Source: https://app.leg.wa.gov/RCW/default.aspx?cite=48.18A&full=true
Timestamp: 2019-04-20 10:51:05
Document Index: 631014084

Matched Legal Cases: ['§ 1', '§ 5', '§ 3', '§ 16', '§ 19', '§ 7', '§ 15', '§ 15', '§ 26', '§ 10', '§ 4', '§ 6', '§ 150', '§ 2', '§ 6', '§ 5', '§ 11003', '§ 20', '§ 502', '§ 7', '§ 6', '§ 102', '§ 503', '§ 7', '§ 10']

RCWs > Title 48 > Chapter 48.18A
Chapter 48.18A RCW
VARIABLE CONTRACT ACT
48.18A.010 Short title—Intent.
48.18A.020 Separate accounts authorized—Allocations—Benefits—Limitations—Valuation—Sale, transfer, or exchange of assets.
48.18A.030 Statements required in contracts—Payment on death, incidental benefit provision.
48.18A.035 Return of policy and refund of premium—Notice required—Effect of return.
48.18A.040 Requirements for operation under this chapter—Considerations—Authorization of subsidiary or affiliate—Exceptions.
48.18A.050 Applicability of other code provisions—Contract requirements.
48.18A.060 Licensing requirement.
48.18A.070 Authority of commissioner.
48.18A.900 Effective date—1969 c 104.
Reviser's note: Powers, duties, and functions of the department of licensing relating to securities were transferred to the department of financial institutions by 1993 c 472, effective October 1, 1993. See RCW 43.320.011.
48.18A.010
Short title—Intent.
This chapter shall be known as the "Variable Contract Act" and is intended to authorize the sale of both individual and group variable contracts.
[ 1969 c 104 § 1.]
48.18A.020
48.18A.030
Statements required in contracts—Payment on death, incidental benefit provision.
(1) Every variable contract providing benefits payable in variable amounts delivered or issued for delivery in this state shall contain a statement of the essential features of the procedures to be followed by the insurer in determining the dollar amount of such variable benefits. Any such contract under which the benefits vary to reflect investment experience, including a group contract and any certificate in evidence of variable benefits issued thereunder, shall state that such dollar amount will so vary and shall contain on its first page a statement to the effect that the benefits thereunder are on a variable basis.
(2) Variable annuity contracts delivered or issued for delivery in this state may include as an incidental benefit provision for payment on death during the deferred period of an amount not in excess of the greater of the sum of the premiums or stipulated payments paid under the contract or the value of the contract at time of death. For this purpose such benefit shall not be deemed to be life insurance and therefore not subject to any statutory provisions governing life insurance contracts. A provision for any other benefits on death during the deferred period will be subject to such insurance law provisions.
[ 1973 1st ex.s. c 163 § 5; 1969 c 104 § 3.]
48.18A.035
Every individual variable contract issued shall have printed on its face or attached thereto a notice stating in substance that the policy owner shall be permitted to return the policy within ten days after it is received by the policy owner and to have the market value of the assets purchased by its premium, less taxes and investment brokerage commissions, if any, refunded, if, after examination of the policy, the policy owner is not satisfied with it for any reason. An additional ten percent penalty shall be added to any premium refund due which is not paid within thirty days of return of the policy to the insurer or insurance producer. If a policy owner pursuant to such notice returns the policy to the insurer at its home or branch office or to the insurance producer through whom it was purchased, it shall be void from the beginning and the parties shall be in the same position as if no policy had been issued.
[ 2017 3rd sp.s. c 25 § 16; 2008 c 217 § 19; 1983 1st ex.s. c 32 § 7; 1982 c 181 § 15.]
Effective date—1982 c 181 § 15: "Section 15 of this act is necessary for the immediate preservation of the public peace, health, and safety, the support of the state government and its existing public institutions, and shall take effect May 1, 1982." [ 1982 c 181 § 26.]
48.18A.040
Requirements for operation under this chapter—Considerations—Authorization of subsidiary or affiliate—Exceptions.
No insurer shall deliver or issue, for delivery within this state, contracts under this chapter unless it is licensed or organized to do a life insurance or annuity business in this state, and unless the commissioner is satisfied that its condition or method of operation in connection with the issuance of such contracts will not render its operation hazardous to the public or its policyholders in this state. In this connection, the commissioner shall consider among other things:
(3) The law and regulation under which the insurer is authorized in the state of domicile to issue variable contracts.
An insurer which issues variable contracts and which is a subsidiary of, or affiliated through common management or ownership with, another life insurer authorized to do business in this state may be deemed to have met the provisions of this section if either it or the parent or affiliated company meets the requirements hereof: PROVIDED, That no insurer may provide variable benefits in its contracts unless it is an admitted insurer having and continually maintaining a combined capital and surplus of at least five million dollars.
[ 1982 c 181 § 10; 1969 c 104 § 4.]
48.18A.050
Applicability of other code provisions—Contract requirements.
The provisions of RCW 48.23.020, 48.23.030, 48.23.080 through 48.23.120, 48.23.140, 48.23.150, 48.23.200 through 48.23.240, 48.23.310, and 48.23.360, and the provisions of chapters 48.24 and 48.76 RCW are inapplicable to variable contracts. Any provision in the code requiring contracts to be participating is not applicable to variable contracts. Except as otherwise provided in this chapter, all pertinent provisions of the insurance code apply to separate accounts and contracts relating thereto. Any individual variable life insurance or individual variable annuity contract delivered or issued for delivery in this state must contain grace, reinstatement, and nonforfeiture provisions appropriate to those contracts, and any variable life insurance contract must provide that the investment experience of the separate account may not operate to reduce the death benefit below an amount equal to the face amount of the contract at the time the contract was issued. Any individual variable life insurance contract may contain a provision for deduction from the death proceeds of amounts of due and unpaid premiums or of indebtedness which are appropriate to that contract. The reserve liability for variable annuities must be established in accordance with actuarial procedures that recognize the variable nature of the benefits provided and any mortality guarantees.
[ 2003 c 248 § 6; 1983 c 3 § 150; 1979 c 157 § 2; 1973 1st ex.s. c 163 § 6; 1969 c 104 § 5.]
48.18A.060
No person shall be or act as an insurance producer for the solicitation or sale of variable contracts except while duly appointed and licensed under the insurance code as a variable life and variable annuity products insurance producer with respect to the insurer, and while duly licensed as a security salesperson or securities broker under a license issued by the director of financial institutions pursuant to the securities act of this state; except that any person who participates only in the sale or offering for sale of variable contracts which fund corporate plans meeting the requirements for qualification under sections 401 or 403 of the United States internal revenue code need not be licensed pursuant to the securities act of this state.
[ 2010 c 8 § 11003; 2008 c 217 § 20; 1994 c 92 § 502; 1973 1st ex.s. c 163 § 7; 1969 c 104 § 6.]
48.18A.070
Notwithstanding any other provision of law, the commissioner shall have sole and exclusive authority to regulate the issuance and sale of variable contracts; except for the examination, issuance or renewal, suspension or revocation, of a security salesperson's license issued to persons selling variable contracts. To carry out the purposes and provisions of this chapter, he or she may independently, and in concert with the director of financial institutions, issue such reasonable rules and regulations as may be appropriate.
[ 2013 c 23 § 102; 1994 c 92 § 503; 1969 c 104 § 7.]
48.18A.900
Effective date—1969 c 104.
This 1969 act shall take effect July 1, 1969.
[ 1969 c 104 § 10.]