reglab/statecodes huggingface dataset:
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.09 - Mutual Insurers. › 48.09.190 - Procedure upon violation of limitation.

RCW 48.09.190
Procedure upon violation of limitation.
The officers and directors of an insurer violating RCW 48.09.180 shall be jointly and severally liable to the insurer for any excess of expenses incurred. If the insurer fails to exercise reasonable diligence or refuses to enforce such liability, the commissioner may prosecute action thereon for the benefit of the insurer. Such failure or refusal constitutes grounds for revocation of the insurer's certificate of authority.
[1947 c 79 § .09.19; Rem. Supp. 1947 § 45.09.19.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.09 - Mutual Insurers. › 48.09.210 - Limitation of action on officer's salary.

RCW 48.09.210
Limitation of action on officer's salary.
No action to recover, or on account of, any salary or other compensation due or claimed to be due any officer or director of a domestic mutual insurer, or on any note or agreement relative thereto, shall be brought against such insurer after twelve months after the date on which such salary or compensation, or any installment thereof, first accrued.
[1947 c 79 § .09.21; Rem. Supp. 1947 § 45.09.21.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.09 - Mutual Insurers. › 48.09.220 - Contingent liability of members.

RCW 48.09.220
Contingent liability of members.
(1) Each member of a domestic mutual insurer, except as otherwise provided in this chapter, shall have a contingent liability, pro rata and not one for another, for the discharge of its obligations. The contingent liability shall be in such maximum amount as is stated in the insurer's articles of incorporation, but shall be not less than one, nor more than five, additional premiums for the member's policy at the annual premium rate and for a term of one year.
(2) Every policy issued by the insurer shall contain a statement of the contingent liability.
(3) Termination of the policy of any such member shall not relieve the member of contingent liability for his or her proportion of the obligations of the insurer which accrued while the policy was in force.
[ 2009 c 549 § 7038; 1949 c 190 § 9; 1947 c 79 § .09.22; Rem. Supp. 1949 § 45.09.22.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.09 - Mutual Insurers. › 48.09.230 - Assessment of members.

RCW 48.09.230
Assessment of members.
(1) If at any time the assets of a domestic mutual insurer doing business on the cash premium plan are less than its liabilities and the minimum surplus, if any, required of it by this code as prerequisite for continuance of its certificate of authority, and the deficiency is not cured from other sources, its directors may, if approved by the commissioner, make an assessment only on its members who at any time within the twelve months immediately preceding the date such assessment was authorized by its directors held policies providing for contingent liability.
(2) Such an assessment shall be for such an amount of money as is required, in the opinion of the commissioner, to render the insurer fully solvent, but not to result in surplus in excess of five percent of the insurer's liabilities as of the date of the assessment.
(3) A member's proportionate part of any such assessment shall be computed by applying to the premium earned, during the period since the deficiency first appeared, on his or her contingently liable policy or policies the ratio of the total assessment to the total premium earned during such period on all contingently liable policies which are subject to the assessment.
(4) No member shall have an offset against any assessment for which he or she is liable on account of any claim for unearned premium or losses payable.
[ 2009 c 549 § 7039; 1949 c 190 § 10; 1947 c 79 § .09.23; Rem. Supp. 1949 § 45.09.23.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.09 - Mutual Insurers. › 48.09.240 - Contingent liability of members of assessment insurer.

RCW 48.09.240
Contingent liability of members of assessment insurer.
The contingent liability of members of a domestic mutual insurer doing business on the assessment premium plan shall be called upon and enforced by its directors as provided in its bylaws.
[1947 c 79 § .09.24; Rem. Supp. 1947 § 45.09.24.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.09 - Mutual Insurers. › 48.09.250 - Contingent liability as asset.

RCW 48.09.250
Contingent liability as asset.
Any contingent liability of members of a domestic mutual insurer to assessment does not constitute an asset of the insurer in any determination of its financial condition.
[ 1949 c 190 § 11; 1947 c 79 § .09.25; Rem. Supp. 1949 § 45.09.25.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.09 - Mutual Insurers. › 48.09.260 - Liability as lien on policy reserves.

RCW 48.09.260
Liability as lien on policy reserves.
As to life insurance, any portion of an assessment of contingent liability upon a policyholder which remains unpaid following notice of such assessment, demand for payment, and lapse of a reasonable waiting period as specified in such notice, may, if approved by the commissioner, be secured by placing a lien on the reserves held by the insurer to the credit of such policyholder.
[ 1949 c 190 § 12; 1947 c 79 § .09.26; Rem. Supp. 1949 § 45.09.26.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.09 - Mutual Insurers. › 48.09.270 - Nonassessable policies.

