title: RCW 48.135.070

text:
In a criminal prosecution for any crime under Washington law in which the insurance company is a victim, the insurance company is entitled to be considered as a victim in any restitution ordered by the court under RCW 9.94A.753, as part of the criminal penalty imposed against the defendant convicted for such a violation.
[ 2006 c 284 s 8.]

catchline: Insurance company as victim—Restitution.


doc_type: statute

jurisdiction: wa

title: RCW 48.135.080

text:
No later than six months after July 1, 2006, or when the insurer has used all its existing paper application and claim forms which were in its possession on July 1, 2006, whichever is later, all applications for insurance, and all claim forms regardless of the form of transmission provided and required by an insurer or required by law as condition of payment of a claim, must contain a statement, permanently affixed to the application or claim form, that clearly states in substance the following:
"It is a crime to knowingly provide false, incomplete, or misleading information to an insurance company for the purpose of defrauding the company. Penalties include imprisonment, fines, and denial of insurance benefits."
The lack of a statement required in this section does not constitute a defense in any criminal prosecution nor any civil action.
[ 2006 c 284 s 10.]

license: public-domain-government-work

rule_set: Revised Code of Washington

catchline: Required statement on all insurance applications and claim forms.

code: rcw

unit: section

court: Washington State Legislature


title: RCW 48.135.090

text:
The commissioner shall appoint an insurance fraud advisory board. The board shall consist of ten members. Five members shall be representatives from the insurance industry doing business in this state, at least one of which shall be from a Washington domestic insurer, two members shall represent consumers, one member shall represent the national insurance crime bureau or successor organization, one member shall represent prosecutors, and one member shall represent other law enforcement agencies. The members of the board serve four-year terms and until their successors are appointed and qualified. Three of the original members must be appointed to serve an initial term of four years, three must be appointed to serve an initial term of three years, two must be appointed to serve an initial term of two years, and two must be appointed to serve an initial term of one year. The members of the board receive no compensation. The board shall advise the commissioner and the legislature with respect to the effectiveness, resources allocated to the fraud program, the source of the funding for the program, and before June 30, 2010, if the staffing level restriction in RCW 48.135.020(5) should be renewed.
[ 2006 c 284 s 11.]

catchline: Insurance fraud advisory board—Membership.


title: RCW 48.135.100

text:
The commissioner shall prepare a periodic report of the activities of the fraud program. The report shall, at a minimum, include information as to the number of cases reported to the commissioner, the number of cases referred for prosecution, the number of convictions obtained, the amount of money recovered, and any recommendations of the insurance advisory board.
[ 2006 c 284 s 12.]

catchline: Program report—Contents.


title: RCW 48.135.110

text:
The commissioner may adopt rules to implement and administer this chapter.
[ 2006 c 284 s 13.]

catchline: Rules.


title: RCW 48.135.901

text:
This act takes effect July 1, 2006.
[ 2006 c 284 s 21.]

catchline: Effective date—2006 c 284.


title: RCW 48.14.010

text:
(1) The commissioner shall collect in advance the following fees:
(a)
For filing charter documents:
(i)
Original charter documents, bylaws or record of organization of insurers, or certified copies thereof, required to be filed. . . .
$250.00
(ii)
Amended charter documents, or certified copy thereof, other than amendments of bylaws. . . .
$ 10.00
(iii)
No additional charge or fee shall be required for filing any of such documents in the office of the secretary of state.
(b)
Certificate of authority:
(i)
Issuance. . . .
$ 25.00
(ii)
Renewal. . . .
$ 25.00
(c)
Annual statement of insurer, filing. . . .
$ 20.00
(d)
Organization or financing of domestic insurers and affiliated corporations:
(i)
Application for solicitation permit, filing. . . .
$100.00
(ii)
Issuance of solicitation permit. . . .
$ 25.00
(e)
Insurance producer licenses:
(i)
License application. . . .
$ 55.00
(ii)
License renewal, every two years
. . . .
$ 55.00
(iii)
Initial appointment and renewal of appointment of each insurance producer, every two years. . . .
$ 20.00
(iv)
Limited line insurance producer license application and renewal, every two years. . . .
$ 20.00
(f)
Title insurance agent licenses:
(i)
License application. . . .
$ 50.00
(ii)
License renewal, every two
years. . . .
$ 50.00
(g)
Reinsurance intermediary licenses:
(i)
Reinsurance intermediary-broker, each year. . . .
$ 50.00
(ii)
Reinsurance intermediary-
manager, each year. . . .
$100.00
(h)
Surplus line broker license application and renewal, every two years. . . .
$200.00
(i)
Adjusters' licenses:
(i)
Independent adjuster: (A) License application. . . .
(B) License renewal, every two
years. . . .
$ 50.00
$ 50.00
(ii)
Public adjuster: (A) License application. . . .
(B) License renewal, every two
years. . . .
$ 50.00
$ 50.00
(iii)
Crop adjuster: (A) License application. . . .
(B) License renewal, every two
years. . . .
$ 50.00
$50.00
(j)
Managing general agent appointment, every two years. . . .
$200.00
(k)
Examination for license, each examination:
All examinations, except examinations administered by an independent testing service, the fees for which are to be approved by the commissioner and collected directly by and retained by such independent testing service
. . . .
$ 20.00
(l)
Miscellaneous services:
(i)
Filing other documents. . . .
$ 5.00
(ii)
Commissioner's certificate under seal. . . .
$ 5.00
(iii)
Copy of documents filed in the commissioner's office, reasonable charge therefor as determined by the commissioner.
(m)
Self-service storage specialty insurance producer license application and renewal:
Every two years, $130.00 for an owner with under fifty employees or $375.00 for an owner with fifty or more employees; plus a location fee of $35.00 for each additional location of an owner.
(2) All fees so collected shall be remitted by the commissioner to the state treasurer not later than the first business day following, and shall be placed to the credit of the general fund.
(a) Fees for examinations administered by an independent testing service that are approved by the commissioner under subsection (1)(k) of this section shall be collected directly by the independent testing service and retained by it.
(b) Fees for copies of documents filed in the commissioner's office shall be remitted by the commissioner to the state treasurer not later than the first business day following, and shall be placed to the credit of the insurance commissioner's regulatory account.
[ 2010 c 67 s 1. Prior: 2009 c 162 s 2; 2009 c 119 s 10; 2007 c 117 s 37; 2005 c 223 s 5; 1994 c 131 s 2; 1993 c 462 s 57; 1988 c 248 s 7; 1981 c 111 s 1; 1979 ex.s. c 269 s 1; 1977 ex.s. c 182 s 1; 1969 ex.s. c 241 s 8; 1967 c 150 s 12; 1955 c 303 s 4; 1947 c 79 s .14.01; Rem. Supp. 1947 s 45.14.01.]
Notes:
Effective date—2010 c 67: "This act takes effect June 27, 2011." [ 2010 c 67 s 8.]
Effective date—2009 c 162: See note following RCW 48.03.020.
Effective date—2009 c 119: See RCW 48.170.900.
Effective date—2007 c 117: See RCW 48.17.901.
Severability—Implementation—1993 c 462: See RCW 48.31B.901 and 48.31B.902.
Effective date, implementation—1979 ex.s. c 269: "This act shall take effect on April 1, 1980. The insurance commissioner is authorized to immediately take such steps as are necessary to insure that this 1979 act is implemented on its effective date." [ 1979 ex.s. c 269 s 10.]
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catchline: Fee schedule.


