BILL REQ. #:  H-0637.2 

Read first time 01/10/2007.   Referred to Committee on Insurance, Financial Service & Consumer Protection.

     AN ACT Relating to prohibiting insurers from having a financial interest in automotive repair facilities; and adding a new section to chapter 48.05 RCW.

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

NEW SECTION.  Sec. 1   A new section is added to chapter 48.05 RCW to read as follows:
     (1) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise.
     (a) "Automotive repair facility" has the same meaning as in RCW 46.71.011.
     (b) "Insuring entity" means an insurer, including a fraternal mutual insurer, that is licensed to write casualty insurance in this state.
     (c) "Ownership interest" means the right to control the affairs of a business, or the right to share in the profits of a business, and includes a loan to the business when the interest on the loan is based upon the income of the business or the loan carries more than a commercially reasonable rate of interest.
     (2) An insuring entity may not have any ownership interest in an automotive repair facility. An insuring entity that has an ownership interest in an automotive repair facility shall fully divest itself of ownership interest by July 1, 2008.
     (3) The commissioner shall enforce this section.