reglab/statecodes huggingface dataset:
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.06 - Organization of Domestic Insurers. › 48.06.200 - Incorporation, articles of—Contents.

RCW 48.06.200
Incorporation, articles of—Contents.
(1) This section applies to insurers incorporated in this state, but no insurer heretofore lawfully incorporated in this state is required to reincorporate or change its articles of incorporation by reason of any provisions of this section.
(2) The incorporators shall be individuals who are United States citizens, of whom two-thirds shall be residents of this state. The number of incorporators shall be not less than five if a stock insurer, nor less than ten if a mutual insurer.
(3) The incorporators shall execute articles of incorporation in duplicate, acknowledge their signatures thereunto before an officer authorized to take acknowledgments of deeds, and file both copies with the commissioner.
(4) After approval of the articles by the commissioner, one copy shall be filed in the office of the commissioner and the other copy shall be returned to the insurer.
(5) The articles of incorporation shall state:
First: The names and addresses of the incorporators.
Second: The name of the insurer. If a mutual insurer the name shall include the word "mutual."
Third: (a) The objects for which the insurer is formed;
(b) whether it is a stock or mutual insurer, and if a mutual property insurer only, whether it will insure on the cash premium or assessment plan;
(c) the kinds of insurance it will issue, according to the designations made in this code.
Fourth: If a stock insurer, the amount of its capital, the aggregate number of shares, and the par value of each share, which par value shall be not less than ten dollars, except that after the corporation has transacted business as an authorized insurer in the state for five years or more, its articles of incorporation may be amended, at the option of its stockholders, to provide for a par value of not less than one dollar per share. If a mutual insurer, the maximum contingent liability of its policyholders for the payment of its expenses and losses occurring under its policies.
Fifth: The duration of its existence, which may be perpetual.
Sixth: The names and addresses of the directors, not less than five in number, who shall constitute the board of directors of the insurer for the initial term, not less than two nor more than six months, as designated in the articles of incorporation.
Seventh: The name of the city or town of this state in which the insurer's principal place of business is to be located.
Eighth: Other provisions not inconsistent with law as may be deemed proper by the incorporators.
[ 1998 c 23 § 2; 1981 c 302 § 37; 1963 c 60 § 1; 1949 c 190 § 7; 1947 c 79 § .06.20; Rem. Supp. 1949 § 45.06.20.]
NOTES:
Severability—1981 c 302: See note following RCW 19.76.100.
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.07 - Domestic Insurers—Powers. › 48.07.010 - Application of code to existing insurers.

RCW 48.07.010
Application of code to existing insurers.
Existing authorized domestic insurers shall continue to insure only in accordance with the provisions of this code.
[1947 c 79 § .07.01; Rem. Supp. 1947 § 45.07.01.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.07 - Domestic Insurers—Powers. › 48.07.020 - Principal office.

RCW 48.07.020
Principal office.
Every domestic insurer shall establish and maintain in this state its principal office and place of business.
[1947 c 79 § .07.02; Rem. Supp. 1947 § 45.07.02.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.07 - Domestic Insurers—Powers. › 48.07.030 - Application of general corporation laws.

RCW 48.07.030
Application of general corporation laws.
The laws of this state relating to private corporations, except where inconsistent with the express provisions of this code, shall govern the corporate powers, duties, and relationships of incorporated domestic insurers and insurance holding corporations formed under the laws of the state of Washington.
[ 1985 c 364 § 1; 1947 c 79 § .07.03; Rem. Supp. 1947 § 45.07.03.]
NOTES:
Severability—1985 c 364: "If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected." [ 1985 c 364 § 5.]
Provisions as to general business corporations: Title 23B RCW.
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.07 - Domestic Insurers—Powers. › 48.07.040 - Annual, special meetings.

RCW 48.07.040
Annual, special meetings.
Each incorporated domestic insurer shall hold an annual meeting of its shareholders or members at such time and place as may be stated in or fixed in accordance with its bylaws for the purpose of receiving reports of its affairs and to elect directors. Each domestic insurance holding corporation shall hold an annual meeting of its shareholders at such time and place as may be stated in or fixed in accordance with its bylaws. Special meetings of the shareholders of an incorporated domestic insurer or domestic insurance holding corporation shall be called and held by such persons and in such a manner as stated in the articles of incorporation or bylaws.
[ 2002 c 300 § 5; 1985 c 364 § 2; 1965 ex.s. c 70 § 4; 1947 c 79 § .07.04; Rem. Supp. 1947 § 45.07.04.]
NOTES:
Severability—1985 c 364: See note following RCW 48.07.030.
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.07 - Domestic Insurers—Powers. › 48.07.050 - Directors—Qualifications—Removal.

