H-1985.1  _______________________________________________

 

                          HOUSE BILL 2036

          _______________________________________________

 

State of Washington      54th Legislature     1995 Regular Session

 

By Representative L. Thomas

 

Read first time 02/22/95.  Referred to Committee on Financial Institutions & Insurance.

 

Concerning the sale of consumer credit unemployment insurance.



    AN ACT Relating to credit involuntary unemployment insurance; and amending RCW 48.17.060 and 48.17.190.

 

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

 

    Sec. 1.  RCW 48.17.060 and 1975 1st ex.s. c 266 s 7 are each amended to read as follows:

    (1) No person shall in this state act as or hold himself out to be an agent, broker, solicitor, or adjuster unless then licensed therefor by this state.

    (2) No agent, solicitor, or broker shall solicit or take applications for, procure, or place for others any kind of insurance for which he is not then licensed.

    (3) This section shall not apply with respect to any person securing and forwarding information required for the purposes of group credit life, credit involuntary unemployment insurance, and credit disability insurance in connection with an extension of credit and such other credit life, credit involuntary unemployment insurance, or disability insurance lines as the commissioner shall determine, and where no commission or other compensation is payable on account of the securing and forwarding of such information((:  PROVIDED, That)).  However, the reimbursement of a creditor's actual expenses for securing and forwarding information required for the purposes of such group insurance shall not be considered a commission or other compensation if such reimbursement does not exceed three dollars per certificate issued, or in the case of a monthly premium plan extending beyond twelve months, not to exceed three dollars per loan transaction revision per year.

    (4) Any person violating this section shall be liable to a fine of not to exceed five hundred dollars and imprisonment for not to exceed six months for each instance of such violation.

 

    Sec. 2.  RCW 48.17.190 and 1979 c 138 s 1 are each amended to read as follows:

    The commissioner may issue limited licenses to the following:

    (1) Persons selling transportation tickets of a common carrier of persons or property who shall act as such agents only as to transportation ticket policies of disability insurance or baggage insurance on personal effects.

    (2) Compensated master policyholders of credit life, credit involuntary unemployment insurance, and credit accident and health insurance, retail dealers compensated by any such master policyholders, or the authorized representative(s) of either.

    (3) Persons selling special or unique policies of insurance covering goods sold or leased from a primary business or activity other than the transaction of insurance or covering collateral securing loans from a primary business or activity other than the transaction of insurance if, in the commissioner's discretion, such limited license would safeguard and promote the public interest.

 


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