RCW 48.09.270
Nonassessable policies.
(1) A domestic mutual insurer on the cash premium plan, after it has established a surplus not less in amount than the minimum capital funds required of a domestic stock insurer to transact like kinds of insurance, and for so long as it maintains such surplus, may extinguish the contingent liability of its members to assessment and omit provisions imposing contingent liability in all policies currently issued.
(2) Any deposit made with the commissioner as a prerequisite to the insurer's certificate of authority may be included as part of the surplus required in this section.
(3) When the surplus has been so established and the commissioner has so ascertained, he or she shall issue to the insurer, at its request, his or her certificate authorizing the extinguishment of the contingent liability of its members and the issuance of policies free therefrom.
(4) While it maintains surplus funds in amount not less than the minimum capital required of a domestic stock insurer authorized to transact like kinds of insurance, and subject to the requirements of *RCW 48.05.360 as to special surplus, a foreign or alien mutual insurer on the cash premium plan may, if consistent with its charter and the laws of its domicile, issue nonassessable policies covering subjects located, resident, or to be performed in this state.
[ 2009 c 549 § 7040; 1963 c 195 § 4; 1947 c 79 § .09.27; Rem. Supp. 1947 § 45.09.27.]
NOTES:
*Reviser's note: RCW 48.05.360 was repealed by 2005 c 223 § 35.
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.09 - Mutual Insurers. › 48.09.280 - Qualification on issuance of nonassessable policies.

RCW 48.09.280
Qualification on issuance of nonassessable policies.
The commissioner shall not authorize a domestic mutual insurer so to extinguish the contingent liability of any of its members or in any of its policies to be issued, unless it qualifies to and does extinguish such liability of all its members and in all such policies for all kinds of insurance transacted by it. Except, that if required by the laws of another state in which such an insurer is transacting insurance as an authorized insurer, the insurer may issue policies providing for the contingent liability of such of its members as may acquire such policies in such state, and need not extinguish the contingent liability applicable to policies theretofore in force in such state.
[1947 c 79 § .09.28; Rem. Supp. 1947 § 45.09.28.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.09 - Mutual Insurers. › 48.09.290 - Revocation of right to issue nonassessable policies.

RCW 48.09.290
Revocation of right to issue nonassessable policies.
(1) The commissioner shall revoke the authority of a domestic mutual insurer so to extinguish the contingent liability of its members if
(a) at any time the insurer's assets are less than the sum of its liabilities and the surplus required for such authority, or
(b) the insurer, by resolution of its directors approved by its members, requests that the authority be revoked.
(2) Upon revocation of such authority for any cause, the insurer shall not thereafter issue any policies without contingent liability, nor renew any policies then in force without written endorsement thereon providing for contingent liability.
[1947 c 79 § .09.29; Rem. Supp. 1947 § 45.09.29.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.09 - Mutual Insurers. › 48.09.300 - Dividends.

RCW 48.09.300
Dividends.
(1) The directors of a domestic mutual insurer on the cash premium plan may from time to time apportion and pay to its members as entitled thereto, dividends only out of that part of its surplus funds which are in excess of its required minimum surplus and which represent net realized savings and net realized earnings from its business.
(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 dividend, otherwise earned, shall be made contingent upon the payment of renewal premium on any policy.
[1947 c 79 § .09.30; Rem. Supp. 1947 § 45.09.30.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.09 - Mutual Insurers. › 48.09.310 - Nonparticipating policies.

RCW 48.09.310
Nonparticipating policies.
(1) If its articles of incorporation so provide, a domestic mutual insurer on the cash premium plan may, while it is authorized to issue policies without contingent liability to assessment, issue policies not entitled to participate in the insurer's savings and earnings.
(2) Such insurer shall not 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.
[1947 c 79 § .09.31; Rem. Supp. 1947 § 45.09.31.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.09 - Mutual Insurers. › 48.09.320 - Borrowed capital.

RCW 48.09.320
Borrowed capital.
(1) A domestic mutual insurer may, with the commissioner's advance approval and without the pledge of any of its assets, borrow money to defray the expenses of its organization or for any purpose required by its business, upon an agreement that such money and such fair and reasonable interest thereon as may be agreed upon, shall be repaid only out of the insurer's earned surplus in excess of its required minimum surplus.
(2) An insurer borrowing funds under this section must comply with the national association of insurance commissioner's - accounting practices and procedures manual which sets forth requirements for borrowed money to be treated as surplus notes for financial accounting purposes.
(3) The commissioner's approval of such borrowed funds, if granted, shall specify the amount to be borrowed, the purpose for which the money is to be used, the terms and form of the loan agreement, the date by which the loan must be completed, fair and reasonable commissions or promotional expenses to be incurred or to be paid, and such other related matters as the commissioner shall deem proper. If the money is to be borrowed upon multiple agreements, the agreements shall be serially numbered. No loan agreement or series thereof shall have or be given any preferential rights over any other such loan agreement or series.
[ 2003 c 249 § 1; 1947 c 79 § .09.32; Rem. Supp. 1947 § 45.09.32.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.09 - Mutual Insurers. › 48.09.330 - Repayment of borrowed capital.