RCW 48.07.050
Directors—Qualifications—Removal.
Not less than three-fourths of the directors of an incorporated domestic insurer shall be United States or Canadian citizens, and a majority of the board of directors of a mutual life insurer shall be residents of this state. The directors of a domestic insurer or domestic insurance holding corporation may be removed with cause by a vote of a majority of its voting capital stock or members (if a mutual insurer) at a valid meeting and said directors may be removed without cause by a vote of sixty-seven percent of its voting capital stock or members (if a mutual insurer) at a valid meeting.
[ 1989 c 24 § 1; 1985 c 364 § 3; 1957 c 193 § 21; 1947 c 79 § .07.05; Rem. Supp. 1947 § 45.07.05.]
NOTES:
Severability—1985 c 364: See note following RCW 48.07.030.
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.07 - Domestic Insurers—Powers. › 48.07.060 - Corrupt practices—Penalty.

RCW 48.07.060
Corrupt practices—Penalty.
No person shall buy or sell or barter a vote or proxy, relative to any meeting of shareholders or members of an incorporated domestic insurer, or engage in any corrupt or dishonest practice in or relative to the conduct of any such meeting. Violation of this section shall constitute a gross misdemeanor.
[1947 c 79 § .07.06; Rem. Supp. 1947 § 45.07.06.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.07 - Domestic Insurers—Powers. › 48.07.070 - Amendment of articles of incorporation.

RCW 48.07.070
Amendment of articles of incorporation.
(1) Unless a vote of a greater proportion of directors or shares is required by its articles of incorporation, amendments to the articles of incorporation of a domestic insurer or a domestic insurance holding corporation shall be made by a majority vote of its board of directors and the vote or written assent of a majority of its voting capital stock, or two-thirds of the members (if a mutual insurer) voting at a valid meeting of members.
(2) The president and secretary of the insurer shall, under the corporate seal, certify the amendment in duplicate, and file both copies in the office of the commissioner as required under this code for original articles of incorporation. Thereupon, subject to the requirements of RCW 48.08.010 relative to increase of capital stock of a stock insurer, the amendment shall become effective.
[ 1998 c 23 § 3; 1985 c 364 § 4; 1981 c 302 § 38; 1947 c 79 § .07.07; Rem. Supp. 1947 § 45.07.07.]
NOTES:
Severability—1985 c 364: See note following RCW 48.07.030.
Severability—1981 c 302: See note following RCW 19.76.100.
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.07 - Domestic Insurers—Powers. › 48.07.080 - Guarantee of officers' obligations prohibited.

RCW 48.07.080
Guarantee of officers' obligations prohibited.
No domestic insurer or its affiliates or subsidiaries shall guarantee the financial obligation of any director or officer of such insurer or affiliate or subsidiary in his or her personal capacity, and any such guaranty attempted shall be void.
This prohibition shall not apply to obligations of the insurer under surety bonds or insurance contracts issued in the regular course of business.
[ 2009 c 549 § 7026; 1947 c 79 § .07.08; Rem. Supp. 1947 § 45.07.08.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.07 - Domestic Insurers—Powers. › 48.07.100 - Vouchers for expenditures.

RCW 48.07.100
Vouchers for expenditures.
(1) No domestic insurer shall make any disbursement of twenty-five dollars or more, unless evidenced by a voucher correctly describing the consideration for the payment and supported by a check or receipt endorsed or signed by or on behalf of the person receiving the money.
(2) If the disbursement is for services and reimbursement, the voucher shall describe the services and itemize the expenditures.
(3) If the disbursement is in connection with any matter pending before any legislature or public body or before any public official, the voucher shall also correctly describe the nature of the matter and of the insurer's interest therein.
[1947 c 79 § .07.10; Rem. Supp. 1947 § 45.07.10.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.07 - Domestic Insurers—Powers. › 48.07.110 - Depositaries.

RCW 48.07.110
Depositaries.
The funds of a domestic insurer shall not be deposited in any bank or banking institution which has not first been approved as a depositary by the insurer's board of directors or by a committee thereof designated for the purpose.
[1947 c 79 § .07.11; Rem. Supp. 1947 § 45.07.11.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.07 - Domestic Insurers—Powers. › 48.07.130 - Pecuniary interest of officer or director, restrictions upon.

RCW 48.07.130
Pecuniary interest of officer or director, restrictions upon.
(1) No person having any authority in the investment or disposition of the funds of a domestic insurer and no officer or director of an insurer shall accept, except for the insurer, or be the beneficiary of any fee, brokerage, gift, commission, or other emolument because of any sale of insurance or of any investment, loan, deposit, purchase, sale, payment, or exchange made by or for the insurer, or be pecuniarily interested therein in any capacity; except, that such a person may procure a loan from the insurer direct upon approval by two-thirds of its directors and upon the pledge of securities eligible for the investment of the insurer's funds under this code.
(2) This section does not prohibit a life insurer from making a policy loan to such person on a life insurance contract issued by it and in accordance with the terms thereof.
(3) The commissioner may permit additional exceptions to the prohibition contained in subsection (1) of this section to enable payment of reasonable compensation to a director who is not otherwise an officer or employee of the insurer, or to a corporation or firm in which the director is interested, for necessary services performed or sales or purchases made to or for the insurer in the ordinary course of the insurer's business and in the usual private professional or business capacity of such director or such corporation or firm.
In addition, the commissioner may permit exceptions to the prohibitions contained in subsection (1) of this section where the payment of a fee, brokerage, gift, commission, or other emolument is fully disclosed to the insurer's officers and directors and is reasonable in relation to the service performed.
[ 1989 c 228 § 1; 1981 c 339 § 5; 1947 c 79 § .07.13; Rem. Supp. 1947 § 45.07.13.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.07 - Domestic Insurers—Powers. › 48.07.140 - Compliance with foreign laws.

