title: RCW 48.05.480

text:
There is no liability on the part of, and no cause of action may arise against, the commissioner or insurance department or its employees or agents for any action taken by them in the performance of their powers and duties under RCW 48.05.430 through * 48.05.490.
[ 1995 c 83 s 11.]
Notes:
*Reviser's note: RCW 48.05.490 was repealed by 2006 c 25 s 11.

catchline: No liability for regulation of capital and surplus requirements.


doc_type: statute

jurisdiction: wa

title: RCW 48.05.485

text:
All notices by the commissioner to an insurer that may result in regulatory action are effective upon dispatch if transmitted by registered or certified mail, or in the case of any other transmission are effective upon the insurer's receipt of the notice.
[ 1995 c 83 s 12.]

license: public-domain-government-work

rule_set: Revised Code of Washington

catchline: Notices by commissioner—When effective.

code: rcw

unit: section

court: Washington State Legislature


title: RCW 48.05.510

text:
(1) Every insurer domiciled in this state shall file a report with the commissioner disclosing material acquisitions and dispositions of assets or material nonrenewals, cancellations, or revisions of ceded reinsurance agreements unless these acquisitions and dispositions of assets or material nonrenewals, cancellations, or revisions of ceded reinsurance agreements have been submitted to the commissioner for review, approval, or information purposes under other provisions of this title or other requirements.
(2) The report required in subsection (1) of this section is due within fifteen days after the end of the calendar month in which any of the transactions occur.
(3) One complete copy of the report, including any exhibits or other attachments filed as part of the report, shall be filed with the:
(a) Commissioner; and
(b) National association of insurance commissioners.
(4) All reports obtained by or disclosed to the commissioner under this section and RCW 48.05.515 through 48.05.535 are exempt from public inspection and copying and are not subject to subpoena. These reports shall not be made public by the commissioner, the national association of insurance commissioners, or any other person, except to insurance departments of other states, without the prior written consent of the insurer to which it pertains unless the commissioner, after giving the insurer that would be affected by disclosure notice and a hearing under chapter 48.04 RCW, determines that the interest of policyholders, shareholders, or the public will be served by the publication, in which event the commissioner may publish all or any part of the report in the manner he or she deems appropriate.
[ 1995 c 86 s 1.]

catchline: Disclosure of certain material transactions—Insurer's report—Information is confidential.


title: RCW 48.05.515

text:
No acquisitions or dispositions of assets need be reported under RCW 48.05.510 if the acquisitions or dispositions are not material. For purposes of RCW 48.05.510 through 48.05.535, a material acquisition, or the aggregate of any series of related acquisitions during any thirty-day period; or disposition, or the aggregate of any series of related dispositions during any thirty-day period is an acquisition or disposition that is nonrecurring and not in the ordinary course of business and involves more than five percent of the reporting insurer's total assets as reported in its most recent statutory statement filed with the commissioner.
[ 1995 c 86 s 2.]

catchline: Material acquisitions or dispositions.


title: RCW 48.05.520

text:
(1) Asset acquisitions subject to RCW 48.05.510 through 48.05.535 include every purchase, lease, exchange, merger, consolidation, succession, or other acquisition other than the construction or development of real property by or for the reporting insurer or the acquisition of materials for such a purpose.
(2) Asset dispositions subject to RCW 48.05.510 through 48.05.535 include every sale, lease, exchange, merger, consolidation, mortgage, hypothecation, abandonment, destruction, other disposition, or assignment, whether the assignment is for the benefit of creditors or otherwise.
[ 1995 c 86 s 3.]

catchline: Asset acquisitions—Asset dispositions.


title: RCW 48.05.525

text:
(1) The following information is required to be disclosed in any report of a material acquisition or disposition of assets:
(a) Date of the transaction;
(b) Manner of acquisition or disposition;
(c) Description of the assets involved;
(d) Nature and amount of the consideration given or received;
(e) Purpose of or reason for the transaction;
(f) Manner by which the amount of consideration was determined;
(g) Gain or loss recognized or realized as a result of the transaction; and
(h) Names of the persons from whom the assets were acquired or to whom they were disposed.
(2) Insurers are required to report material acquisitions and dispositions on a nonconsolidated basis unless the insurer is part of a consolidated group of insurers that utilizes a pooling arrangement or one hundred percent reinsurance agreement that affects the solvency and integrity of the insurer's reserves and such an insurer ceded substantially all of its direct and assumed business to the pool. An insurer has ceded substantially all of its direct and assumed business to a pool if the insurer has less than one million dollars total direct plus assumed written premiums during a calendar year that are not subject to a pooling arrangement and the net income of the business not subject to the pooling arrangement represents less than five percent of the insurer's capital and surplus.
[ 1995 c 86 s 4.]

catchline: Report of a material acquisition or disposition of assets—Information required.


title: RCW 48.05.530

text:
(1) No nonrenewals, cancellations, or revisions of ceded reinsurance agreements need be reported under RCW 48.05.510 if the nonrenewals, cancellations, or revisions are not material. For purposes of RCW 48.05.510 through 48.05.535, a material nonrenewal, cancellation, or revision is one that affects:
(a) More than fifty percent of a property and casualty insurer's total ceded written premium;
(b) More than fifty percent of the property and casualty insurer's total ceded indemnity and loss adjustment reserves;
(c) More than fifty percent of a nonproperty and casualty insurer's total reserve credit taken for business ceded, on an annualized basis, as indicated in the insurer's most recent annual statement;
(d) More than ten percent of an insurer's total cession when it is replaced by one or more unauthorized reinsurers; or
(e) Previously established collateral requirements, when they have been reduced or waived as respects one or more unauthorized reinsurers representing collectively more than ten percent of a total cession.
(2) However, a filing is not required if:
(a) A property and casualty insurer's total ceded written premium represents, on an annualized basis, less than ten percent of its total written premium for direct and assumed business; or
(b) A nonproperty and casualty insurer's total reserve credit taken for business ceded represents, on an annualized basis, less than ten percent of the statutory reserve requirement prior to any cession.
[ 1995 c 86 s 5.]

catchline: Material nonrenewals, cancellations, or revisions of ceded reinsurance agreements.


title: RCW 48.05.535

text:
(1) The following is required to be disclosed in any report of a material nonrenewal, cancellation, or revision of ceded reinsurance agreements:
(a) The effective date of the nonrenewal, cancellation, or revision;
(b) The description of the transaction with an identification of the initiator;
(c) The purpose of or reason for the transaction; and
(d) If applicable, the identity of the replacement reinsurers.
(2) Insurers are required to report all material nonrenewals, cancellations, or revisions of ceded reinsurance agreements on a nonconsolidated basis unless the insurer is part of a consolidated group of insurers that utilizes a pooling arrangement or one hundred percent reinsurance agreement that affects the solvency and integrity of the insurer's reserves and the insurer ceded substantially all of its direct and assumed business to the pool. An insurer has ceded substantially all of its direct and assumed business to a pool if the insurer has less than one million dollars total direct plus assumed written premiums during a calendar year that are not subject to a pooling arrangement and the net income of the business not subject to the pooling arrangement represents less than five percent of the insurer's capital and surplus.
[ 1995 c 86 s 6.]

catchline: Report of a material nonrenewal, cancellation, or revision of ceded reinsurance agreements—Information required.


title: RCW 48.05A.005

text:
(1) The purpose of this chapter is to provide the requirements for maintaining a risk management framework and completing an own risk and solvency assessment and provide guidance and instructions for filing an ORSA summary report with the insurance commissioner of this state.
(2) The requirements of this chapter apply to all insurers domiciled in this state unless exempt pursuant to RCW 48.05A.030.
(3) The legislature finds and declares that the ORSA summary report contains confidential and sensitive information related to an insurer or insurance group's identification of risks material and relevant to the insurer or insurance group filing the report. This information includes proprietary and trade secret information that has the potential for harm and competitive disadvantage to the insurer or insurance group if the information is made public. It is the intent of this legislature that the ORSA summary report is a confidential document filed with the commissioner, that the ORSA summary report may be shared only as stated in this chapter and to assist the commissioner in the performance of his or her duties, and that in no event may the ORSA summary report be subject to public disclosure.
[ 2015 c 17 s 1.]

catchline: Purpose—Application—Findings—Intent.


title: RCW 48.05A.010

text:
The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
(1) "Insurance group" means, for the purposes of conducting an ORSA, those insurers and affiliates included within an insurance holding company system as defined in RCW 48.31B.005.
(2) "Insurer" includes an insurer authorized under chapter 48.05 RCW, a fraternal mutual insurer or society holding a license under RCW 48.36A.290, a health care service contractor registered under chapter 48.44 RCW, a health maintenance organization registered under chapter 48.46 RCW, and a self-funded multiple employer welfare arrangement under chapter 48.125 RCW, as well as all persons engaged as, or purporting to be engaged as insurers, fraternal benefit societies, health care service contractors, health maintenance organizations, or self-funded multiple employer welfare arrangements in this state, and to persons in process of organization to become insurers, fraternal benefit societies, health care service contractors, health maintenance organizations, or self-funded multiple employer welfare arrangements, except that it does not include agencies, authorities, or instrumentalities of the United States, its possessions and territories, the Commonwealth of Puerto Rico, the District of Columbia, or a state or political subdivision of a state.
(3) "ORSA guidance manual" means the own risk and solvency assessment guidance manual developed and adopted by the national association of insurance commissioners.
(4) "ORSA summary report" means a confidential high-level ORSA summary of an insurer or insurance group.
(5) "Own risk and solvency assessment" or "ORSA" means a confidential internal assessment, appropriate to the nature, scale, and complexity of an insurer or insurance group, conducted by that insurer or insurance group of the material and relevant risks associated with the insurer or insurance group's current business plan, and the sufficiency of capital resources to support those risks.
[ 2015 c 17 s 2.]

catchline: Definitions.


title: RCW 48.05A.015

text:
An insurer must maintain a risk management framework to assist the insurer with identifying, assessing, monitoring, managing, and reporting on its material and relevant risks. This requirement is satisfied if the insurance group of which the insurer is a member maintains a risk management framework applicable to the operations of the insurer.
[ 2015 c 17 s 3.]

