reglab/statecodes huggingface dataset:
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.05 - Insurers—General Requirements. › 48.05.455 - Mandatory control level event—Definition—Commissioner's duties.

RCW 48.05.455
Mandatory control level event—Definition—Commissioner's duties.
(1) "Mandatory control level event" means any of the following events:
(a) The filing of an RBC report indicating that the insurer's total adjusted capital is less than its mandatory control level RBC;
(b) Notification by the commissioner to the insurer of an adjusted RBC report that indicates the event in (a) of this subsection, provided the insurer does not challenge the adjusted RBC report under RCW 48.05.460; or
(c) If, under RCW 48.05.460, the insurer challenges an adjusted RBC report that indicates the event in (a) of this subsection, notification by the commissioner to the insurer that the commissioner has, after a hearing, rejected the insurer's challenge.
(2) In the event of a mandatory control level event:
(a) With respect to a life and disability insurer, the commissioner shall take those actions necessary to place the insurer under regulatory control under chapter 48.31 RCW. In that event, the mandatory control level event is sufficient grounds for the commissioner to take action under chapter 48.31 RCW, and the commissioner has the rights, powers, and duties with respect to the insurer as are set forth in chapter 48.31 RCW. If the commissioner takes actions pursuant to an adjusted RBC report, the insurer is entitled to the protections of RCW 48.31.121 pertaining to summary proceedings. However, the commissioner may forego action for up to ninety days after the mandatory control level event if the commissioner finds there is a reasonable expectation that the mandatory control level event may be eliminated within the ninety-day period.
(b) With respect to a property and casualty insurer, the commissioner shall take those actions necessary to place the insurer under regulatory control under chapter 48.31 RCW, or, in the case of an insurer that is writing no business and that is running off its existing business, may allow the insurer to continue its runoff under the supervision of the commissioner. In either event, the mandatory control level event is sufficient grounds for the commissioner to take action under chapter 48.31 RCW and the commissioner has the rights, powers, and duties with respect to the insurer as are set forth in chapter 48.31 RCW. If the commissioner takes actions pursuant to an adjusted RBC report, the insurer is entitled to the protections of RCW 48.31.121 pertaining to summary proceedings. However, the commissioner may forego action for up to ninety days after the mandatory control level event if the commissioner finds there is a reasonable expectation that the mandatory control level event may be eliminated within the ninety-day period.
[ 1995 c 83 § 6.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.05 - Insurers—General Requirements. › 48.05.460 - Insurer's right to a hearing—Request—Commissioner sets date.

RCW 48.05.460
Insurer's right to a hearing—Request—Commissioner sets date.
(1) Upon notification to an insurer by the commissioner of any of the following, the insurer shall have the right to a hearing, in accordance with chapters 48.04 and 34.05 RCW, at which the insurer may challenge any determination or action by the commissioner:
(a) Of an adjusted RBC report; or
(b)(i) That the insurer's RBC plan or revised RBC plan is unsatisfactory; and
(ii) The notification constitutes a regulatory action level event with respect to such insurer; or
(c) That the insurer has failed to adhere to its RBC plan or revised RBC plan and that such failure has a substantial adverse effect on the ability of the insurer to eliminate the company action level event with respect to the insurer in accordance with its RBC plan or revised RBC plan; or
(d) Of a corrective order with respect to the insurer.
(2) The insurer shall notify the commissioner of its request for a hearing within five days after the notification by the commissioner under this section. Upon receipt of the insurer's request for a hearing, the commissioner shall set a date for the hearing. The date shall be no less than ten nor more than thirty days after the date of the insurer's request.
[ 1995 c 83 § 7.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.05 - Insurers—General Requirements. › 48.05.470 - Regulation of capital and surplus requirements is supplemental—Commissioner may grant exemptions.

RCW 48.05.470
Regulation of capital and surplus requirements is supplemental—Commissioner may grant exemptions.
(1) The provisions of RCW 48.05.430 through * 48.05.490 are supplemental to any other provisions of the laws of this state, and shall not preclude or limit any other powers or duties of the commissioner under those laws, including, but not limited to, chapter 48.31 RCW.
(2) The commissioner may exempt any domestic property and casualty insurer from RCW 48.05.430 through * 48.05.490, if the insurer:
(a) Writes direct business only in this state;
(b) Writes direct annual premiums of two million dollars or less; and
(c) Assumes no reinsurance in excess of five percent of direct premiums written.
[ 1995 c 83 § 9.]
NOTES:
*Reviser's note: RCW 48.05.490 was repealed by 2006 c 25 § 11.
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.05 - Insurers—General Requirements. › 48.05.475 - RBC report from foreign or alien insurers—Request of commissioner—Commissioner's options.

