AN ACT Relating to the Washington health guaranty association; and adding a new chapter to Title 48 RCW.

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

NEW SECTION. Sec. 1. PURPOSE. The purposes of this chapter are to protect covered persons, payees, and assignees of health care service contractors and health maintenance organizations, subject to certain limitations, against the impairment or insolvency of such companies and to avoid the resulting excessive delay in payment of contractual obligations of health care service contractors or health maintenance organizations, to assist in the detection and prevention of health care service contractor and health maintenance organization insolvencies, and to provide for an association to assess the cost of such protection among health care service contractors and health maintenance organizations.

NEW SECTION. Sec. 2. SCOPE. This chapter shall apply to all covered health agreements issued by health care service contractors as defined by chapter 48.44 RCW and health maintenance organizations as defined by chapter 48.46 RCW for the provision of health care services.

NEW SECTION. Sec. 3. DEFINITIONS. Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter:

(1) "Association" means the Washington health guaranty association created by section 4 of this act.

(2) "Contractual obligation" means any financial obligation of covered health care service contractors and health maintenance organizations not otherwise excluded in this chapter.

(3) "Covered person" means any member, subscriber, or enrollee of a health care service contractor or health maintenance organization, or other person, who is entitled to the protection of the association as described in section 1 of this act.

(4) "Covered health agreement" means any health care service contract by a health care service contractor and any health maintenance agreement by a health maintenance organization organized under chapter 48.44 or 48.46 RCW, and any administrative services agreement including other ancillary service agreements related to the provision of health care services.

(5) "Fund" means the fund created under section 4 of this act.

(6) "Impaired organization" means a member organization deemed by the commissioner after the effective date of this act to be potentially unable to fulfill its contractual obligations and not an insolvent organization.

(7) "Insolvent organization" means a member organization which becomes insolvent and is placed under a final order of liquidation or rehabilitation by a court of competent jurisdiction.

(8) "Member organization" means any person registered pursuant to chapter 48.44 or 48.46 RCW to directly or indirectly provide health care services under any covered health agreement.

(9) "Person" means any individual, corporation, partnership, association, or voluntary organization.

(10) "Premiums" means earned premium income received as prepayment for health care services provided by covered health agreements by a member organization and includes credits received against obligations owed a parent or other related organization which provides management or other services to the member organization.

(11) "Resident" means any person who resides in this state at the time the member organization is determined to be impaired or insolvent and to whom contractual obligations are owed. A person may be a resident of only one state which, in the case of a person other than a natural person, shall be its principal place of business.

NEW SECTION. Sec. 4. CREATION OF THE ASSOCIATION. There is created a nonprofit unincorporated legal entity to be known as the Washington health guaranty association. All member organizations shall be and remain members of the association as a condition of their authority to transact business in this state. The association must perform its functions under a plan of operation established and approved under section 7 of this act and shall exercise its powers through a board of directors established under section 5 of this act as now or hereafter amended. For purposes of administration and assessment, the association must maintain the health guaranty fund. The association shall be supervised by the commissioner and is subject to this chapter and the applicable provisions of the Washington insurance code.

NEW SECTION. Sec. 5. BOARD OF DIRECTORS. (1) The board of directors of the association shall consist of not less than five nor more than nine members serving terms as established in the plan of operation. The members of the board shall be selected by member organizations subject to the approval of the commissioner. Vacancies on the board shall be filled for the remaining period of the term in the manner described in the plan of operation.

(2) To select the initial board of directors and initially organize the association, the commissioner must give notice to all member organizations of the time and place of the organizational meeting. In determining voting rights at the organizational meeting, each member organization is entitled to one vote in person or by proxy. If the board of directors is not selected at the organizational meeting, the commissioner may appoint the initial members.

(3) Members of the board may be reimbursed from the assets of the association for expenses incurred by them as members of the board of directors but members of the board may not otherwise be compensated by the association for their services.

NEW SECTION. Sec. 6. POWERS AND DUTIES OF THE ASSOCIATION. In addition to the powers and duties enumerated in other sections of this chapter, the association shall have the powers set forth in this section.

(1) If a domestic organization is an impaired organization, the association may, subject to the approval of the impaired organization and the commissioner:

(a) Guarantee or reinsure, or cause to be guaranteed, assumed, or reinsured, any or all of the impaired member organization's covered health agreements;

(b) Provide such moneys, pledges, notes, guarantees, or other means as are proper to effectuate (a) of this subsection, and assure payment of the contractual obligations of the impaired organization pending action under (a) of this subsection; and (c) Loan money to the impaired organization.

