title: RCW 48.15.120

text:
(1) On or before the first day of March of each year each surplus line broker must remit to the state treasurer through the commissioner a tax on the premiums, exclusive of sums collected to cover federal and state taxes and examination fees, on surplus line insurance subject to tax transacted by him or her during the preceding calendar year as shown by his or her annual statement filed with the commissioner, and at the same rate as is applicable to the premiums of authorized foreign insurers under this code. The tax when collected must be credited to the general fund.
(2) For property and casualty insurance other than industrial insurance under Title 51 RCW, when this state is the insured's home state:
(a) If the surplus line insurance covers risks or exposures located inside the United States, its territories, or both, the tax so payable must be computed upon the entire premium under subsection (1) of this section, without regard to whether the policy covers risks or exposures that are located in this state; and
(b) If the surplus line insurance covers risks or exposures located outside of the United States and its territories, no tax under subsection (1) of this section is due or payable for the premium properly allocable to the risks and exposures located outside the United States and its territories.
(3) For all other lines of insurance, if a surplus line policy covers risks or exposures only partially in this state, the tax so payable must be computed upon the proportion of the premium that is properly allocable to the risks or exposures located in this state.
[ 2015 c 132 s 2; 2011 c 31 s 8; 2009 c 549 s 7059; 1947 c 79 s .15.12; Rem. Supp. 1947 s 45.15.12.]
Notes:
Application—2011 c 31 s 8: "Section 8 of this act applies to all surplus line insurance policies with an effective date on or after July 21, 2011." [ 2011 c 31 s 9.]
Effective date—2011 c 31: See note following RCW 48.15.010.

catchline: Premium tax—Surplus lines.


doc_type: statute

jurisdiction: wa

title: RCW 48.15.130

text:
If any surplus line broker fails to file his or her annual statement, or fails to remit the tax provided by RCW 48.15.120, by the last day of the month in which the tax becomes due, the surplus line broker must pay the penalties provided in RCW 48.14.060(1). The tax may be collected by distraint, or the tax and fine may be recovered by an action instituted by the commissioner in any court of competent jurisdiction. Any fine collected by the commissioner must be paid to the state treasurer and credited to the general fund.
[ 2003 c 341 s 2; 1983 1st ex.s. c 32 s 5; 1980 c 102 s 5; 1947 c 79 s .15.13; Rem. Supp. 1947 s 45.15.13.]

license: public-domain-government-work

rule_set: Revised Code of Washington

catchline: Penalty for default.

code: rcw

unit: section

court: Washington State Legislature


title: RCW 48.15.140

text:
(1) The commissioner may place on probation, revoke, suspend, or refuse to renew any surplus line broker's license, or may levy a civil penalty in accordance with RCW 48.17.560 or any combination of actions, for any one or more of the following causes:
(a) If the surplus line broker fails to file the licensee's annual statement or to remit the tax as required by this chapter; or
(b) If the surplus line broker fails to maintain an office in this state, or to keep the records, or to allow the commissioner to examine the licensee's records as required by this chapter; or
(c) For any of the causes for which an insurance producer's license may be revoked under chapter 48.17 RCW.
(2) The commissioner may suspend or revoke any such license whenever he or she deems suspension or revocation to be for the best interests of the people of this state.
(3) The procedures provided by this code for the suspension or revocation of insurance producers' licenses shall be applicable to suspension or revocation of a surplus line broker's license.
(4) A surplus line broker whose license has been so revoked shall not again be so licensed within one year thereafter, nor until any fines or delinquent taxes owing by the formal licensee have been paid.
[ 2009 c 162 s 7; 2008 c 217 s 10; 1980 c 102 s 6; 1947 c 79 s .15.14; Rem. Supp. 1947 s 45.15.14.]
Notes:
Effective date—2009 c 162: See note following RCW 48.03.020.
Severability—Effective date—2008 c 217: See notes following RCW 48.03.020.

catchline: Revocation, suspension, or failure to renew surplus line broker's license—Civil penalty.


title: RCW 48.15.142

text:
The commissioner shall immediately suspend the license or certificate of a person issued under this chapter who has been certified pursuant to RCW 74.20A.320 by the department of social and health services as a person who is not in compliance with a support order. If the person has continued to meet all other requirements for reinstatement during the suspension, reissuance of the license or certificate shall be automatic upon the commissioner's receipt of a release issued by the department of social and health services stating that the licensee is in compliance with the order.
[ 2009 c 162 s 10.]
Notes:
Effective date—2009 c 162: See note following RCW 48.03.020.

catchline: Suspension for failure to comply with support order.


title: RCW 48.15.150

text:
(1) For any cause of action arising in this state under any contract issued as a surplus line contract under this chapter, an unauthorized insurer must be sued in the superior court of the county in which the cause of action arose.
(2) An unauthorized insurer issuing a policy under this chapter has authorized service of process against it in the manner prescribed under RCW 48.02.200. Any policy must contain a provision designating the commissioner as the person upon whom service of process may be made.
(3) The insurer has forty days from the date of the service upon the commissioner within which to plead, answer, or otherwise defend the action. Upon service of process upon the commissioner in accordance with this section, the court has jurisdiction in personam of the insurer.
[ 2011 c 47 s 9; 1979 ex.s. c 199 s 4; 1963 c 195 s 16; 1955 c 303 s 8; 1947 c 79 s .15.15; Rem. Supp. 1947 s 45.15.15.]

catchline: Legal process against surplus line insurer.


title: RCW 48.15.160

text:
(1) The provisions of this chapter controlling the placing of insurance with unauthorized insurers shall not apply to reinsurance, to insurance issued by a registered eligible captive insurer under chapter 48.201 RCW, or to the following insurances when so placed by licensed insurance producers of this state:
(a) Ocean marine and foreign trade insurances.
(b) Insurance on subjects located, resident, or to be performed wholly outside of this state, or on vehicles or aircraft owned and principally garaged outside this state.
(c) Insurance on operations of railroads engaged in transportation in interstate commerce and their property used in such operations.
(d) Insurance of aircraft owned or operated by manufacturers of aircraft, or of aircraft operated in schedule interstate flight, or cargo of such aircraft, or against liability, other than workers' compensation and employer's liability, arising out of the ownership, maintenance or use of such aircraft.
(2) Insurance producers so placing any such insurance with an unauthorized insurer shall keep a full and true record of each such coverage in detail as required of surplus line insurance under this chapter and shall meet the requirements imposed upon a surplus line broker pursuant to RCW 48.15.090 and any regulations adopted thereunder. The record shall be preserved for not less than five years from the effective date of the insurance and shall be kept available in this state and open to the examination of the commissioner. The insurance producer shall furnish to the commissioner at the commissioner's request and on forms as designated and furnished by him or her a report of all such coverages so placed in a designated calendar year.
[ 2021 c 281 s 9; 2008 c 217 s 11; 1987 c 185 s 23; 1985 c 264 s 5; 1949 c 190 s 22; 1947 c 79 s .15.16; Rem. Supp. 1949 s 45.15.16.]
Notes:
Application—2021 c 281 ss 8-11: See note following RCW 48.14.095.
Effective date—2021 c 281: See note following RCW 48.201.010.
Severability—Effective date—2008 c 217: See notes following RCW 48.03.020.
Intent—Severability—1987 c 185: See notes following RCW 51.12.130.

catchline: Exemptions from surplus line requirements.


title: RCW 48.15.170

text:
Every person for whom insurance has been placed with an unauthorized insurer pursuant to or in violation of this chapter shall, upon the commissioner's order, produce for his or her examination all policies and other documents evidencing the insurance, and shall disclose to the commissioner the amount of the gross premiums paid or agreed to be paid for the insurance. For each refusal to obey such order, such person shall be liable to a fine of not more than five hundred dollars.
[ 2009 c 549 s 7060; 1947 c 79 s .15.17; Rem. Supp. 1947 s 45.15.17.]

catchline: Records of insureds—Inspection.


title: RCW 48.15.180

text:
(1) A surplus line broker, its representative, or any person licensed under this chapter involved in the procuring or issuance of an insurance contract and who receives any funds representing premiums or return premiums which belong to or should be paid to another person as a result of or in connection with an insurance transaction is deemed to have been received in the surplus line broker's fiduciary capacity and shall:
(a) Report to the insurer the exact amount of consideration charged as premium for the contract, and the amount shall likewise be shown in the contract and in the records of the surplus line broker;
(b) Be promptly accounted for and paid to the insured, insurer, or person entitled to the funds;
(c) Be accounted for and maintained in a separate account from all other business and personal funds and not commingle or otherwise combine premiums with any other moneys, except a surplus line broker may commingle with premium funds any additional funds as the surplus line broker may deem prudent for the purpose of advancing premiums, establishing reserves for the paying of return premiums, or for any contingencies as may arise in the surplus line broker's business of receiving and transmitting premium or return premium funds.
(2) Each willful violation of this section constitutes a misdemeanor.
(3) Any surplus line broker or other person licensed under this chapter who, not being lawfully entitled thereto, diverts or appropriates funds received in a fiduciary capacity or any portion thereof to his or her own use, is guilty of theft under chapter 9A.56 RCW.
[ 2009 c 162 s 9.]
Notes:
Effective date—2009 c 162: See note following RCW 48.03.020.

catchline: Surplus line broker's fiduciary capacity—Violations.


title: RCW 48.15.185

text:
It is unlawful for any unauthorized person to remove, reproduce, duplicate, or distribute in any form, any question used by the state of Washington to determine the qualifications and competence of surplus line brokers required by this title to be licensed. This section does not prohibit an insurance education provider from creating and using sample test questions in courses approved by the commissioner.
Any person violating this section is subject to penalties as provided by RCW 48.01.080 and 48.15.140.
[ 2009 c 162 s 11.]
Notes:
Effective date—2009 c 162: See note following RCW 48.03.020.

