AN
ACT Relating to the process of applying for a license or solicitation permit
from the insurance commissioner; amending RCW 48.06.040, 48.17.090, 48.15.070,
48.56.030, and 48.102.015; and declaring an emergency.
BE IT
ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec.
1. RCW
48.06.040 and 1967 c 150 s 6 are each amended to read as follows:
To
apply for a solicitation permit the person shall:
(1)
File with the commissioner a request ((therefor)) showing((,)):
(a)
Name, type, and purpose of insurer, corporation, or syndicate
proposed to be formed;
(b)
Names, addresses, fingerprints for submission to the Washington state
patrol, the federal bureau of investigation, and any governmental agency or
entity authorized to receive this information for a state and national criminal
history background check, and business records of each person associated or
to be associated in the formation of the proposed insurer, corporation, or
syndicate;
(c)
Full disclosure of the terms of all understandings and agreements
existing or proposed among persons so associated relative to the proposed
insurer, corporation, or syndicate, or the formation thereof;
(d)
The plan according to which solicitations are to be made; and
(e)
((such)) Additional information as the commissioner may
reasonably require.
(2)
File with the commissioner((,)):
(a)
Original and copies in triplicate of proposed articles of incorporation,
or syndicate agreement; or, if the proposed insurer is a reciprocal, original
and duplicate of the proposed subscribers' agreement and attorney in fact
agreement;
(b)
Original and duplicate copy of any proposed bylaws;
(c)
Copy of any security proposed to be issued and copy of application or
subscription agreement ((therefor)) for that security;
(d)
Copy of any insurance contract proposed to be offered and copy of
application ((therefor)) for that contract;
(e)
Copy of any prospectus, advertising, or literature proposed to be used; and
(f)
Copy of proposed form of any escrow agreement required.
(3)
Deposit with the commissioner the fees required by law to be paid for the
application including fees associated with the state and national criminal
history background check, for filing of the articles of incorporation of an
insurer, for filing the subscribers' agreement and attorney in fact agreement
if the proposed insurer is a reciprocal, for the solicitation permit, if
granted, and for filing articles of incorporation with the secretary of state.
Sec.
2. RCW
48.17.090 and 2001 c 56 s 1 are each amended to read as follows:
(1)
Application for ((any such)) a license to be an agent, broker,
solicitor, or adjuster shall be made to the commissioner upon forms ((as
prescribed and)) furnished by the commissioner. As a part of or in
connection with any such application, the applicant shall furnish
information concerning his or her identity, including fingerprints for
submission to the Washington state patrol, the federal bureau of investigation,
and any governmental agency or entity authorized to receive this information
for a state and national criminal history background check, personal
history, experience, business record, purposes, and other pertinent facts, as
the commissioner may reasonably require.
(2)
Persons resident in the United States but not in Washington may apply for such
a license on a form prepared by the national association of insurance
commissioners or others, if those forms are approved by the commissioner by
rule. An applicant shall also furnish any other information required to be
submitted but not provided for in that form.
(3)
Any person willfully misrepresenting any fact required to be disclosed in any
such application shall be liable to penalties as provided by this code.
(4)
If in the process of verifying fingerprints under subsection (1) of this
section, business records, or other information the commissioner's office
incurs fees or charges from another governmental agency or from a business
firm, the amount of such fees or charges shall be paid to the commissioner's
office by the applicant ((and shall be considered the recovery of a previous
expenditure)).
Sec.
3. RCW
48.15.070 and 1994 c 131 s 3 are each amended to read as follows:
Any
individual while a resident of this state, or any firm or any corporation that
has in its employ a qualified individual who is a resident of this state and
who is authorized to exercise the powers of the firm or corporation, deemed by
the commissioner to be competent and trustworthy, and while maintaining an
office at a designated location in this state, may be licensed as a surplus
line broker in accordance with this section.