catchline: Risk management framework required.


title: RCW 48.05A.020

text:
Subject to RCW 48.05A.030, an insurer, or the insurance group of which the insurer is a member, must regularly conduct an ORSA consistent with a process comparable to the ORSA guidance manual. The ORSA must be conducted annually but also at any time when there are significant changes to the risk profile of the insurer or the insurance group of which the insurer is a member.
[ 2015 c 17 s 4.]

catchline: Must conduct an ORSA at least annually.


title: RCW 48.05A.025

text:
(1) Upon the commissioner's request, and no more than once each year, an insurer must submit to the commissioner an ORSA summary report or any combination of reports that together contain the information described in the ORSA guidance manual, applicable to the insurer or the insurance group of which it is a member. Notwithstanding any request from the commissioner, if the insurer is a member of an insurance group, the insurer must submit the report or set of reports required by this subsection if the commissioner is the lead state commissioner of the insurance group as determined by the procedures within the financial analysis handbook adopted by the national association of insurance commissioners.
(2) The report must include a signature of the insurer or insurance group's chief risk officer or other executive having responsibility for the oversight of the insurer's enterprise risk management process attesting to the best of his or her belief and knowledge that the insurer applies the enterprise risk management process described in the ORSA summary report and that a copy of the report has been provided to the insurer's board of directors or the appropriate governing committee.
(3) An insurer may comply with subsection (1) of this section by providing the most recent and substantially similar report or reports provided by the insurer or another member of an insurance group of which the insurer is a member to the commissioner of another state or to a supervisor or regulator of a foreign jurisdiction, if that report provides information that is comparable to the information described in the ORSA guidance manual. Any such report in a language other than English must be accompanied by a translation of that report into the English language.
[ 2015 c 17 s 5.]

catchline: Submission of ORSA summary reports—Frequency—Requirements.


title: RCW 48.05A.030

text:
(1) An insurer is exempt from the requirements of this chapter, if:
(a) The insurer has annual direct written and unaffiliated assumed premium including international direct and assumed premium, but excluding premium reinsured with the federal crop insurance corporation and federal flood program, less than five hundred million dollars; and
(b) The insurance group of which the insurer is a member has annual direct written and unaffiliated assumed premium including international direct and assumed premium, but excluding premium reinsured with the federal crop insurance corporation and federal flood program, less than one billion dollars.
(2) If an insurer qualifies for exemption pursuant to subsection (1)(a) of this section, but the insurance group of which the insurer is a member does not qualify for exemption pursuant to subsection (1)(b) of this section, then the ORSA summary report that may be required pursuant to RCW 48.05A.025 must include every insurer within the insurance group. This requirement is satisfied by the submission of more than one ORSA summary report for any combination of insurers, provided any combination of reports includes every insurer within the insurance group.
(3) If an insurer does not qualify for exemption pursuant to subsection (1)(a) of this section, but the insurance group of which the insurer is a member does qualify for exemption pursuant to subsection (1)(b) of this section, then the only ORSA summary report that may be required pursuant to RCW 48.05A.025 is the report applicable to that insurer.
(4) If an insurer does not qualify for exemption pursuant to subsection (1)(a) of this section, the insurer may apply to the commissioner for a waiver from the requirements of this chapter based upon unique circumstances. In deciding whether to grant the insurer's request for waiver, the commissioner may consider the type and volume of business written, ownership and organizational structure, and any other factor the commissioner considers relevant to the insurer or insurance group of which the insurer is a member. If the insurer is a part of an insurance group with insurers domiciled in more than one state, the commissioner shall coordinate with the lead state commissioner and with the other domiciliary commissioners in considering whether to grant the insurer's request for a waiver.
(5) Notwithstanding the exemptions stated in this section, the commissioner may require that an insurer maintain a risk management framework, conduct an ORSA, and file an ORSA summary report (a) based on unique circumstances including, but not limited to, the type and volume of business written, ownership and organizational structure, federal agency requests, and international supervisor requests; and (b) if the insurer has risk-based capital at the company action level event as set forth in RCW 48.05.440 or 48.43.310, meets one or more of the standards of an insurer deemed to be in hazardous financial condition as defined in WAC 284-16-310, or otherwise exhibits qualities of a troubled insurer as determined by the commissioner.
(6) If an insurer that qualifies for exemption pursuant to subsection (1)(a) of this section subsequently no longer qualifies for that exemption due to changes in premium reflected in the insurer's most recent annual statement or in the most recent annual statements of the insurers within the insurance group of which the insurer is a member, the insurer has one year following the year the threshold is exceeded to comply with the requirement of this chapter.
[ 2015 c 17 s 6.]

catchline: Insurer exemptions from chapter—Qualifying conditions—Reports.


title: RCW 48.05A.035

text:
(1) The ORSA summary report shall be prepared consistent with the ORSA guidance manual, subject to the requirements of subsection (2) of this section. Documentation and supporting information must be maintained and made available upon examination or upon the request of the commissioner.
(2) The review of the ORSA summary report, and any additional requests for information, must be made using similar procedures currently used in the analysis and examination of multistate or global insurers and insurance groups.
[ 2015 c 17 s 7.]

catchline: ORSA summary report must be consistent with ORSA guidance manual.


title: RCW 48.05A.040

text:
(1) Documents, materials, or other information, including the ORSA summary report, in the possession or control of the commissioner that are obtained by, created by, or disclosed to the commissioner or any other person under this chapter, is recognized by this state as being proprietary and to contain trade secrets. All such documents, materials, or other information is confidential by law and privileged, is not subject to chapter 42.56 RCW, is not subject to subpoena, and is not subject to discovery or admissible in evidence in any private civil action. However, the commissioner is authorized to use the documents, materials, or other information in the furtherance of any regulatory or legal action brought as a part of the commissioner's official duties. The commissioner may not otherwise make the documents, materials, or other information public without the prior written consent of the insurer.
(2) Neither the commissioner nor any person who received documents, materials, or other ORSA-related information, through examination or otherwise, while acting under the authority of the commissioner or with whom such documents, materials, or other information are [is] shared pursuant to this chapter, is permitted or required to testify in any private civil action concerning any confidential documents, materials, or information subject to subsection (1) of this section.
(3) In order to assist in the performance of the commissioner's regulatory duties, the commissioner:
(a) May share documents, materials, or other ORSA-related information, including the confidential and privileged documents, materials, or information subject to subsection (1) of this section, including proprietary and trade secret documents and materials with other state, federal, and international regulatory agencies, including members of any supervisory college recognized by the national association of insurance commissioners, with the national association of insurance commissioners, and with any third-party consultants designated by the commissioner, provided that the recipient agrees in writing to maintain the confidentiality and privileged status of the ORSA-related documents, materials, or other information and has verified in writing the legal authority to maintain confidentiality;
(b) May receive documents, materials, or ORSA-related information, including otherwise confidential and privileged documents, materials, or information, including proprietary and trade secret information or documents, from regulatory officials of other foreign or domestic jurisdictions, including members of any supervisory college recognized by the national association of insurance commissioners, from the national association of insurance commissioners, and must maintain as confidential or privileged any document, material, or information received with notice or the understanding that it is confidential or privileged under the laws of the jurisdiction that is the source of the document, material, or information;
(c) Shall enter into written agreements with the national association of insurance commissioners or a third-party consultant governing sharing and use of information provided pursuant to this chapter, consistent with this subsection that shall:
(i) Specify procedures and protocols regarding the confidentiality and security of information shared with the national association of insurance commissioners or third-party consultant pursuant to this chapter, including procedures and protocols for sharing by the national association of insurance commissioners with other state regulators from states in which the insurance group has domiciled insurers. The agreement must provide that the recipient agrees in writing to maintain the confidentiality and privileged status of the ORSA-related documents, materials, or other information and has verified in writing the legal authority to maintain confidentiality;
(ii) Specify that ownership of information shared with the national association of insurance commissioners or third-party consultants pursuant to this chapter remains with the commissioner and the national association of insurance commissioners' or a third-party consultant's use of the information is subject to the direction of the commissioner;
(iii) Prohibit the national association of insurance commissioners or third-party consultant from storing the information shared pursuant to this chapter in a permanent database after the underlying analysis is completed;
(iv) Require prompt notice to be given to an insurer whose confidential information in the possession of the national association of insurance commissioners or a third-party consultant pursuant to this chapter is subject to a request or subpoena to the national association of insurance commissioners or a third-party consultant for disclosure or production;
(v) Require the national association of insurance commissioners or a third-party consultant to consent to intervention by an insurer in any judicial or administrative action in which the national association of insurance commissioners or a third-party consultant may be required to disclose confidential information about the insurer shared with the national association of insurance commissioners or a third-party consultant pursuant to this chapter; and
(vi) In the case of an agreement involving a third-party consultant, provide the insurer's written consent.
(4) The sharing of information by the commissioner pursuant to this chapter does not constitute a delegation of regulatory authority or rule making, and the commissioner is solely responsible for the administration, execution, and enforcement of the provisions of this chapter.
(5) A waiver of any applicable privilege or claim of confidentiality in the documents, materials, or information does not occur as a result of disclosure to the commissioner under this section or as a result of sharing as authorized in this chapter.
(6) Documents, materials, or other information in the possession or control of the national association of insurance commissioners or a third-party consultant pursuant to this chapter are [is] confidential by law and privileged, are [is] not subject to chapter 42.56 RCW, are [is] not subject to subpoena, and are [is] not subject to discovery or admissible in evidence in any private civil action.
[ 2015 c 17 s 8.]

catchline: Documents, materials, or other ORSA-related information considered confidential and privileged—Exceptions—Permitted uses.


title: RCW 48.05A.045

text:
The commissioner must require any insurer failing, without just cause, to file the ORSA summary report as required in this chapter, after notice and hearing, to pay a fine of five hundred dollars for each day's delay, to be recovered by the commissioner and the fine collected must be transferred to the treasurer for deposit into the state general fund. The maximum fine under this section is one hundred thousand dollars. The commissioner may reduce the fine if the insurer demonstrates to the commissioner that the imposition of the fine would constitute a financial hardship to the insurer.
[ 2015 c 17 s 9.]

