or such person as soon as possible, and no later than forty-five days after the date of notice of cancellation to the insured for homeowners', dwelling fire, and private passenger auto.  Any such payment may be made by cash, or by check, bank draft, or money order.

          (((5))) (6) This section shall not apply to contracts of life or disability insurance without provision for cancellation prior to the date to which premiums have been paid, or to contracts of insurance procured under the provisions of chapter 48.15 RCW.