RCW 48.05.475
RBC report from foreign or alien insurers—Request of commissioner—Commissioner's options.
(1) Any foreign or alien insurer shall, upon the written request of the commissioner, submit to the commissioner an RBC report as of the end of the calendar year just ended by the later of:
(a) The date an RBC report would be required to be filed by a domestic insurer under RCW 48.05.435; or
(b) Fifteen days after the request is received by the foreign or alien insurer. Any foreign or alien insurer shall, at the written request of the commissioner, promptly submit to the commissioner a copy of any RBC plan that is filed with the insurance commissioner of any other state.
(2) In the event of a company action level event, regulatory action level event, or authorized control level event with respect to any foreign or alien insurer as determined under the RBC statute applicable in the state of domicile of the insurer or, if no RBC statute is in force in that state, under the provisions of RCW 48.05.430 through * 48.05.490, if the insurance commissioner of the state of domicile of the foreign or alien insurer fails to require the foreign or alien insurer to file an RBC plan in the manner specified under that state's RBC statute, the commissioner may require the foreign or alien insurer to file an RBC plan. In this event, the failure of the foreign or alien insurer to file an RBC plan is grounds to order the insurer to cease and desist from writing new insurance business in this state.
(3) In the event of a mandatory control level event with respect to any foreign or alien insurer, if no domiciliary receiver has been appointed with respect to the foreign or alien insurer under the rehabilitation and liquidation statute applicable in the state of domicile of the foreign or alien insurer, the commissioner may apply for an order under RCW 48.31.080 or 48.31.090 to conserve the assets within this state of foreign or alien insurers, and the occurrence of the mandatory control level event is considered adequate grounds for the application.
[ 1995 c 83 § 10.]
NOTES:
*Reviser's note: RCW 48.05.490 was repealed by 2006 c 25 § 11.
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.05 - Insurers—General Requirements. › 48.05.480 - No liability for regulation of capital and surplus requirements.

RCW 48.05.480
No liability for regulation of capital and surplus requirements.
There is no liability on the part of, and no cause of action may arise against, the commissioner or insurance department or its employees or agents for any action taken by them in the performance of their powers and duties under RCW 48.05.430 through * 48.05.490.
[ 1995 c 83 § 11.]
NOTES:
*Reviser's note: RCW 48.05.490 was repealed by 2006 c 25 § 11.
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.05 - Insurers—General Requirements. › 48.05.485 - Notices by commissioner—When effective.

RCW 48.05.485
Notices by commissioner—When effective.
All notices by the commissioner to an insurer that may result in regulatory action are effective upon dispatch if transmitted by registered or certified mail, or in the case of any other transmission are effective upon the insurer's receipt of the notice.
[ 1995 c 83 § 12.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.05 - Insurers—General Requirements. › 48.05.510 - Disclosure of certain material transactions—Insurer's report—Information is confidential.

RCW 48.05.510
Disclosure of certain material transactions—Insurer's report—Information is confidential.
(1) Every insurer domiciled in this state shall file a report with the commissioner disclosing material acquisitions and dispositions of assets or material nonrenewals, cancellations, or revisions of ceded reinsurance agreements unless these acquisitions and dispositions of assets or material nonrenewals, cancellations, or revisions of ceded reinsurance agreements have been submitted to the commissioner for review, approval, or information purposes under other provisions of this title or other requirements.
(2) The report required in subsection (1) of this section is due within fifteen days after the end of the calendar month in which any of the transactions occur.
(3) One complete copy of the report, including any exhibits or other attachments filed as part of the report, shall be filed with the:
(a) Commissioner; and
(b) National association of insurance commissioners.
(4) All reports obtained by or disclosed to the commissioner under this section and RCW 48.05.515 through 48.05.535 are exempt from public inspection and copying and are not subject to subpoena. These reports shall not be made public by the commissioner, the national association of insurance commissioners, or any other person, except to insurance departments of other states, without the prior written consent of the insurer to which it pertains unless the commissioner, after giving the insurer that would be affected by disclosure notice and a hearing under chapter 48.04 RCW, determines that the interest of policyholders, shareholders, or the public will be served by the publication, in which event the commissioner may publish all or any part of the report in the manner he or she deems appropriate.
[ 1995 c 86 § 1.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.05 - Insurers—General Requirements. › 48.05.515 - Material acquisitions or dispositions.

RCW 48.05.515
Material acquisitions or dispositions.
No acquisitions or dispositions of assets need be reported under RCW 48.05.510 if the acquisitions or dispositions are not material. For purposes of RCW 48.05.510 through 48.05.535, a material acquisition, or the aggregate of any series of related acquisitions during any thirty-day period; or disposition, or the aggregate of any series of related dispositions during any thirty-day period is an acquisition or disposition that is nonrecurring and not in the ordinary course of business and involves more than five percent of the reporting insurer's total assets as reported in its most recent statutory statement filed with the commissioner.
[ 1995 c 86 § 2.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.05 - Insurers—General Requirements. › 48.05.520 - Asset acquisitions—Asset dispositions.

