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.