catchline: Determination of qualifications and competence by state—Unlawful use of questions.


title: RCW 48.150.005

text:
It is the public policy of Washington to promote access to medical care for all citizens and to encourage innovative arrangements between patients and providers that will help provide all citizens with a medical home.
Washington needs a multipronged approach to provide adequate health care to many citizens who lack adequate access to it. Direct patient-provider practices, in which patients enter into a direct relationship with medical practitioners and pay a fixed amount directly to the health care provider for primary care services, represent an innovative, affordable option which could improve access to medical care, reduce the number of people who now lack such access, and cut down on emergency room use for primary care purposes, thereby freeing up emergency room facilities to treat true emergencies.
[ 2007 c 267 s 1.]

catchline: Public policy.


title: RCW 48.150.010

text:
The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
(1) "Direct agreement" means a written agreement entered into between a direct practice and an individual direct patient, or the parent or legal guardian of the direct patient or a family of direct patients, whereby the direct practice charges a direct fee as consideration for being available to provide and providing primary care services to the individual direct patient. A direct agreement must (a) describe the specific health care services the direct practice will provide; and (b) be terminable at will upon written notice by the direct patient.
(2) "Direct fee" means a fee charged by a direct practice as consideration for being available to provide and providing primary care services as specified in a direct agreement.
(3) "Direct patient" means a person who is party to a direct agreement and is entitled to receive primary care services under the direct agreement from the direct practice.
(4) "Direct patient-provider primary care practice" and "direct practice" means a provider, group, or entity that meets the following criteria in (a), (b), (c), and (d) of this subsection:
(a)(i) A health care provider who furnishes primary care services through a direct agreement;
(ii) A group of health care providers who furnish primary care services through a direct agreement; or
(iii) An entity that sponsors, employs, or is otherwise affiliated with a group of health care providers who furnish only primary care services through a direct agreement, which entity is wholly owned by the group of health care providers or is a nonprofit corporation exempt from taxation under section 501(c)(3) of the internal revenue code, and is not otherwise regulated as a health care service contractor, health maintenance organization, or disability insurer under Title 48 RCW. Such entity is not prohibited from sponsoring, employing, or being otherwise affiliated with other types of health care providers not engaged in a direct practice;
(b) Enters into direct agreements with direct patients or parents or legal guardians of direct patients;
(c) Does not accept payment for health care services provided to direct patients from any entity subject to regulation under Title 48 RCW or plans administered under chapter 41.05, 70.47, or * 70.47A RCW; and
(d) Does not provide, in consideration for the direct fee, services, procedures, or supplies such as prescription drugs except as provided in RCW 48.150.040(2)(b)(i)(B), hospitalization costs, major surgery, dialysis, high level radiology (CT, MRI, PET scans or invasive radiology), rehabilitation services, procedures requiring general anesthesia, or similar advanced procedures, services, or supplies.
(5) "Health care provider" or "provider" means a person regulated under Title 18 RCW or chapter 70.127 RCW to practice health or health-related services or otherwise practicing health care services in this state consistent with state law.
(6) "Health carrier" or "carrier" has the same meaning as in RCW 48.43.005.
(7) "Network" means the group of participating providers and facilities providing health care services to a particular health carrier's health plan or to plans administered under chapter 41.05, 70.47, or * 70.47A RCW.
(8) "Primary care" means routine health care services, including screening, assessment, diagnosis, and treatment for the purpose of promotion of health, and detection and management of disease or injury.
[ 2013 c 126 s 1. Prior: 2009 c 552 s 1; 2007 c 267 s 3.]
Notes:
*Reviser's note: Chapter 70.47A RCW was repealed in its entirety by 2017 3rd sp.s. c 25 s 9.

catchline: Definitions.


title: RCW 48.150.020

text:
Except as provided in RCW 48.150.050, no direct practice shall decline to accept any person solely on account of race, religion, national origin, the presence of any sensory, mental, or physical disability, education, economic status, or sexual orientation.
[ 2007 c 267 s 4.]

catchline: Prohibition on discrimination.


title: RCW 48.150.030

text:
(1) A direct practice must charge a direct fee on a monthly basis. The fee must represent the total amount due for all primary care services specified in the direct agreement and may be paid by the direct patient or on his or her behalf by others.
(2) A direct practice must:
(a) Maintain appropriate accounts and provide data regarding payments made and services received to direct patients upon request; and
(b) Either:
(i) Bill patients at the end of each monthly period; or
(ii) If the patient pays the monthly fee in advance, promptly refund to the direct patient all unearned direct fees following receipt of written notice of termination of the direct agreement from the direct patient. The amount of the direct fee considered earned shall be a proration of the monthly fee as of the date the notice of termination is received.
(3) If the patient chooses to pay more than one monthly direct fee in advance, the funds must be held in a trust account and paid to the direct practice as earned at the end of each month. Any unearned direct fees held in trust following receipt of termination of the direct agreement shall be promptly refunded to the direct patient. The amount of the direct fee earned shall be a proration of the monthly fee for the then current month as of the date the notice of termination is received.
(4) The direct fee schedule applying to an existing direct patient may not be increased over the annual negotiated amount more frequently than annually. A direct practice shall provide advance notice to existing patients of any change within the fee schedule applying to those existing direct patients. A direct practice shall provide at least sixty days' advance notice of any change in the fee.
(5) A direct practice must designate a contact person to receive and address any patient complaints.
(6) Direct fees for comparable services within a direct practice shall not vary from patient to patient based on health status or sex.
[ 2007 c 267 s 5.]

catchline: Direct fee—Monthly basis—Designated contact person.


title: RCW 48.150.040

text:
(1) Direct practices may not:
(a) Enter into a participating provider contract as defined in RCW 48.44.010 or 48.46.020 with any carrier or with any carrier's contractor or subcontractor, or plans administered under chapter 41.05, 70.47, or * 70.47A RCW, to provide health care services through a direct agreement except as set forth in subsection (2) of this section;
(b) Submit a claim for payment to any carrier or any carrier's contractor or subcontractor, or plans administered under chapter 41.05, 70.47, or * 70.47A RCW, for health care services provided to direct patients as covered by their agreement;
(c) With respect to services provided through a direct agreement, be identified by a carrier or any carrier's contractor or subcontractor, or plans administered under chapter 41.05, 70.47, or * 70.47A RCW, as a participant in the carrier's or any carrier's contractor or subcontractor network for purposes of determining network adequacy or being available for selection by an enrollee under a carrier's benefit plan; or
(d) Pay for health care services covered by a direct agreement rendered to direct patients by providers other than the providers in the direct practice or their employees, except as described in subsection (2)(b) of this section.
(2) Direct practices and providers may:
(a) Enter into a participating provider contract as defined by RCW 48.44.010 and 48.46.020 or plans administered under chapter 41.05, 70.47, or * 70.47A RCW for purposes other than payment of claims for services provided to direct patients through a direct agreement. Such providers shall be subject to all other provisions of the participating provider contract applicable to participating providers including but not limited to the right to:
(i) Make referrals to other participating providers;
(ii) Admit the carrier's members to participating hospitals and other health care facilities;
(iii) Prescribe prescription drugs; and
(iv) Implement other customary provisions of the contract not dealing with reimbursement of services;
(b)(i) Pay for charges associated with:
(A) The provision of routine lab and imaging services; and
(B) The dispensing, at no additional cost to the direct patient, of an initial supply, not to exceed thirty days, of generic prescription drugs prescribed by the direct provider.
(ii) In aggregate payments made under (b)(i)(A) and (B) of this subsection per year per direct patient are not to exceed fifteen percent of the total annual direct fee charged that direct patient. Exceptions to this limitation may occur with respect to routine lab and imaging services in the event of short-term equipment failure if such failure prevents the provision of care that should not be delayed; and
(c) Charge an additional fee to direct patients for supplies, medications, and specific vaccines provided to direct patients that are specifically excluded under the agreement, provided the direct practice notifies the direct patient of the additional charge, prior to their administration or delivery.
[ 2013 c 126 s 2; 2009 c 552 s 2; 2007 c 267 s 6.]
Notes:
*Reviser's note: Chapter 70.47A RCW was repealed in its entirety by 2017 3rd sp.s. c 25 s 9.

catchline: Prohibited and authorized practices.


title: RCW 48.150.050

text:
(1) Direct practices may not decline to accept new direct patients or discontinue care to existing patients solely because of the patient's health status. A direct practice may decline to accept a patient if the practice has reached its maximum capacity, or if the patient's medical condition is such that the provider is unable to provide the appropriate level and type of health care services in the direct practice. So long as the direct practice provides the patient notice and opportunity to obtain care from another physician, the direct practice may discontinue care for direct patients if: (a) The patient fails to pay the direct fee under the terms required by the direct agreement; (b) the patient has performed an act that constitutes fraud; (c) the patient repeatedly fails to comply with the recommended treatment plan; (d) the patient is abusive and presents an emotional or physical danger to the staff or other patients of the direct practice; or (e) the direct practice discontinues operation as a direct practice.
(2) Subject to the restrictions established in this chapter, direct practices may accept payment of direct fees directly or indirectly from third parties. A direct practice may accept a direct fee paid by an employer on behalf of an employee who is a direct patient. However, a direct practice shall not enter into a contract with an employer relating to direct practice agreements between the direct practice and employees of that employer, other than to establish the timing and method of the payment of the direct fee by the employer.
[ 2009 c 552 s 3; 2007 c 267 s 7.]

catchline: Acceptance or discontinuation of patients—Third-party payments.


title: RCW 48.150.060

text:
Direct practices, as defined in RCW 48.150.010, who comply with this chapter are not insurers under RCW 48.01.050, health carriers under chapter 48.43 RCW, health care service contractors under chapter 48.44 RCW, or health maintenance organizations under chapter 48.46 RCW.
[ 2007 c 267 s 8.]