RCW 48.09.330
Repayment of borrowed capital.
(1) The insurer may repay any loan received pursuant to RCW 48.09.320, or any part thereof as approved by the commissioner, only out of its funds which represent such loan or realized net earned surplus. No repayment shall be made which reduces the insurer's surplus below the minimum surplus required for the kinds of insurance transacted.
(2) The insurer shall repay any such loan or the largest possible part thereof when the purposes for which such funds were borrowed have been fulfilled and when the insurer's surplus is adequate to so repay without unreasonable impairment of the insurer's operations.
(3) No repayment of such loan shall be made unless approved by the commissioner. The insurer shall notify the commissioner in writing not less than sixty days in advance of its intention to repay such loan or any part thereof, and the commissioner shall forthwith ascertain whether the insurer's financial condition is such that the repayment can properly be made.
(4) Upon dissolution and liquidation of the insurer, after the retirement of all its other outstanding obligations the holders of any such loan agreements then remaining unpaid shall be entitled to payment before any distribution of surplus is made to the insurer's members.
[ 1949 c 190 § 13; 1947 c 79 § .09.33; Rem. Supp. 1949 § 45.09.33.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.09 - Mutual Insurers. › 48.09.340 - Impairment of surplus.

RCW 48.09.340
Impairment of surplus.
(1) If the assets of a domestic mutual insurer on the cash premium plan fall below the amount of its liabilities, plus the amount of any surplus required by this code for the kinds of insurance authorized to be transacted, the commissioner shall at once ascertain the amount of the deficiency and serve notice upon the insurer to cure the deficiency within ninety days after such service of notice.
(2) If the deficiency is not made good in cash or in assets eligible under this code for the investment of the insurer's funds, 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.
(3) 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 violating of this provision shall be subject to a fine of from fifty dollars to one thousand dollars for each violation.
[ 1949 c 190 § 14; 1947 c 79 § 09.34; Rem. Supp. 1949 § 45.09.34.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.09 - Mutual Insurers. › 48.09.360 - Distribution of assets and ownership equities upon liquidation.

RCW 48.09.360
Distribution of assets and ownership equities upon liquidation.
(1) Upon the liquidation of a domestic mutual insurer, its assets remaining after discharge of its indebtedness and policy obligations shall be distributed to its members who were such within the thirty-six months prior to the last termination of its certificate of authority.
(2) Upon the reorganization of a domestic mutual insurer as a domestic stock insurer under RCW 48.09.350(1) or upon reinsurance of the whole of the liabilities and transfer of all the assets of a domestic mutual insurer under RCW 48.09.350(2), the ownership equities of members of the domestic mutual insurer shall be distributed to its members who were such on an eligibility date stated in the reorganization plan or reinsurance agreement, or who were such within the thirty-six months prior to such eligibility date. Such eligibility date shall be either the date on which the reorganization plan or reinsurance agreement is adopted by resolution of the board of directors of the domestic mutual insurer, or the date on which the reorganization plan or reinsurance agreement is approved by a vote of the members, or the date which ends a calendar quarter during which either of such actions is taken.
(3) Upon the liquidation of a domestic mutual insurer, the distributive share of each such member shall be in the proportion that the aggregate premiums earned by the insurer on the policies of the member during the thirty-six months before the last termination of the insurer's certificate of authority, bear to the aggregate of all premiums so earned on the policies of all such members during the same thirty-six months.
(4) Upon the reorganization of a domestic mutual insurer as a domestic stock insurer under RCW 48.09.350(1) or upon reinsurance of the whole of the liabilities and transfer of all the assets of a domestic mutual insurer under RCW 48.09.350(2), the distributive share of each member entitled thereto shall be in the proportion that the aggregate premiums earned by the insurer on the policies in force of that member during the thirty-six months before the eligibility date established under RCW 48.09.360(2) bear to the aggregate of all premiums so earned during the same thirty-six months on all the policies in force of all such members who are entitled to a distributive share.
(5) If a life insurer, the insurer shall make a reasonable classification of its life insurance policies so held by such members entitled to a distributive share and a formula based upon such classification for determining the equitable distributive share of each such member. Such classification and formula shall be subject to the commissioner's approval.
[ 1984 c 23 § 2; 1947 c 79 § .09.36; Rem. Supp. 1947 § 45.09.36.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.09 - Mutual Insurers. › 48.09.420 - Conversion—Plan requirements.