RCW 48.05.520
Asset acquisitions—Asset dispositions.
(1) Asset acquisitions subject to RCW 48.05.510 through 48.05.535 include every purchase, lease, exchange, merger, consolidation, succession, or other acquisition other than the construction or development of real property by or for the reporting insurer or the acquisition of materials for such a purpose.
(2) Asset dispositions subject to RCW 48.05.510 through 48.05.535 include every sale, lease, exchange, merger, consolidation, mortgage, hypothecation, abandonment, destruction, other disposition, or assignment, whether the assignment is for the benefit of creditors or otherwise.
[ 1995 c 86 § 3.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.05 - Insurers—General Requirements. › 48.05.525 - Report of a material acquisition or disposition of assets—Information required.

RCW 48.05.525
Report of a material acquisition or disposition of assets—Information required.
(1) The following information is required to be disclosed in any report of a material acquisition or disposition of assets:
(a) Date of the transaction;
(b) Manner of acquisition or disposition;
(c) Description of the assets involved;
(d) Nature and amount of the consideration given or received;
(e) Purpose of or reason for the transaction;
(f) Manner by which the amount of consideration was determined;
(g) Gain or loss recognized or realized as a result of the transaction; and
(h) Names of the persons from whom the assets were acquired or to whom they were disposed.
(2) Insurers are required to report material acquisitions and dispositions on a nonconsolidated basis unless the insurer is part of a consolidated group of insurers that utilizes a pooling arrangement or one hundred percent reinsurance agreement that affects the solvency and integrity of the insurer's reserves and such an insurer ceded substantially all of its direct and assumed business to the pool. An insurer has ceded substantially all of its direct and assumed business to a pool if the insurer has less than one million dollars total direct plus assumed written premiums during a calendar year that are not subject to a pooling arrangement and the net income of the business not subject to the pooling arrangement represents less than five percent of the insurer's capital and surplus.
[ 1995 c 86 § 4.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.05 - Insurers—General Requirements. › 48.05.530 - Material nonrenewals, cancellations, or revisions of ceded reinsurance agreements.

RCW 48.05.530
Material nonrenewals, cancellations, or revisions of ceded reinsurance agreements.
(1) No nonrenewals, cancellations, or revisions of ceded reinsurance agreements need be reported under RCW 48.05.510 if the nonrenewals, cancellations, or revisions are not material. For purposes of RCW 48.05.510 through 48.05.535, a material nonrenewal, cancellation, or revision is one that affects:
(a) More than fifty percent of a property and casualty insurer's total ceded written premium;
(b) More than fifty percent of the property and casualty insurer's total ceded indemnity and loss adjustment reserves;
(c) More than fifty percent of a nonproperty and casualty insurer's total reserve credit taken for business ceded, on an annualized basis, as indicated in the insurer's most recent annual statement;
(d) More than ten percent of an insurer's total cession when it is replaced by one or more unauthorized reinsurers; or
(e) Previously established collateral requirements, when they have been reduced or waived as respects one or more unauthorized reinsurers representing collectively more than ten percent of a total cession.
(2) However, a filing is not required if:
(a) A property and casualty insurer's total ceded written premium represents, on an annualized basis, less than ten percent of its total written premium for direct and assumed business; or
(b) A nonproperty and casualty insurer's total reserve credit taken for business ceded represents, on an annualized basis, less than ten percent of the statutory reserve requirement prior to any cession.
[ 1995 c 86 § 5.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.05 - Insurers—General Requirements. › 48.05.535 - Report of a material nonrenewal, cancellation, or revision of ceded reinsurance agreements—Information required.

RCW 48.05.535
Report of a material nonrenewal, cancellation, or revision of ceded reinsurance agreements—Information required.
(1) The following is required to be disclosed in any report of a material nonrenewal, cancellation, or revision of ceded reinsurance agreements:
(a) The effective date of the nonrenewal, cancellation, or revision;
(b) The description of the transaction with an identification of the initiator;
(c) The purpose of or reason for the transaction; and
(d) If applicable, the identity of the replacement reinsurers.
(2) Insurers are required to report all material nonrenewals, cancellations, or revisions of ceded reinsurance agreements on a nonconsolidated basis unless the insurer is part of a consolidated group of insurers that utilizes a pooling arrangement or one hundred percent reinsurance agreement that affects the solvency and integrity of the insurer's reserves and the insurer ceded substantially all of its direct and assumed business to the pool. An insurer has ceded substantially all of its direct and assumed business to a pool if the insurer has less than one million dollars total direct plus assumed written premiums during a calendar year that are not subject to a pooling arrangement and the net income of the business not subject to the pooling arrangement represents less than five percent of the insurer's capital and surplus.
[ 1995 c 86 § 6.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.05A - Risk Management and Solvency Assessment. › 48.05A.005 - Purpose—Application—Findings—Intent.