catchline: Direct practices are not insurers.


title: RCW 48.150.070

text:
A person shall not make, publish, or disseminate any false, deceptive, or misleading representation or advertising in the conduct of the business of a direct practice, or relative to the business of a direct practice.
[ 2007 c 267 s 9.]

catchline: Conduct of business—Prohibitions.


title: RCW 48.150.080

text:
A person shall not make, issue, or circulate, or cause to be made, issued, or circulated, a misrepresentation of the terms of any direct agreement, or the benefits or advantages promised thereby, or use the name or title of any direct agreement misrepresenting the nature thereof.
[ 2007 c 267 s 10.]

catchline: Misrepresenting the terms of a direct agreement.


title: RCW 48.150.090

text:
Violations of this chapter constitute unprofessional conduct enforceable under RCW 18.130.180.
[ 2007 c 267 s 11.]

catchline: Chapter violations.


title: RCW 48.150.100

text:
(1) Direct practices must submit annual statements, beginning on October 1, 2007, to the office of the insurance commissioner specifying the number of providers in each practice, total number of patients being served, the average direct fee being charged, providers' names, and the business address for each direct practice. The form and content for the annual statement must be developed in a manner prescribed by the commissioner. Information and data, other than providers' names and business addresses, reported in the annual statements is confidential and exempt from public disclosure pursuant to chapter 42.56 RCW. When reporting publicly on the number of patients being served or the average direct fee being charged, the commissioner shall report the information in appropriate banded ranges.
(2) A health care provider may not act as, or hold himself or herself out to be, a direct practice in this state, nor may a direct agreement be entered into with a direct patient in this state, unless the provider submits the annual statement in subsection (1) of this section to the commissioner.
(3) The commissioner shall report annually to the legislature on direct practices including, but not limited to, participation trends, complaints received, voluntary data reported by the direct practices, and any necessary modifications to this chapter. The commissioner's report and the data in it shall be in aggregate form that does not permit the identification of individual direct practices. The initial report shall be due December 1, 2009.
[ 2025 c 243 s 13; 2007 c 267 s 12.]


title: RCW 48.150.110

text:
(1) A direct agreement must include the following disclaimer: "This agreement does not provide comprehensive health insurance coverage. It provides only the health care services specifically described." The direct agreement may not be sold to a group and may not be entered with a group of subscribers. It must be an agreement between a direct practice and an individual direct patient. Nothing prohibits the presentation of marketing materials to groups of potential subscribers or their representatives.
(2) A comprehensive disclosure statement shall be distributed to all direct patients with their participation forms. Such disclosure must inform the direct patients of their financial rights and responsibilities to the direct practice as provided for in this chapter, encourage that direct patients obtain and maintain insurance for services not provided by the direct practice, and state that the direct practice will not bill a carrier for services covered under the direct agreement. The disclosure statement shall include contact information for the office of the insurance commissioner.
[ 2007 c 267 s 13.]


title: RCW 48.155.001

text:
This chapter may be known and cited as the Washington health care discount plan organization act.
[ 2009 c 175 s 1.]

catchline: Short title.


title: RCW 48.155.003

text:
The purposes of this chapter are to promote the public interest by establishing standards for discount plan organizations, to protect consumers from unfair or deceptive marketing, sales, or enrollment practices, and to facilitate consumer understanding of the role and function of discount plan organizations in providing discounts on charges for health care services.
[ 2009 c 175 s 2.]

catchline: Purpose.


title: RCW 48.155.007

text:
The commissioner may adopt rules to implement this chapter.
[ 2009 c 175 s 18.]

catchline: Rules.


title: RCW 48.155.010

text:
The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
(1) "Affiliate" means a person that directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, the person specified.
(2) "Commissioner" means the Washington state insurance commissioner.
(3)(a) "Control" or "controlled by" or "under common control with" means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a person, whether through the ownership of voting securities, by contract other than a commercial contract for goods or nonmanagement services, or otherwise, unless the power is the result of an official position with or corporate office held by the person.
(b) Control exists when any person, directly or indirectly, owns, controls, holds with the power to vote, or holds proxies representing ten percent or more of the voting securities of any other person. A presumption of control may be rebutted by a showing made in the manner provided by RCW 48.31B.005(3) and 48.31B.025(11) that control does not exist in fact. The commissioner may determine, after furnishing all persons in interest notice and opportunity to be heard and making specific findings of fact to support the determination, that control exists in fact, notwithstanding the absence of a presumption to that effect.
(4)(a) "Discount plan" means a business arrangement or contract in which a person or organization, in exchange for fees, dues, charges, or other consideration, provides or purports to provide discounts to its members on charges by providers for health care services.
(b) "Discount plan" does not include:
(i) A plan that does not charge a membership or other fee to use the plan's discount card;
(ii) A patient access program as defined in this chapter;
(iii) A medicare prescription drug plan as defined in this chapter; or
(iv) A discount plan offered by a health carrier authorized under chapter 48.20, 48.21, 48.44, or 48.46 RCW.
(5)(a) "Discount plan organization" means a person that, in exchange for fees, dues, charges, or other consideration, provides or purports to provide access to discounts to its members on charges by providers for health care services. "Discount plan organization" also means a person or organization that contracts with providers, provider networks, or other discount plan organizations to offer discounts on health care services to its members. This term also includes all persons that determine the charge to or other consideration paid by members.
(b) "Discount plan organization" does not mean:
(i) Pharmacy benefit managers;
(ii) Health care provider networks, when the network's only involvement in discount plans is contracting with the plan to provide discounts to the plan's members;
(iii) Marketers who market the discount plans of discount plan organizations which are licensed under this chapter as long as all written communications of the marketer in connection with a discount plan clearly identify the licensed discount plan organization as the responsible entity; or
(iv) Health carriers, if the discount on health care services is offered by a health carrier authorized under chapter 48.20, 48.21, 48.44, or 48.46 RCW.
(6) "Health care facility" or "facility" has the same meaning as in *RCW 48.43.005(22).
(7) "Health care provider" or "provider" has the same meaning as in *RCW 48.43.005(23).
(8) "Health care provider network," "provider network," or "network" means any network of health care providers, including any person or entity that negotiates directly or indirectly with a discount plan organization on behalf of more than one provider to provide health care services to members.
(9) "Health care services" has the same meaning as in *RCW 48.43.005(24).
(10) "Health carrier" or "carrier" has the same meaning as in *RCW 48.43.005(25).
(11) "Marketer" means a person or entity that markets, promotes, sells, or distributes a discount plan, including a contracted marketing organization and a private label entity that places its name on and markets or distributes a discount plan pursuant to a marketing agreement with a discount plan organization.
(12) "Medicare prescription drug plan" means a plan that provides a medicare part D prescription drug benefit in accordance with the requirements of the federal medicare prescription drug improvement and modernization act of 2003.
(13) "Member" means any individual who pays fees, dues, charges, or other consideration for the right to receive the benefits of a discount plan, but does not include any individual who enrolls in a patient access program.
(14) "Patient access program" means a voluntary program sponsored by a pharmaceutical manufacturer, or a consortium of pharmaceutical manufacturers, that provides free or discounted health care products for no additional consideration directly to low-income or uninsured individuals either through a discount card or direct shipment.
(15) "Person" means an individual, a corporation, a governmental entity, a partnership, an association, a joint venture, a joint stock company, a trust, an unincorporated organization, any similar entity, or any combination of the persons listed in this subsection.
(16)(a) "Pharmacy benefit manager" means a person that performs pharmacy benefit management for a covered entity.
(b) For purposes of this subsection, a "covered entity" means an insurer, a health care service contractor, a health maintenance organization, or a multiple employer welfare arrangement licensed, certified, or registered under the provisions of this title. "Covered entity" also means a health program administered by the state as a provider of health coverage, a single employer that provides health coverage to its employees, or a labor union that provides health coverage to its members as part of a collective bargaining agreement.
[ 2015 c 122 s 19; 2010 c 27 s 4; 2009 c 175 s 3.]
Notes:
*Reviser's note: RCW 48.43.005 was alphabetized pursuant to RCW 1.08.015(2)(k), changing subsections (22), (23), (24), and (25) to subsections (23), (24), (25), and (26), and effective January 1, 2020, changing subsections (22), (23), (24), and (25) to subsections (25), (26), (27), and (28). RCW 48.43.005 was alphabetized pursuant to RCW 1.08.015(2)(k), changing subsections (25), (26), (27), and (28) to subsections (27), (28), (29), and (30). Subsequently, RCW 48.43.005 was amended by 2024 c 218 s 1, changing subsections (27), (28), (29), and (30) to subsections (29), (30), (31), and (32).
Effective dates—2015 c 122: See note following RCW 48.31B.005.


title: RCW 48.155.015

text:
(1) This chapter applies to all discount plans and all discount plan organizations doing business in or from this state or that affect subjects located wholly or in part or to be performed within this state, and all persons having to do with this business.
(2) A discount plan organization that is a health carrier, as defined under RCW 48.43.005, with a license, certificate of authority, or registration:
(a) Is not required to obtain a license under RCW 48.155.020, except that any of its affiliates that operate as a discount plan organization in this state must obtain a license under RCW 48.155.020 and comply with all other provisions of this chapter;
(b) Is required to comply with RCW 48.155.060 through 48.155.090 and report, in the form and manner as the commissioner may require, any of the information described in RCW 48.155.110(2) (b), (c), or (d) that is not otherwise already reported; and
(c) Is subject to RCW 48.155.130 and 48.155.140.
[ 2015 c 122 s 20; 2009 c 175 s 4.]
Notes:
Effective dates—2015 c 122: See note following RCW 48.31B.005.

catchline: Application of chapter.