RCW 48.09.420
Conversion—Plan requirements.
A plan of a domestic mutual insurer shall include the following:
(1) A statement of the reasons for the proposed action;
(2) A description of how the plan will be carried out, including any transaction included within the plan and a description of any mutual holding company, intermediate stock holding company, or other corporation organized pursuant to the plan;
(3) A description of all significant terms of the reorganization;
(4) New or revised intercompany agreements;
(5) A description of the overall effect of the plan on policies issued by the converting mutual insurer. The description must show that policyholder interests collectively are properly preserved and protected and that the plan is fair and equitable to the policyholders;
(6) The record date for determining whether a member of the converting mutual insurer is an eligible member;
(7) The proposed effective date of the reorganization or the manner in which the proposed effective date of the reorganization is established;
(8) The proposed amendments to or restatement of the articles of incorporation and bylaws of the converting mutual insurer and the proposed articles of incorporation and bylaws of any mutual holding company, intermediate stock holding company, or other corporation organized pursuant to the plan;
(9) A description of any plans for the initial sale of voting stock to third parties by the converted stock insurer or any intermediate stock holding company, or a statement that the converted stock insurer or intermediate stock holding company has no current plans for the sale of voting stock;
(10) The intention, if any, that a director or officer of the converting mutual insurer, mutual holding company, intermediate stock holding company, or other corporation organized pursuant to the plan, within the three-year period following the effective date of the conversion or reorganization, may purchase or acquire shares of capital stock or other securities of an issuer to be issued pursuant to the plan; and
(11) A provision that all policies in force on the effective date of the conversion or reorganization will remain in force under the terms of those policies and that on the effective date of the reorganization, any voting rights of the members provided for under the policies or under this title are extinguished.
[ 2023 c 20 § 3.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.09 - Mutual Insurers. › 48.09.430 - Plan review—Experts—Hearing.

RCW 48.09.430
Plan review—Experts—Hearing.
(1) The commissioner shall review a plan that is submitted to the commissioner. On review, the commissioner shall approve the plan if the commissioner finds all of the following:
(a) The applicable provisions of this chapter, and other applicable provisions of law, have been fully met;
(b) The plan protects the rights of policyholders;
(c) The plan is fair and equitable to the members and the plan does not prejudice the interests of the members;
(d) The converted stock insurer has capital or surplus, or any combination thereof, that is required of a domestic stock insurer on initial authorization to transact like kinds of insurance, and otherwise is able to satisfy the requirements of this state for transacting its insurance business;
(e) The plan does not substantially reduce the security of the policyholders and the service to be rendered to the policyholders;
(f) The financial condition of the mutual holding company or any subsidiary of the mutual holding company does not jeopardize the financial stability of the converted stock insurer;
(g) The financial condition of the converting mutual insurer is not jeopardized by the conversion or reorganization, and the conversion or reorganization does not jeopardize the financial stability of the mutual holding company or any subsidiary of the mutual holding company; and
(h) The competence, experience, and integrity of those persons who control the operation of the converted stock insurer are not contrary to the interests of policyholders of the converted stock insurer and of the public in allowing the plan to proceed.
(2) To the extent the plan contains a provision that allows for the acquisition or merger of other insurance companies, the commissioner shall apply the standards for scrutinizing mergers and acquisitions provided in RCW 48.31B.015. The commissioner may not approve a plan that fails to meet these standards.
(3) An approval of a plan by the commissioner expires if the plan is not carried out within one year after the date of the approval, unless the commissioner extends the time period for good cause on written application for such extension.
(4) The commissioner may retain, at the expense of the converting mutual insurer, qualified experts not otherwise a part of the staff of the department to assist in reviewing the plan and supplemental documents.
(5) The commissioner may hold a hearing as prescribed in chapter 48.04 RCW and the administrative procedure act, chapter 34.05 RCW, for the purposes of receiving comments on whether a plan should be approved and on any other matter relating to the reorganization. The hearing, if held, shall be held within 60 days after the commissioner receives a completed filing of the plan and all information required by the commissioner.
[ 2023 c 20 § 4.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.09 - Mutual Insurers. › 48.09.450 - Concurrent reorganization.

RCW 48.09.450
Concurrent reorganization.
The concurrent reorganization of a domestic mutual insurer with one or more mutual insurers, domestic or foreign, into a single mutual holding company, whether domestic or foreign, may be accomplished by a joint application and a joint plan and may be approved by the commissioner by complying with the requirements of this chapter. The commissioner may determine that such other procedures are unnecessary to avoid duplicative costs and efforts in satisfying the requirements of this chapter and effectuating the reorganization.
[ 2023 c 20 § 6.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.09 - Mutual Insurers. › 48.09.460 - Foreign mutual insurers—Reorganization.

RCW 48.09.460
Foreign mutual insurers—Reorganization.
(1) A foreign mutual insurer organized under the laws of any other state, that, if a domestic corporation, would be organized under RCW 48.09.010, may reorganize by merging its policyholders' membership interests into an existing domestic mutual holding company in accordance with the requirements of any other law or regulation that applies to the foreign mutual insurer. The reorganization shall continue the corporate existence of the converting mutual insurer as a foreign stock insurance company subsidiary of the existing domestic mutual holding company or as a foreign stock insurance company subsidiary of an intermediate stock holding company. The reorganizing foreign mutual insurer may remain a foreign insurer after the restructuring and may be admitted to do business in this state if it meets the applicable requirements of this title. A foreign mutual insurer that is a party to the reorganization may at the same time redomesticate to this state by complying with the applicable requirements of this state and the foreign mutual insurer's state of domicile.
(2) For the purposes of this section, "existing domestic mutual holding company" means a mutual holding company formed under this chapter.
[ 2023 c 20 § 7.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.10 - Reciprocal Insurers. › 48.10.010 - "Reciprocal insurance" defined.

