CERTIFICATION OF ENROLLMENT
HOUSE BILL 1236
Chapter 127, Laws of 2007
60th Legislature
2007 Regular Session
INSURANCE--CAPITAL AND SURPLUS
EFFECTIVE DATE: 07/22/07
Passed by the House February 14, 2007
Yeas 98 Nays 0
FRANK CHOPP
________________________________________
Speaker of the House of Representatives
Passed by the Senate April 5, 2007
Yeas 46 Nays 0
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 HOUSE
BILL 1236 as passed by the House of
Representatives and the Senate on
the dates hereon set forth.
RICHARD NAFZIGER
________________________________________
Chief Clerk |
Approved April 19, 2007, 1:14 p.m.
CHRISTINE GREGOIRE
________________________________________
Governor of the State of Washington | | FILED
April 20, 2007
Secretary of State
State of Washington |
_____________________________________________
HOUSE BILL 1236
_____________________________________________
Passed Legislature - 2007 Regular Session| State of Washington | 60th Legislature | 2007 Regular Session |
By Representatives Roach, Kirby, Simpson and Moeller; by request of
Insurance CommissionerRead first time 01/15/2007. Referred to Committee on Insurance,
Financial Service & Consumer Protection.
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.
Passed by the House February 14, 2007.
Passed by the Senate April 5, 2007.
Approved by the Governor April 19, 2007.
Filed in Office of Secretary of State April 20, 2007.