title: RCW 48.155.020

text:
(1) Before conducting discount plan business to which this chapter applies, a person must obtain a license from the commissioner to operate as a discount plan organization.
(2) Except as provided in subsection (4) of this section, each application for a license to operate as a discount plan organization:
(a) Must be in a form prescribed by the commissioner and verified by an officer or authorized representative of the applicant; and
(b) Must demonstrate, set forth, or be accompanied by the following:
(i) The two hundred fifty dollar application fee, which must be deposited into the general fund;
(ii) A copy of the organization documents of the applicant, such as the articles of incorporation, including all amendments;
(iii) A copy of the applicant's bylaws or other enabling documents that establish organizational structure;
(iv) The applicant's federal identification number, business address, and mailing address;
(v)(A) A list of names, addresses, official positions, and biographical information of the individuals who are responsible for conducting the applicant's affairs, including all members of the board of directors, board of trustees, executive committee, or other governing board or committee, the officers, contracted management company personnel, and any person or entity owning or having the right to acquire ten percent or more of the voting securities of the applicant; and
(B) A disclosure in the listing of the extent and nature of any contracts or arrangements between any individual who is responsible for conducting the applicant's affairs and the discount plan organization, including all possible conflicts of interest;
(vi) A complete biographical statement, on forms prescribed by the commissioner, with respect to each individual identified under (b)(v) of this subsection;
(vii) A statement generally describing the applicant, its facilities and personnel, and the health care services for which a discount will be made available under the discount plan;
(viii) A copy of the form of all contracts made or to be made between the applicant and any health care providers or health care provider networks regarding the provision of health care services to members and discounts to be made available to members;
(ix) A copy of the form of any contract made or arrangement to be made between the applicant and any individual listed in (b)(v) of this subsection;
(x) A list identifying by name, address, telephone number, and email address all persons who will market each discount plan offered by the applicant. If the person who will market a discount plan is an entity, only the entity must be identified. This list must be maintained and updated within sixty days of any change in the information. An updated list must be sent to the commissioner as part of the discount plan organization's renewal application under (b)(vii) of this subsection;
(xi) A copy of the form of any contract made or to be made between the applicant and any person, corporation, partnership, or other entity for the performance on the applicant's behalf of any function, including marketing, administration, enrollment, and subcontracting for the provision of health care services to members and discounts to be made available to members;
(xii) A copy of the applicant's most recent financial statements audited by an independent certified public accountant, except that, subject to the approval of the commissioner, an applicant that is an affiliate of a parent entity that is publicly traded and that prepares audited financial statements reflecting the consolidated operations of the parent entity may submit the audited financial statement of the parent entity and a written guaranty that the minimum capital requirements required under RCW 48.155.030 will be met by the parent entity instead of the audited financial statement of the applicant;
(xiii) A description of the proposed methods of marketing including, but not limited to, describing the use of marketers, use of the internet, sales by telephone, electronic mail, or facsimile machine, and use of salespersons to market the discount plan benefits;
(xiv) A description of the member complaint procedures which must be established and maintained by the applicant;
(xv) If domiciled in this state, the name and address of the applicant's Washington statutory agent for service of process, notice, or demand; and
(xvi) Any other information the commissioner may reasonably require.
(3)(a) If the applicant is not domiciled in this state, the applicant must appoint the commissioner as the discount plan organization's attorney to receive service of legal process issued against the discount plan organization in this state upon causes of action arising within this state. Service upon the commissioner as attorney constitutes effective legal service upon the discount plan organization.
(b) With the appointment the discount plan organization must designate by name, email address, and address the person to whom the commissioner must forward legal process so served upon him or her. The discount plan organization may change the person by filing a new designation.
(c) The discount plan organization must keep the designation, address, and email address filed with the commissioner current.
(d) The appointment is irrevocable, binds any successor in interest or to the assets or liabilities of the discount plan organization, and remains in effect for as long as there could be any cause of action against the discount plan organization arising out of the discount plan organization's transactions in this state.
(e) The service of process must be accomplished and processed in the manner prescribed under RCW 48.02.200.
(4)(a) Upon application to and approval by the commissioner and payment of the applicable fees, a discount plan organization that holds a current license or other form of authority from another state to operate as a discount plan organization, at the commissioner's discretion, may not be required to submit the information required under subsection (2) of this section in order to obtain a license under this section if the commissioner is satisfied that the other state's requirements, at a minimum, are equivalent to those required under subsection (2) of this section or the commissioner is satisfied that the other state's requirements are sufficient to protect the interests of the residents of this state.
(b) Whenever the discount plan organization loses its license or other form of authority in that other state to operate as a discount plan organization, or is the subject of any disciplinary administrative proceeding related to the organization's operating as a discount plan organization in that other state, the discount plan organization must immediately notify the commissioner.
(5) After the receipt of an application filed under subsection (2) or (4) of this section, the commissioner must review the application and notify the applicant of any deficiencies in the application.
(6)(a) Within ninety days after the date of receipt of a completed application, the commissioner must:
(i) Issue a license if the commissioner is satisfied that the applicant has met the following:
(A) The applicant has fulfilled the requirements of this section and the minimum capital requirements in accordance with RCW 48.155.030; and
(B) The persons who own, control, and manage the applicant are competent and trustworthy and possess managerial experience that would make the proposed operation of the discount plan organization beneficial to discount plan members; or
(ii) Disapprove the application and state the grounds for disapproval.
(b) In making a determination under (a) of this subsection, the commissioner may consider, for example, whether the applicant or an officer or manager of the applicant: (i) Is not financially responsible; (ii) does not have adequate expertise or experience to operate a medical discount plan organization; or (iii) is not of good character. Among the factors that the commissioner may consider in making the determination is whether the applicant or an affiliate or a business formerly owned or managed by the applicant or an officer or manager of the applicant has had a previous application for a license, or other authority, to operate as any entity regulated by the commissioner denied, revoked, suspended, or terminated for cause, or is under investigation for or has been found in violation of a statute or regulation in another jurisdiction within the previous five years.
(7) Prior to licensure by the commissioner, each discount plan organization must establish an internet website in order to conform to the requirements of RCW 48.155.070(2).
(8)(a) A license is effective for up to one year, unless prior to its expiration the license is renewed in accordance with this subsection or suspended or revoked in accordance with subsection (9) of this section. Licenses issued or renewed on or after July 1, 2010, will be subject to renewal annually on July 1st. If not so renewed, the license will automatically expire on the renewal date.
(b) At least ninety days before a license expires, the discount plan organization must submit:
(i) A renewal application form; and
(ii) A two hundred dollar renewal application fee for deposit into the general fund.
(c) The commissioner must renew the license of each holder that meets the requirements of this chapter and pays the appropriate renewal fee required.
(9)(a) The commissioner may suspend the authority of a discount plan organization to enroll new members or refuse to renew or revoke a discount plan organization's license if the commissioner finds that any of the following conditions exist:
(i) The discount plan organization is not operating in compliance with this chapter;
(ii) The discount plan organization does not have the minimum net worth as required under RCW 48.155.030;
(iii) The discount plan organization has advertised, merchandised, or attempted to merchandise its services in such a manner as to misrepresent its services or capacity for service or has engaged in deceptive, misleading, or unfair practices with respect to advertising or merchandising;
(iv) The discount plan organization is not fulfilling its obligations as a discount plan organization; or
(v) The continued operation of the discount plan organization would be hazardous to its members.
(b) If the commissioner has cause to believe that grounds for the nonrenewal, suspension, or revocation of a license exists, the commissioner must notify the discount plan organization in writing specifically stating the grounds for the refusal to renew or suspension or revocation and may also pursue a hearing on the matter under chapter 48.04 RCW.
(c) When the license of a discount plan organization is nonrenewed, surrendered, or revoked, the discount plan organization must immediately upon the effective date of the order of revocation or, in the case of a nonrenewal, the date of expiration of the license, stop any further advertising, solicitation, collecting of fees, or renewal of contracts, and proceed to wind up its affairs transacted under the license.
(d)(i) When the commissioner suspends a discount plan organization's authority to enroll new members, the suspension order must specify the period during which the suspension is to be in effect and the conditions, if any, that must be met by the discount plan organization prior to reinstatement of its license to enroll members.
(ii) The commissioner may rescind or modify the order of suspension prior to the expiration of the suspension period.
(iii) The license of a discount plan organization may not be reinstated unless requested by the discount plan organization. The commissioner may not grant the request for reinstatement if the commissioner finds that the circumstances for which the suspension occurred still exist or are likely to recur.
(10) Each licensed discount plan organization must notify the commissioner immediately whenever the discount plan organization's license, or other form of authority to operate as a discount plan organization in another state, is suspended, revoked, or nonrenewed in that state.
(11) A health care provider who provides discounts to his or her own patients without any cost or fee of any kind to the patient is not required to obtain and maintain a license under this chapter as a discount plan organization.
[ 2011 c 47 s 18; 2010 c 27 s 6; 2009 c 175 s 5.]

catchline: License required—Application—Review—Annual renewal—Required disclosures.


title: RCW 48.155.030

text:
(1) Except under subsection (3) of this section, before the commissioner issues a license to any person required to obtain a license under RCW 48.155.020, the person seeking to operate a discount plan organization must have a net worth of at least one hundred fifty thousand dollars.
(2) At all times, except under subsection (3) of this section, each discount plan organization must maintain a net worth of at least one hundred fifty thousand dollars.
(3) By rule of the commissioner, the amounts in subsections (1) and (2) of this section may be adjusted annually for inflation.
[ 2009 c 175 s 6.]

catchline: Minimum net worth.