catchline: Failure to report—Fines.


title: RCW 48.05A.900

text:
This chapter may be known and cited as the risk management and solvency assessment act.
[ 2015 c 17 s 14.]

catchline: Short title.


title: RCW 48.05A.901

text:
Except for section 11 of this act, which takes effect July 1, 2017, this act takes effect January 1, 2016.
[ 2015 c 17 s 15.]

catchline: Effective dates—2015 c 17.


title: RCW 48.06.010

text:
An insurer formed in this state shall be either
(1) An incorporated stock insurer, or
(2) An incorporated mutual insurer, or
(3) An incorporated specific risks mutual property insurer, or
(4) An incorporated mutual assessment property insurer only, or
(5) An incorporated farm mutual assessment property insurer only, or
(6) A reciprocal insurer, with respective powers, duties, and restrictions as provided in this code.
[1947 c 79 s .06.01; Rem. Supp. 1947 s 45.06.01.]

catchline: Types of domestic insurers permitted.


title: RCW 48.06.020

text:
No insurer shall be formed or be authorized in this state to issue contracts of insurance the performance of which is contingent upon the payment of assessments, assessment premiums, or calls made upon its members. Mutual assessment property insurers and farm mutual assessment property insurers shall be the only exception to this provision.
[1947 c 79 s .06.02; Rem. Supp. 1947 s 45.06.02.]


title: RCW 48.06.030

text:
(1) No person forming or proposing to form in this state an insurer, or insurance holding corporation, or stock corporation to finance an insurer or insurance production therefor, or corporation to manage an insurer, or corporation to be attorney-in-fact for a reciprocal insurer, or a syndicate for any of such purposes, shall advertise, or solicit or receive any funds, agreement, stock subscription, or membership on account thereof unless he or she has applied for and has received from the commissioner a solicitation permit.
(2) Any person violating this section is guilty of a class B felony and shall be subject to a fine of not more than ten thousand dollars or imprisonment for not more than ten years, or by both fine and imprisonment.
[ 2003 c 53 s 267; 1947 c 79 s .06.03; Rem. Supp. 1947 s 45.06.03.]
Notes:
Intent—Effective date—2003 c 53: See notes following RCW 2.48.180.

catchline: Solicitation permit.


title: RCW 48.06.040

text:
To apply for a solicitation permit the person shall:
(1) File with the commissioner a request showing:
(a) Name, type, and purpose of insurer, corporation, or syndicate proposed to be formed;
(b) Biographical reports on forms prescribed by the national association of insurance commissioners evidencing the general trustworthiness and competence of each individual who is serving or who will serve as an officer, director, trustee, employee, or fiduciary of the insurer, corporation, or syndicate to be formed;
(c) Third-party verification reports from a vendor authorized by the national association of insurance commissioners to perform a state, national, and international background history check of any person who exercises control over the financial dealings and operations of the insurer, corporation, or syndicate;
(d) Full disclosure of the terms of all understandings and agreements existing or proposed among persons so associated relative to the proposed insurer, corporation, or syndicate, or the formation thereof;
(e) The plan according to which solicitations are to be made; and
(f) Additional information as the commissioner may reasonably require.
(2) File with the commissioner:
(a) Original and copies in triplicate of proposed articles of incorporation, or syndicate agreement; or, if the proposed insurer is a reciprocal, original and duplicate of the proposed subscribers' agreement and attorney-in-fact agreement;
(b) Original and duplicate copy of any proposed bylaws;
(c) Copy of any security proposed to be issued and copy of application or subscription agreement for that security;
(d) Copy of any insurance contract proposed to be offered and copy of application for that contract;
(e) Copy of any prospectus, advertising, or literature proposed to be used; and
(f) Copy of proposed form of any escrow agreement required.
(3) Deposit with the commissioner the fees required by law to be paid for the application including fees associated with the state and national criminal history background check, for filing of the articles of incorporation of an insurer, for filing the subscribers' agreement and attorney-in-fact agreement if the proposed insurer is a reciprocal, for the solicitation permit, if granted, and for filing articles of incorporation with the secretary of state.
[ 2012 c 211 s 3; 2002 c 227 s 1; 1967 c 150 s 6; 1947 c 79 s .06.04; Rem. Supp. 1947 s 45.06.04.]
Notes:
Effective date—2002 c 227: "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, 2002]." [ 2002 c 227 s 6.]

catchline: Application for solicitation permit.


title: RCW 48.06.050

text:
The commissioner shall expeditiously examine the application for a solicitation permit and make any investigation relative thereto deemed necessary. If the commissioner finds that
(1) the application is complete; and
(2) the documents therewith filed are equitable in terms and proper in form; and
(3) the management of the company, whether by its directors, officers, or by any other means is competent and trustworthy and not so lacking in managerial experience as to make a proposed operation hazardous to the insurance-buying public; and that there is no reason to believe the company is affiliated, directly or indirectly, through ownership, control, reinsurance, or other insurance or business relations, with any other person or persons whose business operations are or have been marked, to the detriment of the policyholders or stockholders or investors or creditors or of the public, by bad faith or by manipulation of assets, or of accounts, or of reinsurance; and
(4) the agreements made or proposed are equitable to present and future shareholders, subscribers, members or policyholders, he or she shall give notice to the applicant that he or she will issue a solicitation permit, stating the terms to be contained therein, upon the filing of the bond required by RCW 48.06.110 of this code.
If the commissioner does not so find, he or she shall give notice to the applicant that the permit will not be granted, stating the grounds therefor, and shall refund to the applicant all sums so deposited except the application fee.
[ 2009 c 549 s 7021; 1967 c 150 s 7; 1947 c 79 s .06.05; Rem. Supp. 1947 s 45.06.05.]

catchline: Procedure upon application.


title: RCW 48.06.060

text:
Upon the filing of the bond required by RCW 48.06.110 after notice by the commissioner, the commissioner shall:
(1) File the articles of incorporation of the proposed incorporated insurer or other corporation; and
(2) Issue to the applicant a solicitation permit.
[ 1998 c 23 s 1; 1947 c 79 s .06.06; Rem. Supp. 1947 s 45.06.06.]

catchline: Issuance of permit—Bond.


title: RCW 48.06.070

text:
Every solicitation permit issued by the commissioner shall:
(1) Be for a period of not over two years, subject to the right of the commissioner to grant a reasonable extension for good cause.
(2) State the securities for which subscriptions are to be solicited, the number, classes, par value, and selling price thereof, or identify the insurance contract for which applications and advance premiums or deposits are to be solicited.
(3) Limit the portion of funds received on account of stock or syndicate subscriptions, if any are proposed to be taken, which may be used for promotion and organization expenses to such amount as he or she deems adequate, but in no event to exceed fifteen percent of such funds as and when actually received.
(4) If to be a mutual or reciprocal insurer, limit the portion of funds received on account of applications for insurance which may be used for promotion or organization expenses to a reasonable commission upon such funds, giving consideration to the kind of insurance and policy involved and to the costs incurred by insurers generally in the production of similar business, and provide that no such commission shall be deemed to be earned nor be paid until the insurer has received its certificate of authority and the policies applied for and upon which such commission is to be based, have been actually issued and delivered.
(5) Contain such other information required by this chapter or reasonable conditions relative to accounting and reports or otherwise as the commissioner deems necessary.
[ 2009 c 549 s 7022; 1953 c 197 s 1; 1947 c 79 s .06.07; Rem. Supp. 1947 s 45.06.07.]

catchline: Duration of permit—Contents.


title: RCW 48.06.080

text:
The granting of a solicitation permit is permissive only and shall not constitute an endorsement by the commissioner of any person or thing related to the proposed insurer, corporation, or syndicate and the existence of the permit shall not be advertised or used as an inducement in any solicitation. The substance of this section in boldfaced type not less than ten point shall be printed at the top of each solicitation permit.
[1947 c 79 s .06.08; Rem. Supp. 1947 s 45.06.08.]

catchline: Permit as inducement.


title: RCW 48.06.090

text:
Solicitation for sale of securities to members of the public under a solicitation permit shall be made only by individuals licensed therefor pursuant to the provisions of the securities act.
[ 1949 c 190 s 5; 1947 c 79 s .06.09; Rem. Supp. 1949 s 45.06.09.]

catchline: Solicitors' licenses.


title: RCW 48.06.100

text:
(1) The commissioner may, for cause, modify a solicitation permit, or may, after a hearing, revoke any solicitation permit for violation of any provision of this code, or of the terms of the permit, or of any proper order of the commissioner, or for misrepresentation.
(2) The commissioner shall revoke a solicitation permit if requested in writing by a majority of the syndicate members, or by a majority of the incorporators and two-thirds of the subscribers to stock or applicants for insurance in the proposed incorporated insurer or corporation, or if he or she is so requested by a majority of the subscribers of a proposed reciprocal insurer.
[ 2009 c 549 s 7023; 1947 c 79 s .06.10; Rem. Supp. 1947 s 45.06.10.]

catchline: Modification, revocation of permit.


title: RCW 48.06.110

text:
(1) The commissioner shall not issue a solicitation permit until the person applying therefor files with him or her a corporate surety bond in the penalty of fifty thousand dollars, in favor of the state and for the use and benefit of the state and of subscribers and creditors of the proposed organization.
The bond shall be conditioned upon the payment of costs incurred by the state in event of any legal proceedings for liquidation or dissolution of the proposed organization before completion of organization or in event a certificate of authority is not granted; and upon a full accounting for funds received until the proposed insurer has been granted its certificate of authority, or until the proposed corporation or syndicate has completed its organization as defined in the solicitation permit.
(2) In lieu of filing such bond, the person may deposit with the commissioner fifty thousand dollars in cash or in United States government bonds at par value, to be held in trust upon the same conditions as required for the bond.
(3) The commissioner may waive the requirement for a bond or deposit in lieu thereof if the permit provides that:
(a) The proposed securities are to be distributed solely and finally to those few persons who are the active promotors intimate to the formation of the insurer, or other corporation or syndicate, or
(b) The securities are to be issued in connection with subsequent financing as provided in RCW 48.06.180.
(4) Any bond filed or deposit or remaining portion thereof held under this section shall be released and discharged upon settlement or termination of all liabilities against it.
[ 2009 c 549 s 7024; 1969 ex.s. c 241 s 2; 1955 c 86 s 2; 1953 c 197 s 2; 1947 c 79 s .06.11; Rem. Supp 1947 s 45.06.11.]
Notes:
Effective date—Supervision of transfers—1955 c 86: See notes following RCW 48.05.080.

