S-4710               _______________________________________________

                                                   SENATE BILL NO. 6887

                        _______________________________________________

State of Washington                               51st Legislature                              1990 Regular Session

By Senator Owen

Read first time 2/5/90 and referred to Committee on  Financial Institutions & Insurance.

AN ACT Relating to definitions in insurance contracts; and adding a new section 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:

          Unless otherwise defined in a contract of insurance on property when used as a basis for loss adjustment, the term "actual cash value" means the cost of replacement less such depreciation as is properly applicable to the subject insured.

          For purposes of this section, the term "cost of replacement" means the amount necessary to duplicate the subject insured as it existed at the time of loss with a structure of like kind and quality using new materials.