title: RCW 48.14.020

text:
(1)(a) Subject to other provisions of this chapter, each authorized insurer except title insurers and registered eligible captive insurers as defined in RCW 48.201.020 shall on or before the first day of March of each year pay to the state treasurer through the commissioner's office a tax on premiums. Except as provided in subsection (3) of this section, such tax shall be in the amount of two percent of all premiums, excluding amounts returned to or the amount of reductions in premiums allowed to holders of industrial life policies for payment of premiums directly to an office of the insurer, collected or received by the insurer under RCW 48.14.090 during the preceding calendar year other than ocean marine and foreign trade insurances, after deducting premiums paid to policyholders as returned premiums, upon risks or property resident, situated, or to be performed in this state. For tax purposes, the reporting of premiums shall be on a written basis or on a paid-for basis consistent with the basis required by the annual statement. For the purposes of this section the consideration received by an insurer for the granting of an annuity shall not be deemed to be a premium.
(b) Beginning July 1, 2023, and July 1st of each year thereafter, the state treasurer shall deposit $7,000,000 in moneys collected for premium taxes pursuant to this section into the Washington auto theft prevention authority account created in RCW 46.66.080. Beginning July 1, 2023, the amount deposited under this subsection must be adjusted by the most current seasonally adjusted index of the consumer price index for all urban consumers as published by the bureau of labor statistics of the United States department of labor.
(2)(a) The taxes imposed in this section do not apply to amounts received by any life and disability insurer for health care services included within the definition of practice of dentistry under RCW 18.32.020 except amounts received for pediatric oral services that qualify as coverage for the minimum essential coverage requirement under P.L. 111-148 (2010), as amended, and for stand-alone family dental plans as defined in RCW 43.71.080(4)(a), only when offered in the individual market, as defined in RCW 48.43.005, or to a small group, as defined in RCW 48.43.005.
(b) Beginning January 1, 2014, moneys collected for premiums written on qualified health benefit plans and qualified dental plans offered through the health benefit exchange under chapter 43.71 RCW must be deposited in the health benefit exchange account under RCW 43.71.060.
(3) In the case of insurers which require the payment by their policyholders at the inception of their policies of the entire premium thereon in the form of premiums or premium deposits which are the same in amount, based on the character of the risks, regardless of the length of term for which such policies are written, such tax shall be in the amount of two percent of the gross amount of such premiums and premium deposits upon policies on risks resident, located, or to be performed in this state, in force as of the thirty-first day of December next preceding, less the unused or unabsorbed portion of such premiums and premium deposits computed at the average rate thereof actually paid or credited to policyholders or applied in part payment of any renewal premiums or premium deposits on one-year policies expiring during such year.
(4) Each authorized insurer shall with respect to all ocean marine and foreign trade insurance contracts written within this state during the preceding calendar year, on or before the first day of March of each year pay to the state treasurer through the commissioner's office a tax of ninety-five one-hundredths of one percent on its gross underwriting profit. Such gross underwriting profit shall be ascertained by deducting from the net premiums (i.e., gross premiums less all return premiums and premiums for reinsurance) on such ocean marine and foreign trade insurance contracts the net losses paid (i.e., gross losses paid less salvage and recoveries on reinsurance ceded) during such calendar year under such contracts. In the case of insurers issuing participating contracts, such gross underwriting profit shall not include, for computation of the tax prescribed by this subsection, the amounts refunded, or paid as participation dividends, by such insurers to the holders of such contracts.
(5) The state does hereby preempt the field of imposing excise or privilege taxes upon insurers or their appointed insurance producers, other than title insurers, and no county, city, town or other municipal subdivision shall have the right to impose any such taxes upon such insurers or these insurance producers.
(6) If an authorized insurer collects or receives any such premiums on account of policies in force in this state which were originally issued by another insurer and which other insurer is not authorized to transact insurance in this state on its own account, such collecting insurer shall be liable for and shall pay the tax on such premiums.
[ 2023 c 388 s 4; 2021 c 281 s 7; 2016 c 133 s 1; 2013 2nd sp.s. c 6 s 6; 2013 c 325 s 4; 2009 c 161 s 3; 2008 c 217 s 6; 1986 c 296 s 1; 1983 2nd ex.s. c 3 s 7; 1982 2nd ex.s. c 10 s 1; 1982 1st ex.s. c 35 s 15; 1979 ex.s. c 233 s 2; 1969 ex.s. c 241 s 9; 1947 c 79 s .14.02; Rem. Supp. 1947 s 45.14.02.]
Notes:
Findings—Intent—Effective date—2023 c 388: See notes following RCW 46.63.110.
Effective date—2021 c 281: See note following RCW 48.201.010.
Severability—Effective date—2008 c 217: See notes following RCW 48.03.020.
Severability—1986 c 296: "If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected." [ 1986 c 296 s 11.]
Application—1986 c 296 s 1: "[The 1986 c 296 amendment of] RCW 48.14.020 applies to the payment of taxes due beginning July 1, 1986, and thereafter." [ 1986 c 296 s 12.]
Effective date—1986 c 296: "Section 7 of this act is necessary for the immediate preservation of the public peace, health, and safety, the support of the state government and its existing institutions, and shall take effect immediately. The remainder of this act shall take effect July 1, 1986." [ 1986 c 296 s 13.]
Construction—Severability—Effective dates—1983 2nd ex.s. c 3: See notes following RCW 82.04.255.
Payment of additional premium tax—1982 2nd ex.s. c 10: "The additional premium tax payments required by the amendment of RCW 48.14.020 by section 1 of this act shall be paid to the state treasurer through the insurance commissioner's office on March 1, 1983. Thereafter the prepayment schedule provided by RCW 48.14.025 shall apply." [ 1982 2nd ex.s. c 10 s 2.]
Severability—Effective dates—1982 1st ex.s. c 35: See notes following RCW 82.08.020.
Effective date—1979 ex.s. c 233: "This 1979 amendatory act shall become effective beginning upon and after January 1, 1980." [ 1979 ex.s. c 233 s 4.]
Intent—1979 ex.s. c 233: "It is the intent of the legislature to eliminate existing tax discrimination between qualified and nonqualified pension plans which are effectuated by annuity contracts, by excluding the consideration paid for such contracts from premiums subject to the premium tax." [ 1979 ex.s. c 233 s 1.]
Severability—1979 ex.s. c 233: "If any provision of this amendatory act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected." [ 1979 ex.s. c 233 s 3.]
Credit against premium tax for assessments paid pursuant to RCW 48.32.060(1)(c): RCW 48.32.145.
Portion of state taxes on fire insurance premiums to be deposited in
firefighters' pension fund: RCW 41.16.050.
volunteer firefighters' relief and pension principal fund and reserve officers' relief and pension principal fund: RCW 41.24.030.

catchline: Premium taxes.


title: RCW 48.14.0201

text:
(1) As used in this section, "taxpayer" means a health maintenance organization as defined in RCW 48.46.020, a health care service contractor as defined in chapter 48.44 RCW, or a self-funded multiple employer welfare arrangement as defined in RCW 48.125.010.
(2) Each taxpayer must pay a tax on or before the first day of March of each year to the state treasurer through the insurance commissioner's office. The tax must be equal to the total amount of all premiums and prepayments for health care services collected or received by the taxpayer under RCW 48.14.090 during the preceding calendar year multiplied by the rate of two percent. For tax purposes, the reporting of premiums and prepayments must be on a written basis or on a paid-for basis consistent with the basis required by the annual statement.
(3) Taxpayers must prepay their tax obligations under this section. The minimum amount of the prepayments is the percentages of the taxpayer's tax obligation for the preceding calendar year recomputed using the rate in effect for the current year. For the prepayment of taxes due during the first calendar year, the minimum amount of the prepayments is the percentages of the taxpayer's tax obligation that would have been due had the tax been in effect during the previous calendar year. The tax prepayments must be paid to the state treasurer through the commissioner's office by the due dates and in the following amounts:
(a) On or before June 15, 45 percent;
(b) On or before September 15, 25 percent;
(c) On or before December 15, 25 percent.
(4) For good cause demonstrated in writing, the commissioner may approve an amount smaller than the preceding calendar year's tax obligation as recomputed for calculating the health maintenance organization's, health care service contractor's, self-funded multiple employer welfare arrangement's, or certified health plan's prepayment obligations for the current tax year.
(5)(a) Except as provided in (b) of this subsection, moneys collected under this section are deposited in the general fund.
(b) Beginning January 1, 2014, moneys collected from taxpayers for premiums written on qualified health benefit plans and qualified dental plans offered through the health benefit exchange under chapter 43.71 RCW must be deposited in the health benefit exchange account under RCW 43.71.060.
(6) The taxes imposed in this section do not apply to:
(a) Amounts received by any taxpayer from the United States or any instrumentality thereof as prepayments for health care services provided under Title XVIII (medicare) of the federal social security act.
(b) Amounts received by any taxpayer from the state of Washington as prepayments for health care services provided under:
(i) The medical care services program as provided in RCW 74.09.035; or
(ii) The Washington basic health plan on behalf of subsidized enrollees as provided in chapter 70.47 RCW.
(c) Amounts received by any health care service contractor as defined in chapter 48.44 RCW, or any health maintenance organization as defined in chapter 48.46 RCW, as prepayments for health care services included within the definition of practice of dentistry under RCW 18.32.020, except amounts received for pediatric oral services that qualify as coverage for the minimum essential coverage requirement under P.L. 111-148 (2010), as amended, and for stand-alone family dental plans as defined in RCW 43.71.080(4)(a), only when offered in the individual market, as defined in RCW 48.43.005, or to a small group, as defined in RCW 48.43.005.
(d) Participant contributions to self-funded multiple employer welfare arrangements that are not taxable in this state.
(7) Beginning January 1, 2000, the state preempts the field of imposing excise or privilege taxes upon taxpayers and no county, city, town, or other municipal subdivision has the right to impose any such taxes upon such taxpayers. This subsection is limited to premiums and payments for health benefit plans offered by health care service contractors under chapter 48.44 RCW, health maintenance organizations under chapter 48.46 RCW, and self-funded multiple employer welfare arrangements as defined in RCW 48.125.010. The preemption authorized by this subsection must not impair the ability of a county, city, town, or other municipal subdivision to impose excise or privilege taxes upon the health care services directly delivered by the employees of a health maintenance organization under chapter 48.46 RCW.
(8)(a) The taxes imposed by this section apply to a self-funded multiple employer welfare arrangement only in the event that they are not preempted by the employee retirement income security act of 1974, as amended, 29 U.S.C. Sec. 1001 et seq. The arrangements and the commissioner must initially request an advisory opinion from the United States department of labor or obtain a declaratory ruling from a federal court on the legality of imposing state premium taxes on these arrangements. Once the legality of the taxes has been determined, the multiple employer welfare arrangement certified by the insurance commissioner must begin payment of these taxes.
(b) If there has not been a final determination of the legality of these taxes, then beginning on the earlier of (i) the date the fourth multiple employer welfare arrangement has been certified by the insurance commissioner, or (ii) April 1, 2006, the arrangement must deposit the taxes imposed by this section into an interest bearing escrow account maintained by the arrangement. Upon a final determination that the taxes are not preempted by the employee retirement income security act of 1974, as amended, 29 U.S.C. Sec. 1001 et seq., all funds in the interest bearing escrow account must be transferred to the state treasurer.
(9) The effect of transferring contracts for health care services from one taxpayer to another taxpayer is to transfer the tax prepayment obligation with respect to the contracts.
(10) On or before June 1st of each year, the commissioner must notify each taxpayer required to make prepayments in that year of the amount of each prepayment and must provide remittance forms to be used by the taxpayer. However, a taxpayer's responsibility to make prepayments is not affected by failure of the commissioner to send, or the taxpayer to receive, the notice or forms.
[ 2025 c 423 s 103; 2016 c 133 s 2; 2013 2nd sp.s. c 6 s 5; 2013 c 325 s 3; 2011 c 47 s 8; 2009 c 479 s 41. Prior: 2005 c 405 s 1; 2005 c 223 s 6; 2005 c 7 s 1; 2004 c 260 s 24; 1998 c 323 s 1; 1997 c 154 s 1; 1993 sp.s. c 25 s 601; 1993 c 492 s 301.]
Notes:
Effective date—2025 c 423 ss 101, 103, 104, 105, 201, and 202: See note following RCW 82.04.260.
Finding—Intent—Necessity of act—2025 c 423: See notes following RCW 82.04.260.
Effective date—2009 c 479: See note following RCW 2.56.030.
Effective date—2005 c 7: "This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately [March 15, 2005]." [ 2005 c 7 s 3.]
Effective date—2004 c 260: See RCW 48.125.901.
Effective date—1997 c 154: "This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect July 1, 1997." [ 1997 c 154 s 2.]
Severability—Effective dates—Part headings, captions not law—1993 sp.s. c 25: See notes following RCW 82.04.230.
Findings—Intent—1993 c 492: See notes following RCW 43.20.050.
Short title—Savings—Reservation of legislative power—Effective dates—1993 c 492: See RCW 43.72.910 through 43.72.915.