(2) If a domestic or foreign organization is an insolvent organization, the association shall, subject to the approval of the commissioner:

(a) Guarantee or reinsure or cause to be guaranteed, assumed, or reinsured the covered health agreements of covered persons of the insolvent organization; however, in the event that the secretary of the department of social and health services assigns individuals that are recipients of public assistance from an insolvent organization to another member organization, the secretary of the department of social and health services shall, before fixing the rates to be paid by the department of social and health services to the transferee organization on account of such individuals, consult with the commissioner as to the reasonableness of such rates in light of the health care needs of such individuals and the costs of providing health care services to such individuals;

(b) Assure payment of the contractual obligations of the insolvent organization for covered persons;

(c) Make payments to health care providers to assure the continuity of care for covered persons of insolvent organizations;

(d) Provide moneys, pledges, notes, guarantees, or other means as are reasonably necessary to discharge such duties except that this subsection shall not apply when the commissioner has determined that a foreign organization's domiciliary jurisdiction or state of entry provides, by statute, protection substantially similar to that provided by this chapter for residents and such protection will be provided in a timely manner.

(3) There shall be no liability on the part of and no cause of action shall arise against the association or against any transferee from the association in connection with the transfer by reinsurance or otherwise of all or any part of an impaired or insolvent organization's business by reason of any action taken or any failure to take any action by the impaired or insolvent organization at any time.

(4) If the association fails to act within a reasonable period of time as provided in subsection (2) of this section, the commissioner shall have the powers and duties of the association under this chapter with regard to insolvent organizations.

(5) The association may render assistance and advice to the commissioner, upon his or her request, concerning rehabilitation, payment of claims, continuation of coverage, or the performance of other contractual obligations of any impaired or insolvent organization.

(6) The association has standing to appear before any court concerning all matters germane to the powers and duties of the association, including, but not limited to, proposals for reinsuring or guaranteeing the covered health agreements of the impaired or insolvent organization and the determination of the contractual obligations.

(7)(a) Any person receiving benefits under this chapter is deemed to have assigned the rights under the covered health agreement to the association to the extent of the benefits received because of this chapter whether the benefits are payments of contractual obligations or continuation of coverage. The association may require an assignment to it of such rights by any covered person or payee as a condition precedent to the receipt of any rights or benefits conferred by this chapter upon such person. The association is subrogated to these rights against the assets of any insolvent organization.

(b) The subrogation rights of the association under this subsection have the same priority against the assets of the insolvent organization as that possessed by the person entitled to receive benefits under this chapter.

(8)(a) The contractual obligations of the insolvent organization for which the association becomes or may become liable are as great as but no greater than the contractual obligations of the insolvent organization would have been in the absence of an insolvency unless such obligations are reduced as permitted by subsection (3) of this section, but the aggregate liability of the association shall not exceed three hundred thousand dollars with respect to any one covered person.

(b) The association shall not be required to pay, and shall have no liability to, any provider of health care services for services rendered to a covered person.

(i) If such provider, or its affiliates or immediate family members, at any time within the one year prior to the date of the issuance of the first order, by a court of competent jurisdiction, of conservation, rehabilitation, or liquidation pertaining to the member organization:

(A) Was a security holder of such organization, but excluding any security holder with an equity interest of five percent or less;

(B) Exercised control over the organization by means such as serving as an officer or director through a management agreement or as a principal member of a not-for-profit organization;

(C) Had a representative serving by virtue of his or her official position as a representative of such provider of the board of any entity which exercised control over the organization;

(D) Received provider payments made by such organization pursuant to a contract which was not a product of arms-length bargaining; or

(E) Received distributions other than for physician services from a not-for-profit organization on account of such provider's status as a member of such organization.

(ii) To the extent such provider has agreed by contract or agreement not to seek payment from the covered person for services provided such covered person.

(c) In no event shall the association be required to pay any provider participating in the insolvent organization any amount for in-plan services rendered by such provider prior to the insolvency of the organization in excess of:

(i) The amount provided by a capitation contract between a physician provider and the insolvent organization for such services; or

(ii) The amounts provided by contract between a hospital provider and the department of social and health services for similar services to recipients of public aid; or

(iii) In the event neither (c)(i) nor (ii) of this subsection is applicable, then the amounts paid under the medicare prevailing rate for the area where the services were provided, or if no such rate exists with respect to such services, then eighty percent of the usual and customary rates established by the health insurance association of America. The payments required to be made by the association under this section shall constitute full and complete payment for such provider services to the covered person.