RCW 48.07.140
Compliance with foreign laws.
Any domestic insurer doing business in another state, territory or sovereignty may design and issue insurance contracts and transact insurance in such state, territory or sovereignty as required or permitted by the laws thereof, any provision of the insurer's articles of incorporation or bylaws notwithstanding.
[1947 c 79 § .07.14; Rem. Supp. 1947 § 45.07.14.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.07 - Domestic Insurers—Powers. › 48.07.150 - Solicitations in other states.

RCW 48.07.150
Solicitations in other states.
(1) No domestic insurer shall knowingly solicit insurance business in any reciprocating state in which it is not then licensed as an authorized insurer.
(2) This section shall not prohibit advertising through publications and radio broadcasts originating outside such reciprocating state, if the insurer is licensed in a majority of the states in which such advertising is disseminated, and if such advertising is not specifically directed to residents of such reciprocating state.
(3) This section shall not prohibit insurance, covering persons or risks located in a reciprocating state, under contracts solicited and issued in states in which the insurer is then licensed. Nor shall it prohibit insurance effectuated by the insurer as an unauthorized insurer in accordance with the laws of the reciprocating state. Nor shall it prohibit renewal or continuance in force, with or without modification, of contracts otherwise lawful and which were not originally executed in violation of this section.
(4) A "reciprocating" state, as used herein, is one under the laws of which a similar prohibition is imposed upon and is enforced against insurers domiciled in that state.
(5) The commissioner shall suspend or revoke the certificate of authority of a domestic insurer found by him or her, after a hearing, to have violated this section.
[ 2009 c 549 § 7027; 1988 c 248 § 4; 1947 c 79 § .07.15; Rem. Supp. 1947 § 45.07.15.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.07 - Domestic Insurers—Powers. › 48.07.160 - Continuing operation in event of emergency—Declaration of purpose—"Insurer" defined.

RCW 48.07.160
Continuing operation in event of emergency—Declaration of purpose—"Insurer" defined.
It is desirable for the general welfare and in particular for the welfare of insurance beneficiaries, policyholders, claimants, subscribers, and others that the business of domestic insurers be continued notwithstanding the event of a local, state, or national emergency. The purpose of this section, RCW 48.07.170 through 48.07.200, and 48.07.203 is to facilitate the continued operation of domestic insurers in the event that a local, state, or national emergency is so disruptive of normal business and commerce as to make it impossible or impracticable for a domestic insurer to conduct its business in accord with applicable provisions of law, its bylaws, or its charter. When used in this section, RCW 48.07.170 through 48.07.200, and 48.07.203 the word "insurer" means the same as defined in RCW 48.01.053 [ 48.01.050].
[ 2009 c 150 § 1; 1963 c 195 § 25.]
NOTES:
Effective date—2009 c 150: "This act takes effect January 1, 2011." [ 2009 c 150 § 8.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.07 - Domestic Insurers—Powers. › 48.07.170 - Continuing operation in event of emergency—Emergency bylaws.

RCW 48.07.170
Continuing operation in event of emergency—Emergency bylaws.
The board of directors of any domestic insurer may at any time adopt emergency bylaws, subject to repeal or change by action of those having power to adopt regular bylaws for such insurer, which shall be operative during such a local, state, or national emergency and which may, notwithstanding any different provisions of the regular bylaws, or of the applicable statutes, or of such insurer's charter, make any provision that may be reasonably necessary for the operation of such insurer during the period of such emergency.
[ 2009 c 150 § 2; 1963 c 195 § 26.]
NOTES:
Effective date—2009 c 150: See note following RCW 48.07.160.
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.07 - Domestic Insurers—Powers. › 48.07.180 - Continuing operation in event of emergency—Directors.

RCW 48.07.180
Continuing operation in event of emergency—Directors.
In the event that the board of directors of a domestic insurer has not adopted emergency bylaws, the following provisions shall become effective upon the occurrence of such a local, state, or national emergency as described in this chapter:
(1) Three directors shall constitute a quorum for the transaction of business at all meetings of the board.
(2) Any vacancy in the board may be filled by a majority of the remaining directors, though less than a quorum, or by a sole remaining director.
(3) If there are no surviving directors, but at least three vice presidents of such insurer survive, the three vice presidents with the longest term of service shall be the directors and shall possess all of the powers of the previous board of directors and such powers as are granted in this chapter or by subsequently enacted legislation. By majority vote, such emergency board of directors may elect other directors. If there are not at least three surviving vice presidents, the commissioner or duly designated person exercising the powers of the commissioner shall appoint three persons as directors who shall include any surviving vice presidents and who shall possess all of the powers of the previous board of directors and such powers as are granted in this chapter or by subsequently enacted legislation, and these persons by majority vote may elect other directors.
[ 2009 c 150 § 3; 1963 c 195 § 27.]
NOTES:
Effective date—2009 c 150: See note following RCW 48.07.160.
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.07 - Domestic Insurers—Powers. › 48.07.190 - Continuing operation in event of emergency—Officers.

