AN ACT Relating to
licensing specialty producers of certain lines of insurance; and adding a new
chapter to Title 48 RCW.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF
WASHINGTON:
NEW SECTION. Sec.
1. The definitions in this
section apply throughout this chapter unless the context clearly requires
otherwise.
(1)
"Communications equipment" means handsets, pagers, personal digital
assistants, portable computers, automatic answering devices, batteries, and
their accessories or other devices used to originate or receive communications
signals or service approved for coverage by rule of the commissioner, and also
includes services related to the use of the devices.
(2)
"Communications equipment insurance program" means an insurance
program as described in section 3 of this act.
(3)
"Communications service" means the service necessary to send,
receive, or originate communications signals.
(4)
"Customer" means a person or entity purchasing or leasing communications
equipment or communications services from a vendor.
(5) "Specialty
producer license" means a license issued under section 2 of this act that
authorizes a vendor to offer or sell insurance as provided in section 3 of this
act.
(6) "Supervising
agent" means an agent licensed under RCW 48.17.060 who provides training
as described in section 4 of this act and is affiliated to a licensed vendor.
(7) "Vendor"
means a person or entity resident or with offices in this state in the business
of leasing, selling, or providing communications equipment or communications
service to customers.
(8) "Appointing
insurer" means the insurer appointing the vendor as its agent under a
specialty producer license.
NEW SECTION. Sec.
2. (1) A vendor that intends
to offer insurance under section 3 of this act must file a specialty producer
license application with the commissioner. Before the commissioner issues such
a license, the vendor must be appointed as the agent of one or more authorized
appointing insurers under a vendor's specialty producer license.
(2) Upon receipt of an
application, if the commissioner is satisfied that the application is complete,
the commissioner may issue a specialty producer license to the vendor.
NEW SECTION. Sec.
3. A specialty producer
license authorizes a vendor and its employees and authorized representatives to
offer and sell to, enroll in, and bill and collect premiums from customers for
insurance covering communications equipment on a master, corporate, group, or
individual policy basis.
NEW SECTION. Sec.
4. (1) A vendor issued a
specialty producer license may not issue insurance under section 3 of this act
unless:
(a) At every location
where customers are enrolled in communications equipment insurance programs,
written material regarding the program is made available to prospective
customers; and
(b) The communications
equipment insurance program is operated with the participation of a supervising
agent who, with authorization and approval from the appointing insurer,
supervises a training program for employees of the licensed vendor.
(2) Employees and
authorized representatives of a vendor issued a specialty producer license may
only act on behalf of the vendor in the offer, sale, solicitation, or
enrollment of customers in a communications equipment insurance program. The
conduct of these employees and authorized representatives within the scope of
their employment or agency is the same as conduct of the vendor for purposes of
this title.
NEW SECTION. Sec.
5. (1) A vendor issued a
specialty producer license under this chapter is subject to RCW 48.17.540
through 48.17.560.
(2) The commissioner
may adopt rules necessary for the implementation of this chapter, including,
but not limited to, rules governing:
(a) The specialty
producer license application process, including any forms required to be used;
(b) The standards for
approval and the required content of written materials required under section
4(1)(a) of this act;
(c) The approval and
required content of training materials required under section 4(1)(b) of this
act;
(d) Establishing
license fees to defray the cost of administering the specialty producer
licensure program;
(e) Establishing
requirements for the remittance of premium funds to the supervising agent under
authority from the program insurer; and
(f) Determining the
applicability or nonapplicability of other provisions of this title to this
chapter.
NEW
SECTION. Sec. 6. Sections 1 through 5 of
this act constitute a new chapter in Title 48 RCW.