(d) The association shall not be required to pay more than an aggregate of three hundred thousand dollars for any organization which is declared to be insolvent prior to December 31, 1988, and such moneys shall be distributed first to covered persons who are not public assistance recipients pursuant to a plan recommended by the association and approved by the commissioner and the court having jurisdiction over the liquidation.

(9) The association may:

(a) Enter into such contracts as are necessary or proper to carry out the provisions and purposes of this chapter;

(b) Sue or be sued, including taking any legal actions necessary or proper for recovery of any unpaid assessments under this chapter. The association shall not be liable for punitive or exemplary damages;

(c) Borrow money to effect the purposes of this chapter. Any notes or other evidence of indebtedness of the association not in default are legal investments for domestic organizations and may be carried as admitted assets;

(d) Employ or retain such persons as are necessary to handle the financial transactions of the association, and to perform such other functions as become necessary or proper under this chapter;

(e) Negotiate and contract with other organizations approved by the commissioner to carry out the purposes and duties of the association;

(f) Take such legal action as may be necessary to avoid payment of improper claims; and

(g) Exercise, for the purposes of this chapter and to the extent approved by the commissioner, the powers of a domestic organization, but in no case may the association issue evidence of coverage other than that issued to perform the contractual obligations of the impaired or insolvent organization.

(10) With respect to covered health agreements for which the association becomes obligated after an entry of an order of liquidation, the association may elect to succeed to the rights of the insolvent organization arising after the date of the order of liquidation under any contract of reinsurance, any contract providing stop loss coverage or similar coverage, or any covered health agreement to which the insolvent organization was a party, at the terms set forth under the agreement to the extent that such agreement provides coverage for health care services provided after the date of the order of liquidation. As a condition to making this election, the association must pay all amounts due for coverage relating to periods after the date of the order of liquidation.

NEW SECTION. Sec. 7. ASSESSMENTS. (1) For the purpose of providing the moneys necessary to carry out the powers and duties of the association, the board of directors shall assess the member organizations at such times and for such amounts as the board finds necessary. Assessments shall be due not less than thirty days after written notice to the member organizations and shall accrue interest from the due date at such adjusted rate as is established by the association.

(2)(a) Assessments shall be made to the extent necessary to carry out the powers and duties of the association under section 6 of this act with regard to an impaired or insolvent domestic organization or insolvent foreign organizations.

(b) Assessments against member organizations shall be in the proportion that premiums for each assessed member organization on covered health agreements in this state, for the calendar year preceding the assessment bears to total premiums for all assessed member organizations on covered health agreements in this state for the calendar year preceding the assessment.

(c) Assessments to meet the requirements of the association with respect to an impaired or insolvent organization shall not be made until necessary to implement the purposes of this chapter. Computations of assessments under this subsection shall be made with a reasonable degree of accuracy, recognizing that exact determinations may not always be possible.

(3)(a) The association may abate or defer, in whole or in part, the assessment of a member organization if, in the opinion of the board, payment of the assessment would endanger the ability of the member organization to fulfill its contractual obligations.

(b) The total of all assessments upon a member organization may not, in any one calendar year, exceed two percent of such organization's premiums in this state during the calendar year preceding the assessment on the covered health agreements.

(4) In the event an assessment against a member organization is abated or deferred, in whole or in part, because of the limitations set forth in subsection (3) of this section, the amount by which such assessment is abated or deferred, may be assessed against the other member organizations in a manner consistent with the basis for assessments set forth in this section. If the maximum assessment, together with the other assets of the association, does not provide in any one year an amount sufficient to carry out the responsibilities of the association, the necessary additional moneys may be assessed as soon thereafter as permitted by this chapter.

(5) The board may, by an equitable method as established in the plan of operation, refund to member organizations, in proportion to the contribution of each such organization, the amount by which the assets of the fund exceed the amount the board finds is necessary to carry out during the coming year the obligations of the association, including assets accruing from net realized gains and income from investments. A reasonable amount may be retained in the fund to provide moneys for the continuing expenses of the association and for future losses if refunds are impractical.