RCW 48.05A.005
Purpose—Application—Findings—Intent.
(1) The purpose of this chapter is to provide the requirements for maintaining a risk management framework and completing an own risk and solvency assessment and provide guidance and instructions for filing an ORSA summary report with the insurance commissioner of this state.
(2) The requirements of this chapter apply to all insurers domiciled in this state unless exempt pursuant to RCW 48.05A.030.
(3) The legislature finds and declares that the ORSA summary report contains confidential and sensitive information related to an insurer or insurance group's identification of risks material and relevant to the insurer or insurance group filing the report. This information includes proprietary and trade secret information that has the potential for harm and competitive disadvantage to the insurer or insurance group if the information is made public. It is the intent of this legislature that the ORSA summary report is a confidential document filed with the commissioner, that the ORSA summary report may be shared only as stated in this chapter and to assist the commissioner in the performance of his or her duties, and that in no event may the ORSA summary report be subject to public disclosure.
[ 2015 c 17 § 1.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.05A - Risk Management and Solvency Assessment. › 48.05A.010 - Definitions.

RCW 48.05A.010
Definitions.
The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
(1) "Insurance group" means, for the purposes of conducting an ORSA, those insurers and affiliates included within an insurance holding company system as defined in RCW 48.31B.005.
(2) "Insurer" includes an insurer authorized under chapter 48.05 RCW, a fraternal mutual insurer or society holding a license under RCW 48.36A.290, a health care service contractor registered under chapter 48.44 RCW, a health maintenance organization registered under chapter 48.46 RCW, and a self-funded multiple employer welfare arrangement under chapter 48.125 RCW, as well as all persons engaged as, or purporting to be engaged as insurers, fraternal benefit societies, health care service contractors, health maintenance organizations, or self-funded multiple employer welfare arrangements in this state, and to persons in process of organization to become insurers, fraternal benefit societies, health care service contractors, health maintenance organizations, or self-funded multiple employer welfare arrangements, except that it does not include agencies, authorities, or instrumentalities of the United States, its possessions and territories, the Commonwealth of Puerto Rico, the District of Columbia, or a state or political subdivision of a state.
(3) "ORSA guidance manual" means the own risk and solvency assessment guidance manual developed and adopted by the national association of insurance commissioners.
(4) "ORSA summary report" means a confidential high-level ORSA summary of an insurer or insurance group.
(5) "Own risk and solvency assessment" or "ORSA" means a confidential internal assessment, appropriate to the nature, scale, and complexity of an insurer or insurance group, conducted by that insurer or insurance group of the material and relevant risks associated with the insurer or insurance group's current business plan, and the sufficiency of capital resources to support those risks.
[ 2015 c 17 § 2.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.05A - Risk Management and Solvency Assessment. › 48.05A.015 - Risk management framework required.

RCW 48.05A.015
Risk management framework required.
An insurer must maintain a risk management framework to assist the insurer with identifying, assessing, monitoring, managing, and reporting on its material and relevant risks. This requirement is satisfied if the insurance group of which the insurer is a member maintains a risk management framework applicable to the operations of the insurer.
[ 2015 c 17 § 3.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.05A - Risk Management and Solvency Assessment. › 48.05A.020 - Must conduct an ORSA at least annually.

RCW 48.05A.020
Must conduct an ORSA at least annually.
Subject to RCW 48.05A.030, an insurer, or the insurance group of which the insurer is a member, must regularly conduct an ORSA consistent with a process comparable to the ORSA guidance manual. The ORSA must be conducted annually but also at any time when there are significant changes to the risk profile of the insurer or the insurance group of which the insurer is a member.
[ 2015 c 17 § 4.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.05A - Risk Management and Solvency Assessment. › 48.05A.025 - Submission of ORSA summary reports—Frequency—Requirements.

RCW 48.05A.025
Submission of ORSA summary reports—Frequency—Requirements.
(1) Upon the commissioner's request, and no more than once each year, an insurer must submit to the commissioner an ORSA summary report or any combination of reports that together contain the information described in the ORSA guidance manual, applicable to the insurer or the insurance group of which it is a member. Notwithstanding any request from the commissioner, if the insurer is a member of an insurance group, the insurer must submit the report or set of reports required by this subsection if the commissioner is the lead state commissioner of the insurance group as determined by the procedures within the financial analysis handbook adopted by the national association of insurance commissioners.
(2) The report must include a signature of the insurer or insurance group's chief risk officer or other executive having responsibility for the oversight of the insurer's enterprise risk management process attesting to the best of his or her belief and knowledge that the insurer applies the enterprise risk management process described in the ORSA summary report and that a copy of the report has been provided to the insurer's board of directors or the appropriate governing committee.
(3) An insurer may comply with subsection (1) of this section by providing the most recent and substantially similar report or reports provided by the insurer or another member of an insurance group of which the insurer is a member to the commissioner of another state or to a supervisor or regulator of a foreign jurisdiction, if that report provides information that is comparable to the information described in the ORSA guidance manual. Any such report in a language other than English must be accompanied by a translation of that report into the English language.
[ 2015 c 17 § 5.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.05A - Risk Management and Solvency Assessment. › 48.05A.035 - ORSA summary report must be consistent with ORSA guidance manual.