RCW 48.10.010
"Reciprocal insurance" defined.
"Reciprocal insurance" is that resulting from an interexchange among persons, known as "subscribers," of reciprocal agreements of indemnity, the interexchange being effectuated through an "attorney-in-fact" common to all such persons.
[1947 c 79 § .10.01; Rem. Supp. 1947 § 45.10.01.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.10 - Reciprocal Insurers. › 48.10.020 - "Reciprocal insurer" defined.

RCW 48.10.020
"Reciprocal insurer" defined.
A "reciprocal insurer" means an unincorporated aggregation of subscribers operating individually and collectively through an attorney-in-fact to provide reciprocal insurance among themselves.
[1947 c 79 § .10.02; Rem. Supp. 1947 § 45.10.02.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.10 - Reciprocal Insurers. › 48.10.030 - Scope of chapter.

RCW 48.10.030
Scope of chapter.
All authorized reciprocal insurers shall be governed by those sections of this chapter not expressly made applicable to domestic reciprocal insurers.
[1947 c 79 § .10.03; Rem. Supp. 1947 § 45.10.03.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.10 - Reciprocal Insurers. › 48.10.050 - Insuring powers of reciprocals.

RCW 48.10.050
Insuring powers of reciprocals.
(1) A reciprocal insurer may, upon qualifying therefor as provided by this code, transact any kind or kinds of insurance defined by this code, other than life or title insurances.
(2) A reciprocal insurer may purchase reinsurance upon the risk of any subscriber, and may grant reinsurance as to any kind of insurance which it is authorized to transact direct.
[1947 c 79 § .10.05; Rem. Supp. 1947 § 45.10.05.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.10 - Reciprocal Insurers. › 48.10.055 - Real property—Attorney's duty.

RCW 48.10.055
Real property—Attorney's duty.
A reciprocal insurer may purchase, sell, mortgage, encumber, lease, or otherwise affect the title to real property for the purposes and objects of the reciprocal insurer. All deeds, notes, mortgages, or other documents relating to the real property may be executed in the name of the reciprocal insurer by its attorney.
[ 1991 c 266 § 1.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.10 - Reciprocal Insurers. › 48.10.060 - Name—Suits.

RCW 48.10.060
Name—Suits.
A reciprocal insurer shall:
(1) Have and use a business name. The name shall include the word "reciprocal," or "interinsurer," or "interinsurance," or "exchange," or "underwriters," or "underwriting."
(2) Sue and be sued in its own name.
[1947 c 79 § .10.06; Rem. Supp. 1947 § 45.10.06.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.10 - Reciprocal Insurers. › 48.10.070 - Surplus funds required.

RCW 48.10.070
Surplus funds required.
(1) A domestic reciprocal insurer hereafter formed, if it has otherwise complied with the provisions of this code, may be authorized to transact insurance if it initially possesses surplus in an amount equal to or exceeding the capital and surplus requirements required under RCW 48.05.340(1) plus special surplus, if any, required under *RCW 48.05.360 and thereafter possesses, and maintains surplus funds equal to the paid-in capital stock required under RCW 48.05.340 of a stock insurer transacting like kinds of insurance, and the special surplus, if any, required under *RCW 48.05.360.
(2) A domestic reciprocal insurer which under prior laws held authority to transact insurance in this state may continue to be so authorized so long as it otherwise qualifies therefor and maintains surplus funds in amount not less than as required under laws of this state in force at the time such authority to transact insurance in this state was granted.
(3) A domestic reciprocal insurer heretofore formed shall maintain on deposit with the commissioner surplus funds of not less than the sum of one hundred thousand dollars, and to transact kinds of insurance transacted by it in addition to that authorized by its original certificate of authority, shall have and maintain surplus (including the amount of such deposit) in amount not less than the paid-in capital stock required under RCW 48.05.340(1) plus special surplus, if any, required under *RCW 48.05.360, of a domestic stock insurer formed after 1967 and transacting the same kinds of insurance. Such additional surplus funds need not be deposited with the commissioner.
[ 1985 c 264 § 4; 1975 1st ex.s. c 266 § 5; 1963 c 195 § 5; 1947 c 79 § .10.07; Rem. Supp. 1947 § 45.10.07.]
NOTES:
*Reviser's note: RCW 48.05.360 was repealed by 2005 c 223 § 35.
Severability—1975 1st ex.s. c 266: See note following RCW 48.01.010.
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.10 - Reciprocal Insurers. › 48.10.080 - Attorney.

RCW 48.10.080
Attorney.
(1) "Attorney" as used in this chapter refers to the attorney-in-fact of a reciprocal insurer. The attorney may be an individual, firm, or corporation.
(2) The attorney of a foreign or alien reciprocal insurer, which insurer is duly authorized to transact insurance in this state, shall not, by virtue of discharge of its duties as such attorney with respect to the insurer's transactions in this state, be thereby deemed to be doing business in this state within the meaning of any laws of this state applying to foreign persons, firms, or corporations.
(3) The subscribers and the attorney-in-fact comprise a reciprocal insurer and a single entity for the purposes of chapter 48.14 RCW as to all operations under the insurer's certificate of authority.
[ 1965 ex.s. c 70 § 35; 1947 c 79 § .10.08; Rem. Supp. 1947 § 45.10.08.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.10 - Reciprocal Insurers. › 48.10.090 - Organization of reciprocal.