(6) An assessment is deemed to occur on the date upon which the board votes such assessment. The board may defer calling the payment of the assessment or may call for payment in one or more installments.

(7) It is proper for any member organization in determining its rates, to consider the amount reasonably necessary to meet its assessment obligations under this chapter.

(8) The association must issue to each organization paying a class B assessment under this chapter, a certificate of contribution in a form prescribed by the commissioner, for the amount of the assessment so paid. All outstanding certificates are of equal dignity and priority without reference to amounts or dates of issue. A certificate of contribution may be shown by the organization in its financial statement as an admitted asset in such form and for such amount, if any, and period of time as the commissioner may approve: PROVIDED, That the organization shall, in any event and at its option, have the right to show a certificate of contribution as an asset at percentages of the original face amount of:

(a) One hundred percent for the first calendar year after the year of issuance;

(b) Eighty percent for the second calendar year after the year of issuance;

(d) Forty percent for the fourth calendar year after the year of issuance; and

(e) Twenty percent for the fifth calendar year after the year of issuance.

NEW SECTION. Sec. 8. PLAN OF OPERATION. (1)(a) The association shall submit to the commissioner a plan of operation and any amendments thereto that are necessary or suitable to assure the fair, reasonable, and equitable administration of the association. The plan of operation and any amendments thereto shall become effective upon approval in writing by the commissioner.

(b) If the association fails to submit a suitable plan of operation within ninety days following the selection of the board of directors or if at any time thereafter the association fails to submit suitable amendments to the plan, the commissioner shall, after notice and a hearing, adopt and promulgate such reasonable rules as are necessary or advisable to effectuate the provisions of this chapter. Such rules shall continue in force until modified by the commissioner or superseded by a plan submitted by the association and approved by the commissioner.

(2) All member organizations shall comply with the plan of operation.

(3) The plan of operation shall:

(a) Establish the procedures whereby all the powers and duties of the association under sections 6 and 7 of this act will be performed;

(b) Establish procedures for handling assets of the association;

(d) Establish regular places and times for meetings of the board of directors;

(e) Establish procedures for records to be kept of all financial transactions of the association, its agents, and the board of directors;

(f) Provide that any member organization aggrieved by any final action or decision of the association may appeal to the commissioner within thirty days after the action or decision;

(g) Establish the procedures whereby selections for the board of directors will be submitted to the commissioner;

(h) Contain additional provisions necessary or proper for the execution of the powers and duties of the association.

The plan of operation may provide that any or all powers and duties of the association, except those under sections 6 (10) and 7 of this act are delegated to a corporation or other organization which performs or will perform functions similar to those of this association, or its equivalent, in two or more states. Such a corporation or other organization shall be reimbursed for any payments made on behalf of the association and shall be paid for its performance of any function of the association. A delegation under this subsection shall take effect only with the approval of both the board of directors and the commissioner, and may be made only to a corporation, association, or organization which extends protection not substantially less favorable and effective than that provided by this chapter.

(4) The plan of operation shall establish a procedure for protest by any member organization of assessments made by the association pursuant to section 7 of this act. Such procedures shall require that:

(a) Any member organization that wishes to protest all or any part of an assessment for any year shall first pay the full amount of the assessment as set forth in the notice provided by the association. Such payments shall be accompanied by a statement in writing that the payment is made under protest, setting forth a brief statement of the grounds for the protest. The association shall hold such payments in a separate interest-bearing account.

(b) Within thirty days following the payment of an assessment under protest by any protesting member organization, the association must notify the member organization in writing of its determination with respect to the protest unless the association notifies the member organization that additional time is required to resolve the issues raised by the protest.

(c) In the event the association determines that the protesting member organization is entitled to a refund, such refund shall be made within thirty days following the date upon which the association makes its determination.

(d) The decision of the association with respect to a protest may be appealed to the commissioner pursuant to section 9(3) of this act.

(e) In the alternative to rendering a decision with respect to any protest based on a question regarding the assessment base, the association may refer such protests to the commissioner for final decision, with or without a recommendation from the association.

(f) Interest on any refund due a protesting member organization shall be paid at the rate actually earned by the association of the separate account.