catchline: Bond—Cash deposit.


title: RCW 48.06.120

text:
(1) All funds received pursuant to a solicitation permit shall be deposited and held in escrow in a bank or trust company under an agreement approved by the commissioner. No part of any such deposit shall be withdrawn, except:
(a) For the payment of promotion and organization expenses as authorized by the solicitation permit; or
(b) for the purpose of making any deposit with the commissioner required for the issuance of a certificate of authority to an insurer; or
(c) if the proposed organization is not to be an insurer, upon completion of payments on stock or syndicate subscriptions made under the solicitation permit and deposit or appropriation of such funds to the purposes specified in the solicitation permit; or
(d) for making of refunds as provided in RCW 48.06.170.
(2) When the commissioner has issued a certificate of authority to an insurer any such funds remaining in escrow for its account shall be released to the insurer.
[1947 c 79 s .06.12; Rem. Supp. 1947 s 45.06.12.]

catchline: Escrow of funds.


title: RCW 48.06.130

text:
(1) The incorporators of any insurer or other corporation, or the persons proposing to form a reciprocal insurer, or a syndicate, shall be jointly and severally liable for its debts or liabilities until it has secured a certificate of authority, if an insurer, or has completed its organization if a corporation other than an insurer or a syndicate.
(2) Any portion of funds received on account of stock or syndicate subscriptions which is allowed therefor under the solicitation permit, may be applied concurrently toward the payment of promotion and organization expense theretofore incurred.
[1947 c 79 s .06.13; Rem. Supp. 1947 s 45.06.13.]

catchline: Liability of organizers—Organization expense.


title: RCW 48.06.150

text:
(1) No such proposed stock insurer, corporation, or syndicate shall issue any share of stock or participation agreement except for payment in cash or in securities eligible for investment of funds of insurers. No such shares or agreement shall be issued until all subscriptions received under the solicitation permit have been so fully paid, nor, if an insurer, until a certificate of authority has been issued to it.
(2) Every subscription contract to shares of a stock insurer or other corporation calling for payment in installments, together with all amounts paid thereon may be forfeited at the option of the corporation, upon failure to make good a delinquency in any installment upon not less than forty-five days' notice in writing, and every such contract shall so provide.
[1947 c 79 s .06.15; Rem. Supp. 1947 s 45.06.15.]

catchline: Payment for subscriptions—Forfeiture.


title: RCW 48.06.160

text:
All applications for insurance obtained in forming a mutual or reciprocal insurer shall provide that:
(1) Issuance of the policy is contingent upon completion of organization of the insurer and issuance to it of a certificate of authority; and
(2) the prepaid premium or deposit will be refunded in full to the applicant if the organization is not completed and certificate of authority issued prior to the solicitation permit's date of expiration; and
(3) the agreement for insurance is not effective until a policy has been issued under it.
[1947 c 79 s .06.16; Rem. Supp. 1947 s 45.06.16.]

catchline: Insurance applications—Mutual and reciprocal insurers.


title: RCW 48.06.170

text:
The commissioner shall withdraw all funds held in escrow and refund to subscribers or applicants all sums paid in on stock or syndicate subscriptions, less that part of such sums paid in on subscriptions as has been allowed and used for promotion and organization expenses, and all sums paid in on insurance applications, and shall dissolve the proposed insurer, corporation or syndicate if
(1) the proposed insurer, corporation or syndicate fails to complete its organization and obtain full payment for subscriptions and applications, and, if an insurer, it fails to secure its certificate of authority, all before expiration of the solicitation permit; or
(2) the commissioner revokes the solicitation permit.
[1947 c 79 s .06.17; Rem. Supp. 1947 s 45.06.17.]

catchline: Procedure on failure to complete organization or to qualify.


title: RCW 48.06.180

text:
(1) No domestic insurer, or insurance holding corporation, or stock corporation for financing operations of a mutual insurer, or attorney-in-fact corporation of a reciprocal insurer, after
(a) it has received a certificate of authority, if an insurer, or
(b) it has completed its initial organization and financing if a corporation other than an insurer, shall solicit or receive funds in exchange for any new issue of its corporate securities, other than through a stock dividend, until it has applied to the commissioner for, and has been granted, a solicitation permit.
(2) The commissioner shall issue such a permit unless he or she finds that:
(a) The funds proposed to be secured are excessive in amount for the purpose intended, or
(b) the proposed securities or the manner of their distribution are inequitable, or
(c) the issuance of the securities would jeopardize the interests of policyholders or the holders of other securities of the insurer or corporation.
(3) Any such solicitation permit granted by the commissioner shall be for such duration, and shall contain such terms and be issued upon such conditions as the commissioner may reasonably specify or require.
[ 2009 c 549 s 7025; 1949 c 190 s 6; 1947 c 79 s .06.18; Rem. Supp. 1949 s 45.06.18.]

catchline: Subsequent financing.


title: RCW 48.06.190

text:
Every person who, with intent to deceive, knowingly exhibits any false account, or document, or advertisement, relative to the affairs of any insurer, or of any corporation or syndicate of the kind enumerated in RCW 48.06.030, formed or proposed to be formed, is guilty of a class B felony punishable according to chapter 9A.20 RCW.
[ 2003 c 53 s 268; 1947 c 79 s .06.19; Rem. Supp. 1947 s 45.06.19.]
Notes:
Intent—Effective date—2003 c 53: See notes following RCW 2.48.180.

catchline: Penalty for exhibiting false accounts, etc.


title: RCW 48.06.200

text:
(1) This section applies to insurers incorporated in this state, but no insurer heretofore lawfully incorporated in this state is required to reincorporate or change its articles of incorporation by reason of any provisions of this section.
(2) The incorporators shall be individuals who are United States citizens, of whom two-thirds shall be residents of this state. The number of incorporators shall be not less than five if a stock insurer, nor less than ten if a mutual insurer.
(3) The incorporators shall execute articles of incorporation in duplicate, acknowledge their signatures thereunto before an officer authorized to take acknowledgments of deeds, and file both copies with the commissioner.
(4) After approval of the articles by the commissioner, one copy shall be filed in the office of the commissioner and the other copy shall be returned to the insurer.
(5) The articles of incorporation shall state:
First: The names and addresses of the incorporators.
Second: The name of the insurer. If a mutual insurer the name shall include the word "mutual."
Third: (a) The objects for which the insurer is formed;
(b) whether it is a stock or mutual insurer, and if a mutual property insurer only, whether it will insure on the cash premium or assessment plan;
(c) the kinds of insurance it will issue, according to the designations made in this code.
Fourth: If a stock insurer, the amount of its capital, the aggregate number of shares, and the par value of each share, which par value shall be not less than ten dollars, except that after the corporation has transacted business as an authorized insurer in the state for five years or more, its articles of incorporation may be amended, at the option of its stockholders, to provide for a par value of not less than one dollar per share. If a mutual insurer, the maximum contingent liability of its policyholders for the payment of its expenses and losses occurring under its policies.
Fifth: The duration of its existence, which may be perpetual.
Sixth: The names and addresses of the directors, not less than five in number, who shall constitute the board of directors of the insurer for the initial term, not less than two nor more than six months, as designated in the articles of incorporation.
Seventh: The name of the city or town of this state in which the insurer's principal place of business is to be located.
Eighth: Other provisions not inconsistent with law as may be deemed proper by the incorporators.
[ 1998 c 23 s 2; 1981 c 302 s 37; 1963 c 60 s 1; 1949 c 190 s 7; 1947 c 79 s .06.20; Rem. Supp. 1949 s 45.06.20.]
Notes:
Severability—1981 c 302: See note following RCW 19.76.100.

catchline: Incorporation, articles of—Contents.


title: RCW 48.07.010

text:
Existing authorized domestic insurers shall continue to insure only in accordance with the provisions of this code.
[1947 c 79 s .07.01; Rem. Supp. 1947 s 45.07.01.]

catchline: Application of code to existing insurers.


title: RCW 48.07.020

text:
Every domestic insurer shall establish and maintain in this state its principal office and place of business.
[1947 c 79 s .07.02; Rem. Supp. 1947 s 45.07.02.]

catchline: Principal office.


title: RCW 48.07.030

text:
The laws of this state relating to private corporations, except where inconsistent with the express provisions of this code, shall govern the corporate powers, duties, and relationships of incorporated domestic insurers and insurance holding corporations formed under the laws of the state of Washington.
[ 1985 c 364 s 1; 1947 c 79 s .07.03; Rem. Supp. 1947 s 45.07.03.]
Notes:
Severability—1985 c 364: "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." [ 1985 c 364 s 5.]
Provisions as to general business corporations: Title 23B RCW.

catchline: Application of general corporation laws.


title: RCW 48.07.040

text:
Each incorporated domestic insurer shall hold an annual meeting of its shareholders or members at such time and place as may be stated in or fixed in accordance with its bylaws for the purpose of receiving reports of its affairs and to elect directors. Each domestic insurance holding corporation shall hold an annual meeting of its shareholders at such time and place as may be stated in or fixed in accordance with its bylaws. Special meetings of the shareholders of an incorporated domestic insurer or domestic insurance holding corporation shall be called and held by such persons and in such a manner as stated in the articles of incorporation or bylaws.
[ 2002 c 300 s 5; 1985 c 364 s 2; 1965 ex.s. c 70 s 4; 1947 c 79 s .07.04; Rem. Supp. 1947 s 45.07.04.]
Notes:
Severability—1985 c 364: See note following RCW 48.07.030.