title: RCW 48.155.040

text:
(1) Each licensed discount plan organization shall continuously maintain in force a surety bond in its own name in an amount not less than thirty-five thousand dollars to be used in the discretion of the commissioner to protect the financial interest of Washington members. The bond must be issued by an insurance company licensed to do business in this state.
(2) In lieu of the bond specified in subsection (1) of this section, a licensed discount plan organization may deposit and maintain deposited with the commissioner, or at the discretion of the commissioner, with any organization or trustee acceptable to the commissioner through which a custodial or controlled account is utilized, cash, securities, or any combination of these or other measures that are acceptable to the commissioner which always have a market value of not less than thirty-five thousand dollars.
(3) All income from a deposit made under subsection (2) of this section is an asset of the discount plan organization.
(4) Except for the commissioner, the assets or securities held in this state as a deposit under subsection (1) or (2) of this section are not subject to levy by a judgment creditor or other claimant of the discount plan organization.
[ 2009 c 175 s 7.]

catchline: Surety bond—Deposit in lieu of bond.


title: RCW 48.155.050

text:
(1) The commissioner may conduct investigations to determine whether any person has violated any provision of this chapter and may, if the commissioner has a reason to believe that the discount plan organization is not complying with the requirements of this chapter, examine the business and affairs of any discount plan organization.
(2) An examination conducted under subsection (1) of this section must be performed in accordance with chapter 48.03 RCW, except that RCW 48.03.060 (1) and (2) shall not be applicable to the examination of persons registered under this chapter.
(3) The commissioner may:
(a) Order any discount plan organization or applicant that operates a discount plan organization to produce any records, books, files, advertising, and solicitation materials or other information; and
(b) Gather evidence and take statements under oath to determine whether the discount plan organization or applicant is in violation of the law or is acting contrary to the public interest.
(4) The discount plan organization or applicant that is the subject of the examination or investigation shall pay the expenses incurred in conducting the examination or investigation. Failure by the discount plan organization or applicant to pay the expenses is grounds for denial or revocation of a license to operate as a discount plan organization.
(5) All discount plan organizations or applicants that are subject to examinations, investigations, or annual reporting requirements under this chapter shall maintain detailed books and records of the following:
(a) Records documenting all Washington transactions, showing all funds received and all funds disbursed to Washington members, prospective members, providers, and provider networks;
(b) All contracts or agreements with providers of the services under a discount plan offered in Washington or sold to Washington residents; and
(c) Telephone scripts for marketing activities to which this chapter applies.
The discount plan organization shall maintain the books and records described in this section, in addition to the books and records required to be maintained under RCW 48.155.070, for a period of at least two years.
[ 2009 c 175 s 8.]

catchline: Investigations by commissioner—Organization must maintain detailed books and records.


title: RCW 48.155.060

text:
(1) A discount plan organization may charge a periodic charge as well as a reasonable one-time processing fee of no more than thirty dollars for a discount plan, or such other amount as established by rule, but may not require payment of these or any other charges or fees by direct debit from a banking, credit, or debit card account unless that method of payment is clearly and conspicuously disclosed to the prospective member. All charges and fees must be provided in writing to the member when the member first joins the plan.
(2) When a marketer or discount plan organization solicits a discount plan in conjunction with any other product, all charges that a member or prospective member must pay for each discount plan must be provided in writing as a separate item to the member or prospective member, unless the entire amount of the periodic charge which includes the periodic discount plan charge will be refunded if the member cancels his or her membership in the discount plan organization within the first thirty days after the date of receipt of the written documents for the discount plan as provided in subsection (3) of this section.
(3)(a)(i) If a member cancels his or her membership in the discount plan organization within the first thirty days after the date of receipt of the written documents for the discount plan described in RCW 48.155.090(4), the member must receive a reimbursement of all periodic charges upon return of the discount plan card to the discount plan organization.
(ii)(A) Cancellation occurs when notice of cancellation is given to the discount plan organization.
(B) Notice of cancellation is given when delivered by hand or deposited in a mailbox, properly addressed and postage prepaid to the mailing address of the discount plan organization, or emailed to the email address of the discount plan organization.
(iii) A discount plan organization shall return in full any periodic charge charged or collected after the member has given the discount plan organization notice of cancellation.
(b) If the discount plan organization cancels a membership for any reason other than nonpayment of charges by the member, the discount plan organization shall make a pro rata reimbursement of all periodic charges to the member.
[ 2009 c 175 s 9.]

catchline: Charges and fees—When writing is required—Cancellation.


title: RCW 48.155.070

text:
(1)(a) A discount plan organization shall have a written health care provider agreement with all health care providers for whose health care services it provides access to a discount to its members. The written health care provider agreement may be entered into directly with the health care provider or indirectly with a health care provider network to which the health care provider belongs.
(b) A health care provider agreement between a discount plan organization and a health care provider must provide the following:
(i) A list of the health care services and products to be provided at a discount;
(ii) The amount or amounts of the discounts or, alternatively, a fee schedule that reflects the health care provider's discounted rates; and
(iii) That the health care provider may not charge members more than the discounted rates.
(c) A health care provider agreement between a discount plan organization and a health care provider network must require that the health care provider network have written agreements with its health care providers that:
(i) Contain the provisions described in (b) of this subsection;
(ii) Authorize the health care provider network to contract with the discount plan organization on behalf of the health care provider; and
(iii) Require the health care provider network to maintain an up-to-date list of its contracted health care providers and to provide the list on a monthly basis to the discount plan organization.
(d) A health care provider agreement between a discount plan organization and an entity that contracts with a health care provider network must require that the entity, in its contract with the health care provider network, require the health care provider network to have written agreements with its health care providers that comply with (c) of this subsection.
(e) The discount plan organization shall maintain a copy of each health care provider agreement into which it has entered and shall promptly furnish a copy of each agreement to the commissioner when requested.
(2)(a) Each discount plan organization shall maintain on an internet website a list of the names and addresses of the health care providers with which it has a current provider agreement directly or through a health care provider network. This list must be updated every thirty days. The internet website address must be prominently displayed on all of its advertisements, marketing materials, brochures, and discount plan cards.
(b) This subsection applies to those health care providers with which the discount plan organization has a current provider agreement directly as well as those health care providers that are members of a health care provider network with which the discount plan organization has a current provider agreement.
[ 2009 c 175 s 10.]

catchline: Written health care provider agreements required—Terms—Internet website.


title: RCW 48.155.080

text:
(1) A discount plan organization may market its products directly to consumers or contract with marketers for the distribution of its discount plans.
(2)(a) The discount plan organization shall have an executed written agreement with a marketer prior to the marketer's marketing, promoting, selling, or distributing the discount plan organization's discount plans.
(b) The agreement between the discount plan organization and the marketer must prohibit the marketer from using advertising, marketing materials, brochures, and discount plan cards without first having the discount plan organization's approval in writing.
(c) The discount plan organization is bound by and responsible for the activities of a marketer that are within the scope of the marketer's agency relationship with the organization.
(3) A discount plan organization shall approve in writing all advertisements, marketing materials, brochures, and discount cards used by marketers to market, promote, sell, or distribute the discount plan prior to their use.
(4) Upon request, a discount plan organization shall submit to the commissioner all advertising, marketing materials, and brochures used or to be used in connection with the organization's discount plans.
[ 2009 c 175 s 11.]

catchline: Marketing products—Directly to consumers—By contract with marketers.


title: RCW 48.155.090

text:
(1)(a) All advertisements, marketing efforts, promotions, marketing materials, discount plan documents, brochures, discount plan cards, and any other communications of a discount plan organization provided to prospective members and members must be truthful and not misleading in fact or in implication.
(b) Any advertisement, marketing material, discount plan document, brochure, discount plan card, or other communication is misleading in fact or in implication if it has a capacity or tendency to mislead or deceive based on the overall impression that it may reasonably be expected to create within the segment of the public to which it is directed.
(c) A discount plan organization shall conduct its business in its own legal name and all written communications from a discount plan to regulators and consumers must prominently display the discount plan organization's full legal name.
(2) A discount plan organization shall not:
(a) Except as otherwise provided in this chapter or as a disclaimer of any relationship between discount plan benefits and insurance, or as a description of an insurance product connected with a discount plan, use in its advertisements, marketing efforts, promotions, marketing materials, discount plan documents, brochures, and discount plan cards the term "insurance";
(b) Describe or characterize the discount plan as being insurance whenever a discount plan is bundled with an insured product and the insurance benefits are incidental to the discount plan benefits;
(c) Use in its advertisements, marketing efforts, promotions, marketing materials, discount plan documents, brochures, and discount plan cards words or phrases that are commonly associated with the business of insurance, such as the terms "health plan," "coverage," "copay," "copayments," "deductible," "preexisting conditions," "guaranteed issue," "premium," "PPO," "preferred provider organization," or similar terms, in a manner that could reasonably mislead an individual into believing that the discount plan is health insurance;
(d) Use language in its advertisements, marketing efforts, promotions, marketing material, discount plan documents, brochures, and discount plan cards with respect to being licensed by the insurance commissioner's office in a manner that could reasonably mislead an individual into believing that the discount plan is insurance or has been endorsed by the insurance commissioner's office;
(e) Make misleading, deceptive, or fraudulent representations regarding the discount or range of discounts offered by the discount plan or the access to any range of discounts offered by the discount plan;
(f) Have restrictions on access to discount plan providers including, except for hospital services, waiting periods and notification periods; or
(g) Pay health care providers any fees for health care services or collect or accept money from a member to pay a health care provider for health care services provided under the discount plan, unless the discount plan organization has an active certificate of authority or registration in Washington.
(3)(a) Each discount plan organization shall make the following general disclosures in not less than twelve-point type on the first content page of any advertisements, marketing materials, or brochures made available to the public relating to a discount plan, along with any enrollment forms given to a prospective member:
(i) That the plan is a discount plan and is not insurance coverage;
(ii) If true, that the range of discounts for health care services provided under the plan will vary depending on the type of health care provider and health care service received;
(iii) That the discount plan organization does not make payments to providers for the health care services received under the discount plan, unless the discount plan organization has an active certificate of authority or registration, as described in subsection (2)(g) of this section;
(iv) That the plan member is obligated to pay for all health care services, but will receive the stated discount from those health care providers that have a current provider agreement with the discount plan organization; and
(v) The toll-free telephone number and internet website address for the licensed discount plan organization for prospective members and members to obtain additional information about and assistance with the discount plan and up-to-date lists of health care providers participating in the discount plan.
(b) If the initial contact with a prospective member is by telephone, the disclosures required under (a) of this subsection must be made orally and included in the initial written materials that describe the benefits under the discount plan provided to the prospective or new member.
(4)(a) In addition to the general disclosures required under subsection (3) of this section, each discount plan organization shall send to:
(i) Each prospective member, at their request, information that describes the terms and conditions of the discount plan, including any limitations or restrictions on the refund of any processing fees or periodic charges associated with the discount plan. The written materials presented must not be dependent upon the requestor first making any form of payment or enrolling in the plan; and
(ii) Each new member, within fourteen calendar days of enrollment, written documents that contain all terms and conditions of the discount plan.
(b) The written documents required under (a)(ii) of this subsection must be clear and include the following information:
(i) The name of the member;
(ii) The benefits to be provided under the discount plan;
(iii) Any processing fees and periodic charges associated with the discount plan, including any limitations or restrictions on the refund of any processing fees and periodic charges;
(iv) The mode of payment of any processing fees and periodic charges, such as monthly or quarterly, and procedures for changing the mode of payment;
(v) Any limitations, exclusions, or exceptions regarding the receipt of discount plan benefits;
(vi) Any waiting periods for receiving discounts on hospital services under the discount plan;
(vii) Procedures for obtaining discounts under the discount plan, such as requiring members to contact the discount plan organization to make an appointment with a health care provider on the member's behalf;
(viii) Cancellation procedures, including information on the member's thirty-day cancellation rights and refund requirements and procedures for obtaining refunds;
(ix) Renewal, termination, and cancellation terms and conditions;
(x) Procedures for adding new members to a family discount plan, if applicable;
(xi) Procedures for filing complaints under the discount plan organization's complaint system and information that, if the member remains dissatisfied after completing the organization's complaint system, the plan member may contact the office of the insurance commissioner; and
(xii) The name, telephone number, internet website address, and mailing address of the licensed discount plan organization or other entity where the member can make inquiries about the plan, or send cancellation notices and file complaints.
[ 2009 c 175 s 12.]