RCW 48.05A.035
ORSA summary report must be consistent with ORSA guidance manual.
(1) The ORSA summary report shall be prepared consistent with the ORSA guidance manual, subject to the requirements of subsection (2) of this section. Documentation and supporting information must be maintained and made available upon examination or upon the request of the commissioner.
(2) The review of the ORSA summary report, and any additional requests for information, must be made using similar procedures currently used in the analysis and examination of multistate or global insurers and insurance groups.
[ 2015 c 17 § 7.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.05A - Risk Management and Solvency Assessment. › 48.05A.045 - Failure to report—Fines.

RCW 48.05A.045
Failure to report—Fines.
The commissioner must require any insurer failing, without just cause, to file the ORSA summary report as required in this chapter, after notice and hearing, to pay a fine of five hundred dollars for each day's delay, to be recovered by the commissioner and the fine collected must be transferred to the treasurer for deposit into the state general fund. The maximum fine under this section is one hundred thousand dollars. The commissioner may reduce the fine if the insurer demonstrates to the commissioner that the imposition of the fine would constitute a financial hardship to the insurer.
[ 2015 c 17 § 9.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.05A - Risk Management and Solvency Assessment. › 48.05A.901 - Effective dates—2015 c 17.

RCW 48.05A.901
Effective dates—2015 c 17.
Except for section 11 of this act, which takes effect July 1, 2017, this act takes effect January 1, 2016.
[ 2015 c 17 § 15.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.06 - Organization of Domestic Insurers. › 48.06.010 - Types of domestic insurers permitted.

RCW 48.06.010
Types of domestic insurers permitted.
An insurer formed in this state shall be either
(1) An incorporated stock insurer, or
(2) An incorporated mutual insurer, or
(3) An incorporated specific risks mutual property insurer, or
(4) An incorporated mutual assessment property insurer only, or
(5) An incorporated farm mutual assessment property insurer only, or
(6) A reciprocal insurer, with respective powers, duties, and restrictions as provided in this code.
[1947 c 79 § .06.01; Rem. Supp. 1947 § 45.06.01.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.06 - Organization of Domestic Insurers. › 48.06.020 - Assessment mutuals prohibited—Exceptions.

RCW 48.06.020
Assessment mutuals prohibited—Exceptions.
No insurer shall be formed or be authorized in this state to issue contracts of insurance the performance of which is contingent upon the payment of assessments, assessment premiums, or calls made upon its members. Mutual assessment property insurers and farm mutual assessment property insurers shall be the only exception to this provision.
[1947 c 79 § .06.02; Rem. Supp. 1947 § 45.06.02.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.06 - Organization of Domestic Insurers. › 48.06.030 - Solicitation permit.

RCW 48.06.030
Solicitation permit.
(1) No person forming or proposing to form in this state an insurer, or insurance holding corporation, or stock corporation to finance an insurer or insurance production therefor, or corporation to manage an insurer, or corporation to be attorney-in-fact for a reciprocal insurer, or a syndicate for any of such purposes, shall advertise, or solicit or receive any funds, agreement, stock subscription, or membership on account thereof unless he or she has applied for and has received from the commissioner a solicitation permit.
(2) Any person violating this section is guilty of a class B felony and shall be subject to a fine of not more than ten thousand dollars or imprisonment for not more than ten years, or by both fine and imprisonment.
[ 2003 c 53 § 267; 1947 c 79 § .06.03; Rem. Supp. 1947 § 45.06.03.]
NOTES:
Intent—Effective date—2003 c 53: See notes following RCW 2.48.180.
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.06 - Organization of Domestic Insurers. › 48.06.040 - Application for solicitation permit.