catchline: Annual, special meetings.


title: RCW 48.07.050

text:
Not less than three-fourths of the directors of an incorporated domestic insurer shall be United States or Canadian citizens, and a majority of the board of directors of a mutual life insurer shall be residents of this state. The directors of a domestic insurer or domestic insurance holding corporation may be removed with cause by a vote of a majority of its voting capital stock or members (if a mutual insurer) at a valid meeting and said directors may be removed without cause by a vote of sixty-seven percent of its voting capital stock or members (if a mutual insurer) at a valid meeting.
[ 1989 c 24 s 1; 1985 c 364 s 3; 1957 c 193 s 21; 1947 c 79 s .07.05; Rem. Supp. 1947 s 45.07.05.]
Notes:
Severability—1985 c 364: See note following RCW 48.07.030.

catchline: Directors—Qualifications—Removal.


title: RCW 48.07.060

text:
No person shall buy or sell or barter a vote or proxy, relative to any meeting of shareholders or members of an incorporated domestic insurer, or engage in any corrupt or dishonest practice in or relative to the conduct of any such meeting. Violation of this section shall constitute a gross misdemeanor.
[1947 c 79 s .07.06; Rem. Supp. 1947 s 45.07.06.]

catchline: Corrupt practices—Penalty.


title: RCW 48.07.070

text:
(1) Unless a vote of a greater proportion of directors or shares is required by its articles of incorporation, amendments to the articles of incorporation of a domestic insurer or a domestic insurance holding corporation shall be made by a majority vote of its board of directors and the vote or written assent of a majority of its voting capital stock, or two-thirds of the members (if a mutual insurer) voting at a valid meeting of members.
(2) The president and secretary of the insurer shall, under the corporate seal, certify the amendment in duplicate, and file both copies in the office of the commissioner as required under this code for original articles of incorporation. Thereupon, subject to the requirements of RCW 48.08.010 relative to increase of capital stock of a stock insurer, the amendment shall become effective.
[ 1998 c 23 s 3; 1985 c 364 s 4; 1981 c 302 s 38; 1947 c 79 s .07.07; Rem. Supp. 1947 s 45.07.07.]
Notes:
Severability—1985 c 364: See note following RCW 48.07.030.
Severability—1981 c 302: See note following RCW 19.76.100.

catchline: Amendment of articles of incorporation.


title: RCW 48.07.080

text:
No domestic insurer or its affiliates or subsidiaries shall guarantee the financial obligation of any director or officer of such insurer or affiliate or subsidiary in his or her personal capacity, and any such guaranty attempted shall be void.
This prohibition shall not apply to obligations of the insurer under surety bonds or insurance contracts issued in the regular course of business.
[ 2009 c 549 s 7026; 1947 c 79 s .07.08; Rem. Supp. 1947 s 45.07.08.]

catchline: Guarantee of officers' obligations prohibited.


title: RCW 48.07.100

text:
(1) No domestic insurer shall make any disbursement of twenty-five dollars or more, unless evidenced by a voucher correctly describing the consideration for the payment and supported by a check or receipt endorsed or signed by or on behalf of the person receiving the money.
(2) If the disbursement is for services and reimbursement, the voucher shall describe the services and itemize the expenditures.
(3) If the disbursement is in connection with any matter pending before any legislature or public body or before any public official, the voucher shall also correctly describe the nature of the matter and of the insurer's interest therein.
[1947 c 79 s .07.10; Rem. Supp. 1947 s 45.07.10.]

catchline: Vouchers for expenditures.


title: RCW 48.07.110

text:
The funds of a domestic insurer shall not be deposited in any bank or banking institution which has not first been approved as a depositary by the insurer's board of directors or by a committee thereof designated for the purpose.
[1947 c 79 s .07.11; Rem. Supp. 1947 s 45.07.11.]

catchline: Depositaries.


title: RCW 48.07.130

text:
(1) No person having any authority in the investment or disposition of the funds of a domestic insurer and no officer or director of an insurer shall accept, except for the insurer, or be the beneficiary of any fee, brokerage, gift, commission, or other emolument because of any sale of insurance or of any investment, loan, deposit, purchase, sale, payment, or exchange made by or for the insurer, or be pecuniarily interested therein in any capacity; except, that such a person may procure a loan from the insurer direct upon approval by two-thirds of its directors and upon the pledge of securities eligible for the investment of the insurer's funds under this code.
(2) This section does not prohibit a life insurer from making a policy loan to such person on a life insurance contract issued by it and in accordance with the terms thereof.
(3) The commissioner may permit additional exceptions to the prohibition contained in subsection (1) of this section to enable payment of reasonable compensation to a director who is not otherwise an officer or employee of the insurer, or to a corporation or firm in which the director is interested, for necessary services performed or sales or purchases made to or for the insurer in the ordinary course of the insurer's business and in the usual private professional or business capacity of such director or such corporation or firm.
In addition, the commissioner may permit exceptions to the prohibitions contained in subsection (1) of this section where the payment of a fee, brokerage, gift, commission, or other emolument is fully disclosed to the insurer's officers and directors and is reasonable in relation to the service performed.
[ 1989 c 228 s 1; 1981 c 339 s 5; 1947 c 79 s .07.13; Rem. Supp. 1947 s 45.07.13.]

catchline: Pecuniary interest of officer or director, restrictions upon.


title: RCW 48.07.140

text:
Any domestic insurer doing business in another state, territory or sovereignty may design and issue insurance contracts and transact insurance in such state, territory or sovereignty as required or permitted by the laws thereof, any provision of the insurer's articles of incorporation or bylaws notwithstanding.
[1947 c 79 s .07.14; Rem. Supp. 1947 s 45.07.14.]

catchline: Compliance with foreign laws.


title: RCW 48.07.150

text:
(1) No domestic insurer shall knowingly solicit insurance business in any reciprocating state in which it is not then licensed as an authorized insurer.
(2) This section shall not prohibit advertising through publications and radio broadcasts originating outside such reciprocating state, if the insurer is licensed in a majority of the states in which such advertising is disseminated, and if such advertising is not specifically directed to residents of such reciprocating state.
(3) This section shall not prohibit insurance, covering persons or risks located in a reciprocating state, under contracts solicited and issued in states in which the insurer is then licensed. Nor shall it prohibit insurance effectuated by the insurer as an unauthorized insurer in accordance with the laws of the reciprocating state. Nor shall it prohibit renewal or continuance in force, with or without modification, of contracts otherwise lawful and which were not originally executed in violation of this section.
(4) A "reciprocating" state, as used herein, is one under the laws of which a similar prohibition is imposed upon and is enforced against insurers domiciled in that state.
(5) The commissioner shall suspend or revoke the certificate of authority of a domestic insurer found by him or her, after a hearing, to have violated this section.
[ 2009 c 549 s 7027; 1988 c 248 s 4; 1947 c 79 s .07.15; Rem. Supp. 1947 s 45.07.15.]

catchline: Solicitations in other states.


title: RCW 48.07.160

text:
It is desirable for the general welfare and in particular for the welfare of insurance beneficiaries, policyholders, claimants, subscribers, and others that the business of domestic insurers be continued notwithstanding the event of a local, state, or national emergency. The purpose of this section, RCW 48.07.170 through 48.07.200, and 48.07.203 is to facilitate the continued operation of domestic insurers in the event that a local, state, or national emergency is so disruptive of normal business and commerce as to make it impossible or impracticable for a domestic insurer to conduct its business in accord with applicable provisions of law, its bylaws, or its charter. When used in this section, RCW 48.07.170 through 48.07.200, and 48.07.203 the word "insurer" means the same as defined in RCW 48.01.053 [ 48.01.050].
[ 2009 c 150 s 1; 1963 c 195 s 25.]
Notes:
Effective date—2009 c 150: "This act takes effect January 1, 2011." [ 2009 c 150 s 8.]

catchline: Continuing operation in event of emergency—Declaration of purpose—"Insurer" defined.


title: RCW 48.07.170

text:
The board of directors of any domestic insurer may at any time adopt emergency bylaws, subject to repeal or change by action of those having power to adopt regular bylaws for such insurer, which shall be operative during such a local, state, or national emergency and which may, notwithstanding any different provisions of the regular bylaws, or of the applicable statutes, or of such insurer's charter, make any provision that may be reasonably necessary for the operation of such insurer during the period of such emergency.
[ 2009 c 150 s 2; 1963 c 195 s 26.]
Notes:
Effective date—2009 c 150: See note following RCW 48.07.160.

catchline: Continuing operation in event of emergency—Emergency bylaws.


title: RCW 48.07.180

text:
In the event that the board of directors of a domestic insurer has not adopted emergency bylaws, the following provisions shall become effective upon the occurrence of such a local, state, or national emergency as described in this chapter:
(1) Three directors shall constitute a quorum for the transaction of business at all meetings of the board.
(2) Any vacancy in the board may be filled by a majority of the remaining directors, though less than a quorum, or by a sole remaining director.
(3) If there are no surviving directors, but at least three vice presidents of such insurer survive, the three vice presidents with the longest term of service shall be the directors and shall possess all of the powers of the previous board of directors and such powers as are granted in this chapter or by subsequently enacted legislation. By majority vote, such emergency board of directors may elect other directors. If there are not at least three surviving vice presidents, the commissioner or duly designated person exercising the powers of the commissioner shall appoint three persons as directors who shall include any surviving vice presidents and who shall possess all of the powers of the previous board of directors and such powers as are granted in this chapter or by subsequently enacted legislation, and these persons by majority vote may elect other directors.
[ 2009 c 150 s 3; 1963 c 195 s 27.]
Notes:
Effective date—2009 c 150: See note following RCW 48.07.160.

catchline: Continuing operation in event of emergency—Directors.


