H-3086              _______________________________________________

 

                                                   HOUSE BILL NO. 2650

                        _______________________________________________

 

State of Washington                               51st Legislature                              1990 Regular Session

 

By Representatives Anderson and Crane

 

 

Read first time 1/17/90 and referred to Committee on Financial Institutions & Insurance.

 

 


AN ACT Relating to insurance; and adding new sections to chapter 48.18 RCW.

 

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

 

          NEW SECTION.  Sec. 1.  A new section is added to chapter 48.18 RCW to read as follows:

          An insurer shall not issue a draft in payment of a claim, judgment, or contractual benefit to an insured or claimant.  Payment in settlement of claims shall be made by check or negotiable bank check payable on demand and bearing even date with the date of writing.

 

          NEW SECTION.  Sec. 2.  A new section is added to chapter 48.18 RCW to read as follows:

          (1) Unless otherwise provided by law, an insurer shall promptly pay every insurance claim.  A claim is overdue if not paid within thirty days after the insurer is furnished written notice of the fact of a covered loss and of the amount of the loss.  If such written notice is not furnished to the insurer for the entire claim, any partial amount supported by written notice is overdue if not paid within thirty days after such written notice is furnished to the insurer.  Any part or all of the remainder of the claim that is subsequently supported by written notice is overdue if not paid within thirty days after written notice is furnished to the insurer.  For the purpose of calculating the extent that any claim is overdue, payment shall be treated as being made on the date that a bank check is placed in the United States mail in a properly addressed, post-paid envelope, or, if not so posted, on the date of delivery.  All overdue payments shall bear simple interest at the highest legal rate for a judgment specified in RCW 4.56.110 and 19.52.020.

          (2) A payment shall not be considered overdue when the insurer has reasonable proof to establish that the insurer is not responsible for the payment, even if written notice has been furnished to the insurer.

 

          NEW SECTION.  Sec. 3.  A new section is added to chapter 48.18 RCW to read as follows:

          (1) A settlement of a claim by an insurance company doing business in this state must be paid within ten days of the agreement to settle.  A settlement which is not paid within ten days shall bear interest from the date of the agreement to settle at the highest legal rate for a judgment specified in RCW 4.56.110 and 19.52.020.  If an insurance company refuses to pay a settlement in accordance with a settlement agreement, or fails to timely pay a settlement, the beneficiary or beneficiaries of the settlement may petition the superior court to register the settlement as a judgment against the insurance company on a summary proceeding.

          (2) Notwithstanding subsection (1) of this section, the payment of a claim is not overdue until thirty days after the insurer receives the proof of loss required under the policy or equivalent evidence of such loss.  The payment of a claim is not overdue during any period in which the insurer is unable to pay the claim because no recipient is legally able to give a valid release for payment, or in which the insurer is unable to determine who is entitled to receive the payment, if the insurer has promptly notified the claimant of the inability and has offered in good faith to promptly pay the claim upon determination of who is entitled to receive the payment.