(1)
Application to the commissioner for the license shall be made on forms
furnished by the commissioner. As part of, or in connection with, this
application, the applicant shall furnish information concerning his or her
identity, including fingerprints for submission to the Washington state patrol,
the federal bureau of investigation, and any governmental agency or entity
authorized to receive this information for a state and national criminal
history background check; personal history; experience; business records;
purposes; and other pertinent information, as the commissioner may reasonably
require.
(2)
The license shall expire if not timely renewed. Surplus line brokers licenses
shall be valid for the time period established by the ((commission)) commissioner
unless suspended or revoked at an earlier date.
(3)
Prior to issuance of license the applicant shall file with the commissioner a
bond in favor of the state of Washington in the penal sum of twenty thousand
dollars, with authorized corporate sureties approved by the commissioner,
conditioned that he or she will conduct business under the license in
accordance with the provisions of this chapter and that he or she will
promptly remit the taxes provided by RCW 48.15.120. The licensee shall
maintain such bond in force for as long as the license remains in effect.
(4)
Every applicant for a surplus line broker's license or for the renewal of a
surplus line broker's license shall file with the application or request for
renewal a bond in favor of the people of the state of Washington, executed by
an authorized corporate surety approved by the commissioner, in the amount of
one hundred thousand dollars and shall be the bonding requirement for new
licensees. The licensee shall maintain such bond in force while so licensed.
The bond may be continuous in form, and total aggregate liability on the bond
may be limited to the amount stated in the bond. The bond shall be contingent
on the accounting by the surplus line broker to any person requesting such broker
to obtain insurance, for moneys or premiums collected in connection therewith.
A bond issued in accordance with RCW 48.17.250 or with this subsection will
satisfy the requirements of both RCW 48.17.250 and this subsection if the limit
of liability is not less than the greater of the requirement of RCW 48.17.250
or the requirement of this subsection.
(5)
Any bond issued pursuant to subsection (3) or (4) of this section shall remain
in force until the surety is released from liability by the commissioner, or
until the bond is canceled by the surety. Without prejudice to any liability
accrued prior to such cancellation, the surety may cancel the bond upon thirty
days' advance notice in writing filed with the commissioner.
(6)
If in the process of verifying fingerprints under subsection (1) of this
section, business records, or other information the commissioner's office
incurs fees or charges from another governmental agency or from a business
firm, the amount of the fees or charges shall be paid to the commissioner's
office by the applicant.
(7) For the purposes of this section, a "qualified
individual" is a natural person who has met all the requirements that must
be met by an individual surplus line broker.
Sec.
4. RCW
48.56.030 and 1969 ex.s. c 190 s 3 are each amended to read as follows:
(1)
No person shall engage in the business of financing insurance premiums in the
state without first having obtained a license as a premium finance company from
the commissioner. Any person who shall engage in the business of financing
insurance premiums in the state without obtaining a license as provided
hereunder shall, upon conviction, be guilty of a misdemeanor and shall be
subject to the penalties provided in this chapter.
(2)(a)
Application to the commissioner for the license shall be made on forms
furnished by the commissioner. As part of, or in connection with, this
application, the applicant and, at the commissioner's discretion, any or all
stockholders, directors, partners, officers, and employees of the business
shall furnish information concerning his or her identity, including
fingerprints for submission to the Washington state patrol, the federal bureau
of investigation, and any governmental agency or entity authorized to receive
this information for a state and national criminal history background check;
personal history; experience; business records; purposes; and other pertinent
information, as the commissioner may reasonably require.
(b)
The annual license fee shall be one hundred dollars. Licenses may be renewed
from year to year as of the first day of May of each year upon payment of the
fee of one hundred dollars. The fee for ((said)) the license
shall be paid to the insurance commissioner.
(3)
The person to whom the license or the renewal ((thereof)) may be issued
shall file sworn answers, subject to the penalties of perjury, to such
interrogatories as the commissioner may require. The commissioner shall have
authority, at any time, to require the applicant ((fully)) to disclose fully
the identity of all stockholders, directors, partners, officers, and
employees and ((he)) may, in his or her discretion, refuse to
issue or renew a license in the name of any firm, partnership, or corporation
if he ((is not satisfied)) or she finds that any officer,
employee, stockholder, or partner ((thereof)) who may materially
influence the applicant's conduct ((meets)) does not meet the
standards of this chapter.