title: RCW 48.07.190

text:
At any time the board of directors of a domestic insurer may, by resolution, provide that in the event of such a local, state, or national emergency and in the event of the death or incapacity of the president, the secretary, or the treasurer of such insurer, such officers, or any of them, shall be succeeded in the office by the person named or described in a succession list adopted by the board of directors. Such list may be on the basis of named persons or position titles, shall establish the order of priority and may prescribe the conditions under which the powers of the office shall be exercised.
[ 2009 c 150 s 4; 1963 c 195 s 28.]
Notes:
Effective date—2009 c 150: See note following RCW 48.07.160.

catchline: Continuing operation in event of emergency—Officers.


title: RCW 48.07.200

text:
At any time the board of directors of a domestic insurer may, by resolution, provide that in the event of such a local, state, or national emergency the principal office and place of business of such insurer shall be at such location as is named or described in the resolution. Such resolution may provide for alternate locations and establish an order of preference.
[ 2009 c 150 s 5; 1963 c 195 s 29.]
Notes:
Effective date—2009 c 150: See note following RCW 48.07.160.

catchline: Continuing operation in event of emergency—Principal office and place of business.


title: RCW 48.07.203

text:
Each domestic insurer must create and maintain a written business continuity plan identifying procedures relating to a local, state, or national emergency or significant business disruption.
[ 2009 c 150 s 6.]
Notes:
Effective date—2009 c 150: See note following RCW 48.07.160.

catchline: Continuing operation in event of emergency—Written plan required.


title: RCW 48.07.205

text:
After considering relevant standards adopted by the national association of insurance commissioners, other states, and other regulatory authorities that regulate financial institutions, the commissioner shall adopt, by rule, standards for insurers and insurance producers to follow for business continuity planning.
[ 2009 c 150 s 7.]
Notes:
Effective date—2009 c 150: See note following RCW 48.07.160.

catchline: Continuing operation in event of emergency—Planning standards—Rules.


title: RCW 48.07.210

text:
(1)(a) Any insurer duly organized under the laws of any other state and admitted to transact insurance business in this state may become a domestic insurer upon complying with all requirements of law for the organization of a domestic insurer in this state and by designating its principal place of business at a location in this state. Such domestic insurer is entitled to a certificate of authority to transact insurance in this state, subject to the conditions set forth in (b) of this subsection, and is subject to the authority and the jurisdiction of this state.
(b) Before being eligible to become a domestic insurer under this section, an admitted insurer shall advise the commissioner, in writing, thirty days in advance of the proposed date of its plan to become a domestic insurer. The commissioner must approve the plan in advance of the proposed date. The commissioner shall not approve any such plan unless, after a hearing, pursuant to such notice as the commissioner may require, the commissioner finds that the plan is consistent with law, and that no reasonable objection to the plan exists. If the commissioner fails to approve the plan, the commissioner shall state his or her reasons for failure to approve the plan in an order issued at the hearing.
(2) After providing thirty days' advance written notice of its plan to the commissioner and upon the written approval of the commissioner in advance of the proposed transfer date, any domestic insurer of this state may transfer its domicile to any other state in which it is admitted to transact the business of insurance. Upon transfer of domicile, the insurer ceases to be a domestic insurer of this state. If otherwise qualified under the laws of this state, the commissioner shall admit the insurer to do business in this state as a foreign insurer. The commissioner shall approve any proposed transfer of domicile unless the commissioner determines after a hearing, pursuant to such notice as the commissioner may require, that the transfer is not in the best interests of the public or the insurer's policyholders in this state. If the commissioner fails to approve a proposed transfer of domicile, the commissioner shall state his or her reasons for failure to approve the transfer in an order issued at the hearing.
(3) When a foreign insurer, admitted to transact business in this state, transfers its corporate domicile to this state or to any other state, the certificate of authority, appointment of statutory agent, and all approved licenses, policy forms, rates, filings, and other authorizations and approvals in existence at the time the foreign insurer transfers its corporate domicile shall continue in effect.
(4) Any insurer transferring its corporate domicile under this section shall file any amendments to articles of incorporation, bylaws, or other corporate documents that are required to be filed in this state before the insurer may receive approval of its proposed plan by the commissioner.
[ 1988 c 248 s 5.]

catchline: Conversion to domestic insurer.


title: RCW 48.08.010

text:
(1) Increase of the capital stock of a domestic stock insurer shall be by amendment to its articles of incorporation.
(2) If the increased capital stock is to be distributed as a stock dividend, such increased capital stock may be fully paid in out of any available surplus funds as is provided in RCW 48.08.030, and such payment shall be effected by a transfer on the insurer's books from its surplus account to its capital account.
(3) When the increased capital has been fully paid in, a certificate to such effect shall be made in quadruplicate under oath and the corporate seal by the insurer's president and secretary and filed in the public offices named in RCW 48.07.070.
[ 1953 c 197 s 4; 1947 c 79 s .08.01; Rem. Supp. 1947 s 45.08.01.]

catchline: Increase of capital stock.


title: RCW 48.08.020

text:
(1) Reduction of the capital stock of a domestic stock insurer shall be by amendment of its articles of incorporation. No such reduction shall be made which results in capital stock less in amount than the minimum required by this code for the kinds of insurance thereafter to be transacted by the insurer.
(2) No surplus funds of the insurer resulting from a reduction of its capital stock shall be distributed to stockholders, except as a stock dividend on a subsequent increase of capital stock, or upon dissolution of the insurer, or upon approval of the commissioner of a distribution upon proof satisfactory to him or her that the distribution will not impair the interests of policyholders or the insurer's solvency.
(3) Upon such reduction of capital stock, the insurer's directors shall call in any outstanding stock certificates required to be changed pursuant thereto, and issue proper certificates in their stead.
[ 2009 c 549 s 7028; 1947 c 79 s .08.02; Rem. Supp. 1947 s 45.08.02.]

catchline: Reduction of capital stock.


title: RCW 48.08.030

text:
(1) No domestic stock insurer shall pay any cash dividend to stockholders except out of earned surplus. For the purpose of this section, "earned surplus" means that part of its available surplus funds which is derived from any realized net profits on its business, and does not include unrealized capital gains or reevaluation of assets.
(2) Such an insurer may pay a stock dividend out of any available surplus funds.
(3) Payment of any dividend to stockholders of a domestic stock insurer shall also be subject to all the limitations and requirements governing the payment of dividends by other private corporations.
(4) No dividend shall be declared or paid which would reduce the insurer's surplus to an amount less than the minimum required for the kinds of insurance thereafter to be transacted.
(5) For the purposes of this chapter "surplus funds" means the excess of the insurer's assets over its liabilities, including its capital stock as a liability.
(6) Available surplus means the excess over the minimum amount of surplus required for the kinds of insurance the insurer is authorized to transact.
[ 1993 c 462 s 52; 1947 c 79 s .08.03; Rem. Supp. 1947 s 45.08.03.]
Notes:
Severability—Implementation—1993 c 462: See RCW 48.31B.901 and 48.31B.902.

catchline: Dividends to stockholders.


title: RCW 48.08.040

text:
Any director of a domestic stock insurer who votes for or concurs in the declaration or payment of any dividend to stockholders or a reduction of capital stock not authorized by law shall, in addition to any other liability imposed by law, be guilty of a gross misdemeanor.
[1947 c 79 s .08.04; Rem. Supp. 1947 s 45.08.04.]

catchline: Illegal dividends, reductions—Penalty against directors.


title: RCW 48.08.050

text:
(1) If the capital stock of a domestic stock insurer becomes impaired, the commissioner shall at once determine the amount of the deficiency and serve notice upon the insurer to require its stockholders to make good the deficiency within ninety days after service of such notice.
(2) The deficiency shall be made good in cash, or in assets eligible under this code for the investment of the insurer's funds, or by reduction of the insurer's capital stock to an amount not below the minimum required for the kinds of insurance to be thereafter transacted.
(3) If the deficiency is not made good and proof thereof filed with the commissioner within such ninety-day period, the insurer shall be deemed insolvent and shall be proceeded against as authorized by this code.
(4) If the deficiency is not made good the insurer shall not issue or deliver any policy after the expiration of such ninety-day period. Any officer or director who violates or knowingly permits the violation of this provision shall be subject to a fine of from fifty dollars to one thousand dollars for each violation.
[1947 c 79 s .08.05; Rem. Supp. 1947 s 45.08.05.]

catchline: Impairment of capital.


title: RCW 48.08.060

text:
Contributions to the surplus of a domestic stock insurer other than resulting from sale of its capital stock, shall not be subject to repayment except out of surplus in excess of the minimum surplus initially required of such an insurer transacting like kinds of insurance.
[1947 c 79 s .08.06; Rem. Supp. 1947 s 45.08.06.]

catchline: Repayment of contributions to surplus.


title: RCW 48.08.070

text:
(1) Any domestic stock insurer may, if its charter so provides, issue policies entitled to participate from time to time in the earnings of the insurer through dividends.
(2) Any classification of its participating policies and of risks assumed thereunder which the insurer may make shall be reasonable. No dividend shall be paid which is inequitable or which unfairly discriminates as between such classifications or as between policies within the same classification.
(3) No such insurer shall issue in this state both participating and nonparticipating policies for the same class of risks; except, that both participating and nonparticipating life insurance policies may be issued if the right or absence of the right to participate is reasonably related to the premium charged.
(4) Dividends to participating life insurance policies issued by such insurer shall be paid only out of its surplus funds as defined in subsection (5) of RCW 48.08.030. Dividends to participating policies for other kinds of insurance shall be paid only out of that part of such surplus funds which is derived from any realized net profits from the insurer's business.
(5) No dividend, otherwise earned, shall be made contingent upon the payment of renewal premium on any policy.
[1947 c 79 s .08.07; Rem. Supp. 1947 s 45.08.07.]

catchline: Participating policies.


