H-1552              _______________________________________________

                                                    HOUSE BILL NO. 854

                        _______________________________________________

State of Washington                              50th Legislature                              1987 Regular Session

By Representative Lux

Read first time 2/11/87 and referred to Committee on Financial Institutions & Insurance.

AN ACT Relating to insurance conversion; and amending RCW 48.24.180.

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

        Sec. 1.  Section .24.18, chapter 79, Laws of 1947 as amended by section 24, chapter 303, Laws of 1955 and RCW 48.24.180 are each amended to read as follows:

          There shall be a provision that if the insurance, or any portion of it, on an individual covered under the policy, other than a child insured pursuant to RCW 48.24.030, ceases because of termination of employment or of membership in the class or classes eligible for coverage under the policy, such individual shall be entitled to have issued to him by the insurer, without evidence of insurability, an individual policy of life insurance without disability or other supplementary benefits((, provided)):  PROVIDED, That application for the individual policy shall be made, and the first premium paid to the insurer, within thirty-one days after such termination((, and provided further that,)):  PROVIDED FURTHER, That:

          (1) The individual policy shall, at the option of such individual, be on any one of the forms((, except term insurance,)) then customarily issued by the insurer at the age and for the amount applied for;

          (2) The individual policy shall be in an amount not in any event in excess of the amount of life insurance which ceases because of such termination nor less than one thousand dollars unless a smaller amount of coverage was provided for such individual under the group policy:  PROVIDED, That any amount of insurance which matures on the date of such termination or has matured prior thereto under the group policy as an endowment payable to the individual insured, whether in one sum or in installments or in the form of an annuity, shall not, for the purposes of this provision, be included in the amount which is considered to cease because of such termination; and

          (3) The premium on the individual policy shall be at the insurer's then customary rate applicable to the form and amount of the individual policy, to the class of risk to which such individual then belongs, and to his age attained on the effective date of the individual policy.