catchline: Premiums and prepayments tax—Health care services—Exemptions—State preemption.


title: RCW 48.14.0203

text:
(1) In addition to any other taxes or other charges imposed under this chapter, each health carrier subject to tax under RCW 48.14.020 or 48.14.0201 shall, on or before the first day of March of each year pay to the state treasurer through the commissioner's office an annual coverage assessment. The assessment for the first year equals $0.82 per coverage month in the prior calendar year, and the assessment, annually thereafter, equals $0.165 per coverage month in the prior calendar year. The initial assessment imposed under this subsection is due and payable on or before March 1, 2027.
(2) Each health carrier subject to the assessment under this section shall file with the commissioner, on or before the first day of March of each year, an annual coverage month assessment statement indicating the number of coverage months associated with premiums or prepayments for health care services subject to tax under RCW 48.14.020 or 48.14.0201, in a form and manner required by the commissioner. The statement under this subsection is in addition to the statement required under RCW 48.14.030.
(3) Any health carrier, failing to file its annual coverage month assessment statement under subsection (2) of this section and pay the assessment by the last day of the month in which the assessment becomes due shall be assessed a penalty of five percent of the amount of the assessment. If the assessment is not paid within 45 days after the due date, the health carrier will be assessed a total penalty of 10 percent of the amount of the assessment. If the assessment is not paid within 60 days of the due date, the health carrier will be assessed a total penalty of 20 percent of the amount of the assessment. The assessment may be collected by distraint, and the penalty may be recovered by any action instituted by the commissioner in any court of competent jurisdiction. The amount of any penalty collected must be paid to the state treasurer and credited to the abortion savings account created under RCW 43.70.867.
(4) In addition to the penalties set forth in subsection (3) of this section, interest shall accrue on the amount of the unpaid assessment at the maximum legal rate of interest permitted under RCW 19.52.020 commencing 61 days after the assessment is due until paid.
(5) The commissioner may revoke the certificate of authority or registration of any delinquent health carrier, and the certificate of authority or registration may not be reissued until all assessments, interest, and penalties imposed under this section have been fully paid and the health carrier has otherwise qualified for the certificate of authority or registration.
(6) In the event that any health carrier has paid to the commissioner any assessment under this section in error or in excess of that which it is lawfully obligated to pay, the commissioner shall upon written request make a refund thereof. A health carrier may only request a refund of assessments within six years of the end of the calendar year for which the assessments are owed. Refunds may be made either by crediting the amount toward payment of taxes, assessments, or other charges due or to become due from such health carrier, or by making a cash refund.
(7) All revenues collected under this section must be deposited in the abortion savings account created under RCW 43.70.867.
(8) The assessment required under this section must be borne solely by the health carrier and may not be passed through to enrollees in premiums, rates, plan design, or otherwise, unless the commissioner determines that to do so would create a significant risk of carrier insolvency or consumer harm.
(9) A health carrier shall demonstrate their compliance with this section through the rate filing review process of the commissioner, as directed by the commissioner. The commissioner may also adopt rules to implement this section.
(10) For the purpose of this section:
(a) "Coverage month" means each month of coverage under an insurance policy or each month of prepayment for health care services where premiums or prepayments are subject to tax under RCW 48.14.020 or 48.14.0201, not including coverage for health care services covered under chapter 74.09 RCW and rendered by licensed providers on a prepaid capitated basis and that meets the requirements of section 1903(m)(1)(A) of Title XIX of the federal social security act or federal demonstration waivers granted under section 1115(a) of Title XI of the federal social security act.
(b) "Health carrier" means any carrier offering health plans on the health benefit exchange under chapter 43.71 RCW beginning in plan year 2026, not including any carrier offering dental only or vision only plans.
[ 2026 c 228 s 1.]

catchline: Health carriers—Annual coverage assessment.


title: RCW 48.14.021

text:
As to premiums received from policies or contracts issued in connection with a pension, annuity or profit-sharing plan exempt or qualified under sections 401, 403(b), 404, 408(b), or 501(a) of the United States internal revenue code, the rate of tax specified in RCW 48.14.020 shall be reduced twelve and one-half percent with respect to the tax payable in 1964, twenty-five percent with respect to the tax payable in 1965, thirty-seven and one-half percent with respect to the tax payable in 1966, fifty percent with respect to the tax payable in 1967, sixty-two and one-half percent with respect to the tax payable in 1968, seventy-five percent with respect to the tax payable in 1969, eighty-seven and one-half percent with respect to the tax payable in 1970, and one hundred percent with respect to the tax payable in 1971 and annually thereafter.
[1975-'76 2nd ex.s. c 119 s 1; 1974 ex.s. c 132 s 1; 1963 c 166 s 1.]

catchline: Reduction of tax—Policies connected with pension, etc., plans exempt or qualified under internal revenue code.


title: RCW 48.14.022

text:
(1) The taxes imposed in RCW 48.14.020 and 48.14.0201 do not apply to premiums and prepayments collected or received for policies of insurance issued under RCW 48.41.010 through 48.41.210.
(2) In computing tax due under RCW 48.14.020 and 48.14.0201, there may be deducted from taxable premiums and prepayments the amount of any assessment against the taxpayer under RCW 48.41.010 through 48.41.210. Any portion of the deduction allowed in this section which cannot be deducted in a tax year without reducing taxable premiums below zero may be carried forward and deducted in successive years until the deduction is exhausted.
[ 1995 c 304 s 1; 1987 c 431 s 23.]
Notes:
Effective date—1995 c 304: "This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect immediately [May 9, 1995]." [ 1995 c 304 s 2.]

catchline: Taxes—Exemptions and deductions.


title: RCW 48.14.025

text:
(1) Every insurer with a tax obligation under RCW 48.14.020 shall make prepayment of the tax obligations under RCW 48.14.020 for the current calendar year's business, if the sum of the tax obligations under RCW 48.14.020 for the preceding calendar year's business is four hundred dollars or more.
(2) The commissioner shall credit the prepayment toward the appropriate tax obligations of the insurer for the current calendar year under RCW 48.14.020.
(3) The minimum amounts of the prepayments shall be percentages of the insurer's preceding calendar year's tax obligation recomputed using the rate in effect for the current year and shall be paid to the state treasurer through the commissioner's office by the due dates and in the following amounts:
(a) On or before June 15, forty-five percent;
(b) On or before September 15, twenty-five percent; and
(c) On or before December 15, twenty-five percent.
For good cause demonstrated in writing, the commissioner may approve an amount smaller than the preceding calendar year's tax obligation as recomputed for calculating the insurer's prepayment obligations.
(4) The effect of transferring policies of insurance from one insurer to another insurer is to transfer the tax prepayment obligation with respect to the policies.
(5) On or before June 1 of each year, the commissioner shall notify each insurer required to make prepayments in that year of the amount of each prepayment and shall provide remittance forms to be used by the insurer. However, an insurer's responsibility to make prepayments is not affected by failure of the commissioner to send, or the insurer to receive, the notice or forms.
[ 1986 c 296 s 2; 1982 c 181 s 4; 1981 c 6 s 1.]
Notes:
Severability—Effective date—1986 c 296: See notes following RCW 48.14.020.
Severability—1982 c 181: See note following RCW 48.03.010.

catchline: Prepayment of tax obligations under RCW 48.14.020.


title: RCW 48.14.027

text:
The taxes imposed in RCW 48.14.020 do not apply to premiums collected or received before July 1, 1990, for medical and dental coverage purchased under chapter 41.05 RCW.
[ 1988 c 107 s 32.]
Notes:
Implementation—Effective dates—1988 c 107: See RCW 41.05.901.

catchline: Exemption for state health care premiums before July 1, 1990.


title: RCW 48.14.030

text:
The insurer shall file with the commissioner as part of its annual statement a statement of premiums so collected or received according to such form as shall be prescribed and furnished by the commissioner. In every such statement the reporting of premiums for tax purposes shall be on a written basis or on a paid-for basis consistent with the basis required by the annual statement.
[1947 c 79 s .14.03; Rem. Supp. 1947 s 45.14.03.]

catchline: Tax statement.


title: RCW 48.14.040

text:
(1) If pursuant to the laws of any other state or country, any taxes, licenses, fees, deposits, or other obligations or prohibitions, in the aggregate, or additional to or at a net rate in excess of any such taxes, licenses, fees, deposits or other obligations or prohibitions imposed by the laws of this state upon like foreign or alien insurers and their appointed insurance producers or title insurance agents, are imposed on insurers of this state and their appointed insurance producers or title insurance agents doing business in such other state or country, a like rate, obligation or prohibition may be imposed by the commissioner, as to any item or combination of items involved, upon all insurers of such other state or country and their appointed insurance producers or title insurance agents doing business in this state, so long as such laws remain in force or are so applied.
(2) For the purposes of this section, an alien insurer may be deemed to be domiciled in the state wherein it has established its principal office or agency in the United States. If no such office or agency has been established, the domicile of the alien insurer shall be deemed to be the country under the laws of which it is formed.
(3) For the purposes of this section, the regulatory and insurance fraud surcharges imposed by RCW 48.02.190 shall not be included in the calculation of any retaliatory taxes, licenses, fees, deposits, or other obligations or prohibitions imposed under this section.
[ 2020 c 195 s 3; 2008 c 217 s 7; 2007 c 153 s 4; 1988 c 248 s 8; 1949 c 190 s 21, part; 1947 c 79 s .14.04; Rem. Supp. 1949 s 45.14.04.]
Notes:
Findings—Effective date—2020 c 195: See notes following RCW 48.02.190.
Severability—Effective date—2008 c 217: See notes following RCW 48.03.020.

catchline: Retaliatory provision.