NEW SECTION. Sec. 9. DUTIES AND POWERS OF THE COMMISSIONER. (1) The commissioner shall:

(a) Upon request of the board of directors, provide the association with a statement of the premiums for each member organization by calendar year;

(b) Notify the board of directors of the existence of an impaired or insolvent organization not later than ten days after a determination of impairment or insolvency is made or when the commissioner receives notice of impairment or insolvency;

(c) Notify the association promptly whenever he or she or any of his or her examiners has, or comes into, possession of any data or information relative to any member organization under his or her jurisdiction for any purpose indicating that such member organization is in or is approaching a condition of impaired assets, imminent insolvency, or insolvency; and

(d) Furnish to the association copies of all preliminary and final audits, investigations, memorandums, opinions, and reports relative to any member organization promptly upon the preparation of any thereof.

(2) The commissioner may:

(a) Suspend or revoke, after notice and hearing, the member organization's certificate of authority to transact business in the state if it fails to pay an assessment when due or fails to comply with the plan of operation. As an alternative the commissioner may levy a forfeiture on any member organization which fails to pay an assessment when due. Such forfeiture may not exceed five percent of the unpaid assessment per month, but no forfeiture may be less than one hundred dollars per month;

(b) Require the association to notify the covered persons of the insolvent organization and any other interested parties of the determination of insolvency and of their rights under this chapter. Such notification shall be by mail at their last known address, where available, but if sufficient information for notification by mail is not available, notice by publication or in a newspaper of general circulation shall be sufficient; and

(3) Any final action or order of the commissioner under this chapter shall be subject to judicial review in a court of competent jurisdiction.

NEW SECTION. Sec. 10. PREVENTION OF INSOLVENCIES. To aid in the detection and prevention of member organization insolvencies or impairments:

(1) It shall be the duty of the commissioner:

(a) To notify the appropriate regulatory authority of all other states, territories of the United States, and the District of Columbia when he or she takes any of the following actions against a member organization:

(i) Revocation of license;

(ii) Suspension of license; and

(iii) Makes any formal order that such member organization restrict its covered health agreements, obtain additional contributions to surplus, withdraw from the state, reinsure all or any part of its business, or increase capital, surplus, or any other account for the security of covered persons or creditors.

Such notice shall be mailed to all regulatory authorities within thirty days following the action taken or the date on which the action occurs.

(b) To report to the board of directors of the association when he or she has taken any of the actions set forth in (a) of this subsection or has received a report from any other regulatory authority indicating that any such action has been taken in another state. Such report to the board of directors shall contain all significant details of the action taken or the report received from another regulatory authority.

(2) The commissioner may seek the advice and recommendations of the board of directors of the association concerning any matter affecting his or her duties and responsibilities regarding the financial condition of member organizations and organizations seeking admission to transact business in this state.

(3) The board of directors of the association may, upon majority vote, make reports and recommendations to the commissioner upon any matter germane to the liquidation, rehabilitation, or conservation of any member organization. Such reports and recommendations shall not be considered public documents.

(4) The board of directors of the association may, upon majority vote, make recommendations to the commissioner for the detection and prevention of member organization insolvencies.

(5) The board of directors shall, at the conclusion of any member organization insolvency in which the association was obligated to make payments, prepare a report to the commissioner containing such information as it may have in its possession bearing on the history and causes of such insolvency. The board shall cooperate with the boards of directors of guaranty associations in other states in preparing a report on the history and causes for insolvency of a particular organization, and may adopt by reference any report prepared by such other associations.

NEW SECTION. Sec. 11. MISCELLANEOUS PROVISIONS. (1) Records shall be kept of all negotiations and meetings in which the association or its representatives are involved to discuss the activities of the association in carrying out its powers and duties under section 6 of this act. Records of such negotiations or meetings may be made public only upon the termination of a liquidation, rehabilitation, or conservation proceeding involving the impaired or insolvent organization, upon the termination of the impairment or insolvency of the organization, or upon the order of a court of competent jurisdiction. Nothing in this subsection limits the duty of the association to submit a report of its activities under section 12 of this act.

(2) For the purpose of carrying out its obligations under this chapter, the association is deemed to be a creditor of the impaired or insolvent organization to the extent of assets attributable to covered health agreements reduced by any amounts to which the association is entitled as subrogee under section 6 (8) of this act. All assets of the impaired or insolvent organization must be used to pay all contractual obligations of the impaired or insolvent organization as required by this chapter.

