Passed by the House February 9, 2006 Yeas 71 Nays 27 FRANK CHOPP ________________________________________ Speaker of the House of Representatives Passed by the Senate March 7, 2006 Yeas 45 Nays 4 BRAD OWEN ________________________________________ President of the Senate		CERTIFICATE I, Richard Nafziger, Chief Clerk of the House of Representatives of the State of Washington, do hereby certify that the attached is SUBSTITUTE HOUSE BILL 2481 as passed by the House of Representatives and the Senate on the dates hereon set forth. RICHARD NAFZIGER ________________________________________ Chief Clerk
Approved March 20, 2006. CHRISTINE GREGOIRE ________________________________________ Governor of the State of Washington		FILED March 20, 2006 - 2:52 p.m. Secretary of State State of Washington

AN ACT Relating to insuring victims of crimes; adding a new section to chapter 48.18 RCW; and creating a new section.

NEW SECTION. Sec. 1 The legislature finds that access to insurance can be imperiled by the response of insurers to criminal acts. Rather than allow criminals to achieve their objectives, it is the intent of the legislature that criminals, through criminal acts, should not dictate insurance underwriting decisions. It is the intent of the legislature that courts should use restitution from perpetrators of intentional property crimes to make property owners and insurers whole.

NEW SECTION.  Sec. 2   A new section is added to chapter 48.18 RCW to read as follows:
     (1) For the purposes of this section:
     (a) "Arson" has the same meaning as in chapter 9A.48 RCW.
     (b) "Health care facility" has the same meaning as defined in RCW 48.43.005.
     (c) "Health care provider" has the same meaning as defined in RCW 48.43.005.
     (d) "Insured" means a current policyholder or a person or entity that is covered under the insurance policy.
     (e) A perpetrator does not have to be identified for an act of arson or malicious mischief to have occurred.
     (f) "Malicious mischief" has the same meaning as in chapter 9A.48 RCW.
     (g) "Underwriting action" means an insurer:
     (i) Cancels or refuses to renew an insurance policy; or
     (ii) Changes the terms or benefits in an insurance policy.
     (2) This section applies to property insurance policies if the insured is:
     (a) A health care facility;
     (b) A health care provider; or
     (c) A religious organization.
     (3) An insurer may not take an underwriting action on a policy described in subsection (2) of this section because an insured has made one or more insurance claims for any loss that occurred during the preceding sixty months that is the result of arson or malicious mischief. An insurer may take an underwriting action due to other factors that are not prohibited by this subsection.
     (4) If an insured sustains a loss that is the result of arson or malicious mischief, the insured must file a report with the police or other law enforcement authority within thirty days of discovery of the incident, and a law enforcement authority must determine that a crime has occurred. The report must contain sufficient information to provide an insurer with reasonable notice that the loss was the result of arson or malicious mischief. The insured has a duty to cooperate with any law enforcement official or insurer investigation.
     (5) Annually, each insurer must report underwriting actions to the commissioner if the insurer has taken an underwriting action against any insured who has filed a claim during the preceding sixty months that was the result of arson or malicious mischief. The report must include the policy number, name of the insured, location of the property, and the reason for the underwriting action.