title: RCW 48.14.060

text:
(1) Any insurer or taxpayer, as defined in RCW 48.14.0201, failing to file its tax statement and to pay the specified tax or prepayment of tax on premiums and prepayments for health care services by the last day of the month in which the tax becomes due shall be assessed a penalty of five percent of the amount of the tax; and if the tax is not paid within forty-five days after the due date, the insurer will be assessed a total penalty of ten percent of the amount of the tax; and if the tax is not paid within sixty days of the due date, the insurer will be assessed a total penalty of twenty percent of the amount of the tax. The tax may be collected by distraint, and the penalty recovered by any action instituted by the commissioner in any court of competent jurisdiction. The amount of any penalty collected must be paid to the state treasurer and credited to the general fund.
(2) In addition to the penalties set forth in subsection (1) of this section, interest will accrue on the amount of the unpaid tax or prepayment at the maximum legal rate of interest permitted under RCW 19.52.020 commencing sixty-one days after the tax is due until paid. This interest will not accrue on taxes imposed under RCW 48.15.120.
(3) The commissioner may revoke the certificate of authority or registration of any delinquent insurer or taxpayer, and the certificate of authority or registration will not be reissued until all taxes, prepayments of tax, interest, and penalties have been fully paid and the insurer or taxpayer has otherwise qualified for the certificate of authority or registration.
[ 2003 c 341 s 1; 1981 c 6 s 2; 1947 c 79 s .14.06; Rem. Supp. 1947 s 45.14.06.]

catchline: Failure to pay tax—Penalty.


title: RCW 48.14.070

text:
In event any person has paid to the commissioner any tax, license fee or other charge in error or in excess of that which he or she is lawfully obligated to pay, the commissioner shall upon written request make a refund thereof. A person may only request a refund of taxes within six years of the end of the calendar year for which the taxes are owed. A person may only request a refund of fees or charges other than taxes within 13 months of the date the fees or charges were paid. Refunds may be made either by crediting the amount toward payment of charges due or to become due from such person, or by making a cash refund.
[ 2025 c 243 s 2; 2009 c 549 s 7056; 1979 ex.s. c 130 s 2; 1947 c 79 s .14.07; Rem. Supp. 1947 s 45.14.07.]

catchline: Refunds.


title: RCW 48.14.080

text:
(1) As to insurers, other than title insurers and taxpayers under RCW 48.14.0201, the taxes imposed by this title are in lieu of all other taxes, except as otherwise provided in this section.
(2) Subsection (1) of this section does not apply with respect to:
(a) Taxes on real and tangible personal property;
(b) Excise taxes on the sale, purchase, use, or possession of (i) real property; (ii) tangible personal property; (iii) extended warranties; (iv) services, including digital automated services as defined in RCW 82.04.192; and (v) digital goods and digital codes as those terms are defined in RCW 82.04.192; and
(c) The tax imposed in *RCW 82.04.260(9), regarding public and nonprofit hospitals.
(3) For the purposes of this section, the term "taxes" includes taxes imposed by the state or any county, city, town, municipal corporation, quasi-municipal corporation, or other political subdivision.
[ 2010 1st sp.s. c 23 s 520; 2009 c 535 s 1102; 2006 c 278 s 2; 1998 c 312 s 1; 1993 sp.s. c 25 s 602; 1993 c 492 s 302; 1949 c 190 s 21, part; Rem. Supp. 1949 s 45.14.08.]
Notes:
*Reviser's note: RCW 82.04.260 was amended by 2011 c 2 s 203 (Initiative Measure No. 1107), changing subsection (9) to subsection (10).
Effective date—2010 1st sp.s. c 23: See note following RCW 82.32.655.
Findings—Intent—2010 1st sp.s. c 23: See notes following RCW 82.04.220.
Intent—Construction—2009 c 535: See notes following RCW 82.04.192.
Findings—Intent—2006 c 278: "The legislature finds that the insurance premiums tax is intended to be in lieu of any other tax imposed on insurers. However, insurers are not exempt from taxes on real and tangible personal property, or excise taxes on the sale, purchase, or use of such property. These provisions, enacted in 1949, have not been reviewed or altered in light of significant expansion of sales and use taxes to include taxation of many service activities. Some insurers have interpreted their obligation to pay retail sales and use taxes to be limited to those taxes imposed on the sale or use of tangible personal property. These insurers claim exemption from retail sales tax, use tax, or any other excise tax on the purchase or sale of services, such as telephone service, credit bureau services, construction services, landscape services, and repair services. Other insurers have consistently paid excise taxes imposed on these services.
The legislature further finds exempting insurers from excise taxes on the purchase or sale of services is inequitable and results from the inadvertent failure to revise insurance premiums tax statutes to be consistent with other excise tax statutes. The legislature declares its intent to require insurers to pay retail sales and use taxes on purchases of both tangible personal property or services, on the same terms as other taxpayers. This act is intended to apply both prospectively and retrospectively." [ 2006 c 278 s 1.]
Application—2006 c 278: "This act applies both prospectively and retroactively." [ 2006 c 278 s 3.]
Effective date—2006 c 278: "This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately [March 28, 2006]." [ 2006 c 278 s 4.]
Effective date—Savings—1998 c 312: See notes following RCW 82.04.332.
Severability—Effective dates—Part headings, captions not law—1993 sp.s. c 25: See notes following RCW 82.04.230.
Findings—Intent—1993 c 492: See notes following RCW 43.20.050.
Short title—Savings—Reservation of legislative power—Effective dates—1993 c 492: See RCW 43.72.910 through 43.72.915.

catchline: Premium tax in lieu of other forms—Exceptions—Definition.


title: RCW 48.14.090

text:
In determining the amount of direct premium taxable in this state other than for policies issued by an eligible captive insurer as defined in RCW 48.201.020, all such premiums written, procured, or received in this state shall be deemed written upon risks or property resident, situated, or to be performed in this state except such premiums as are properly allocated or apportioned and reported as taxable premiums of any other state or states. For tax purposes, the reporting of premiums shall be on a written basis or on a paid-for basis consistent with the basis required by the annual statement.
[ 2021 c 281 s 11; 2009 c 161 s 4; 1963 c 195 s 14.]
Notes:
Application—2021 c 281 ss 8-11: See note following RCW 48.14.095.
Effective date—2021 c 281: See note following RCW 48.201.010.

catchline: Determining amount of direct premium taxable in this state.


title: RCW 48.14.095

text:
(1) This section applies to any insurer or taxpayer, as defined in RCW 48.14.0201, violating or failing to comply with RCW 48.05.030(1), 48.17.060, 48.36A.290(1), 48.44.015(1), or 48.46.027(1).
(2) Except as provided in subsections (7) and (8) of this section, RCW 48.14.020, 48.14.0201, and 48.14.060 apply to insurers or taxpayers identified in subsection (1) of this section.
(3) If an insurance contract, health care services contract, or health maintenance agreement covers risks or exposures, or enrolled participants only partially in this state, the tax payable is computed on the portion of the premium that is properly allocated to a risk or exposure located in this state, or enrolled participants residing in this state.
(4) In determining the amount of taxable premiums under subsection (3) of this section, all premiums, other than premiums properly allocated or apportioned and reported as taxable premiums of another state, that are written, procured, or received in this state, or that are for a policy or contract negotiated in this state, are considered to be written on risks or property resident, situated, or to be performed in this state, or for health care services to be provided to enrolled participants residing in this state.
(5) Insurance on risks or property resident, situated, or to be performed in this state, or health coverage for the provision of health care services for residents of this state, is considered to be insurance procured, continued, renewed, or performed in this state, regardless of the location from which the application is made, the negotiations are conducted, or the premiums are remitted.
(6) Premiums on risks or exposures that are properly allocated to federal waters or international waters or under the jurisdiction of a foreign government are not taxable by this state.
(7) This section does not apply to premiums on insurance procured by a licensed surplus line broker under chapter 48.15 RCW.
(8) This section does not apply to premiums on insurance that is issued by a registered eligible captive insurer under chapter 48.201 RCW.
[ 2021 c 281 s 8; 2008 c 217 s 8; 2003 c 341 s 3.]
Notes:
Application—2021 c 281 ss 8-11: "Sections 8 through 11 of this act apply both retroactively and prospectively." [ 2021 c 281 s 14.]
Effective date—2021 c 281: See note following RCW 48.201.010.
Severability—Effective date—2008 c 217: See notes following RCW 48.03.020.

catchline: Unlawful or delinquent insurers or taxpayers—Computing the tax payable—Risks, exposures, or enrolled participants only partially in state.


title: RCW 48.14.100

text:
Any foreign or alien insurer authorized to do business in this state which hereafter either withdraws from the state or has its certificate of authority suspended or revoked shall continue to pay premium taxes pursuant to this chapter as to policies upon risks or property resident, situated, or to be performed in this state, which policies were issued during the time the insurer was authorized in this state.
[ 1963 c 195 s 15.]

catchline: Foreign or alien insurers, continuing liability for taxes.


title: RCW 48.140.010

text:
The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
(1) "Claim" means a demand for monetary damages for injury or death caused by medical malpractice, and a voluntary indemnity payment for injury or death caused by medical malpractice made in the absence of a demand for monetary damages.
(2) "Claimant" means a person, including a decedent's estate, who is seeking or has sought monetary damages for injury or death caused by medical malpractice.
(3) "Closed claim" means a claim that has been settled or otherwise disposed of by the insuring entity, self-insurer, facility, or provider. A claim may be closed with or without an indemnity payment to a claimant.
(4) "Commissioner" means the insurance commissioner.
(5) "Economic damages" means objectively verifiable monetary losses, including medical expenses, loss of earnings, burial costs, loss of use of property, cost of replacement or repair, cost of obtaining substitute domestic services, loss of employment, and loss of business or employment opportunities.
(6) "Health care facility" or "facility" means a clinic, diagnostic center, hospital, laboratory, mental health center, nursing home, office, surgical facility, treatment facility, or similar place where a health care provider provides health care to patients, and includes entities described in RCW 7.70.020(3).
(7) "Health care provider" or "provider" has the same meaning as in RCW 7.70.020 (1) and (2).
(8) "Insuring entity" means:
(a) An insurer;
(b) A joint underwriting association;
(c) A risk retention group; or
(d) An unauthorized insurer that provides surplus lines coverage.
(9) "Medical malpractice" means an actual or alleged negligent act, error, or omission in providing or failing to provide health care services that is actionable under chapter 7.70 RCW.
(10) "Noneconomic damages" means subjective, nonmonetary losses including, but not limited to, pain, suffering, inconvenience, mental anguish, disability or disfigurement incurred by the injured party, emotional distress, loss of society and companionship, loss of consortium, injury to reputation and humiliation, and destruction of the parent-child relationship.
(11) "Self-insurer" means any health care provider, facility, or other individual or entity that assumes operational or financial risk for claims of medical malpractice.
[ 2023 c 102 s 6; 2006 c 8 s 201.]