catchline: Communications with regulators and consumers—Restrictions—Required general disclosures.


title: RCW 48.155.100

text:
Each discount plan organization shall provide the commissioner at least thirty days' advance notice of any change in the discount plan organization's name, address, principal business address, mailing address, toll-free telephone number, or internet website address.
[ 2009 c 175 s 13.]

catchline: Organization changes require notice to commissioner.


title: RCW 48.155.110

text:
(1) If the information required in subsection (2) of this section is not provided at the time of renewal of a license under RCW 48.155.020, a discount plan organization shall file an annual report with the commissioner in the form prescribed by the commissioner no later than March 31st of the following year.
(2) The annual report must be filed with the commissioner, accompanied by the twenty dollar annual reporting fee to be deposited into the general fund. The annual report must include:
(a) Audited financial statements prepared in accordance with generally accepted accounting principles certified by an independent certified public accountant, including the organization's balance sheet, income statement, and statement of changes in cash flow for the preceding year. However, subject to the approval of the commissioner, an organization that is an affiliate of a parent entity that is publicly traded and that prepares audited financial statements reflecting the consolidated operations of the parent entity may submit the audited financial statement of the parent entity and a written guaranty that the minimum capital requirements required under RCW 48.155.030 will be met by the parent entity instead of the audited financial statement of the organization;
(b) If different from the initial application for a license, or at the time of renewal of a license, or the last annual report, as appropriate, a list of the names and residence addresses of all persons responsible for the conduct of the organization's affairs, together with a disclosure of the extent and nature of any contracts or arrangements with these persons and the discount plan organization, including any possible conflicts of interest;
(c) The number of current members the discount plan organization has in the state; and
(d) Any other information relating to the performance of the discount plan organization that may be required by the commissioner.
(3) Any discount plan organization that fails to file an annual report in the form and within the time required by this section is subject to the following:
(a) Monetary penalties of:
(i) Up to five hundred dollars each day for the first ten days during which the violation continues; and
(ii) Up to one thousand dollars each day after the first ten days during which the violation continues; and
(b) Upon notice by the commissioner, loss, suspension, or revocation of its license and authority to enroll new members or to do business in this state while the violation continues.
[ 2009 c 175 s 14.]

catchline: Annual report required—Fee—Contents—Failure to file.


title: RCW 48.155.120

text:
Each discount plan organization shall designate and provide the commissioner with the name, address, and telephone number of the organization's compliance officer responsible for ensuring compliance with this chapter.
[ 2009 c 175 s 15.]

catchline: Designation of compliance officer.


title: RCW 48.155.130

text:
(1) In lieu of or in addition to suspending or revoking a discount plan organization's license under *RCW 48.155.020(8), whenever the commissioner has cause to believe that any person is violating or is about to violate any provision of this chapter or any rules adopted under this chapter or any order of the commissioner, the commissioner may:
(a) Issue a cease and desist order; and
(b) After hearing or with the consent of the discount plan organization and in addition to or in lieu of the suspension, revocation, or refusal to renew any license, impose a monetary penalty of not less than one hundred dollars for each violation and not more than ten thousand dollars for each violation.
(2) A person that willfully operates as or aids and abets another operating as a discount plan organization in violation of RCW 48.155.020(1) commits insurance fraud and is subject to RCW 48.15.020 and 48.15.023, as if the unlicensed discount plan organization were an unauthorized insurer, and the fees, dues, charges, or other consideration collected from the members by the unlicensed discount plan organization or marketer were insurance premiums.
(3) A person that collects fees for purported membership in a discount plan but willfully fails to provide the promised benefits commits a theft and upon conviction is subject to the provisions of Title 9A RCW. In addition, upon conviction, the person shall pay restitution to persons aggrieved by the violation of this chapter.
(4) Any person damaged by acts that violate this chapter may maintain an action for the recovery of damages caused by that act or acts.
(a) An action for violation of this section may be brought:
(i) In the county where the plaintiff resides;
(ii) In the county where the plaintiff conducts business; or
(iii) In the county where the discount plan was sold, marketed, promoted, advertised, or otherwise distributed.
(b) The acceptance or use of any discount plan or discount plan card does not operate as a waiver of any civil, criminal, or administrative claim that may be asserted under this chapter.
[ 2009 c 175 s 16.]
Notes:
*Reviser's note: RCW 48.155.020 was amended by 2011 c 47 s 18, changing subsection (8) to subsection (9).

catchline: Violation of chapter—Commissioner's authority—Penalties—Criminal sanctions—Civil action for recovery of damages.


title: RCW 48.155.140

text:
(1)(a) In addition to the penalties and other enforcement provisions of this chapter, the commissioner may seek both temporary and permanent injunctive relief when:
(i) A discount plan is being operated by a person or entity that is not licensed under this chapter; or
(ii) Any person, entity, or discount plan organization has engaged in any activity prohibited by this chapter or any rule adopted under this chapter.
(b) The venue for any court proceeding brought under this section is Thurston county.
(2) The commissioner's authority to seek injunctive relief is not conditioned on having conducted any proceeding under chapter 34.05 RCW.
[ 2009 c 175 s 17.]

catchline: Temporary and permanent injunctive relief—When authorized.


title: RCW 48.16.010

text:
The commissioner shall accept deposits of securities or funds by insurers as follows:
(1) Deposits in amount as required to be made as prerequisite to a certificate of authority to transact insurance in this state.
(2) Deposits of domestic or alien insurers in amount as required to be made by the laws of other states as prerequisite for authority to transact insurance in such other states.
(3) Deposits in amounts as result from application of the retaliatory provision, RCW 48.14.040.
(4) Deposits in other additional amounts permitted to be made by this code.
[ 1955 c 86 s 3; 1947 c 79 s .16.01; Rem. Supp. 1947 s 45.16.01.]
Notes:
Effective date—Supervision of transfer—1955 c 86: See notes following RCW 48.05.080.

catchline: Deposits of insurers—In general.


title: RCW 48.16.020

text:
Each such deposit shall be held by the commissioner in trust for the protection of all policyholders in the United States of the insurer making it; except that deposits of alien insurers shall be so held for the security of such insurer's obligations arising out of its insurance transactions in the United States, and except as to deposits the purpose of which may be further limited pursuant to the retaliatory provision, RCW 48.14.040.
[ 1955 c 86 s 4; 1947 c 79 s .16.02; Rem. Supp. 1947 s 45.16.02.]
Notes:
Effective date—Supervision of transfer—1955 c 86: See notes following RCW 48.05.080.

catchline: Deposits to be held in trust.


title: RCW 48.16.030

text:
All such deposits shall consist of cash funds or public obligations as specified in *RCW 48.13.040; except, that with respect to deposits held on account of registered policies heretofore issued, the commissioner may accept deposit of such other kinds of securities as are expressly required to be deposited by the terms of such policies.
[ 1955 c 86 s 5; 1947 c 79 s .16.03; Rem. Supp. 1947 s 45.16.03.]
Notes:
*Reviser's note: RCW 48.13.040 was repealed by 2011 c 188 s 22, effective July 1, 2012.
Effective date—Supervision of transfer—1955 c 86: See notes following RCW 48.05.080.

catchline: Securities eligible for deposit.