RCW 48.07.190
Continuing operation in event of emergency—Officers.
At any time the board of directors of a domestic insurer may, by resolution, provide that in the event of such a local, state, or national emergency and in the event of the death or incapacity of the president, the secretary, or the treasurer of such insurer, such officers, or any of them, shall be succeeded in the office by the person named or described in a succession list adopted by the board of directors. Such list may be on the basis of named persons or position titles, shall establish the order of priority and may prescribe the conditions under which the powers of the office shall be exercised.
[ 2009 c 150 § 4; 1963 c 195 § 28.]
NOTES:
Effective date—2009 c 150: See note following RCW 48.07.160.
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.07 - Domestic Insurers—Powers. › 48.07.200 - Continuing operation in event of emergency—Principal office and place of business.

RCW 48.07.200
Continuing operation in event of emergency—Principal office and place of business.
At any time the board of directors of a domestic insurer may, by resolution, provide that in the event of such a local, state, or national emergency the principal office and place of business of such insurer shall be at such location as is named or described in the resolution. Such resolution may provide for alternate locations and establish an order of preference.
[ 2009 c 150 § 5; 1963 c 195 § 29.]
NOTES:
Effective date—2009 c 150: See note following RCW 48.07.160.
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.07 - Domestic Insurers—Powers. › 48.07.203 - Continuing operation in event of emergency—Written plan required.

RCW 48.07.203
Continuing operation in event of emergency—Written plan required.
Each domestic insurer must create and maintain a written business continuity plan identifying procedures relating to a local, state, or national emergency or significant business disruption.
[ 2009 c 150 § 6.]
NOTES:
Effective date—2009 c 150: See note following RCW 48.07.160.
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.07 - Domestic Insurers—Powers. › 48.07.205 - Continuing operation in event of emergency—Planning standards—Rules.

RCW 48.07.205
Continuing operation in event of emergency—Planning standards—Rules.
After considering relevant standards adopted by the national association of insurance commissioners, other states, and other regulatory authorities that regulate financial institutions, the commissioner shall adopt, by rule, standards for insurers and insurance producers to follow for business continuity planning.
[ 2009 c 150 § 7.]
NOTES:
Effective date—2009 c 150: See note following RCW 48.07.160.
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.08 - Domestic Stock Insurers. › 48.08.010 - Increase of capital stock.

RCW 48.08.010
Increase of capital stock.
(1) Increase of the capital stock of a domestic stock insurer shall be by amendment to its articles of incorporation.
(2) If the increased capital stock is to be distributed as a stock dividend, such increased capital stock may be fully paid in out of any available surplus funds as is provided in RCW 48.08.030, and such payment shall be effected by a transfer on the insurer's books from its surplus account to its capital account.
(3) When the increased capital has been fully paid in, a certificate to such effect shall be made in quadruplicate under oath and the corporate seal by the insurer's president and secretary and filed in the public offices named in RCW 48.07.070.
[ 1953 c 197 § 4; 1947 c 79 § .08.01; Rem. Supp. 1947 § 45.08.01.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.08 - Domestic Stock Insurers. › 48.08.020 - Reduction of capital stock.

RCW 48.08.020
Reduction of capital stock.
(1) Reduction of the capital stock of a domestic stock insurer shall be by amendment of its articles of incorporation. No such reduction shall be made which results in capital stock less in amount than the minimum required by this code for the kinds of insurance thereafter to be transacted by the insurer.
(2) No surplus funds of the insurer resulting from a reduction of its capital stock shall be distributed to stockholders, except as a stock dividend on a subsequent increase of capital stock, or upon dissolution of the insurer, or upon approval of the commissioner of a distribution upon proof satisfactory to him or her that the distribution will not impair the interests of policyholders or the insurer's solvency.
(3) Upon such reduction of capital stock, the insurer's directors shall call in any outstanding stock certificates required to be changed pursuant thereto, and issue proper certificates in their stead.
[ 2009 c 549 § 7028; 1947 c 79 § .08.02; Rem. Supp. 1947 § 45.08.02.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.08 - Domestic Stock Insurers. › 48.08.030 - Dividends to stockholders.