RCW 48.10.090
Organization of reciprocal.
(1) Twenty-five or more persons domiciled in this state may organize a domestic reciprocal insurer and in compliance with this code make application to the commissioner for a certificate of authority to transact insurance.
(2) When applying for a certificate of authority, the original subscribers and the proposed attorney shall fulfill the requirements of and shall execute and file with the commissioner a declaration setting forth:
(a) the name of the insurer;
(b) the location of the insurer's principal office, which shall be the same as that of the attorney and shall be maintained within this state;
(c) the kinds of insurance proposed to be transacted;
(d) the names and addresses of the original subscribers;
(e) the designation and appointment of the proposed attorney and a copy of the power of attorney;
(f) the names and addresses of the officers and directors of the attorney, if a corporation, or of its members, if a firm;
(g) the powers of the subscribers' advisory committee and the names and terms of office of the members thereof;
(h) that all moneys paid to the reciprocal, after deducting therefrom any sum payable to the attorney, shall be held in the name of the insurer and for the purposes specified in the subscriber's agreement;
(i) a copy of the subscriber's agreement;
(j) a statement that each of the original subscribers has in good faith applied for insurance of the kind proposed to be transacted, and that the insurer has received from each such subscriber the full premium or premium deposit required for the policy applied for, for a term of not less than six months at the rate theretofore filed with and approved by the commissioner;
(k) a statement of the financial condition of the insurer, a schedule of its assets, and a statement that the surplus as required by RCW 48.10.070 is on hand;
(l) a copy of each policy, endorsement, and application form it then proposes to issue or use.
Such declaration shall be acknowledged by each such subscriber and by the attorney in the manner required for the acknowledgment of deeds to real estate.
[1947 c 79 § .10.09; Rem. Supp. 1947 § 45.10.09.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.10 - Reciprocal Insurers. › 48.10.100 - Policies of original subscribers, effective when.

RCW 48.10.100
Policies of original subscribers, effective when.
Any policy applied for by an original subscriber shall become effective coincidentally with the issuance of a certificate of authority to the reciprocal insurer.
[1947 c 79 § .10.10; Rem. Supp. 1947 § 45.10.10.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.10 - Reciprocal Insurers. › 48.10.110 - Certificate of authority.

RCW 48.10.110
Certificate of authority.
(1) The certificate of authority of a reciprocal insurer shall be issued to its attorney in the name of the insurer.
(2) The commissioner may refuse, suspend, or revoke the certificate of authority, in addition to other grounds therefor, for failure of its attorney to comply with any provision of this code.
[1947 c 79 § .10.11; Rem. Supp. 1947 § 45.10.11.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.10 - Reciprocal Insurers. › 48.10.120 - Power of attorney.

RCW 48.10.120
Power of attorney.
(1) The rights and powers of the attorney of a reciprocal insurer shall be as provided in the power of attorney given it by the subscribers.
(2) The power of attorney must set forth:
(a) The powers of the attorney;
(b) that the attorney is empowered to accept service of process on behalf of the insurer and to authorize the commissioner to receive service of process in actions against the insurer upon contracts exchanged;
(c) the services to be performed by the attorney in general;
(d) the maximum amount to be deducted from advance premiums or deposits to be paid to the attorney;
(e) except as to nonassessable policies, a provision for a contingent several liability of each subscriber in a specified amount which amount shall be not less than one nor more than ten times the premium or premium deposit stated in the policy.
(3) The power of attorney may:
(a) Provide for the right of substitution of the attorney and revocation of the power of attorney and rights thereunder;
(b) impose such restrictions upon the exercise of the power as are agreed upon by the subscribers;
(c) provide for the exercise of any right reserved to the subscribers directly or through their advisory committee;
(d) contain other lawful provisions deemed advisable.
(4) The terms of any power of attorney or agreement collateral thereto shall be reasonable and equitable, and no such power or agreement or any amendment thereof, shall be used or be effective in this state until approved by the commissioner.
[ 1949 c 190 § 15; 1947 c 79 § .10.12; Rem. Supp. 1949 § 45.10.12.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.10 - Reciprocal Insurers. › 48.10.130 - Modification of subscriber's agreement or power of attorney.

RCW 48.10.130
Modification of subscriber's agreement or power of attorney.
Modification of the terms of the subscriber's agreement or of the power of attorney of a domestic reciprocal insurer shall be made jointly by the attorney and the subscribers' advisory committee. No such modification shall be effective retroactively, nor as to any insurance contract issued prior thereto.
[1947 c 79 § .10.13; Rem. Supp. 1947 § 45.10.13.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.10 - Reciprocal Insurers. › 48.10.140 - Attorney's bond.