title: RCW 48.16.050

text:
(1) The commissioner shall deliver to the insurer a receipt for all funds and securities so deposited by it.
(2) The commissioner or the designated depositary shall keep a record in permanent form of all funds and securities so deposited.
[ 1955 c 86 s 6; 1947 c 79 s .16.05; Rem. Supp. 1947 s 45.16.05.]
Notes:
Effective date—Supervision of transfer—1955 c 86: See notes following RCW 48.05.080.

catchline: Commissioner's receipt—Records.


title: RCW 48.16.060

text:
(1) No transfer of any funds or security so held on deposit, whether voluntary or by operation of law, shall be valid unless approved in writing by the commissioner.
(2) A statement of each such transfer shall be entered on the records of the commissioner or designated depositary, showing the name of the insurer from whose deposit such transfer is made, the name of the transferee, and the par value of the securities so transferred.
[ 1955 c 86 s 7; 1947 c 79 s .16.06; Rem. Supp. 1947 s 45.16.06.]
Notes:
Effective date—Supervision of transfer—1955 c 86: See notes following RCW 48.05.080.

catchline: Transfer of securities.


title: RCW 48.16.070

text:
The commissioner may designate any solvent trust company or other solvent financial institution having trust powers as the commissioner's depositary to receive and hold any deposit of securities. Any deposit so held shall be at the expense of the insurer. Any solvent financial institution having trust powers, the deposits of which are insured by the Federal Deposit Insurance Corporation, may be designated as the commissioner's depositary to receive and hold any deposit of funds. All funds deposited shall be fully insured by the Federal Deposit Insurance Corporation. For purposes of this section, "solvent financial institution" means any national or state-chartered commercial bank or trust company, savings bank, or savings association, or branch or branches thereof, having trust powers located in this state and lawfully engaged in business.
[ 1998 c 25 s 1; 1985 c 264 s 6; 1955 c 86 s 8; 1947 c 79 s .16.07; Rem. Supp. 1947 s 45.16.07.]
Notes:
Effective date—Supervision of transfer—1955 c 86: See notes following RCW 48.05.080.

catchline: Depositaries—Designation.


title: RCW 48.16.080

text:
The state of Washington shall be responsible for the safekeeping and return of all funds and securities deposited pursuant to this chapter with the commissioner or in any such depositary so designated by him or her.
[ 2009 c 549 s 7061; 1955 c 86 s 9; 1947 c 79 s .16.08; Rem. Supp. 1947 s 45.16.08.]
Notes:
Effective date—Supervision of transfer—1955 c 86: See notes following RCW 48.05.080.

catchline: Liability for safekeeping.


title: RCW 48.16.090

text:
While solvent and complying with this code an insurer shall be entitled:
(1) To collect and receive interest and dividends accruing on the securities so held on deposit for its account, and
(2) From time to time exchange and substitute for any of such securities, other securities eligible for deposit and of at least equal value.
[1947 c 79 s .16.09; Rem. Supp. 1947 s 45.16.09.]

catchline: Dividends and substitutions.


title: RCW 48.16.100

text:
(1) Any such required deposit shall be released in these instances only:
(a) Upon extinguishment of all liabilities of the insurer for the security of which the deposit is held, by reinsurance contract or otherwise.
(b) If any such deposit or portion thereof is no longer required under this code.
(c) If the deposit has been made pursuant to the retaliatory provision, RCW 48.14.040, it shall be released in whole or in part when no longer so required.
(d) Upon proper order of a court of competent jurisdiction the deposit shall be released to the receiver, conservator, rehabilitator, or liquidator of the insurer for whose account the deposit is held.
(2) No such release shall be made except on application to and written order of the commissioner made upon proof satisfactory to him or her of the existence of one of such grounds therefor. The commissioner shall have no personal liability for any such release of any deposit or part thereof so made by him or her in good faith.
(3) All releases of deposits or any part thereof shall be made to the person then entitled thereto upon proof of title satisfactory to the commissioner.
(4) Deposits held on account of title insurers are subject further to the provisions of chapter 48.29 RCW.
[ 2009 c 549 s 7062; 1947 c 79 s .16.10; Rem. Supp. 1947 s 45.16.10.]

catchline: Release of deposits—Generally.


title: RCW 48.16.110

text:
Any part of any deposit of an insurer held by the commissioner which is in amount in excess of the deposit required or permitted to be made by such insurer under this code, shall, upon written order of the commissioner, be released; except, that no deposit held on account of any registered policies heretofore issued by the insurer shall be released except in accordance with the conditions under which such deposit was made.
[ 1955 c 86 s 10; 1947 c 79 s .16.11; Rem. Supp. 1947 s 45.16.11.]
Notes:
Effective date—Supervision of transfer—1955 c 86: See notes following RCW 48.05.080.

catchline: Release of existing deposits.


title: RCW 48.16.120

text:
An insurer may deposit and maintain on deposit with the commissioner funds and eligible securities in amount exceeding its required deposit under this code by not more than one hundred thousand dollars, for the purpose of absorbing fluctuations in the value of securities held in its required deposit, and to facilitate the exchange and substitution of such required securities. During the solvency of the insurer any such excess deposit or any part thereof shall be released to it upon its request. During the insolvency of the insurer such excess deposit shall be released only as provided in RCW 48.16.100.
[ 1955 c 86 s 11; 1947 c 79 s .16.12; Rem. Supp. 1947 s 45.16.12.]
Notes:
Effective date—Supervision of transfer—1955 c 86: See notes following RCW 48.05.080.

catchline: Voluntary excess deposits.


title: RCW 48.16.130

text:
No judgment creditor or other claimant of an insurer shall levy upon any deposit held pursuant to this chapter, or upon any part thereof.
[1947 c 79 s .16.13; Rem. Supp. 1947 s 45.16.13.]

catchline: Immunity from levy.


title: RCW 48.160.001

text:
(1) The purpose of this chapter is to provide a framework within which guaranteed asset protection waivers are defined and may be offered within this state.
(2) This chapter does not apply to:
(a) An insurance policy offered by an insurer under this title; or
(b) A federally regulated financial institution operating under 12 C.F.R. Part 37 of the office of the comptroller of the currency regulations or credit unions operating under 12 C.F.R. 721.3(g) of the national credit union administration regulations, or state regulated banks, credit unions, financial institutions operating pursuant to chapter 63.14 RCW, and consumer loan companies operating pursuant to chapter 31.04 RCW. However, an exempt federal or state chartered bank, credit union, or financial institution may elect to offer a guaranteed asset protection waiver that complies with this section, RCW 48.160.010, and 48.160.030 through 48.160.060.
(3) Guaranteed asset protection waivers are governed under this chapter and are exempt from all other provisions of this title, except RCW 48.02.060 and 48.02.080, chapter 48.04 RCW, and as provided in this chapter.
[ 2009 c 334 s 1.]

catchline: Purpose—Application.


title: RCW 48.160.010

text:
The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
(1) "Administrator" means a person, other than an insurer or creditor that performs administrative or operational functions pursuant to guaranteed asset protection waiver programs.
(2) "Borrower" means a debtor, retail buyer, or lessee, under a finance agreement, or a person who receives a loan or enters into a retail installment contract to purchase or lease a motor vehicle or vessel under chapter 63.14 RCW.
(3) "Creditor" means:
(a) The lender in a loan or credit transaction;
(b) The lessor in a lease transaction;
(c) Any retail seller of motor vehicles that provides credit to retail buyers of motor vehicles provided the seller complies with this chapter;
(d) The seller in commercial retail installment transactions; or
(e) The assignees of any creditor under this subsection to whom the credit obligation is payable.
(4) "Finance agreement" means a loan, lease, or retail installment sales contract for the purchase or lease of a motor vehicle.
(5) "Free look period" means the period of time from the effective date of the waiver until the date the borrower may cancel the waiver without penalty, fees, or costs to the borrower. This period of time must not be shorter than thirty days.
(6) "Guaranteed asset protection waiver" or "waiver" means a contractual agreement wherein a creditor agrees for a separate charge to cancel or waive all or part of amounts due that creditor on a borrower's finance agreement with that creditor in the event of a total physical damage loss or unrecovered theft of the motor vehicle, which agreement must be part of, or a separate addendum to, the finance agreement.
(7) "Insurer" means an insurance company licensed, registered, or otherwise authorized to do business under the insurance laws of this state.
(8) "Motor vehicle" means self-propelled or towed vehicles designed for personal or commercial use, including but not limited to automobiles, trucks, motorcycles, recreational vehicles, all-terrain vehicles, snowmobiles, campers, boats, personal watercraft, and motorcycle, boat, camper, and personal watercraft trailers.
(9) "Motor vehicle dealer" has the same meaning as "vehicle dealer" in RCW 46.70.011.
(10) "Person" includes an individual, company, association, organization, partnership, business trust, corporation, and every form of legal entity.
(11) "Retail buyer" means a person who buys or agrees to buy a motor vehicle or obtain motor vehicle services or agrees to have motor vehicle services rendered or furnished from a retail seller.
(12) "Retail seller" means a person engaged in the business of selling motor vehicles or motor vehicle services to retail buyers.
(13) "Unregistered marketers" means persons who offer for sale and sell guaranteed asset protection waivers who are not registered under this chapter and who are not otherwise exempt under this chapter.
[ 2009 c 334 s 2.]

catchline: Definitions.


