H-304                _______________________________________________

                                                    HOUSE BILL NO. 147

                        _______________________________________________

State of Washington                              50th Legislature                              1987 Regular Session

By Representatives Lux, Winsley, Nutley, Chandler, Day, P. King, Dellwo and Zellinsky

Read first time 1/19/87 and referred to Committee on Financial Institutions & Insurance.

AN ACT Relating to credit insurance; and amending RCW 48.34.020 and 48.34.060.

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

        Sec. 1.  Section 2, chapter 219, Laws of 1961 as amended by section 14, chapter 241, Laws of 1969 ex. sess. and RCW 48.34.020 are each amended to read as follows:

          (1) This chapter is a part of the insurance code.

          (2) All life insurance and all accident and health insurance in connection with loans or other credit transactions shall be subject to the provisions of this chapter, except such insurance under an individual or group policy in connection with a loan or other credit transaction of more than ten years duration.  Insurance shall not be subject to the provisions of this chapter where its issuance is an isolated transaction on the part of the insurer not related to an agreement or a plan for insuring debtors of the creditor.

        Sec. 2.  Section 6, chapter 219, Laws of 1961 as last amended by section 23, chapter 32, Laws of 1983 1st ex. sess. and RCW 48.34.060 are each amended to read as follows:

          The initial amount of credit life insurance under a group policy shall at no time exceed the amount owed by the debtor which is repayable in installments to the creditor ((nor shall the amount repayable under the contract of indebtedness extend over a period in excess of ten years)).