BILL REQ. #: Z-0178.1
_____________________________________________
SENATE BILL 5262
_____________________________________________| State of Washington | 60th Legislature | 2007 Regular Session |
By Senators Franklin, Hobbs, Berkey and Hatfield; by request of Insurance CommissionerRead first time 01/15/2007. Referred to Committee on Financial Institutions & Insurance.
AN ACT Relating to the capital and surplus requirements necessary
to transact insurance; and amending RCW 48.05.340.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1 RCW 48.05.340 and 2005 c 223 s 2 are each amended to read
as follows:
(1) Subject to RCW 48.05.350 to qualify for authority to transact
any one kind of insurance as defined in chapter 48.11 RCW or
combination of kinds of insurance as set forth in this subsection, a
foreign or alien insurer, whether stock or mutual, or a domestic
insurer ((formed after July 24, 2005,)) must possess unimpaired paid-in
capital stock, if a stock insurer, or unimpaired surplus if a mutual
insurer, and additional funds in surplus, as follows, and must
thereafter maintain unimpaired a combined total of: (a) The paid-in
capital stock if a stock insurer or surplus if a mutual insurer, plus
(b) additional funds in surplus equal to the total of the following
initial requirements:
Kind or kinds
of insurance | Paid-in capital
stock or
basic surplus |
Additional
surplus |
| Life . . . . . . . . . . . . | $2,000,000 | | $2,000,000 | |
| Disability . . . . . . . . . . . . | 2,000,000 | | 2,000,000 | |
| Life and disability . . . . . . . . . . . . | 2,400,000 | | 2,400,000 | |
| Property . . . . . . . . . . . . | 2,000,000 | | 2,000,000 | |
| Marine &
transportation . . . . . . . . . . . . | 2,000,000 | | 2,000,000 | |
| General casualty . . . . . . . . . . . . | 2,400,000 | | 2,400,000 | |
| Vehicle . . . . . . . . . . . . | 2,000,000 | | 2,000,000 | |
| Surety . . . . . . . . . . . . | 2,000,000 | | 2,000,000 | |
| Ocean marine and
foreign trade . . . . . . . . . . . . |
2,000,000 | |
2,000,000 | |
| Any two of the
following kinds
of insurance:
Property, marine
& transportation,
general casualty,
vehicle, surety,
ocean marine and
foreign trade,
disability . . . . . . . . . . . . | 3,000,000 | | 3,000,000 | |
| Multiple lines (all
insurances except
life and title
insurance) . . . . . . . . . . . . | 3,000,000 | | 3,000,000 | |
| Title | 2,000,000 | | 2,000,000 | |
(2) Capital and surplus requirements are based upon all the kinds
of insurance transacted by the insurer wherever it operates or proposes
to operate, whether or not only a portion of the kinds are to be
transacted in this state.
(3) Until December 31, 1996, a foreign or alien insurer holding a
certificate of authority to transact insurance in this state
immediately prior to June 9, 1994, may continue to be authorized to
transact the same kinds of insurance as long as it is otherwise
qualified for that authority. A domestic insurer, except a title
insurer, holding a certificate of authority to transact insurance in
this state immediately prior to June 9, 1994, may continue to be
authorized to transact the same kinds of insurance as long as it is
otherwise qualified for such an authority and thereafter maintains
unimpaired the amount of paid-in capital stock, if a stock insurer, or
basic surplus, if a mutual or reciprocal insurer, and special or
additional surplus as required of it under laws in force immediately
prior to June 9, 1994. A domestic insurer that is acquired or merged
must, immediately after completion of an acquisition or merger, meet
the capital and surplus requirements of subsection (1) of this section.
A domestic insurer, upon attaining the capital and surplus requirements
of subsection (1) of this section, may not return to the capital and
surplus requirements existing before June 9, 1994.
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