title: RCW 48.08.080

text:
(1) Any domestic stock insurer may become a domestic mutual insurer pursuant to such plan and procedure as are approved by the commissioner in advance of such mutualization.
(2) The commissioner shall not approve any such plan, procedure, or mutualization unless:
(a) It is equitable to both shareholders and policyholders.
(b) It is approved by vote of the holders of not less than three-fourths of the insurer's capital stock having voting rights, and by vote of not less than two-thirds of the insurer's policyholders who vote on such plan, pursuant to such notice and procedure as may be approved by the commissioner. Such vote may be registered in person, by proxy, or by mail.
(c) If a life insurer, the right to vote thereon is limited to those policyholders whose policies have face amounts of not less than one thousand dollars and have been in force one year or more.
(d) Mutualization will result in retirement of shares of the insurer's capital stock at a price not in excess of the fair value thereof as determined by competent disinterested appraisers.
(e) The plan provides for appraisal and purchase of the shares of any nonconsenting stockholder in accordance with the laws of this state relating to the sale or exchange of all the assets of a private corporation.
(f) The plan provides for definite conditions to be fulfilled by a designated early date upon which such mutualization will be deemed effective.
(g) The mutualization leaves the insurer with surplus funds reasonably adequate to preserve the security of its policyholders and its ability to continue successfully in business in the states in which it is then authorized, and in the kinds of insurance it is then authorized to transact.
[1947 c 79 s .08.08; Rem. Supp. 1947 s 45.08.08.]

catchline: Mutualization of stock insurers.


title: RCW 48.08.090

text:
(1) This section shall apply to all domestic stock insurers except:
(a) A domestic stock insurer having less than one hundred stockholders; except, that if ninety-five percent or more of the insurer's stock is owned or controlled by a parent or affiliated insurer, this section shall not apply to such insurer unless its remaining shares are held by five hundred or more stockholders.
(b) Domestic stock insurers which file with the Securities and Exchange Commission forms of proxies, consents and authorizations pursuant to the Securities and Exchange Act of 1934, as amended.
(2) Every such insurer shall seasonably furnish its stockholders in advance of stockholder meetings, information in writing reasonably adequate to inform them relative to all matters to be presented by the insurer's management for consideration of stockholders at such meeting.
(3) No person shall solicit a proxy, consent, or authorization in respect of any stock of such an insurer unless he or she furnishes the person so solicited with written information reasonably adequate as to
(a) The material matters in regard to which the powers so solicited are proposed to be used, and
(b) The person or persons on whose behalf the solicitation is made, and the interest of such person or persons in relation to such matters.
(4) No person shall so furnish to another, information which the informer knows or has reason to believe, is false or misleading as to any material fact, or which fails to state any material fact reasonably necessary to prevent any other statement made from being misleading.
(5) The form of all such proxies shall:
(a) Conspicuously state on whose behalf the proxy is solicited;
(b) Provide for dating the proxy;
(c) Impartially identify each matter or group of related matters intended to be acted upon;
(d) Provide means for the principal to instruct the vote of his or her shares as to approval or disapproval of each matter or group, other than election to office; and
(e) Be legibly printed, with context suitably organized.
Except, that a proxy may confer discretionary authority as to matters as to which choice is not specified pursuant to (d) of this subsection, if the form conspicuously states how it is intended to vote the proxy or authorization in each such case; and may confer discretionary authority as to other matters which may come before the meeting but unknown for a reasonable time prior to the solicitation by the persons on whose behalf the solicitation is made.
(6) No proxy shall confer authority (a) to vote for election of any person to any office for which a bona fide nominee is not named in the proxy statement, or (b) to vote at any annual meeting (or adjournment thereof) other than the annual meeting next following the date on which the proxy statement and form were furnished stockholders.
(7) The commissioner shall have authority to make and promulgate reasonable rules and regulations for the effectuation of this section, and in so doing shall give due consideration to rules and regulations promulgated for similar purposes by the insurance supervisory officials of other states.
[ 2010 c 8 s 11001; 2009 c 549 s 7029; 1965 ex.s. c 70 s 5.]
Notes:
Exemption from federal registration: 15 U.S.C. s 78 l(g)(2)(G).

catchline: Stockholder meetings—Duty to inform stockholders of matters to be presented—Proxies.


title: RCW 48.08.100

text:
The term "equity security" when used in RCW 48.08.100 through 48.08.160 means any stock or similar security; or any security convertible, with or without consideration, into such a security, or carrying any warrant or right to subscribe to or purchase such a security; or any such warrant or right; or any other security which the commissioner shall deem to be of similar nature and consider necessary or appropriate, by such rules and regulations as he or she may prescribe in the public interest or for the protection of investors, to treat as an equity security.
[ 2009 c 549 s 7030; 1965 ex.s. c 70 s 11.]

catchline: Equity security—Defined.


title: RCW 48.08.110

text:
Every person who is directly or indirectly the beneficial owner of more than ten percent of any class of any equity security of a domestic stock insurer, or who is a director or an officer of such insurer, shall file with the commissioner on or before the 30th day of September, 1965, or within ten days after he or she becomes such beneficial owner, director or officer, a statement, in such form as the commissioner may prescribe, of the amount of all equity securities of such insurer of which he or she is the beneficial owner, and within ten days after the close of each calendar month thereafter, if there has been a change in such ownership during such month, shall file with the commissioner a statement, in such form as the commissioner may prescribe, indicating his or her ownership at the close of the calendar month and such changes in his or her ownership as have occurred during such calendar month.
[ 2009 c 549 s 7031; 1965 ex.s. c 70 s 6.]

catchline: Equity security—Duty to file statement of ownership.


title: RCW 48.08.120

text:
For the purpose of preventing the unfair use of information which may have been obtained by such beneficial owner, director or officer by reason of his or her relationship to such insurer, any profit realized by him from any purchase and sale, or any sale and purchase, of any equity security of such insurer within any period of less than six months, unless such security was acquired in good faith in connection with a debt previously contracted, shall inure to and be recoverable by the insurer, irrespective of any intention on the part of such beneficial owner, director or officer in entering into such transaction of holding the security purchased or of not repurchasing the security sold for a period exceeding six months. Suit to recover such profit may be instituted at law or in equity in any court of competent jurisdiction by the insurer, or by the owner of any security of the insurer in the name and in behalf of the insurer if the insurer shall fail or refuse to bring such suit within sixty days after request or shall fail diligently to prosecute the same thereafter: PROVIDED, That no such suit shall be brought more than two years after the date such profit was realized. This section shall not be construed to cover any transaction where such beneficial owner was not such both at the time of the purchase and sale, or the sale and purchase, of the security involved, or any transaction or transactions which the commissioner by rules and regulations may exempt as not comprehended within the purpose of this section.
[ 2009 c 549 s 7032; 1965 ex.s. c 70 s 7.]
Notes:
Exemption from federal registration: 15 U.S.C. s 78 l(g)(2)(G).

catchline: Equity security—Profits from short term transactions—Remedies—Limitation of actions.


title: RCW 48.08.130

text:
It shall be unlawful for any such beneficial owner, director or officer, directly or indirectly, to sell any equity security of such insurer if the person selling the security or his or her principal (1) does not own the security sold, or (2) if owning the security, does not deliver it against such sale within twenty days thereafter, or does not within five days after such sale deposit it in the mails or other usual channels of transportation: PROVIDED, That no person shall be deemed to have violated this section if he or she proves that notwithstanding the exercise of good faith he or she was unable to make such delivery or deposit within such time, or that to do so would cause undue inconvenience or expense.
[ 2010 c 8 s 11002; 2009 c 549 s 7033; 1965 ex.s. c 70 s 8.]

catchline: Equity security—Sales, unlawful practices.


title: RCW 48.08.140

text:
The provisions of RCW 48.08.120 shall not apply to any purchase and sale, or sale and purchase, and the provisions of RCW 48.08.130 shall not apply to any sale of an equity security of a domestic stock insurer not then or theretofore held by him or her in an investment account, by a dealer in the ordinary course of his or her business and incident to the establishment or maintenance by him or her of a primary or secondary market (otherwise than on an exchange as defined in the Securities Exchange Act of 1934) for such security. The commissioner may, by such rules and regulations as he or she deems necessary or appropriate in the public interest, define and prescribe terms and conditions with respect to securities held in an investment account and transactions made in the ordinary course of business and incident to the establishment or maintenance of a primary or secondary market.
[ 2009 c 549 s 7034; 1965 ex.s. c 70 s 9.]

catchline: Equity security—Exemptions—Sales by dealer.


title: RCW 48.08.150

text:
The provisions of RCW 48.08.110, 48.08.120 and 48.08.130 shall not apply to foreign or domestic arbitrage transactions unless made in contravention of such rules and regulations as the commissioner may adopt in order to carry out the purposes of RCW 48.08.100 through 48.08.160.
[ 1965 ex.s. c 70 s 10.]

catchline: Equity security—Exemptions—Foreign or domestic arbitrage transactions.


title: RCW 48.08.160

text:
The provisions of RCW 48.08.110, 48.08.120, and 48.08.130 shall not apply to equity securities of a domestic stock insurer if (1) such securities shall be registered, or shall be required to be registered, pursuant to section 12 of the Securities Exchange Act of 1934, as amended, or if (2) such domestic stock insurer shall not have any class of its equity securities held of record by one hundred or more persons on the last business day of the year next preceding the year in which equity securities of the insurer would be subject to the provisions of RCW 48.08.110, 48.08.120, and 48.08.130 except for the provisions of this subsection (2).
[ 1965 ex.s. c 70 s 12.]

catchline: Equity security—Exemptions—Securities registered or required to be, or no class held by one hundred or more persons.


title: RCW 48.08.170

text:
The commissioner shall have the power to make such rules and regulations as may be necessary for the execution of the functions vested in him or her by RCW 48.08.100 through 48.08.160, and may for such purpose classify domestic stock insurers, securities, and other persons or matters within his jurisdiction. No provision of RCW 48.08.110, 48.08.120, and 48.08.130 imposing any liability shall apply to any act done or omitted in good faith in conformity with any rule or regulation of the commissioner, notwithstanding that such rule or regulation may, after such act or omission, be amended or rescinded or determined by judicial or other authority to be invalid for any reason.
[ 2009 c 549 s 7035; 1965 ex.s. c 70 s 13.]

catchline: Equity security—Rules and regulations.