RCW 48.08.030
Dividends to stockholders.
(1) No domestic stock insurer shall pay any cash dividend to stockholders except out of earned surplus. For the purpose of this section, "earned surplus" means that part of its available surplus funds which is derived from any realized net profits on its business, and does not include unrealized capital gains or reevaluation of assets.
(2) Such an insurer may pay a stock dividend out of any available surplus funds.
(3) Payment of any dividend to stockholders of a domestic stock insurer shall also be subject to all the limitations and requirements governing the payment of dividends by other private corporations.
(4) No dividend shall be declared or paid which would reduce the insurer's surplus to an amount less than the minimum required for the kinds of insurance thereafter to be transacted.
(5) For the purposes of this chapter "surplus funds" means the excess of the insurer's assets over its liabilities, including its capital stock as a liability.
(6) Available surplus means the excess over the minimum amount of surplus required for the kinds of insurance the insurer is authorized to transact.
[ 1993 c 462 § 52; 1947 c 79 § .08.03; Rem. Supp. 1947 § 45.08.03.]
NOTES:
Severability—Implementation—1993 c 462: See RCW 48.31B.901 and 48.31B.902.
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.08 - Domestic Stock Insurers. › 48.08.040 - Illegal dividends, reductions—Penalty against directors.

RCW 48.08.040
Illegal dividends, reductions—Penalty against directors.
Any director of a domestic stock insurer who votes for or concurs in the declaration or payment of any dividend to stockholders or a reduction of capital stock not authorized by law shall, in addition to any other liability imposed by law, be guilty of a gross misdemeanor.
[1947 c 79 § .08.04; Rem. Supp. 1947 § 45.08.04.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.08 - Domestic Stock Insurers. › 48.08.050 - Impairment of capital.

RCW 48.08.050
Impairment of capital.
(1) If the capital stock of a domestic stock insurer becomes impaired, the commissioner shall at once determine the amount of the deficiency and serve notice upon the insurer to require its stockholders to make good the deficiency within ninety days after service of such notice.
(2) The deficiency shall be made good in cash, or in assets eligible under this code for the investment of the insurer's funds, or by reduction of the insurer's capital stock to an amount not below the minimum required for the kinds of insurance to be thereafter transacted.
(3) If the deficiency is not made good and proof thereof filed with the commissioner within such ninety-day period, the insurer shall be deemed insolvent and shall be proceeded against as authorized by this code.
(4) If the deficiency is not made good the insurer shall not issue or deliver any policy after the expiration of such ninety-day period. Any officer or director who violates or knowingly permits the violation of this provision shall be subject to a fine of from fifty dollars to one thousand dollars for each violation.
[1947 c 79 § .08.05; Rem. Supp. 1947 § 45.08.05.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.08 - Domestic Stock Insurers. › 48.08.060 - Repayment of contributions to surplus.

RCW 48.08.060
Repayment of contributions to surplus.
Contributions to the surplus of a domestic stock insurer other than resulting from sale of its capital stock, shall not be subject to repayment except out of surplus in excess of the minimum surplus initially required of such an insurer transacting like kinds of insurance.
[1947 c 79 § .08.06; Rem. Supp. 1947 § 45.08.06.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.08 - Domestic Stock Insurers. › 48.08.070 - Participating policies.

RCW 48.08.070
Participating policies.
(1) Any domestic stock insurer may, if its charter so provides, issue policies entitled to participate from time to time in the earnings of the insurer through dividends.
(2) Any classification of its participating policies and of risks assumed thereunder which the insurer may make shall be reasonable. No dividend shall be paid which is inequitable or which unfairly discriminates as between such classifications or as between policies within the same classification.
(3) No such insurer shall issue in this state both participating and nonparticipating policies for the same class of risks; except, that both participating and nonparticipating life insurance policies may be issued if the right or absence of the right to participate is reasonably related to the premium charged.
(4) Dividends to participating life insurance policies issued by such insurer shall be paid only out of its surplus funds as defined in subsection (5) of RCW 48.08.030. Dividends to participating policies for other kinds of insurance shall be paid only out of that part of such surplus funds which is derived from any realized net profits from the insurer's business.
(5) No dividend, otherwise earned, shall be made contingent upon the payment of renewal premium on any policy.
[1947 c 79 § .08.07; Rem. Supp. 1947 § 45.08.07.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.08 - Domestic Stock Insurers. › 48.08.080 - Mutualization of stock insurers.

RCW 48.08.080
Mutualization of stock insurers.
(1) Any domestic stock insurer may become a domestic mutual insurer pursuant to such plan and procedure as are approved by the commissioner in advance of such mutualization.
(2) The commissioner shall not approve any such plan, procedure, or mutualization unless:
(a) It is equitable to both shareholders and policyholders.
(b) It is approved by vote of the holders of not less than three-fourths of the insurer's capital stock having voting rights, and by vote of not less than two-thirds of the insurer's policyholders who vote on such plan, pursuant to such notice and procedure as may be approved by the commissioner. Such vote may be registered in person, by proxy, or by mail.
(c) If a life insurer, the right to vote thereon is limited to those policyholders whose policies have face amounts of not less than one thousand dollars and have been in force one year or more.
(d) Mutualization will result in retirement of shares of the insurer's capital stock at a price not in excess of the fair value thereof as determined by competent disinterested appraisers.
(e) The plan provides for appraisal and purchase of the shares of any nonconsenting stockholder in accordance with the laws of this state relating to the sale or exchange of all the assets of a private corporation.
(f) The plan provides for definite conditions to be fulfilled by a designated early date upon which such mutualization will be deemed effective.
(g) The mutualization leaves the insurer with surplus funds reasonably adequate to preserve the security of its policyholders and its ability to continue successfully in business in the states in which it is then authorized, and in the kinds of insurance it is then authorized to transact.
[1947 c 79 § .08.08; Rem. Supp. 1947 § 45.08.08.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.08 - Domestic Stock Insurers. › 48.08.100 - Equity security—Defined.