title: RCW 48.160.020

text:
(1) This chapter applies only to guaranteed asset protection waivers for financing of motor vehicles as defined in this chapter. Any person or entity must register with the commissioner before marketing, offering for sale or selling a guaranteed asset protection waiver, and before acting as an obligor for a guaranteed asset protection waiver, in this state. However, a retail seller of motor vehicles that assigns more than 85 percent of guaranteed asset protection waiver agreements within 30 days of such agreements' effective date, or an insurer authorized to transact such insurance business in this state, are not required to register pursuant to this section. Failure of any retail seller of motor vehicles to assign 100 percent of guaranteed asset protection waiver agreements within 45 days of such agreements' effective date will result in that retail seller being required to comply with the registration requirements of this chapter.
(2) No person may market, offer for sale, or sell a guaranteed asset protection waiver, or act as an obligor on a guaranteed asset protection waiver in this state without a registration as provided in this chapter, except as set forth in subsection (1) of this section.
(3) The application for registration must include the following:
(a) The applicant's name, address, and telephone number;
(b) The identities of the applicant's executive officers or other officers directly responsible for the waiver business;
(c) An application fee of $250, which shall be deposited into the general fund;
(d) A copy filed by the applicant with the commissioner of the waivers the applicant intends to offer in this state;
(e) A list of all unregistered marketers of guaranteed asset protection waivers on which the applicant will be the obligor;
(f) Such additional information as the commissioner may reasonably require.
(4) Once registered, the applicant shall keep the information required for registration current by reporting changes within 30 days after the end of the month in which the change occurs.
[ 2025 c 399 s 7; 2025 c 243 s 14; 2009 c 334 s 3.]
Notes:
Reviser's note: This section was amended by 2025 c 243 s 14 and by 2025 c 399 s 7, each without reference to the other. Both amendments are incorporated in the publication of this section under RCW 1.12.025(2). For rule of construction, see RCW 1.12.025(1).
Effective dates—2025 c 399 ss 1-13, 15, and 17: See note following RCW 72.09.092.

catchline: Waivers limited to motor vehicle financing—Registration, when required—Application.


title: RCW 48.160.030

text:
(1) Waivers may be offered, sold, or provided to borrowers in this state in compliance with this chapter.
(2) Waivers may, at the option of the creditor, be sold for a single payment or may be offered with a monthly or periodic payment option.
(3) Notwithstanding any other provision of law, any cost to the borrower for a guaranteed asset protection waiver entered into in compliance with the truth in lending act (15 U.S.C. Sec. 1601 et seq.) and its implementing regulations, as amended, must be separately stated and is not to be considered a finance charge or interest.
(4) Nothing in this chapter prohibits a person who is registered, or is otherwise exempt from registration or exempt from this chapter, from insuring its waiver obligation through the purchase of a contractual liability policy or other insurance policy issued by an insurer authorized to transact such insurance in this state.
(5) The waiver remains a part of the finance agreement upon the assignment, sale, or transfer of the finance agreement by the creditor.
(6) Neither the extension of credit, the term of credit, nor the term of the related motor vehicle sale or lease may be conditioned upon the purchase of a waiver.
(7) Any creditor that offers a waiver must report the sale of, and forward funds received on, all waivers to the designated party, if any, as prescribed in any applicable administrative services agreement, contractual liability policy, other insurance policy, or other specified program documents.
(8) Funds received or held by a creditor or administrator and belonging to an insurer, creditor, or administrator, under the terms of a written agreement, must be held by that creditor or administrator in a fiduciary capacity.
(9) If the guaranteed asset protection waiver is assigned, the name and address of the assignee must be mailed to the borrower within thirty days of the assignment. If at any time the name and address provided to the borrower by the initial creditor are no longer the valid point of contact to apply for waiver benefits, written notice will be mailed to the borrower within thirty days of the change stating the new name and address of the person or entity the borrower should contact to apply for waiver benefits. No waiver may be assigned to an entity that is not registered pursuant to this chapter, unless such entity is exempt from registration or unless the commissioner specifically authorizes such assignment.
(10) No person shall knowingly make, publish, or disseminate any false, deceptive, or misleading representation or advertising in the conduct of, or relative to, waiver business. Nor shall any person make, issue, or circulate, or cause to be made, issued, or circulated any misrepresentation of the terms or benefits of any waiver.
(11) A person or entity engaged in the guaranteed asset protection waiver business in this state may not refuse to sell or issue any guaranteed asset protection waiver because of the sex, marital status, or sexual orientation as defined in RCW 49.60.040, or the presence of any sensory, mental, or physical disability of the borrower or prospective borrower. The type of benefits, or any term, rate, condition, or type of coverage may not be restricted, modified, excluded, increased, or reduced on the basis of the presence of any sensory, mental, or physical disability of the borrower or prospective borrower.
[ 2009 c 334 s 4.]

catchline: Waivers—Requirements for offering, selling, or providing—Terms—Insuring obligations—Funds—Assignment.


title: RCW 48.160.040

text:
(1) Contractual liability or other insurance policies insuring waivers must state the obligation of the insurer to reimburse or pay to the creditor any sums the creditor is legally obligated to waive under the waivers issued by the creditor and purchased or held by the borrower. Contractual liability insurance or other insurance policies insuring waivers must not be purchased by the creditor as part of, or a rider to, vendor single-interest or collateral protection coverages as defined in RCW 48.22.110(4).
(2) Coverage under a contractual liability or other insurance policy insuring a waiver must also cover any subsequent assignee upon the assignment, sale, or transfer of the finance agreement.
(3) Coverage under a contractual liability or other insurance policy insuring a waiver must remain in effect unless canceled or terminated in compliance with applicable insurance laws of this state.
(4) The cancellation or termination of a contractual liability or other insurance policy must not reduce the insurer's responsibility for waivers issued by the creditor prior to the date of cancellation or termination and for which a premium has been received by the insurer.
[ 2009 c 334 s 5.]

catchline: Insuring waiver obligations—Contractual liability or other insurance policies.


title: RCW 48.160.050

text:
Guaranteed asset protection waivers must disclose, as applicable, in writing and in clear, understandable language that is easy to read, the following:
(1) The name and address of the initial creditor and the borrower at the time of sale, and the identity of any administrator if different from the creditor;
(2) The purchase price and the terms of the waiver, including without limitation, the requirements for protection, conditions, or exclusions associated with the waiver;
(3) That the borrower may cancel the waiver within a free look period as specified in the waiver, and will be entitled to a full refund of the purchase price, so long as no benefits have been provided; or in the event benefits have been provided, the borrower may receive a full or partial refund pursuant to the terms of the waiver;
(4) The procedure the borrower must follow, if any, to obtain waiver benefits under the terms and conditions of the waiver, including a telephone number and address where the borrower may apply for waiver benefits;
(5) Whether or not the waiver is cancellable after the free look period and the conditions under which it may be canceled or terminated including the procedures for requesting any refund due;
(6) That in order to receive any refund due in the event of a borrower's cancellation of the waiver agreement or early termination of the finance agreement after the free look period of the waiver, the borrower, in accordance with terms of the waiver, must provide a written request to cancel to the creditor, administrator, or such other party, within ninety days of the occurrence of the event terminating the finance agreement;
(7) The methodology for calculating any refund of the unearned purchase price of the waiver due, in the event of cancellation of the waiver or early termination of the finance agreement;
(8) That any refund of the purchase price for a waiver that was included in the financing of the motor vehicle or vessel may be applied by the creditor as a reduction of the overall amount owed under the finance agreement, rather than applying the refund strictly to the purchase price of the waiver. This disclosure must be conspicuously presented prior to the purchase of the waiver;
(9) That neither the extension of credit, the terms of the credit, nor the terms of the related motor vehicle sale or lease , may be conditioned upon the purchase of the waiver;
(10) That the guaranteed asset protection waiver is not credit insurance, nor does it eliminate the borrower's obligation to insure the motor vehicle as provided by laws of this state. Purchasing a guaranteed asset protection waiver does not eliminate the borrower's rights and obligations under the vendor single-interest and collateral protection coverage laws of this state.
[ 2009 c 334 s 6.]

catchline: Required disclosures.


title: RCW 48.160.060

text:
(1) Guaranteed asset protection waiver agreements may be cancellable or noncancellable after the free look period. Waivers must provide that if a borrower cancels a waiver within the free look period, the borrower will be entitled to a full refund of the purchase price, so long as no benefits have been provided; or in the event benefits have been provided, the borrower may receive a full or partial refund pursuant to the terms of the waiver.
(2) In the event of a borrower's cancellation of the waiver or early termination of the finance agreement, after the agreement has been in effect beyond the free look period, the borrower may be entitled to a refund of any unearned portion of the purchase price of the waiver unless the waiver provides otherwise. In order to receive a refund, the borrower, in accordance with any applicable terms of the waiver, must provide a written request to the creditor, administrator, or other party, within ninety days of the event terminating the finance agreement.
(3) If the cancellation of a waiver occurs as a result of a default under the finance agreement or the repossession of the motor vehicle associated with the finance agreement, any refund due may be paid directly to the creditor or administrator and applied as set forth in subsection (4) of this section.
(4) Any cancellation refund under this section may be applied by the creditor as a reduction of the overall amount owed under the finance agreement, if the cost of the guaranteed asset protection waiver was included in the financing of the motor vehicle or vessel.
(5) Disclosure of how the refund may be applied by the creditor or administrator must be made in accordance with the provisions of RCW 48.160.050(8).
[ 2009 c 334 s 7.]

catchline: Cancellations—Refunds—Free look period—Disclosure required.


title: RCW 48.160.070

text:
(1) The commissioner may, subject to chapter 48.04 RCW, take action that is necessary or appropriate to enforce this chapter and to protect guaranteed asset protection waiver holders in this state, which includes:
(a) Suspending, revoking, or refusing to issue the registration of a person or entity if the registrant fails to comply with any provision of this chapter or fails to comply with any proper order or rule of the commissioner; and
(b) After hearing or with the consent of the registrant, and in addition to or in lieu of the suspension, revocation, or refusal to issue any registration, imposing a penalty of not more than two thousand dollars for each violation of this chapter.
(2) The commissioner may adopt rules to implement this chapter.
[ 2009 c 334 s 8.]

catchline: Commissioner's authority to enforce chapter—Rules.