catchline: Definitions.


title: RCW 48.140.020

text:
(1) For claims closed on or after January 1, 2008:
(a) Every insuring entity or self-insurer that provides medical malpractice insurance to any facility or provider in Washington state must report each medical malpractice closed claim to the commissioner.
(b) If a claim is not covered by an insuring entity or self-insurer, the facility or provider named in the claim must report it to the commissioner after a final claim disposition has occurred due to a court proceeding or a settlement by the parties.
Instances in which a claim may not be covered by an insuring entity or self-insurer include, but are not limited to, situations in which the:
(i) Facility or provider did not buy insurance or maintained a self-insured retention that was larger than the final judgment or settlement;
(ii) Claim was denied by an insuring entity or self-insurer because it did not fall within the scope of the insurance coverage agreement; or
(iii) Annual aggregate coverage limits had been exhausted by other claim payments.
(c) If a facility or provider is insured by a risk retention group and the risk retention group refuses to report closed claims and asserts that the federal liability risk retention act (95 Stat. 949; 15 U.S.C. Sec. 3901 et seq.) preempts state law, the facility or provider must report all data required by this chapter on behalf of the risk retention group.
(d) If a facility or provider is insured by an unauthorized insurer and the unauthorized insurer refuses to report closed claims and asserts a federal exemption or other jurisdictional preemption, the facility or provider must report all data required by this chapter on behalf of the unauthorized insurer.
(2) Beginning in 2009, reports required under subsection (1) of this section must be filed by March 1st, and include data for all claims closed in the preceding calendar year and any adjustments to data reported in prior years. The commissioner may adopt rules that require insuring entities, self-insurers, facilities, or providers to file closed claim data electronically.
(3) The commissioner may impose a fine of up to two hundred fifty dollars per day against any insuring entity, except a risk retention group, that violates the requirements of this section.
(4) The department of health, department of licensing, or department of social and health services may require a provider or facility to take corrective action to assure compliance with the requirements of this section.
[ 2007 c 32 s 1; 2006 c 8 s 202.]

catchline: Closed claim reporting requirements.


title: RCW 48.140.030

text:
Reports required under RCW 48.140.020 must contain the following information in a form and coding protocol prescribed by the commissioner that, to the extent possible and still fulfill the purposes of this chapter, are consistent with the format for data reported to the national practitioner data bank:
(1) Claim and incident identifiers, including:
(a) A claim identifier assigned to the claim by the insuring entity, self-insurer, facility, or provider; and
(b) An incident identifier if companion claims have been made by a claimant. For the purposes of this section, "companion claims" are separate claims involving the same incident of medical malpractice made against other providers or facilities;
(2) The medical specialty of the provider who was primarily responsible for the incident of medical malpractice that led to the claim;
(3) The type of health care facility where the medical malpractice incident occurred;
(4) The primary location within a facility where the medical malpractice incident occurred;
(5) The geographic location, by city and county, where the medical malpractice incident occurred;
(6) The injured person's sex and age on the incident date;
(7) The severity of malpractice injury using the national practitioner data bank severity scale;
(8) The dates of:
(a) The incident that was the proximate cause of the claim;
(b) Notice to the insuring entity, self-insurer, facility, or provider;
(c) Suit, if filed;
(d) Final indemnity payment, if any; and
(e) Final action by the insuring entity, self-insurer, facility, or provider to close the claim;
(9) Settlement information that identifies the timing and final method of claim disposition, including:
(a) Claims settled by the parties;
(b) Claims disposed of by a court, including the date disposed; or
(c) Claims disposed of by alternative dispute resolution, such as arbitration, mediation, private trial, and other common dispute resolution methods; and
(d) Whether the settlement occurred before or after trial, if a trial occurred;
(10) Specific information about the indemnity payments and defense expenses, as follows:
(a) For claims disposed of by a court that result in a verdict or judgment that itemizes damages:
(i) The total verdict or judgment;
(ii) If there is more than one defendant, the total indemnity paid by or on behalf of this facility or provider;
(iii) Economic damages;
(iv) Noneconomic damages; and
(v) Allocated loss adjustment expense, including but not limited to court costs, attorneys' fees, and costs of expert witnesses; and
(b) For claims that do not result in a verdict or judgment that itemizes damages:
(i) The total amount of the settlement;
(ii) If there is more than one defendant, the total indemnity paid by or on behalf of this facility or provider;
(iii) Paid and estimated economic damages; and
(iv) Allocated loss adjustment expense, including but not limited to court costs, attorneys' fees, and costs of expert witnesses;
(11) The reason for the medical malpractice claim. The reporting entity must use the same allegation group and act or omission codes used for mandatory reporting to the national practitioner data bank; and
(12) Any other claim-related data the commissioner determines to be necessary to monitor the medical malpractice marketplace, if such data are reported:
(a) To the national practitioner data bank; or
(b) Voluntarily by members of the physician insurers association of America as part of the association's data-sharing project.
[ 2006 c 8 s 203.]

catchline: Closed claim reports—Information requirements.


title: RCW 48.140.040

text:
The commissioner must prepare aggregate statistical summaries of closed claims based on data submitted under RCW 48.140.020.
(1) At a minimum, the commissioner must summarize data by calendar year and calendar/incident year. The commissioner may also decide to display data in other ways if the commissioner:
(a) Protects information as required under RCW 48.140.060(2); and
(b) Exempts from disclosure data described in *RCW 42.56.400(11).
(2) The summaries must be available by April 30th of each year, unless the commissioner notifies legislative committees by March 15th that data are not available and informs the committees when the summaries will be completed.
(3) Information included in an individual closed claim report submitted by an insuring entity, self-insurer, provider, or facility under this chapter is confidential and exempt from public disclosure, and the commissioner must not make these data available to the public.
[ 2006 c 8 s 204.]
Notes:
*Reviser's note: RCW 42.56.400 was amended by 2007 c 197 s 7, changing subsection (11) to subsection (10).

catchline: Statistical summaries.


title: RCW 48.140.050

text:
The commissioner must prepare an annual report that summarizes and analyzes the medical malpractice closed claim data filed under RCW 48.140.020 and 7.70.140 and the annual financial data filed with the national association of insurance commissioners by insuring entities writing medical malpractice insurance in this state. The commissioner must complete the report by September 1st.
(1) The report must include:
(a) An analysis of reported closed claims from prior years for which data are collected. The analysis must show:
(i) Trends in the frequency and severity of claim payments;
(ii) A comparison of economic and noneconomic damages;
(iii) A distribution of allocated loss adjustment expenses and other legal expenses;
(iv) The types of medical malpractice for which claims have been paid; and
(v) Any other information the commissioner finds relevant to trends in medical malpractice closed claims if the commissioner:
(A) Protects information as required under RCW 48.140.060(2); and
(B) Exempts from disclosure data described in RCW 42.56.400(10);
(b) An analysis of the medical malpractice insurance market in Washington state, including:
(i) An analysis of the financial data of the authorized insurers with a combined market share of at least 90 percent of direct written medical malpractice premium in Washington state for the prior calendar year;
(ii) A loss ratio analysis of medical malpractice insurance written in Washington state; and
(iii) A profitability analysis of the authorized insurers with a combined market share of at least 90 percent of direct written medical malpractice premium in Washington state for the prior calendar year;
(c) A comparison of loss ratios and the profitability of medical malpractice insurance in Washington state to other states based on financial data filed with the national association of insurance commissioners and any other source of information the commissioner deems relevant; and
(d) A summary of the rate filings for medical malpractice that have been approved by the commissioner for the prior calendar year, including an analysis of the trend of direct incurred losses as compared to prior years.
(2) The commissioner must post reports required by this section on the internet no later than 30 days after they are due.
(3) The commissioner may adopt rules that require insuring entities and self-insurers required to report under RCW 48.140.020 and subsection (1)(a) of this section to report data related to:
(a) The frequency and severity of closed claims for the reporting period; and
(b) Any other closed claim information that helps the commissioner monitor losses and claim development patterns in the Washington state medical malpractice insurance market.
[ 2025 c 243 s 12; 2006 c 8 s 205.]

catchline: Annual report.


title: RCW 48.140.060

text:
The commissioner must adopt all rules needed to implement this chapter. The rules must:
(1) Identify which insuring entity or self-insurer has the primary obligation to report a closed claim when more than one insuring entity or self-insurer is providing medical malpractice liability coverage to a single health care provider or a single health care facility that has been named in a claim;
(2) Protect information that, alone or in combination with other data, could result in the ability to identify a claimant, health care provider, health care facility, or self-insurer involved in a particular claim or collection of claims; and
(3) Specify standards and methods for the reporting by claimants, insuring entities, self-insurers, facilities, and providers.
[ 2006 c 8 s 206.]

catchline: Rules.


title: RCW 48.140.080

text:
This chapter does not amend or modify the statistical reporting requirements that apply to insurers under RCW 48.19.370.
[ 2006 c 8 s 208.]

catchline: Reporting requirements under RCW 48.19.370 not affected.


title: RCW 48.140.900

text: See notes following RCW 5.64.010.

catchline: Findings—Intent—Part headings and subheadings not law—Severability—2006 c 8.


