H-4176              _______________________________________________

                                                   HOUSE BILL NO. 2953

                        _______________________________________________

State of Washington                               51st Legislature                              1990 Regular Session

By Representatives Zellinsky, Chandler, Day, P. King and Dellwo

Read first time 1/26/90 and referred to Committee on Financial Institutions & Insurance.

AN ACT Relating to title insurers and their agents; amending RCW 48.30.140 and 48.30.150; and declaring an emergency.

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

        Sec. 1.  Section .30.14, chapter 79, Laws of 1947 as last amended by section 14, chapter 264, Laws of 1985 and RCW 48.30.140 are each amended to read as follows:

          (1) Except to the extent provided for in an applicable filing with the commissioner then in effect, no insurer, general agent, agent, broker, or solicitor shall, as an inducement to insurance, or after insurance has been effected, directly or indirectly, offer, promise, allow, give, set off, or pay to the insured or to any employee of the insured, any rebate, discount, abatement, or reduction of premium or any part thereof named in any insurance contract, or any commission thereon, or earnings, profits, dividends, or other benefit, or any other valuable consideration or inducement whatsoever which is not expressly provided for in the policy.

          (2) Subsection (1) of this section shall not apply as to commissions paid to a licensed agent, general agent, broker, or solicitor for insurance placed on his or her own property or risks.

          (3) This section shall not apply to the allowance by any marine insurer, or marine insurance agent, general agent, broker, or solicitor, to any insured, in connection with marine insurance, of such discount as is sanctioned by custom among marine insurers as being additional to the agent's or broker's commission.

          (4) This section shall not apply to advertising or promotional programs conducted by insurers, agents, or brokers whereby prizes, goods, wares, or merchandise, not exceeding five dollars in value per person in the aggregate in any twelve month period, are given to all insureds or prospective insureds under similar qualifying circumstances.

(5) This section shall not apply to title insurers and their agents when providing reproducible information from the public record to real estate agents and brokers, including but not limited to copies of the public record pertaining to:  Conveyances of record, tax assessment records, legal descriptions, plat maps, sketches for legal descriptions in metes and bounds, covenants, conditions and restrictions affecting real property or interests in real property.

        Sec. 2.  Section .30.15, chapter 79, Laws of 1947 as last amended by section 4, chapter 119, Laws of 1975-'76 2nd ex. sess. and RCW 48.30.150 are each amended to read as follows:

          No insurer, general agent, agent, broker, solicitor, or other person shall, as an inducement to insurance, or in connection with any insurance transaction, provide in any policy for, or offer, or sell, buy, or offer or promise to buy or give, or promise, or allow to the insured or prospective insured or to any other person on his behalf in any manner whatsoever:

          (1) Any shares of stock or other securities issued or at any time to be issued on any interest therein or rights thereto; or

          (2) Any special advisory board contract, or other contract, agreement, or understanding of any kind, offering, providing for, or promising any profits or special returns or special dividends; or

          (3) Any prizes, goods, wares, or merchandise of an aggregate value in excess of  five dollars.

          This section shall not be deemed to prohibit the sale or purchase of securities as a condition to or in connection with surety insurance insuring the performance of an obligation as part of a plan of financing found by the commissioner to be designed and operated in good faith primarily for the purpose of such financing, nor shall it be deemed to prohibit the sale of redeemable securities of a registered investment company in the same transaction in which life insurance is sold.

This section shall not apply to title insurers and their agents when providing reproducible information from the public record to real estate agents and brokers, including but not limited to copies of the public record pertaining to:  Conveyances of record, tax assessment records, legal descriptions, plat maps, sketches for legal descriptions in metes and bounds, covenants, conditions and restrictions affecting real property or interests in real property.

NEW SECTION. Sec. 3.     This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect immediately.