RCW 48.06.040
Application for solicitation permit.
To apply for a solicitation permit the person shall:
(1) File with the commissioner a request showing:
(a) Name, type, and purpose of insurer, corporation, or syndicate proposed to be formed;
(b) Biographical reports on forms prescribed by the national association of insurance commissioners evidencing the general trustworthiness and competence of each individual who is serving or who will serve as an officer, director, trustee, employee, or fiduciary of the insurer, corporation, or syndicate to be formed;
(c) Third-party verification reports from a vendor authorized by the national association of insurance commissioners to perform a state, national, and international background history check of any person who exercises control over the financial dealings and operations of the insurer, corporation, or syndicate;
(d) Full disclosure of the terms of all understandings and agreements existing or proposed among persons so associated relative to the proposed insurer, corporation, or syndicate, or the formation thereof;
(e) The plan according to which solicitations are to be made; and
(f) Additional information as the commissioner may reasonably require.
(2) File with the commissioner:
(a) Original and copies in triplicate of proposed articles of incorporation, or syndicate agreement; or, if the proposed insurer is a reciprocal, original and duplicate of the proposed subscribers' agreement and attorney-in-fact agreement;
(b) Original and duplicate copy of any proposed bylaws;
(c) Copy of any security proposed to be issued and copy of application or subscription agreement for that security;
(d) Copy of any insurance contract proposed to be offered and copy of application for that contract;
(e) Copy of any prospectus, advertising, or literature proposed to be used; and
(f) Copy of proposed form of any escrow agreement required.
(3) Deposit with the commissioner the fees required by law to be paid for the application including fees associated with the state and national criminal history background check, for filing of the articles of incorporation of an insurer, for filing the subscribers' agreement and attorney-in-fact agreement if the proposed insurer is a reciprocal, for the solicitation permit, if granted, and for filing articles of incorporation with the secretary of state.
[ 2012 c 211 § 3; 2002 c 227 § 1; 1967 c 150 § 6; 1947 c 79 § .06.04; Rem. Supp. 1947 § 45.06.04.]
NOTES:
Effective date—2002 c 227: "This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately [March 28, 2002]." [ 2002 c 227 § 6.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.06 - Organization of Domestic Insurers. › 48.06.050 - Procedure upon application.

RCW 48.06.050
Procedure upon application.
The commissioner shall expeditiously examine the application for a solicitation permit and make any investigation relative thereto deemed necessary. If the commissioner finds that
(1) the application is complete; and
(2) the documents therewith filed are equitable in terms and proper in form; and
(3) the management of the company, whether by its directors, officers, or by any other means is competent and trustworthy and not so lacking in managerial experience as to make a proposed operation hazardous to the insurance-buying public; and that there is no reason to believe the company is affiliated, directly or indirectly, through ownership, control, reinsurance, or other insurance or business relations, with any other person or persons whose business operations are or have been marked, to the detriment of the policyholders or stockholders or investors or creditors or of the public, by bad faith or by manipulation of assets, or of accounts, or of reinsurance; and
(4) the agreements made or proposed are equitable to present and future shareholders, subscribers, members or policyholders, he or she shall give notice to the applicant that he or she will issue a solicitation permit, stating the terms to be contained therein, upon the filing of the bond required by RCW 48.06.110 of this code.
If the commissioner does not so find, he or she shall give notice to the applicant that the permit will not be granted, stating the grounds therefor, and shall refund to the applicant all sums so deposited except the application fee.
[ 2009 c 549 § 7021; 1967 c 150 § 7; 1947 c 79 § .06.05; Rem. Supp. 1947 § 45.06.05.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.06 - Organization of Domestic Insurers. › 48.06.060 - Issuance of permit—Bond.

RCW 48.06.060
Issuance of permit—Bond.
Upon the filing of the bond required by RCW 48.06.110 after notice by the commissioner, the commissioner shall:
(1) File the articles of incorporation of the proposed incorporated insurer or other corporation; and
(2) Issue to the applicant a solicitation permit.
[ 1998 c 23 § 1; 1947 c 79 § .06.06; Rem. Supp. 1947 § 45.06.06.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.06 - Organization of Domestic Insurers. › 48.06.070 - Duration of permit—Contents.

RCW 48.06.070
Duration of permit—Contents.
Every solicitation permit issued by the commissioner shall:
(1) Be for a period of not over two years, subject to the right of the commissioner to grant a reasonable extension for good cause.
(2) State the securities for which subscriptions are to be solicited, the number, classes, par value, and selling price thereof, or identify the insurance contract for which applications and advance premiums or deposits are to be solicited.
(3) Limit the portion of funds received on account of stock or syndicate subscriptions, if any are proposed to be taken, which may be used for promotion and organization expenses to such amount as he or she deems adequate, but in no event to exceed fifteen percent of such funds as and when actually received.
(4) If to be a mutual or reciprocal insurer, limit the portion of funds received on account of applications for insurance which may be used for promotion or organization expenses to a reasonable commission upon such funds, giving consideration to the kind of insurance and policy involved and to the costs incurred by insurers generally in the production of similar business, and provide that no such commission shall be deemed to be earned nor be paid until the insurer has received its certificate of authority and the policies applied for and upon which such commission is to be based, have been actually issued and delivered.
(5) Contain such other information required by this chapter or reasonable conditions relative to accounting and reports or otherwise as the commissioner deems necessary.
[ 2009 c 549 § 7022; 1953 c 197 § 1; 1947 c 79 § .06.07; Rem. Supp. 1947 § 45.06.07.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.06 - Organization of Domestic Insurers. › 48.06.080 - Permit as inducement.