RCW 48.08.100
Equity security—Defined.
The term "equity security" when used in RCW 48.08.100 through 48.08.160 means any stock or similar security; or any security convertible, with or without consideration, into such a security, or carrying any warrant or right to subscribe to or purchase such a security; or any such warrant or right; or any other security which the commissioner shall deem to be of similar nature and consider necessary or appropriate, by such rules and regulations as he or she may prescribe in the public interest or for the protection of investors, to treat as an equity security.
[ 2009 c 549 § 7030; 1965 ex.s. c 70 § 11.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.08 - Domestic Stock Insurers. › 48.08.110 - Equity security—Duty to file statement of ownership.

RCW 48.08.110
Equity security—Duty to file statement of ownership.
Every person who is directly or indirectly the beneficial owner of more than ten percent of any class of any equity security of a domestic stock insurer, or who is a director or an officer of such insurer, shall file with the commissioner on or before the 30th day of September, 1965, or within ten days after he or she becomes such beneficial owner, director or officer, a statement, in such form as the commissioner may prescribe, of the amount of all equity securities of such insurer of which he or she is the beneficial owner, and within ten days after the close of each calendar month thereafter, if there has been a change in such ownership during such month, shall file with the commissioner a statement, in such form as the commissioner may prescribe, indicating his or her ownership at the close of the calendar month and such changes in his or her ownership as have occurred during such calendar month.
[ 2009 c 549 § 7031; 1965 ex.s. c 70 § 6.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.08 - Domestic Stock Insurers. › 48.08.120 - Equity security—Profits from short term transactions—Remedies—Limitation of actions.

RCW 48.08.120
Equity security—Profits from short term transactions—Remedies—Limitation of actions.
For the purpose of preventing the unfair use of information which may have been obtained by such beneficial owner, director or officer by reason of his or her relationship to such insurer, any profit realized by him from any purchase and sale, or any sale and purchase, of any equity security of such insurer within any period of less than six months, unless such security was acquired in good faith in connection with a debt previously contracted, shall inure to and be recoverable by the insurer, irrespective of any intention on the part of such beneficial owner, director or officer in entering into such transaction of holding the security purchased or of not repurchasing the security sold for a period exceeding six months. Suit to recover such profit may be instituted at law or in equity in any court of competent jurisdiction by the insurer, or by the owner of any security of the insurer in the name and in behalf of the insurer if the insurer shall fail or refuse to bring such suit within sixty days after request or shall fail diligently to prosecute the same thereafter: PROVIDED, That no such suit shall be brought more than two years after the date such profit was realized. This section shall not be construed to cover any transaction where such beneficial owner was not such both at the time of the purchase and sale, or the sale and purchase, of the security involved, or any transaction or transactions which the commissioner by rules and regulations may exempt as not comprehended within the purpose of this section.
[ 2009 c 549 § 7032; 1965 ex.s. c 70 § 7.]
NOTES:
Exemption from federal registration: 15 U.S.C. § 78 l(g)(2)(G).
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.08 - Domestic Stock Insurers. › 48.08.130 - Equity security—Sales, unlawful practices.

RCW 48.08.130
Equity security—Sales, unlawful practices.
It shall be unlawful for any such beneficial owner, director or officer, directly or indirectly, to sell any equity security of such insurer if the person selling the security or his or her principal (1) does not own the security sold, or (2) if owning the security, does not deliver it against such sale within twenty days thereafter, or does not within five days after such sale deposit it in the mails or other usual channels of transportation: PROVIDED, That no person shall be deemed to have violated this section if he or she proves that notwithstanding the exercise of good faith he or she was unable to make such delivery or deposit within such time, or that to do so would cause undue inconvenience or expense.
[ 2010 c 8 § 11002; 2009 c 549 § 7033; 1965 ex.s. c 70 § 8.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.08 - Domestic Stock Insurers. › 48.08.140 - Equity security—Exemptions—Sales by dealer.

RCW 48.08.140
Equity security—Exemptions—Sales by dealer.
The provisions of RCW 48.08.120 shall not apply to any purchase and sale, or sale and purchase, and the provisions of RCW 48.08.130 shall not apply to any sale of an equity security of a domestic stock insurer not then or theretofore held by him or her in an investment account, by a dealer in the ordinary course of his or her business and incident to the establishment or maintenance by him or her of a primary or secondary market (otherwise than on an exchange as defined in the Securities Exchange Act of 1934) for such security. The commissioner may, by such rules and regulations as he or she deems necessary or appropriate in the public interest, define and prescribe terms and conditions with respect to securities held in an investment account and transactions made in the ordinary course of business and incident to the establishment or maintenance of a primary or secondary market.
[ 2009 c 549 § 7034; 1965 ex.s. c 70 § 9.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.08 - Domestic Stock Insurers. › 48.08.150 - Equity security—Exemptions—Foreign or domestic arbitrage transactions.