(4)
This section shall not apply to any savings and loan association, bank, trust
company, ((small loan company,)) consumer loan company,
industrial loan company or credit union authorized to do business in this state
but RCW 48.56.080 through 48.56.130 and any rules ((promulgated)) adopted
by the commissioner pertaining to such sections shall be applicable to such
organizations, if otherwise eligible, under all premium finance transactions
wherein an insurance policy, other than a life or disability insurance policy,
or any rights thereunder is made the security or collateral for the repayment
of the debt, however, neither this section nor the provisions of this chapter
shall be applicable to the inclusion of insurance in a retail installment
transaction or to insurance purchased in connection with a real estate transaction,
mortgage, deed of trust, or other security instrument or an insurance
company authorized to do business in this state unless the insurance company
elects to become a licensee.
(5)
If in the process of verifying fingerprints under subsection (2) of this
section, business records, or other information the commissioner's office
incurs fees or charges from another governmental agency or from a business
firm, the amount of the fees or charges shall be paid to the commissioner's
office by the applicant.
Sec.
5. RCW
48.102.015 and 1995 c 161 s 3 are each amended to read as follows:
(1)
The commissioner may suspend, revoke, or refuse to issue or renew the
license of any viatical settlement broker or viatical settlement provider if
the commissioner finds that:
(a)
There was any misrepresentation, intentional or otherwise, in the application
for the license or for renewal of a license;
(b)
The applicant for, or holder of any such license, is or has been subject to a
final administrative action for being, or is otherwise shown to be,
untrustworthy or incompetent to act as either a viatical settlement broker or a
viatical settlement provider;
(c)
The applicant for, or holder of any such license, demonstrates a pattern of
unreasonable payments to viators;
(d)
The applicant for, or holder of any such license, has been convicted of a
felony or of any criminal misdemeanor of which criminal fraud is an element; or
(e)
The applicant for, or holder of any such license, has violated any provision of
this title.
(2)
The commissioner may ((from time to time)) require an applicant or
the holder of any license issued under this chapter to supply current
information on the identity or capacity of stockholders, partners, officers,
and employees, including but not limited to the following: Fingerprints,
personal history, business experience, business records, and any other
information which the commissioner may require. If required, the applicant
or licensee shall furnish his or her fingerprints for submission to the
Washington state patrol, the federal bureau of investigation, and any
governmental agency or entity authorized to receive this information for a
state and national criminal history background check.
(3)
Before the commissioner suspends or revokes any license issued under this
chapter, ((or refuses to issue any such license,)) the commissioner
shall conduct a hearing, if the applicant or licensee requests this in
writing. The hearing shall be in accordance with chapters 34.05 and 48.04 RCW.
(4)
After a hearing or with the consent of any party licensed under this chapter
and in addition to or in lieu of the suspension, revocation, or refusal to
renew any license under this chapter, the commissioner may levy a fine upon the
viatical settlement provider in an amount not more than ten thousand dollars,
for each violation of this chapter. The order levying the fine shall specify
the period within which the fine shall be fully paid, and that period shall not
be less than fifteen nor more than thirty days from the date of the order.
Upon failure to pay the fine when due, the commissioner may revoke the license
if not already revoked, and the fine may be recovered in a civil action brought
in behalf of the commissioner by the attorney general. Any fine so collected
shall be deposited into the general fund.
(5)
If in the process of verifying fingerprints under subsection (2) of this
section, business records, or other information the commissioner's office
incurs fees or charges from another governmental agency or from a business
firm, the amount of the fees or charges shall be paid to the commissioner's
office by the applicant or licensee.
NEW
SECTION. Sec. 6. This
act is necessary for the immediate preservation of the public peace, health, or
safety, or support of the state government and its existing public
institutions, and takes effect immediately.