title: RCW 48.15.010

text:
The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
(1) "Affiliate" means, with respect to an insured, any entity that controls, is controlled by, or is under common control with the insured.
(2) "Affiliated group" means any group of entities that are all affiliated.
(3) With respect to an insured, an entity has "control" over another entity when:
(a) The entity directly or indirectly or acting through one or more other persons owns, controls, or has the power to vote twenty-five percent or more of any class of voting securities of the other entity; or
(b) The entity controls in any manner the election of a majority of the directors or trustees of the other entity.
(4)(a) "Exempt commercial purchaser" means any person purchasing commercial insurance that, at the time of placement, meets the following requirements:
(i) The person employs or retains a qualified risk manager to negotiate insurance coverage;
(ii) The person has paid aggregate nationwide commercial property and casualty insurance premiums in excess of one hundred thousand dollars in the immediately preceding twelve months; and
(iii) The person meets at least one of the following criteria:
(A) The person possesses a net worth in excess of twenty million dollars, as the amount is adjusted under (b) of this subsection;
(B) The person generates annual revenues in excess of fifty million dollars, as the amount is adjusted under (b) of this subsection;
(C) The person employs more than five hundred full-time or full-time equivalent employees per insured or is a member of an affiliated group employing more than one thousand employees in the aggregate;
(D) The person is a not-for-profit organization or public entity generating annual budgeted expenditures of at least thirty million dollars, as the amount is adjusted under (b) of this subsection; or
(E) The person is a municipality with a population in excess of fifty thousand persons.
(b) The amounts in (a)(iii)(A), (B), and (D) of this subsection must be adjusted to reflect the percentage change for the five-year period in the consumer price index for all urban consumers published by the bureau of labor statistics of the United States department of labor.
(c) For the purpose of this subsection, "commercial insurance" means property and casualty insurance pertaining to a business, profession, occupation, nonprofit organization, or public entity.
(5)(a) Except as provided in (b) of this subsection, "insured's home state" means, with respect to an insured:
(i) The state in which an insured maintains its principal place of business or, in the case of an individual, the individual's principal residence; or
(ii) If one hundred percent of the insured risk is located out of the state referred to in this subsection, the state to which the greatest percentage of the insured's taxable premium for that insurance contract is allocated.
(b) If more than one insured from an affiliated group are named insureds on a single insurance contract issued by an unauthorized insurer, the term "insured's home state" means the insured's home state, as determined pursuant to (a) of this subsection, of the member of the affiliated group that has the largest percentage of premium attributed to it under the insurance contract.
(c) To determine the home state of the insured, the principal place of business is the state where the insured maintains its headquarters and where the insured's high-level officers direct, control, and coordinate the business activities of the insured.
(6) "Qualified risk manager" means, with respect to a policyholder of commercial insurance, a person who meets all of the following requirements:
(a) The person is an employee of, or third-party consultant retained by, the commercial policyholder;
(b) The person provides skilled services in loss prevention, loss reduction, or risk and insurance coverage analysis, and purchase of insurance; and
(c) The person:
(i)(A) Has a bachelor's degree or higher from an accredited college or university in risk management, business administration, finance, economics, or any other field determined by the commissioner to demonstrate minimum competence in risk management; and
(B)(I) Has three years of experience in risk financing, claims administration, loss prevention, risk and insurance analysis, or purchasing commercial lines of insurance; or
(II) Has one of the following designations:
(AA) A designation as a chartered property and casualty underwriter (CPCU) issued by the American institute for CPCU/insurance institute of America;
(BB) A designation as an associate in risk management issued by the American institute for CPCU/insurance institute of America;
(CC) A designation as [a] certified risk manager issued by the national alliance for insurance education and research;
(DD) A designation as a RIMS fellow issued by the global risk management institute; or
(EE) Any other designation, certification, or license determined by the commissioner to demonstrate minimum competency in risk management;
(ii)(A) Has at least seven years of experience in risk financing, claims administration, loss prevention, risk and insurance coverage analysis, or purchasing commercial lines of insurance; and
(B) Has any one of the designations specified in (c)(i)(B)(II)(AA) through (EE) of this subsection;
(iii) Has at least ten years of experience in risk financing, claims administration, loss prevention, risk and insurance coverage analysis, or purchasing commercial lines of insurance; or
(iv) Has a graduate degree from an accredited college or university in risk management, business administration, finance, economics, or any other field determined by the commissioner to demonstrate minimum competence in risk management.
[ 2011 c 31 s 1.]
Notes:
Effective date—2011 c 31: "Sections 1, 2, and 4 through 9 of this act are necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing institutions, and take effect July 21, 2011." [ 2011 c 31 s 12.]


title: RCW 48.15.015

text:
The commissioner may adopt rules to implement and administer this chapter.
[ 2009 c 162 s 12.]
Notes:
Effective date—2009 c 162: See note following RCW 48.03.020.


title: RCW 48.15.020

text:
(1) An insurer that is not authorized by the commissioner may not solicit insurance business in this state or transact insurance business in this state, except as provided in this chapter.
(2)(a) A person may not, in this state, represent an unauthorized insurer except as provided in this chapter. This subsection does not apply to any adjuster or attorney-at-law representing an unauthorized insurer from time to time in this state in his or her professional capacity.
(b) A person, other than a duly licensed surplus line broker acting in good faith under his or her license, who makes a contract of insurance in this state, directly or indirectly, on behalf of an unauthorized insurer, without complying with the provisions of this chapter, is personally liable for the performance of such contract.
(3) Each violation of subsection (2) of this section constitutes a separate offense punishable by a fine of not more than twenty-five thousand dollars, and the commissioner, at the commissioner's discretion, may order replacement of policies improperly placed with an unauthorized insurer with policies issued by an authorized insurer. Violations may result in suspension or revocation of a license.
[ 2003 c 250 s 2; 1992 c 149 s 1; 1983 1st ex.s. c 32 s 3; 1980 c 102 s 2; 1947 c 79 s .15.02; Rem. Supp. 1947 s 45.15.02.]
Notes:
Severability—2003 c 250: See note following RCW 48.01.080.

catchline: Solicitation by unauthorized insurer prohibited—Personal liability.


title: RCW 48.15.023

text:
(1) As used in this section, "person" has the same meaning as in RCW 48.01.070.
(2) For the purpose of this section, an act is committed in this state if it is committed, in whole or in part, in the state of Washington, or affects persons or property within the state and relates to or involves an insurance contract.
(3) Any person who knowingly violates RCW 48.15.020(1) is guilty of a class B felony punishable under chapter 9A.20 RCW.
(4) Any criminal penalty imposed under this section is in addition to, and not in lieu of, any other civil or administrative penalty or sanction otherwise authorized under state law.
(5)(a) If the commissioner has cause to believe that any person has violated the provisions of RCW 48.15.020(1), the commissioner may:
(i) Issue and enforce a cease and desist order in accordance with the provisions of RCW 48.02.080; and/or
(ii) Assess a civil penalty of not more than twenty-five thousand dollars for each violation, after providing notice and an opportunity for a hearing in accordance with chapters 34.05 and 48.04 RCW.
(b) Upon failure to pay a civil penalty when due, the attorney general may bring a civil action on behalf of the commissioner to recover the unpaid penalty. Any amounts collected by the commissioner must be paid to the state treasurer for the account of the general fund.
[ 2003 c 250 s 3.]
Notes:
Severability—2003 c 250: See note following RCW 48.01.080.

catchline: Unauthorized activities—Acts committed in this state—Sanctions.


title: RCW 48.15.025

text:
(1) A surplus line broker shall not engage in any act prohibited by RCW 48.05.465(2), 48.43.335(2), and chapter 48.30 RCW.
(2) A surplus line broker is entitled to the immunities granted under RCW 48.43.105 and 48.50.070.
(3) The rights and prohibitions applicable to insurance producers contained in RCW 48.30.260, 48.30.270, and 48.62.121 also apply to surplus line brokers.
(4) The exemption for taxes and fees in RCW 48.62.151 does not apply to surplus line brokers.
[ 2009 c 162 s 8.]
Notes:
Effective date—2009 c 162: See note following RCW 48.03.020.

catchline: Application of other chapters to surplus line brokers.


title: RCW 48.15.030

text:
A contract of insurance effectuated by an unauthorized insurer in violation of the provisions of this code shall be voidable except at the instance of the insurer.
[1947 c 79 s .15.03; Rem. Supp. 1947 s 45.15.03.]

catchline: Validity of contracts illegally effectuated.


title: RCW 48.15.039

text:
When a national insurance producer database of the national association of insurance commissioners, or other equivalent uniform national database, for the licensure of surplus line brokers is created, the commissioner may participate in the database.
[ 2011 c 31 s 4.]
Notes:
Effective date—2011 c 31: See note following RCW 48.15.010.

catchline: National database—Surplus line brokers.


title: RCW 48.15.040

text:
If certain insurance coverages cannot be procured from authorized insurers, such coverages, hereinafter designated as "surplus lines," may be procured from unauthorized insurers subject to the following conditions:
(1) The insurance must be procured through a licensed surplus line broker under this chapter. If the insurance is property and casualty insurance, except industrial insurance under Title 51 RCW, then the insurance must be procured under the laws and rules of the insured's home state.
(2) The insurance must not be procurable, after diligent effort has been made to do so from among a majority of the insurers authorized to transact that kind of insurance in this state.
(3) Coverage shall not be procured from an unauthorized insurer for the purpose of securing a lower premium rate than would be accepted by any authorized insurer nor to secure any other competitive advantage.
(4) The commissioner may by regulation establish the degree of effort required to comply with subsections (2) and (3) of this section.
(5) At the time of procuring the insurance the surplus line broker must certify to the accuracy of the facts supporting the surplus line broker's diligent effort required in subsections (2) and (3) of this section.
(a) The certification must set forth the facts supporting the surplus line broker's diligent effort.
(b) The certification must state that under the penalty of suspension or revocation of the surplus line broker's license the facts contained in the certification are true and correct.
(c) The certification may be in electronic, digital, or another format as designated by the commissioner.
(d) The certification must be filed with the commissioner within sixty days after the insurance is procured.
[ 2011 c 31 s 3; (2011 c 31 s 2 expired December 31, 2016); (2010 c 230 s 17 expired December 31, 2016); 1983 1st ex.s. c 32 s 4; 1947 c 79 s .15.04; Rem. Supp. 1947 s 45.15.04.]
Notes:
Effective date—2011 c 31 s 3: "Section 3 of this act takes effect December 31, 2016." [ 2011 c 31 s 11.]
Expiration date—2011 c 31 s 2: "Section 2 of this act expires December 31, 2016." [ 2011 c 31 s 10.]
Effective date—2011 c 31: See note following RCW 48.15.010.

catchline: "Surplus line" coverage.