RCW 48.08.150
Equity security—Exemptions—Foreign or domestic arbitrage transactions.
The provisions of RCW 48.08.110, 48.08.120 and 48.08.130 shall not apply to foreign or domestic arbitrage transactions unless made in contravention of such rules and regulations as the commissioner may adopt in order to carry out the purposes of RCW 48.08.100 through 48.08.160.
[ 1965 ex.s. c 70 § 10.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.08 - Domestic Stock Insurers. › 48.08.160 - Equity security—Exemptions—Securities registered or required to be, or no class held by one hundred or more persons.

RCW 48.08.160
Equity security—Exemptions—Securities registered or required to be, or no class held by one hundred or more persons.
The provisions of RCW 48.08.110, 48.08.120, and 48.08.130 shall not apply to equity securities of a domestic stock insurer if (1) such securities shall be registered, or shall be required to be registered, pursuant to section 12 of the Securities Exchange Act of 1934, as amended, or if (2) such domestic stock insurer shall not have any class of its equity securities held of record by one hundred or more persons on the last business day of the year next preceding the year in which equity securities of the insurer would be subject to the provisions of RCW 48.08.110, 48.08.120, and 48.08.130 except for the provisions of this subsection (2).
[ 1965 ex.s. c 70 § 12.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.08 - Domestic Stock Insurers. › 48.08.170 - Equity security—Rules and regulations.

RCW 48.08.170
Equity security—Rules and regulations.
The commissioner shall have the power to make such rules and regulations as may be necessary for the execution of the functions vested in him or her by RCW 48.08.100 through 48.08.160, and may for such purpose classify domestic stock insurers, securities, and other persons or matters within his jurisdiction. No provision of RCW 48.08.110, 48.08.120, and 48.08.130 imposing any liability shall apply to any act done or omitted in good faith in conformity with any rule or regulation of the commissioner, notwithstanding that such rule or regulation may, after such act or omission, be amended or rescinded or determined by judicial or other authority to be invalid for any reason.
[ 2009 c 549 § 7035; 1965 ex.s. c 70 § 13.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.08 - Domestic Stock Insurers. › 48.08.190 - Failure to file required information, documents, or reports—Forfeiture.

RCW 48.08.190
Failure to file required information, documents, or reports—Forfeiture.
Any person who fails to file information, documents, or reports required to be filed under chapter 241, Laws of 1969 ex. sess. or any rule or regulation thereunder shall forfeit to the state of Washington the sum of one hundred dollars for each and every day such failure to file shall continue. Such forfeiture, which shall be in lieu of any criminal penalty for such failure to file which might be deemed to arise under this title, shall be payable to the treasurer of the state of Washington and shall be recoverable in a civil suit in the name of the state of Washington.
[ 1969 ex.s. c 241 § 18.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.09 - Mutual Insurers. › 48.09.010 - Initial qualifications.

RCW 48.09.010
Initial qualifications.
(1) The commissioner shall not issue a certificate of authority to a domestic mutual insurer unless it has fully qualified therefor under this code, and unless it has met the minimum requirements for the kind of insurance it proposes to transact as provided in this chapter.
(2) All applications for insurance submitted by such an insurer as fulfilling qualification requirements shall be bona fide applications from persons resident in this state covering lives, property, or risks resident or located in this state.
(3) All qualifying premiums collected and initial surplus funds of such an insurer shall be in cash. Any deposit made by such an insurer in lieu of applications, premiums, and initial surplus funds, shall be in cash or in securities eligible for the investment of the capital of a domestic stock insurer transacting the same kind of insurance.
[1947 c 79 § .09.01; Rem. Supp. 1947 § 45.09.01.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.09 - Mutual Insurers. › 48.09.090 - Additional kinds of insurance.

RCW 48.09.090
Additional kinds of insurance.
A domestic mutual insurer may be authorized to transact kinds of insurance in addition to that for which it was originally authorized, if it has otherwise complied with the provisions of this code therefor, and while it possesses and maintains surplus funds in aggregate amount not less than the minimum amount of capital and surplus required under this code of a domestic stock insurer authorized to transact like kinds of insurance pursuant to RCW 48.05.340.
[ 1980 c 135 § 2; 1957 c 193 § 5; 1947 c 79 § .09.09; Rem. Supp. 1947 § 45.09.09.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.09 - Mutual Insurers. › 48.09.100 - Minimum surplus.

RCW 48.09.100
Minimum surplus.
A domestic mutual insurer on the cash premium plan shall at all times have and maintain surplus funds, representing the excess of its assets over its liabilities, in amount not less than the aggregate of
(1) the amount of any surplus funds deposited by it with the commissioner to qualify for its original certificate of authority, and
(2) the amount of any additional surplus required of it pursuant to RCW 48.09.090 for authority to transact additional kinds of insurance.
[ 1963 c 195 § 3; 1947 c 79 § .09.10; Rem. Supp. 1947 § 45.09.10.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.09 - Mutual Insurers. › 48.09.110 - Membership.