RCW 48.06.080
Permit as inducement.
The granting of a solicitation permit is permissive only and shall not constitute an endorsement by the commissioner of any person or thing related to the proposed insurer, corporation, or syndicate and the existence of the permit shall not be advertised or used as an inducement in any solicitation. The substance of this section in boldfaced type not less than ten point shall be printed at the top of each solicitation permit.
[1947 c 79 § .06.08; Rem. Supp. 1947 § 45.06.08.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.06 - Organization of Domestic Insurers. › 48.06.090 - Solicitors' licenses.

RCW 48.06.090
Solicitors' licenses.
Solicitation for sale of securities to members of the public under a solicitation permit shall be made only by individuals licensed therefor pursuant to the provisions of the securities act.
[ 1949 c 190 § 5; 1947 c 79 § .06.09; Rem. Supp. 1949 § 45.06.09.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.06 - Organization of Domestic Insurers. › 48.06.100 - Modification, revocation of permit.

RCW 48.06.100
Modification, revocation of permit.
(1) The commissioner may, for cause, modify a solicitation permit, or may, after a hearing, revoke any solicitation permit for violation of any provision of this code, or of the terms of the permit, or of any proper order of the commissioner, or for misrepresentation.
(2) The commissioner shall revoke a solicitation permit if requested in writing by a majority of the syndicate members, or by a majority of the incorporators and two-thirds of the subscribers to stock or applicants for insurance in the proposed incorporated insurer or corporation, or if he or she is so requested by a majority of the subscribers of a proposed reciprocal insurer.
[ 2009 c 549 § 7023; 1947 c 79 § .06.10; Rem. Supp. 1947 § 45.06.10.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.06 - Organization of Domestic Insurers. › 48.06.110 - Bond—Cash deposit.

RCW 48.06.110
Bond—Cash deposit.
(1) The commissioner shall not issue a solicitation permit until the person applying therefor files with him or her a corporate surety bond in the penalty of fifty thousand dollars, in favor of the state and for the use and benefit of the state and of subscribers and creditors of the proposed organization.
The bond shall be conditioned upon the payment of costs incurred by the state in event of any legal proceedings for liquidation or dissolution of the proposed organization before completion of organization or in event a certificate of authority is not granted; and upon a full accounting for funds received until the proposed insurer has been granted its certificate of authority, or until the proposed corporation or syndicate has completed its organization as defined in the solicitation permit.
(2) In lieu of filing such bond, the person may deposit with the commissioner fifty thousand dollars in cash or in United States government bonds at par value, to be held in trust upon the same conditions as required for the bond.
(3) The commissioner may waive the requirement for a bond or deposit in lieu thereof if the permit provides that:
(a) The proposed securities are to be distributed solely and finally to those few persons who are the active promotors intimate to the formation of the insurer, or other corporation or syndicate, or
(b) The securities are to be issued in connection with subsequent financing as provided in RCW 48.06.180.
(4) Any bond filed or deposit or remaining portion thereof held under this section shall be released and discharged upon settlement or termination of all liabilities against it.
[ 2009 c 549 § 7024; 1969 ex.s. c 241 § 2; 1955 c 86 § 2; 1953 c 197 § 2; 1947 c 79 § .06.11; Rem. Supp 1947 § 45.06.11.]
NOTES:
Effective date—Supervision of transfers—1955 c 86: See notes following RCW 48.05.080.
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.06 - Organization of Domestic Insurers. › 48.06.120 - Escrow of funds.

RCW 48.06.120
Escrow of funds.
(1) All funds received pursuant to a solicitation permit shall be deposited and held in escrow in a bank or trust company under an agreement approved by the commissioner. No part of any such deposit shall be withdrawn, except:
(a) For the payment of promotion and organization expenses as authorized by the solicitation permit; or
(b) for the purpose of making any deposit with the commissioner required for the issuance of a certificate of authority to an insurer; or
(c) if the proposed organization is not to be an insurer, upon completion of payments on stock or syndicate subscriptions made under the solicitation permit and deposit or appropriation of such funds to the purposes specified in the solicitation permit; or
(d) for making of refunds as provided in RCW 48.06.170.
(2) When the commissioner has issued a certificate of authority to an insurer any such funds remaining in escrow for its account shall be released to the insurer.
[1947 c 79 § .06.12; Rem. Supp. 1947 § 45.06.12.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.06 - Organization of Domestic Insurers. › 48.06.130 - Liability of organizers—Organization expense.