title: RCW 48.08.190

text:
Any person who fails to file information, documents, or reports required to be filed under chapter 241, Laws of 1969 ex. sess. or any rule or regulation thereunder shall forfeit to the state of Washington the sum of one hundred dollars for each and every day such failure to file shall continue. Such forfeiture, which shall be in lieu of any criminal penalty for such failure to file which might be deemed to arise under this title, shall be payable to the treasurer of the state of Washington and shall be recoverable in a civil suit in the name of the state of Washington.
[ 1969 ex.s. c 241 s 18.]

catchline: Failure to file required information, documents, or reports—Forfeiture.


title: RCW 48.09.010

text:
(1) The commissioner shall not issue a certificate of authority to a domestic mutual insurer unless it has fully qualified therefor under this code, and unless it has met the minimum requirements for the kind of insurance it proposes to transact as provided in this chapter.
(2) All applications for insurance submitted by such an insurer as fulfilling qualification requirements shall be bona fide applications from persons resident in this state covering lives, property, or risks resident or located in this state.
(3) All qualifying premiums collected and initial surplus funds of such an insurer shall be in cash. Any deposit made by such an insurer in lieu of applications, premiums, and initial surplus funds, shall be in cash or in securities eligible for the investment of the capital of a domestic stock insurer transacting the same kind of insurance.
[1947 c 79 s .09.01; Rem. Supp. 1947 s 45.09.01.]

catchline: Initial qualifications.


title: RCW 48.09.090

text:
A domestic mutual insurer may be authorized to transact kinds of insurance in addition to that for which it was originally authorized, if it has otherwise complied with the provisions of this code therefor, and while it possesses and maintains surplus funds in aggregate amount not less than the minimum amount of capital and surplus required under this code of a domestic stock insurer authorized to transact like kinds of insurance pursuant to RCW 48.05.340.
[ 1980 c 135 s 2; 1957 c 193 s 5; 1947 c 79 s .09.09; Rem. Supp. 1947 s 45.09.09.]

catchline: Additional kinds of insurance.


title: RCW 48.09.100

text:
A domestic mutual insurer on the cash premium plan shall at all times have and maintain surplus funds, representing the excess of its assets over its liabilities, in amount not less than the aggregate of
(1) the amount of any surplus funds deposited by it with the commissioner to qualify for its original certificate of authority, and
(2) the amount of any additional surplus required of it pursuant to RCW 48.09.090 for authority to transact additional kinds of insurance.
[ 1963 c 195 s 3; 1947 c 79 s .09.10; Rem. Supp. 1947 s 45.09.10.]

catchline: Minimum surplus.


title: RCW 48.09.110

text:
(1) Each holder of one or more insurance contracts issued by a domestic mutual insurer, other than a contract of reinsurance, is a member of the insurer, with the rights and obligations of such membership, and each insurance contract so issued shall effectively so stipulate.
(2) Any person, government or governmental agency, state or political subdivision thereof, public or private corporation, board, association, estate, trustee or fiduciary, may be a member of a mutual insurer.
[1947 c 79 s .09.11; Rem. Supp. 1947 s 45.09.11.]

catchline: Membership.


title: RCW 48.09.120

text:
(1) A domestic mutual insurer is owned by and shall be operated in the interest of its members.
(2) Each member is entitled to one vote in the election of directors and on matters coming before corporate meetings of members, subject to such reasonable minimum requirements as to duration of membership and amount of insurance held as may be made in the insurer's bylaws. The person named as the policyholder in any group insurance policy issued by such insurer shall be deemed the member, and shall have but one such vote regardless of the number of individuals insured by such policy.
(3) With respect to the management, records, and affairs of the insurer, a member shall have the same character of rights and relationship as a stockholder has toward a domestic stock insurer.
[1947 c 79 s .09.12; Rem. Supp. 1947 s 45.09.12.]

catchline: Rights of members.


title: RCW 48.09.130

text:
A domestic mutual insurer shall adopt bylaws for the conduct of its affairs. Such bylaws, or any modification thereof, shall forthwith be filed with the commissioner. The commissioner shall disapprove any such bylaws, or as so modified, if he or she finds after a hearing thereon, that it is not in compliance with the laws of this state, and he or she shall forthwith communicate such disapproval to the insurer. No such bylaw, or modification, so disapproved shall be effective during the existence of such disapproval.
[ 2009 c 549 s 7036; 1947 c 79 s .09.13; Rem. Supp. 1947 s 45.09.13.]

catchline: Bylaws.


title: RCW 48.09.140

text:
(1) Notice of the time and place of the annual meeting of members of a domestic mutual insurer shall be given by imprinting such notice plainly on the policies issued by the insurer.
(2) Any change of the date or place of the annual meeting shall be made only by an annual meeting of members. Notice of such change may be given:
(a) By imprinting such new date or place on all policies which will be in effect as of the date of such changed meeting; or
(b) Unless the commissioner otherwise orders, notice of the new date or place need be given only through policies issued after the date of the annual meeting at which such change was made and in premium notices and renewal certificates issued during the twenty-four months immediately following such meeting.
[1947 c 79 s .09.14; Rem. Supp. 1947 s 45.09.14.]

catchline: Notice of annual meeting.


title: RCW 48.09.150

text:
(1) A member of a domestic mutual insurer may vote in person or by proxy given another member on any matter coming before a corporate meeting of members.
(2) An officer of the insurer shall not hold or vote the proxy of any member.
(3) No such proxy shall be valid beyond the earlier of the following dates:
(a) The date of expiration set forth in the proxy; or
(b) the date of termination of membership; or
(c) five years from the date of execution of the proxy.
(4) No member's vote upon any proposal to divest the insurer of its business and assets, or the major part thereof, shall be registered or taken except in person or by a proxy newly executed and specific as to the matter to be voted upon.
[1947 c 79 s .09.15; Rem. Supp. 1947 s 45.09.15.]

catchline: Voting—Proxies.


title: RCW 48.09.160

text:
No individual shall be a director of a domestic mutual insurer by reason of his or her holding public office. Adjudication as a bankrupt or taking the benefit of any insolvency law or making a general assignment for the benefit of creditors disqualifies an individual from being or acting as a director.
[ 2009 c 549 s 7037; 1947 c 79 s .09.16; Rem. Supp. 1947 s 45.09.16.]

catchline: Directors—Disqualification.


title: RCW 48.09.180

text:
(1) For any calendar year after its first two full calendar years of operation, no domestic mutual insurer on the cash premium plan, other than one issuing nonassessable policies, shall incur any costs or expense in the writing or administration of property, disability, and casualty insurances (other than boiler and machinery or elevator) transacted by it which, exclusive of losses paid, loss adjustment expenses, investment expenses, dividends, and taxes exceeds the sum of
(a) forty percent of the net premium income during that year after deducting therefrom net earned reinsurance premiums for such year, plus
(b) all of the reinsurance commissions received on reinsurance ceded by it.
(2) The bylaws of every domestic mutual property insurer on the assessment premium plan shall impose a reasonable limitation upon its expenses.
[ 1949 c 190 s 8; 1947 c 79 s .09.18; Rem. Supp. 1949 s 45.09.18.]

catchline: Limitation of expenses as to property and casualty insurance.


title: RCW 48.09.190

text:
The officers and directors of an insurer violating RCW 48.09.180 shall be jointly and severally liable to the insurer for any excess of expenses incurred. If the insurer fails to exercise reasonable diligence or refuses to enforce such liability, the commissioner may prosecute action thereon for the benefit of the insurer. Such failure or refusal constitutes grounds for revocation of the insurer's certificate of authority.
[1947 c 79 s .09.19; Rem. Supp. 1947 s 45.09.19.]

catchline: Procedure upon violation of limitation.


title: RCW 48.09.210

text:
No action to recover, or on account of, any salary or other compensation due or claimed to be due any officer or director of a domestic mutual insurer, or on any note or agreement relative thereto, shall be brought against such insurer after twelve months after the date on which such salary or compensation, or any installment thereof, first accrued.
[1947 c 79 s .09.21; Rem. Supp. 1947 s 45.09.21.]

catchline: Limitation of action on officer's salary.


title: RCW 48.09.220

text:
(1) Each member of a domestic mutual insurer, except as otherwise provided in this chapter, shall have a contingent liability, pro rata and not one for another, for the discharge of its obligations. The contingent liability shall be in such maximum amount as is stated in the insurer's articles of incorporation, but shall be not less than one, nor more than five, additional premiums for the member's policy at the annual premium rate and for a term of one year.
(2) Every policy issued by the insurer shall contain a statement of the contingent liability.
(3) Termination of the policy of any such member shall not relieve the member of contingent liability for his or her proportion of the obligations of the insurer which accrued while the policy was in force.
[ 2009 c 549 s 7038; 1949 c 190 s 9; 1947 c 79 s .09.22; Rem. Supp. 1949 s 45.09.22.]

catchline: Contingent liability of members.


title: RCW 48.09.230

text:
(1) If at any time the assets of a domestic mutual insurer doing business on the cash premium plan are less than its liabilities and the minimum surplus, if any, required of it by this code as prerequisite for continuance of its certificate of authority, and the deficiency is not cured from other sources, its directors may, if approved by the commissioner, make an assessment only on its members who at any time within the twelve months immediately preceding the date such assessment was authorized by its directors held policies providing for contingent liability.
(2) Such an assessment shall be for such an amount of money as is required, in the opinion of the commissioner, to render the insurer fully solvent, but not to result in surplus in excess of five percent of the insurer's liabilities as of the date of the assessment.
(3) A member's proportionate part of any such assessment shall be computed by applying to the premium earned, during the period since the deficiency first appeared, on his or her contingently liable policy or policies the ratio of the total assessment to the total premium earned during such period on all contingently liable policies which are subject to the assessment.
(4) No member shall have an offset against any assessment for which he or she is liable on account of any claim for unearned premium or losses payable.
[ 2009 c 549 s 7039; 1949 c 190 s 10; 1947 c 79 s .09.23; Rem. Supp. 1949 s 45.09.23.]

catchline: Assessment of members.