AN ACT Relating to cancellation of health care insurance; adding a new section to chapter 48.20 RCW; adding a new section to chapter 48.21 RCW; adding a new section to chapter 48.44 RCW; and adding a new section to chapter 48.46 RCW.

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

NEW SECTION. Sec. 1. A new section is added to chapter 48.20 RCW to read as follows:

(1) Notwithstanding any other provision of this chapter, no disability policy may be terminated for nonpayment of the premium unless the insurer sends notice of the policy termination to the insured at least twenty days before actual policy termination.

(2) The insurer shall send the notice by certified mail, return receipt requested, with proper prepaid postage affixed, to the addressee at his or her last address as known to the insurer or as shown by the insurer's records. The insurer shall retain in its records any such item so mailed, together with its return receipt or envelope.

(3) Only one termination notice must be provided under this section during any policy period. For purposes of this section, "policy period" means one twelve-month period.

(4) If the insurer does not receive payment within any notice period provided under this section, the insurer may terminate the policy on the date the payment is due rather than at the end of the notice period.

NEW SECTION. Sec. 2. A new section is added to chapter 48.21 RCW to read as follows:

(1) Notwithstanding any other provision of this chapter, no group disability policy may be terminated for nonpayment of the premium unless the insurer sends notice of the policy termination to the insured at least twenty days before actual policy termination.

(3) Only one termination notice must be provided under this section during any policy period. For purposes of this section, "policy period" means one twelve-month period.

NEW SECTION. Sec. 3. A new section is added to chapter 48.44 RCW to read as follows:

(1) Every health care service contract must provide a grace period of not less than thirty-one days after the due date for the payment of the insured's dues, fees, or premium after the date the first payment is due.

(2) No contract issued by a health care service contractor may be canceled for nonpayment of the premium unless the contractor sends notice of the contract termination to the insured at least twenty days before actual contract termination.

(3) The health care service contractor shall send the notice by certified mail, return receipt requested, with proper prepaid postage affixed, to the addressee at his or her last address as known to the insurer or as shown by the insurer's records. The contractor shall retain in its records any such item so mailed, together with its return receipt or envelope.

(4) Only one termination notice must be provided under this section during any policy period. For purposes of this section, "policy period" means one twelve-month period.

(5) If the health care contractor does not receive payment within any notice period provided under this section, the contractor may terminate the contract on the date the payment is due rather than at the end of the notice period.

NEW SECTION. Sec. 4. A new section is added to chapter 48.46 RCW to read as follows:

(1) Every health maintenance agreement must provide a grace period of not less than thirty-one days after the due date for the payment of the insured's dues, fees, or premium falling due after the first payment.

(2) No agreement issued by a health maintenance organization may be canceled for nonpayment of the premium unless the organization sends notice of the termination to the insured at least twenty days before actual termination of the agreement.

(3) The health maintenance organization shall send the notice by certified mail, return receipt requested, with proper prepaid postage affixed, to the addressee at his or her last address as known to the insurer or as shown by the insurer's records. The health maintenance organization shall retain in its records any such item so mailed, together with its return receipt or envelope.

(4) Only one termination notice must be provided under this section during any policy period. For purposes of this section, "policy period" means one twelve-month period.

(5) If the health maintenance organization does not receive payment within any notice period provided under this section, the organization may terminate the agreement on the date the payment is due rather than at the end of the notice period.