RCW 48.09.110
Membership.
(1) Each holder of one or more insurance contracts issued by a domestic mutual insurer, other than a contract of reinsurance, is a member of the insurer, with the rights and obligations of such membership, and each insurance contract so issued shall effectively so stipulate.
(2) Any person, government or governmental agency, state or political subdivision thereof, public or private corporation, board, association, estate, trustee or fiduciary, may be a member of a mutual insurer.
[1947 c 79 § .09.11; Rem. Supp. 1947 § 45.09.11.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.09 - Mutual Insurers. › 48.09.120 - Rights of members.

RCW 48.09.120
Rights of members.
(1) A domestic mutual insurer is owned by and shall be operated in the interest of its members.
(2) Each member is entitled to one vote in the election of directors and on matters coming before corporate meetings of members, subject to such reasonable minimum requirements as to duration of membership and amount of insurance held as may be made in the insurer's bylaws. The person named as the policyholder in any group insurance policy issued by such insurer shall be deemed the member, and shall have but one such vote regardless of the number of individuals insured by such policy.
(3) With respect to the management, records, and affairs of the insurer, a member shall have the same character of rights and relationship as a stockholder has toward a domestic stock insurer.
[1947 c 79 § .09.12; Rem. Supp. 1947 § 45.09.12.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.09 - Mutual Insurers. › 48.09.130 - Bylaws.

RCW 48.09.130
Bylaws.
A domestic mutual insurer shall adopt bylaws for the conduct of its affairs. Such bylaws, or any modification thereof, shall forthwith be filed with the commissioner. The commissioner shall disapprove any such bylaws, or as so modified, if he or she finds after a hearing thereon, that it is not in compliance with the laws of this state, and he or she shall forthwith communicate such disapproval to the insurer. No such bylaw, or modification, so disapproved shall be effective during the existence of such disapproval.
[ 2009 c 549 § 7036; 1947 c 79 § .09.13; Rem. Supp. 1947 § 45.09.13.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.09 - Mutual Insurers. › 48.09.140 - Notice of annual meeting.

RCW 48.09.140
Notice of annual meeting.
(1) Notice of the time and place of the annual meeting of members of a domestic mutual insurer shall be given by imprinting such notice plainly on the policies issued by the insurer.
(2) Any change of the date or place of the annual meeting shall be made only by an annual meeting of members. Notice of such change may be given:
(a) By imprinting such new date or place on all policies which will be in effect as of the date of such changed meeting; or
(b) Unless the commissioner otherwise orders, notice of the new date or place need be given only through policies issued after the date of the annual meeting at which such change was made and in premium notices and renewal certificates issued during the twenty-four months immediately following such meeting.
[1947 c 79 § .09.14; Rem. Supp. 1947 § 45.09.14.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.09 - Mutual Insurers. › 48.09.150 - Voting—Proxies.

RCW 48.09.150
Voting—Proxies.
(1) A member of a domestic mutual insurer may vote in person or by proxy given another member on any matter coming before a corporate meeting of members.
(2) An officer of the insurer shall not hold or vote the proxy of any member.
(3) No such proxy shall be valid beyond the earlier of the following dates:
(a) The date of expiration set forth in the proxy; or
(b) the date of termination of membership; or
(c) five years from the date of execution of the proxy.
(4) No member's vote upon any proposal to divest the insurer of its business and assets, or the major part thereof, shall be registered or taken except in person or by a proxy newly executed and specific as to the matter to be voted upon.
[1947 c 79 § .09.15; Rem. Supp. 1947 § 45.09.15.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.09 - Mutual Insurers. › 48.09.160 - Directors—Disqualification.

RCW 48.09.160
Directors—Disqualification.
No individual shall be a director of a domestic mutual insurer by reason of his or her holding public office. Adjudication as a bankrupt or taking the benefit of any insolvency law or making a general assignment for the benefit of creditors disqualifies an individual from being or acting as a director.
[ 2009 c 549 § 7037; 1947 c 79 § .09.16; Rem. Supp. 1947 § 45.09.16.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.09 - Mutual Insurers. › 48.09.180 - Limitation of expenses as to property and casualty insurance.

RCW 48.09.180
Limitation of expenses as to property and casualty insurance.
(1) For any calendar year after its first two full calendar years of operation, no domestic mutual insurer on the cash premium plan, other than one issuing nonassessable policies, shall incur any costs or expense in the writing or administration of property, disability, and casualty insurances (other than boiler and machinery or elevator) transacted by it which, exclusive of losses paid, loss adjustment expenses, investment expenses, dividends, and taxes exceeds the sum of
(a) forty percent of the net premium income during that year after deducting therefrom net earned reinsurance premiums for such year, plus
(b) all of the reinsurance commissions received on reinsurance ceded by it.
(2) The bylaws of every domestic mutual property insurer on the assessment premium plan shall impose a reasonable limitation upon its expenses.
[ 1949 c 190 § 8; 1947 c 79 § .09.18; Rem. Supp. 1949 § 45.09.18.]