(3)(a) Prior to the termination of any liquidation, rehabilitation, or conservation proceeding, the court may take into consideration the contributions of the respective parties, including the association, the shareholders of the impaired or insolvent organization, and any other party with a bona fide interest, in making an equitable distribution of the ownership rights of such impaired or insolvent organization. In such a determination, consideration must be given to the welfare of the covered persons of the continuing or successor organization.

(b) No distribution to stockholders, if any, of an impaired or insolvent organization may be made until the total amount of valid claims of the association for moneys expended in carrying out its powers and duties under section 6 of this act with respect to such organization have been fully recovered by the association.

(4)(a) If an order for liquidation or rehabilitation of a domestic organization has been entered, the receiver appointed under such order has a right to recover, on behalf of such organization, on its capital stock, made at any time during the five-year period immediately preceding the petition for liquidation or rehabilitation and subject to the limitations of (b) through (d) of this subsection.

(b) No such distribution is recoverable if the member organization shows that the distribution was lawful and reasonable when paid, and that the member organization did not know and could not reasonably have known that the distribution might adversely affect the ability of such organization to fulfill its contractual obligations.

(c) Any person who was an affiliate that controlled the member organization at the time the distributions were paid is liable up to the amount of distributions he or she received. Any person who was an affiliate that controlled the member organization at the time the distributions were declared, is liable up to the amount of distributions he or she would have received if they had been paid immediately. Joint and several liability shall apply if two such persons are liable with respect to the same distributions.

(d) The maximum amount recoverable under this subsection is the amount needed in excess of all available assets of the insolvent organization to pay the contractual obligations of the insolvent organization.

(e) If any person liable under (c) of this subsection is insolvent, all its affiliates that controlled it at the time the distribution was paid are jointly and severally liable for any resulting deficiency in the amount recovered from the insolvent affiliate.

NEW SECTION. Sec. 12. EXAMINATION OF THE ASSOCIATION‑-ANNUAL REPORT. The association shall be subject to examination and regulation by the commissioner. The board of directors of the association must submit to the commissioner, no later than May 1 of each year, a financial report for the preceding calendar year on a form approved by the commissioner and a report of its activities during the preceding calendar year.

NEW SECTION. Sec. 13. TAX EXEMPTION. The association is exempt from payment of all fees and all taxes levied by this state or any of its subdivisions, except taxes levied on real property.

NEW SECTION. Sec. 14. IMMUNITY. There shall be no liability on the part of, and no cause of action of any nature shall arise against any member organization, the association or its agents or employees, the board of directors of the association, or the commissioner or his or her representatives for any action taken by them in the performance of their powers and duties under this chapter.

NEW SECTION. Sec. 15. STAY OF PROCEEDINGS‑-SETTING ASIDE JUDGMENT. All proceedings in which the insolvent organization is a party or is obligated to defend a party in any court in this state shall be stayed for one hundred eighty days and such additional time thereafter as may be fixed by the court from the date the insolvency is determined to permit proper defense by the association of all pending causes of action. Any judgment under any decision, verdict, or finding based on default of the insolvent organization or on its failure to defend a member organization which is unsatisfied at the date the insolvency is determined shall be set aside on the motion of the association and the association shall be permitted to defend such suit on its merits.

NEW SECTION. Sec. 16. PROHIBITED ADVERTISEMENT AND SOLICITATION. No person, including a member organization, agent, or affiliate of a member organization shall make, publish, disseminate, circulate, or place before the public, or cause directly or indirectly to be made, published, disseminated, circulated, or placed before the public, in any newspaper, magazine, or other publication, or in the form of a notice, circular, pamphlet, letter, or poster, or over any radio station or television station, or in any other way, any advertisement, announcement, solicitation, or statement which uses the existence of the association for the purpose of solicitation of covered persons by health care service contractors or health maintenance organizations of this state.

NEW SECTION. Sec. 17. SHORT TITLE. This chapter may be known and cited as the Washington health guaranty association act.

NEW SECTION. Sec. 18. CONSTRUCTION. This chapter shall be liberally construed to effectuate the purposes stated in section 1 of this act. Section 1 of this act shall be used to aid and guide the interpretation of this act.

NEW SECTION. Sec. 19. SECTION HEADINGS NOT PART OF LAW. Section headings as used in this act do not constitute any part of the law.

NEW SECTION. Sec. 20. SEVERABILITY. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.

NEW SECTION. Sec. 21. Sections 1 through 20 of this act shall constitute a new chapter in Title 48 RCW.