title: RCW 48.15.043

text:
A surplus line broker seeking to procure from or place insurance with an unauthorized insurer for an exempt commercial purchaser is not required to satisfy the diligent effort requirement set forth in RCW 48.15.040 when:
(1) The surplus line broker or referring insurance producer procuring or placing the surplus line insurance has disclosed to the exempt commercial purchaser that such insurance may or may not be available from the admitted market that may provide greater protection with more regulatory oversight; and
(2) The exempt commercial purchaser has subsequently requested in writing the surplus line broker or referring insurance producer to procure or place such insurance from an unauthorized insurer.
(3) Records of the surplus line broker's satisfaction of the requirements of this section must be maintained in compliance with RCW 48.15.100.
[ 2011 c 31 s 5.]
Notes:
Effective date—2011 c 31: See note following RCW 48.15.010.

catchline: Diligent effort requirement—Exempt commercial purchaser.


title: RCW 48.15.050

text:
Every insurance contract procured and delivered as a surplus line coverage pursuant to this chapter must have stamped upon it and be initialed by or bear the name of the surplus line broker who procured it, the following:
"This contract is registered and delivered as a surplus line coverage under the insurance code of the state of Washington, Title 48 RCW."
[ 2015 c 132 s 1; 1947 c 79 s .15.05; Rem. Supp. 1947 s 45.15.05.]

catchline: Endorsement of contract.


title: RCW 48.15.060

text:
Insurance contracts procured as surplus line coverage from unauthorized insurers in accordance with this chapter shall be fully valid and enforceable as to all parties, and shall be given recognition in all matters and respects to the same effect as like contracts issued by authorized insurers.
[1947 c 79 s .15.06; Rem. Supp. 1947 s 45.15.06.]

catchline: Validity of contracts.


title: RCW 48.15.070

text:
Any individual while a resident of this state, or any firm, corporation, or other business entity that has in its employ a qualified individual who is a resident of this state and who is authorized to exercise the powers of the firm or corporation, deemed by the commissioner to be competent and trustworthy, and while maintaining an office at a designated location in this state, may be licensed as a surplus line broker in accordance with this section.
(1) An applicant and a licensee for a resident surplus line broker license must have and maintain a license from the commissioner as a resident insurance producer with property and casualty lines of authority.
(2) Each applicant for a resident surplus line broker's license must pass the required examination and pay the required fee when applying for a license.
(3) If a nonresident that is licensed as a resident surplus line broker in another state moves to this state and wishes to become licensed as a resident surplus line broker in this state, then the examination requirement is waived if the application is received by the commissioner within ninety days of the cancellation of the surplus line broker's resident license in the other state.
(4) Application to the commissioner for the license must be made on forms furnished by the commissioner. As part of, or in connection with, this application, the applicant must furnish information concerning his or her identity, including fingerprints for submission to the Washington state patrol, the federal bureau of investigation, and any governmental agency or entity authorized to receive this information for a state and national criminal history background check; personal history; experience; business records; purposes; and other pertinent information, as the commissioner may reasonably require. If in the process of verifying fingerprints, business records, or other information, the commissioner's office incurs fees or charges from another governmental agency or from a business firm, the amount of the fees or charges must be paid to the commissioner's office by the applicant.
(5) Every resident surplus line broker licensed under this chapter must maintain a bond in favor of the state of Washington in the penal sum of twenty thousand dollars, with authorized corporate sureties approved by the commissioner, conditioned that the licensee will conduct business under the license in accordance with the provisions of this chapter and that the licensee will promptly remit the taxes provided by RCW 48.15.120. The licensee must maintain such bond in force for as long as the license remains in effect.
(6) Every resident surplus line broker licensed under this chapter must maintain in force while so licensed a bond in favor of the people of the state of Washington or a named insured such that the people of the state are covered by the bond, executed by an authorized corporate surety approved by the commissioner, in the amount of two thousand five hundred dollars, or five percent of the premiums from placement of coverage with surplus line insurers in the previous calendar year, whichever is greater, but not to exceed one hundred thousand dollars total aggregate liability. The bond may be continuous in form, and total aggregate liability on the bond may be limited to the required amount of the bond. The bond must be contingent on the accounting by the resident surplus line broker to any person requesting the broker to obtain insurance, for moneys or premiums collected in connection therewith. A bond issued in accordance with RCW 48.17.250 or with this subsection will satisfy the requirements of both RCW 48.17.250 and this subsection if the limit of liability is not less than the greater of the requirement of RCW 48.17.250 or the requirement of this subsection.
(7) Authorized surplus line brokers of a business entity may meet the requirements of subsection (6) of this section with a bond in the name of the business entity, continuous in form, and in the amount set forth in subsection (6) of this section.
(8) Surplus line brokers may meet the requirements of this section with a bond in the name of an association. The association must have been in existence for five years, have common membership, and have been formed for a purpose other than obtaining a bond. An individual surplus line broker remains responsible for assuring that a bond is in effect and is for the correct amount.
(9) Members of an association may meet the requirements of subsection (6) of this section with a bond in the name of the association that is continuous in form and in the amounts set forth in subsection (6) of this section for each participating member.
(10) The surety may cancel the bond and be released from further liability thereunder upon thirty days' written notice in advance to the principal. The cancellation does not affect any liability incurred or accrued under the bond before the termination of the thirty-day period.
(11) Failure to have and maintain the bonds required under subsections (5) and (6) of this section is grounds for revocation of a license under RCW 48.15.140.
(12) If a party injured under the terms of the bond required under subsection (6) of this section requests the surplus line broker to provide the name of the surety and the bond number, the surplus line broker must provide the information within three working days after receiving the request.
(13) All records relating to the bonds required by this section must be kept available and open to the inspection of the commissioner at any business time.
(14) A surplus line broker's license expires if not timely renewed. Surplus line broker licenses are valid for the time period established by the commissioner unless suspended or revoked at an earlier date.
(15) Subject to the right of the commissioner to suspend, revoke, or refuse to renew any surplus line broker's license as provided in this title, the license may be renewed into another like period by filing with the commissioner by any means acceptable to the commissioner on or before the expiration date a request, by or on behalf of the licensee, for the renewal accompanied by payment of the renewal fee as specified in RCW 48.14.010.
(16) If the request and fee for renewal of a surplus line broker's license are filed with the commissioner prior to expiration of the existing license, the licensee may continue to act under the license, unless sooner revoked or suspended, until the issuance of a renewal license, or until the expiration of fifteen days after the commissioner has refused to renew the license and has mailed notification of the refusal to the licensee. If the request and fee for the license are not received by the expiration date, the authority conferred by the license ends on the expiration date.
(17) If the request for renewal of a surplus line broker's license and payment of the fee are not received by the commissioner prior to the expiration date, the applicant for renewal must pay to the commissioner in addition to the renewal fee, a surcharge as follows:
(a) For the first thirty days or part thereof of delinquency, the surcharge is fifty percent of the renewal fee; and
(b) For the next thirty days or part thereof of delinquency, the surcharge is one hundred percent of the renewal fee.
(18) If the request for renewal of a surplus line broker's license and payment of the renewal fee are not received by the commissioner after sixty days but prior to twelve months after the expiration date, the application must be for reinstatement of the license and the applicant for reinstatement must pay to the commissioner the license fee and a surcharge of two hundred percent of the license fee.
(19) Subsections (17) and (18) of this section do not exempt any person from any penalty provided by law for transacting business without a valid and subsisting license.
(20) An individual surplus line broker who allows his or her license to lapse may, within twelve months after the expiration date, reinstate the same license without the necessity of passing a written examination.
(21) For the purposes of this section, a "qualified individual" is a natural person who has met all the requirements that must be met by an individual surplus line broker.
(22) The commissioner may require any documents reasonably necessary to verify the information contained in an application and may, from time to time, require any licensed surplus line broker to produce the information called for in an application for license.
[ 2017 c 49 s 1; 2010 c 18 s 1; 2009 c 162 s 3; 2002 c 227 s 3; 1994 c 131 s 3; 1983 1st ex.s. c 32 s 24; 1982 c 181 s 5; 1981 c 199 s 1; 1980 c 102 s 3; 1979 ex.s. c 130 s 3; 1977 ex.s. c 182 s 2; 1959 c 225 s 4; 1947 c 79 s .15.07; Rem. Supp. 1947 s 45.15.07.]
Notes:
Effective date—2017 c 49: "This act takes effect January 1, 2018." [ 2017 c 49 s 3.]
Effective date—2010 c 18: "This act takes effect July 26, 2010." [ 2010 c 18 s 6.]
Effective date—2009 c 162: See note following RCW 48.03.020.
Effective date—2002 c 227: See note following RCW 48.06.040.
Severability—1982 c 181: See note following RCW 48.03.010.


title: RCW 48.15.073

text:
(1) The commissioner may license a nonresident person as a surplus line broker who is not a resident of this state if the person's resident state issues nonresident surplus line broker licenses to residents of this state on the same basis.
(2) A nonresident that holds a surplus line broker's license, or the equivalent, in the applicant's home state, and that license is in good standing is deemed qualified and meets the minimum standards of this state for licensing as a nonresident surplus line broker.
(3) Once a person has been issued a nonresident surplus line broker's license by the commissioner, the licensee must fulfill all the same responsibilities as a resident surplus line broker, except for bonding, and is subject to the (a) commissioner's supervision as though resident in this state and (b) rules adopted under this chapter.
(4) A nonresident surplus line broker's license expires if not timely renewed. A nonresident surplus line broker's license is valid for the time period established by the commissioner unless suspended or revoked at an earlier date. The request and fee for the renewal of the license is the same as the renewal and fee requirements for a resident surplus line broker licensed under RCW 48.15.070.
(5) Each licensed nonresident surplus line broker, by application for and issuance of a license, is deemed to have appointed the commissioner as the surplus line broker's attorney to receive service of legal process issued against the surplus line broker in this state upon causes of action arising within this state. Service upon the commissioner as attorney constitutes effective legal service upon the surplus line broker.
(a) The appointment of the commissioner as attorney is irrevocable, binds any successor in interest or to the assets or liabilities of the surplus line broker, and remains in effect for as long as there could be any cause of action against the surplus line broker arising out of the surplus line broker's insurance transactions in this state.
(b) Service of legal process must be accomplished and processed in the manner prescribed in RCW 48.02.200.
[ 2017 c 49 s 2; 2010 c 18 s 2; 2009 c 162 s 4; 2001 c 91 s 1.]
Notes:
Effective date—2017 c 49: See note following RCW 48.15.070.
Effective date—2010 c 18: See note following RCW 48.15.070.
Effective date—2009 c 162: See note following RCW 48.03.020.