RCW 48.10.140
Attorney's bond.
(1) Concurrently with the filing of the declaration provided for in RCW 48.10.090, (or, if an existing domestic reciprocal insurer, within ninety days after the effective date of this code) the attorney of a domestic reciprocal shall file with the commissioner a bond running to the state of Washington. The bond shall be executed by the attorney and by an authorized corporate surety, and shall be subject to the commissioner's approval.
(2) The bond shall be in the penal sum of twenty-five thousand dollars, conditioned that the attorney will faithfully account for all moneys and other property of the insurer coming into his or her hands, and that he or she will not withdraw or appropriate for his or her own use from the funds of the insurer any moneys or property to which he or she is not entitled under the power of attorney.
(3) The bond shall provide that it is not subject to cancellation unless thirty days advance notice in writing of intent to cancel is given to both the attorney and the commissioner.
[ 2009 c 549 § 7041; 1947 c 79 § .10.14; Rem. Supp. 1947 § 45.10.14.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.10 - Reciprocal Insurers. › 48.10.150 - Deposit in lieu of bond.

RCW 48.10.150
Deposit in lieu of bond.
In lieu of such bond, the attorney may maintain on deposit with the commissioner a like amount in cash or in value of securities qualified under this code as insurers' investments, and subject to the same conditions as the bond.
[1947 c 79 § .10.15; Rem. Supp. 1947 § 45.10.15.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.10 - Reciprocal Insurers. › 48.10.160 - Actions on bond.

RCW 48.10.160
Actions on bond.
Action on the attorney's bond or to recover against any such deposit made in lieu thereof may be brought at any one time by one or more subscribers suffering loss through a violation of the conditions thereof or by a receiver or liquidator of the insurer. Amounts so recovered shall be deposited in and become part of the insurer's funds.
[1947 c 79 § .10.16; Rem. Supp. 1947 § 45.10.16.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.10 - Reciprocal Insurers. › 48.10.170 - Service of legal process.

RCW 48.10.170
Service of legal process.
(1) Each authorized reciprocal insurer must appoint the commissioner as its attorney to receive service of, and upon whom service must be served, all legal process issued against it in this state upon causes of action arising within this state. Service upon the commissioner as attorney constitutes service upon the insurer.
(2) With the appointment the insurer must designate the person to whom the commissioner must forward legal process so served upon him or her.
(3) The appointment of the commissioner as attorney is irrevocable, binds any successor in interest or to the assets or liabilities of the insurer, and remains in effect as long as there is in force in this state any contract made by the insurer or liabilities or duties arising under that contract.
(4) The service of process must be accomplished and processed in the manner prescribed under RCW 48.02.200.
(5) In lieu of service on the commissioner, legal process may be served upon a domestic reciprocal insurer by serving the insurer's attorney at his or her principal offices.
(6) Any judgment against the insurer based upon legal process so served is binding upon each of the insurer's subscribers as their respective interests may appear and in an amount not exceeding their respective contingent liabilities.
[ 2011 c 47 § 7; 2009 c 549 § 7042; 1947 c 79 § .10.17; Rem. Supp. 1947 § 45.10.17.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.10 - Reciprocal Insurers. › 48.10.180 - Annual statement.

RCW 48.10.180
Annual statement.
The annual statement of a reciprocal insurer shall be made and filed by the attorney.
[1947 c 79 § .10.18; Rem. Supp. 1947 § 45.10.18.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.10 - Reciprocal Insurers. › 48.10.190 - Attorney's contribution—Repayment.

RCW 48.10.190
Attorney's contribution—Repayment.
No contribution to a domestic reciprocal insurer's surplus by the attorney shall be retrievable by the attorney except under such terms and in such circumstances as the commissioner approves.
[1947 c 79 § .10.19; Rem. Supp. 1947 § 45.10.19.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.10 - Reciprocal Insurers. › 48.10.200 - Determination of financial condition.

RCW 48.10.200
Determination of financial condition.
In determining the financial condition of a reciprocal insurer the commissioner shall apply the following rules:
(1) He or she shall charge as liabilities the same reserves as are required of incorporated insurers issuing nonassessable policies on a reserve basis.
(2) The surplus deposits of subscribers shall be allowed as assets, except that any premium deposit delinquent for ninety days shall first be charged against such surplus deposit.
(3) The surplus deposits of subscribers shall not be charged as a liability.
(4) All premium deposits delinquent less than ninety days shall be allowed as assets.
(5) An assessment levied upon subscribers, and not collected, shall not be allowed as an asset.
(6) The contingent liability of subscribers shall not be allowed as an asset.
(7) The computation of reserves shall be based upon premium deposits other than membership fees and without any deduction for the compensation of the attorney.
[ 2009 c 549 § 7043; 1947 c 79 § .10.20; Rem. Supp. 1947 § 45.10.20.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.10 - Reciprocal Insurers. › 48.10.220 - Who may become subscriber.