RCW 48.06.130
Liability of organizers—Organization expense.
(1) The incorporators of any insurer or other corporation, or the persons proposing to form a reciprocal insurer, or a syndicate, shall be jointly and severally liable for its debts or liabilities until it has secured a certificate of authority, if an insurer, or has completed its organization if a corporation other than an insurer or a syndicate.
(2) Any portion of funds received on account of stock or syndicate subscriptions which is allowed therefor under the solicitation permit, may be applied concurrently toward the payment of promotion and organization expense theretofore incurred.
[1947 c 79 § .06.13; Rem. Supp. 1947 § 45.06.13.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.06 - Organization of Domestic Insurers. › 48.06.150 - Payment for subscriptions—Forfeiture.

RCW 48.06.150
Payment for subscriptions—Forfeiture.
(1) No such proposed stock insurer, corporation, or syndicate shall issue any share of stock or participation agreement except for payment in cash or in securities eligible for investment of funds of insurers. No such shares or agreement shall be issued until all subscriptions received under the solicitation permit have been so fully paid, nor, if an insurer, until a certificate of authority has been issued to it.
(2) Every subscription contract to shares of a stock insurer or other corporation calling for payment in installments, together with all amounts paid thereon may be forfeited at the option of the corporation, upon failure to make good a delinquency in any installment upon not less than forty-five days' notice in writing, and every such contract shall so provide.
[1947 c 79 § .06.15; Rem. Supp. 1947 § 45.06.15.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.06 - Organization of Domestic Insurers. › 48.06.160 - Insurance applications—Mutual and reciprocal insurers.

RCW 48.06.160
Insurance applications—Mutual and reciprocal insurers.
All applications for insurance obtained in forming a mutual or reciprocal insurer shall provide that:
(1) Issuance of the policy is contingent upon completion of organization of the insurer and issuance to it of a certificate of authority; and
(2) the prepaid premium or deposit will be refunded in full to the applicant if the organization is not completed and certificate of authority issued prior to the solicitation permit's date of expiration; and
(3) the agreement for insurance is not effective until a policy has been issued under it.
[1947 c 79 § .06.16; Rem. Supp. 1947 § 45.06.16.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.06 - Organization of Domestic Insurers. › 48.06.170 - Procedure on failure to complete organization or to qualify.

RCW 48.06.170
Procedure on failure to complete organization or to qualify.
The commissioner shall withdraw all funds held in escrow and refund to subscribers or applicants all sums paid in on stock or syndicate subscriptions, less that part of such sums paid in on subscriptions as has been allowed and used for promotion and organization expenses, and all sums paid in on insurance applications, and shall dissolve the proposed insurer, corporation or syndicate if
(1) the proposed insurer, corporation or syndicate fails to complete its organization and obtain full payment for subscriptions and applications, and, if an insurer, it fails to secure its certificate of authority, all before expiration of the solicitation permit; or
(2) the commissioner revokes the solicitation permit.
[1947 c 79 § .06.17; Rem. Supp. 1947 § 45.06.17.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.06 - Organization of Domestic Insurers. › 48.06.180 - Subsequent financing.

RCW 48.06.180
Subsequent financing.
(1) No domestic insurer, or insurance holding corporation, or stock corporation for financing operations of a mutual insurer, or attorney-in-fact corporation of a reciprocal insurer, after
(a) it has received a certificate of authority, if an insurer, or
(b) it has completed its initial organization and financing if a corporation other than an insurer, shall solicit or receive funds in exchange for any new issue of its corporate securities, other than through a stock dividend, until it has applied to the commissioner for, and has been granted, a solicitation permit.
(2) The commissioner shall issue such a permit unless he or she finds that:
(a) The funds proposed to be secured are excessive in amount for the purpose intended, or
(b) the proposed securities or the manner of their distribution are inequitable, or
(c) the issuance of the securities would jeopardize the interests of policyholders or the holders of other securities of the insurer or corporation.
(3) Any such solicitation permit granted by the commissioner shall be for such duration, and shall contain such terms and be issued upon such conditions as the commissioner may reasonably specify or require.
[ 2009 c 549 § 7025; 1949 c 190 § 6; 1947 c 79 § .06.18; Rem. Supp. 1949 § 45.06.18.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.06 - Organization of Domestic Insurers. › 48.06.190 - Penalty for exhibiting false accounts, etc.

RCW 48.06.190
Penalty for exhibiting false accounts, etc.
Every person who, with intent to deceive, knowingly exhibits any false account, or document, or advertisement, relative to the affairs of any insurer, or of any corporation or syndicate of the kind enumerated in RCW 48.06.030, formed or proposed to be formed, is guilty of a class B felony punishable according to chapter 9A.20 RCW.
[ 2003 c 53 § 268; 1947 c 79 § .06.19; Rem. Supp. 1947 § 45.06.19.]
NOTES:
Intent—Effective date—2003 c 53: See notes following RCW 2.48.180.