catchline: Nonresident surplus line brokers—Licensing—Reciprocity—Service of process.


title: RCW 48.15.080

text:
A licensed surplus line broker may accept and place surplus line business for any insurance producer licensed in this state for the kind of insurance involved, and may compensate that insurance producer therefor.
[ 2008 c 217 s 9; 1947 c 79 s .15.08; Rem. Supp. 1947 s 45.15.08.]
Notes:
Severability—Effective date—2008 c 217: See notes following RCW 48.03.020.

catchline: Licensed surplus line broker may accept business.


title: RCW 48.15.085

text:
(1) If pursuant to the surplus lines provisions of this chapter an insurer has assumed direct risk under a coverage and the premium therefor has been paid to the broker who placed such insurance, the insurer shall be liable to the insured for unearned premiums payable upon cancellation of the insurance, whether or not the broker is indebted to the insurer for such premium or otherwise. This provision shall not affect rights as between the insurer and the broker.
(2) Each such insurer shall be deemed to have subjected itself to this section by acceptance of such direct risk.
[ 1959 c 225 s 5.]

catchline: Liability of insurer assuming direct risk.


title: RCW 48.15.090

text:
(1) A surplus line broker must not knowingly place surplus line insurance with insurers unsound financially. The surplus line broker must ascertain the financial condition of the unauthorized insurer, and maintain written evidence thereof, before placing insurance therewith. The surplus line broker may only so insure with:
(a)(i) Any foreign insurer:
(A) That is authorized to write the kind of insurance in its domiciliary jurisdiction; and
(B) Has capital and surplus or its equivalent under the laws of its domiciliary jurisdiction which equals the greater of:
(I) The minimum capital and surplus requirements under the laws of this state; or
(II) Fifteen million dollars.
(ii) The requirements of (a)(i)(B) of this subsection may be satisfied by an insurer's possessing less than the minimum capital and surplus upon an affirmative finding of acceptability by the commissioner. The finding must be based upon factors such as quality of management, capital and surplus of any parent company, company underwriting profit and investment income trends, market availability, and company record and reputation within the industry. The commissioner is prohibited from making an affirmative finding of acceptability when the foreign insurer's capital and surplus is less than four million five hundred thousand dollars; or
(b) Any alien insurer that is listed on the quarterly listing of alien insurers maintained by the international insurers department of the national association of insurance commissioners.
(2) The commissioner may, by rule, prescribe the terms under which the foregoing financial requirements may be waived in circumstances where insurance cannot be otherwise procured on risks located in this state.
(3) For any violation of this section the surplus line broker may be fined not less than one hundred dollars or more than five thousand dollars, and in addition to or in lieu thereof the surplus line broker's license may be revoked, suspended, or nonrenewed.
[ 2011 c 31 s 6; 1997 c 89 s 1; 1994 c 86 s 2; 1991 sp.s. c 5 s 2; 1980 c 102 s 4; 1975 1st ex.s. c 266 s 6; 1969 ex.s. c 241 s 10; 1955 c 303 s 5; 1947 c 79 s .15.09; Rem. Supp. 1947 s 45.15.09.]
Notes:
Effective date—2011 c 31: See note following RCW 48.15.010.
Effective date—1997 c 89: "This act takes effect June 1, 1998." [ 1997 c 89 s 2.]
Effective date—1994 c 86: "This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect immediately [March 23, 1994]." [ 1994 c 86 s 3.]
Effective date—1991 sp.s. c 5: See note following RCW 48.05.340.
Severability—1975 1st ex.s. c 266: See note following RCW 48.01.010.

catchline: Solvent insurer required—Rules.


title: RCW 48.15.100

text:
(1) Each licensed surplus line broker shall keep a full and true record of each surplus line contract procured by him or her including a copy of the daily report, if any, showing such of the following items as may be applicable:
(a) Amount of the insurance;
(b) Gross premiums charged;
(c) Return premium paid, if any;
(d) Rate of premium charged upon the several items of property;
(e) Effective date of the contract, and the terms thereof;
(f) Name and address of the insurer;
(g) Name and address of the insured;
(h) Brief general description of property insured and where located;
(i) Other information as may be required by the commissioner.
(2) All such records as to any particular transaction shall be kept available and open to the inspection of the commissioner at any business time during the five years next following the date of completion of such transaction.
(3) For the purpose of ascertaining its condition, or compliance with this title, the commissioner may as often as he or she deems advisable, examine the accounts, records, documents, and transactions of any surplus line broker as set forth in chapter 48.03 RCW.
[ 2009 c 162 s 5; 1955 c 303 s 6; 1947 c 79 s .15.10; Rem. Supp. 1947 s 45.15.10.]
Notes:
Effective date—2009 c 162: See note following RCW 48.03.020.

catchline: Record of surplus line broker.


title: RCW 48.15.103

text:
(1) A surplus line broker doing business under any name other than the surplus line broker's legal name is required to register the name in accordance with chapter 19.80 RCW and notify the commissioner before using the assumed name.
(2) Every licensed surplus line broker shall have and maintain in this state, or, if a nonresident surplus line broker, in this state or in the state of the licensee's domicile, a place of business accessible to the public. The place of business is where the surplus line broker principally conducts transactions under that person's license. A licensee maintaining more than one place of business in this state shall obtain a duplicate license or licenses for each additional place, and shall pay the full fee therefor.
(3) Every licensed surplus line broker and other person licensed under this chapter shall provide the commissioner with a current email address and update the commissioner within 30 days of any change in email address. The commissioner may send a written communication by email to a licensee's last email address of record with the commissioner if:
(a) The communication is not required to be sent to the person's mailing address pursuant to subsection (4) of this section;
(b) The person has affirmatively consented to receive communications from the commissioner by email; and
(c)(i) The email from the commissioner does not require a response; or
(ii) If a response is required, the requirements under subsection (8)(b) of this section are met prior to the commissioner sending the email.
(4) Any notice, order, or written communication, including any notification of investigation; notification of audit and findings resulting from such audit; or written communication from the commissioner under subsection (8)(c)(ii) of this section, from the commissioner to a person licensed under this chapter which directly affects the person's license shall be sent by mail to the person's last address of record with the commissioner.
(5) The license or licenses of each surplus line broker shall be displayed in a conspicuous place in that part of the place of business which is customarily open to the public.
(6) If a surplus line broker is dealing directly with the insured in any capacity, the surplus line broker must comply with the disclosure requirements contained in RCW 48.17.270.
(7) Every surplus line broker or other person licensed under this chapter shall timely respond in writing to an inquiry of the commissioner sent to the person's mailing address relative to the business of insurance. A timely response is one that is received by the commissioner within 15 business days from receipt of the inquiry. Failure to make a timely response constitutes a violation of this section and may result in a penalty under RCW 48.17.530 or 48.17.560.
(8)(a) A surplus line broker or other person licensed under this chapter shall timely respond in writing to an inquiry of the commissioner sent to the person's email address relative to the business of insurance. A timely response is one that is received by the commissioner within 15 business days from receipt of the inquiry. Failure to make a timely response constitutes a violation of this subsection if the requirements of (c) of this subsection are met.
(b)(i) When an email from the commissioner requires a response in accordance with this subsection, the commissioner shall:
(A) Send no fewer than two separate emails with a subject line stating "Response Required"; and
(B) Prominently display in large font type in the body of each email the following: "FAILURE TO TIMELY RESPOND TO THIS EMAIL IS A VIOLATION OF RCW 48.15.103 AND IS SUBJECT TO PENALTIES UNDER RCW 48.15.140 AND 48.17.560 INCLUDING FINES AND LICENSE REVOCATION. A TIMELY RESPONSE IS ONE RECEIVED BY THE COMMISSIONER WITHIN 15 BUSINESS DAYS OF YOUR RECEIPT OF THIS INQUIRY."
(ii) If the commissioner sends an inquiry by email and is notified that the email is undeliverable, the commissioner shall resend the notice once by mail to the person's last known address on record with the commissioner.
(c) A person is only in violation of this section if: (i) The commissioner complies with the requirements in (b) of this subsection; (ii) the commissioner sends a third and final written inquiry by certified mail to the person's last mailing address registered with the commissioner that follows the requirements of (b)(i)(B) of this subsection; and (iii) the commissioner fails to receive a response within 15 business days of the licensee's receipt of the inquiry.
(9) Email communication sent to an applicant prior to the issuance of a license, and auto-generated system emails regarding a license application or license renewal processes, are excluded from the requirements of subsection (8) of this section.
(10) A surplus line broker shall report to the commissioner any administrative action taken against the surplus line broker in another jurisdiction or by another governmental agency in this state within 30 days of the final disposition of the matter. This report must include a copy of the order, consent to order, or other relevant legal documents.
(11) Within 30 days of the initial pretrial hearing date, a surplus line broker shall report to the commissioner any criminal prosecution of the surplus line broker taken in any jurisdiction. The report must include a copy of the initial complaint filed, the order resulting from the hearing, and any other relevant legal documents.
[ 2023 c 27 s 4; 2009 c 162 s 6.]
Notes:
Effective date—2023 c 27: See note following RCW 48.17.170.
Effective date—2009 c 162: See note following RCW 48.03.020.

catchline: Use of business name—Place of business—Duties of surplus line broker.


title: RCW 48.15.110

text:
(1) Each surplus line broker must on or before the first day of March of each year file with the commissioner a verified statement of all surplus line insurance transacted by him or her during the preceding calendar year.
(2) The statement must be in a form and format as prescribed by the commissioner and must show:
(a) Aggregate of net premiums; and
(b) Additional information as required by the commissioner.
(3) This section does not apply to property and casualty insurance procured by the surplus line broker when the insured's home state is a state other than this state.
[ 2011 c 31 s 7; 2009 c 549 s 7058; 1955 c 303 s 7; 1947 c 79 s .15.11; Rem. Supp. 1947 s 45.15.11.]
Notes:
Effective date—2011 c 31: See note following RCW 48.15.010.

catchline: Broker's annual statement.