RCW 48.10.220
Who may become subscriber.
Any person, government or governmental agency, state or political subdivision thereof, public or private corporation, board, association, estate, trustee, or fiduciary may be a subscriber of a reciprocal insurer.
[1947 c 79 § .10.22; Rem. Supp. 1947 § 45.10.22.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.10 - Reciprocal Insurers. › 48.10.230 - Subscribers' advisory committee.

RCW 48.10.230
Subscribers' advisory committee.
(1) The advisory committee of a domestic reciprocal insurer exercising the subscribers' rights shall be selected under such rules as the subscribers adopt.
(2) Not less than three-fourths of such committee shall be composed of subscribers other than the attorney, or any person employed by, representing, or having a financial interest in the attorney.
(3) The committee shall:
(a) Supervise the finances of the insurer;
(b) supervise the insurer's operations to such extent as to assure their conformity with the subscribers' agreement and power of attorney;
(c) procure the audit of the accounts and records of the insurer and of the attorney at the expense of the insurer;
(d) have such additional powers and functions as may be conferred by the subscribers' agreement.
[1947 c 79 § .10.23; Rem. Supp. 1947 § 45.10.23.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.10 - Reciprocal Insurers. › 48.10.250 - Assessment liability of subscriber.

RCW 48.10.250
Assessment liability of subscriber.
(1) The liability of each subscriber subject to assessment for the obligations of the reciprocal insurer shall not be joint, but shall be individual and several.
(2) Each subscriber who is subject to assessment shall have a contingent assessment liability, in the amount provided for in the power of attorney or in the subscribers' agreement, for payment of actual losses and expenses incurred while his or her policy was in force. Such contingent liability may be at the rate of not less than one nor more than ten times the premium or premium deposit stated in the policy, and the maximum aggregate thereof shall be computed in the manner set forth in RCW 48.10.290.
(3) Each assessable policy issued by the insurer shall plainly set forth a statement of the contingent liability.
[ 2009 c 549 § 7044; 1947 c 79 § .10.25; Rem. Supp. 1947 § 45.10.25.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.10 - Reciprocal Insurers. › 48.10.260 - Action against subscriber requires judgment against insurer.

RCW 48.10.260
Action against subscriber requires judgment against insurer.
(1) No action shall lie against any subscriber upon any obligation claimed against the insurer until a final judgment has been obtained against the insurer and remains unsatisfied for thirty days.
(2) Any such judgment shall be binding upon each subscriber only in such proportion as his or her interests may appear and in an amount not exceeding his or her contingent liability, if any.
[ 2009 c 549 § 7045; 1947 c 79 § .10.26; Rem. Supp. 1947 § 45.10.26.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.10 - Reciprocal Insurers. › 48.10.270 - Assessments.

RCW 48.10.270
Assessments.
(1) Assessments may be levied from time to time upon the subscribers of a domestic reciprocal insurer, other than as to nonassessable policies, by the attorney upon approval in advance by the subscribers' advisory committee and the commissioner; or by the commissioner in liquidation of the insurer.
(2) Each such subscriber's share of a deficiency for which an assessment is made, not exceeding in any event his or her aggregate contingent liability as computed in accordance with RCW 48.10.290, shall be computed by applying to the premium earned on the subscriber's policy or policies during the period to be covered by the assessment, the ratio of the total deficiency to the total premiums earned during such period upon all policies subject to the assessment.
(3) In computing the earned premiums for the purposes of this section, the gross premium received by the insurer for the policy shall be used as a base, deducting therefrom solely charges not recurring upon the renewal or extension of the policy.
(4) No subscriber shall have an offset against any assessment for which he or she is liable, on account of any claim for unearned premium or losses payable.
[ 2009 c 549 § 7046; 1947 c 79 § .10.27; Rem. Supp. 1947 § 45.10.27.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.10 - Reciprocal Insurers. › 48.10.280 - Time limit for assessment.

RCW 48.10.280
Time limit for assessment.
Every subscriber of a domestic reciprocal insurer having contingent liability shall be liable for, and shall pay his or her share of any assessment, as computed and limited in accordance with this chapter, if:
(1) While his or her policy is in force or within one year after its termination, he or she is notified by either the attorney or the commissioner of his or her intention to levy such assessment; or
(2) If an order to show cause why a receiver, conservator, rehabilitator, or liquidator of the insurer should not be appointed is issued pursuant to RCW 48.31.190 while his or her policy is in force or within one year after its termination.
[ 2009 c 549 § 7047; 1947 c 79 § .10.28; Rem. Supp. 1947 § 45.10.28.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.10 - Reciprocal Insurers. › 48.10.290 - Aggregate liability.

RCW 48.10.290
Aggregate liability.
No one policy or subscriber as to such policy, shall be assessed or be charged with an aggregate of contingent liability as to obligations incurred by a domestic reciprocal insurer in any one calendar year, in excess of the number of times the premium as stated in the policy as computed solely upon premium earned on such policy during that year.
[1947 c 79 § .10.29; Rem. Supp. 1947 § 45.10.29.]