reglab/statecodes huggingface dataset:
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.12 - Assets and Liabilities. › 48.12.460 - Reinsurance ceded by domestic insurer to assuming insurer not meeting requirements—When asset or reduction from liability allowed.

RCW 48.12.460
Reinsurance ceded by domestic insurer to assuming insurer not meeting requirements—When asset or reduction from liability allowed.
An asset or a reduction from liability for the reinsurance ceded by a domestic insurer to an assuming insurer not meeting the requirements of RCW 48.12.405 through 48.12.455 must be allowed in an amount not exceeding the liabilities carried by the ceding insurer. The reduction must be in the amount of funds held by or on behalf of the ceding insurer, including funds held in trust for the ceding insurer, under a reinsurance contract with the assuming insurer as security for the payment of obligations thereunder, if the security is held in the United States subject to withdrawal solely by, and under the exclusive control of, the ceding insurer; or, in the case of a trust, held in a qualified United States financial institution, as defined in RCW 48.12.465(2). This security may be in the form of:
(1) Cash;
(2) Securities listed by the securities valuation office of the national association of insurance commissioners, including those deemed exempt from filing as defined by the purposes and procedures manual of the securities valuation office, and qualifying as admitted assets;
(3)(a) Clean, irrevocable, unconditional letters of credit, issued or confirmed by a qualified United States financial institution, as defined in RCW 48.12.465(1), effective no later than December 31st of the year for which the filing is being made, and in the possession of, or in trust for, the ceding insurer on or before the filing date of its annual statement;
(b) Letters of credit meeting applicable standards of issuer acceptability as of the dates of their issuance (or confirmation) must, notwithstanding the issuing (or confirming) institution's subsequent failure to meet applicable standards of issuer acceptability, continue to be acceptable as security until their expiration, extension, renewal, modification, or amendment, whichever first occurs; or
(4) Any other form of security acceptable to the commissioner.
[ 2015 c 63 § 13.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.12 - Assets and Liabilities. › 48.12.464 - Reinsurance agreements—Commissioner may adopt rules.

RCW 48.12.464
Reinsurance agreements—Commissioner may adopt rules.
(1) The commissioner may adopt rules applicable to reinsurance agreements as provided in this section.
(2) A rule adopted under this section may only apply to reinsurance relating to:
(a) Life insurance policies with guaranteed nonlevel gross premiums or guaranteed nonlevel benefits;
(b) Universal life insurance policies with provisions resulting in the ability of a policyholder to keep a policy in force over a secondary guarantee period;
(c) Variable annuities with guaranteed death or living benefits;
(d) Long-term care insurance policies; or
(e) Such other life and health insurance and annuity products as to which the national association of insurance commissioners adopts model regulatory requirements with respect to credit for reinsurance.
(3) A rule adopted under subsection (2)(a) or (b) of this section may apply to any treaty containing:
(a) Policies issued on or after January 1, 2015; and
(b) Policies issued before January 1, 2015, if risk pertaining to these policies is ceded in connection with the treaty, in whole or in part, on or after January 1, 2015.
(4) A rule adopted under this section may require the ceding insurer, in calculating the amounts or forms of security required to be held under rule, to use the valuation manual adopted by the national association of insurance commissioners under RCW 48.74.100(2)(a), including all amendments adopted by the national association of insurance commissioners and in effect on the date as of which the calculation is made, to the extent applicable.
(5) A rule adopted under this section shall not apply to cessions to an assuming insurer that:
(a) Meets the conditions set forth in RCW 48.12.462;
(b) Is certified under RCW 48.12.430 in this state; or
(c) Maintains at least two hundred fifty million dollars in capital and surplus when determined in accordance with the national association of insurance commissioners' accounting practices and procedures manual, including all amendments adopted by the national association of insurance commissioners as of July 25, 2021, excluding the impact of any permitted or prescribed practices, and:
(i) Is licensed in at least twenty-six states; or
(ii) Is either licensed or accredited in a total of at least thirty-five states and maintains licensure in at least ten states under this subsection (5)(c)(ii).
(6) The authority to adopt rules under this section does not limit the commissioner's general authority to adopt rules under RCW 48.12.480.
[ 2021 c 138 § 5.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.12 - Assets and Liabilities. › 48.12.465 - Definitions—Apply to RCW 48.12.460(3).

RCW 48.12.465
Definitions—Apply to RCW 48.12.460(3).
(1) For the purposes of RCW 48.12.460(3), a "qualified United States financial institution" means an institution that:
(a) Is organized or (in the case of a United States office of a foreign banking organization) licensed, under the laws of the United States or any state thereof;
(b) Is regulated, supervised, and examined by United States federal or state authorities having regulatory authority over banks and trust companies; and
(c) Has been determined by either the commissioner or the securities valuation office of the national association of insurance commissioners to meet the standards of financial condition and standing as are considered necessary and appropriate to regulate the quality of financial institutions whose letters of credit will be acceptable to the commissioner.
(2) A "qualified United States financial institution" means, for the purposes of those provisions of this subchapter specifying those institutions that are eligible to act as a fiduciary of a trust, an institution that:
(a) Is organized, or, in the case of a United States branch or agency office of a foreign banking organization, licensed, under the laws of the United States or any state thereof and has been granted authority to operate with fiduciary powers; and
(b) Is regulated, supervised, and examined by federal or state authorities having regulatory authority over banks and trust companies.
[ 2015 c 63 § 14.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.12 - Assets and Liabilities. › 48.12.470 - Credit for reinsurance—Accounting or financial statement—After December 31, 1996.

RCW 48.12.470
Credit for reinsurance—Accounting or financial statement—After December 31, 1996.
Credit for reinsurance, as either an asset or a deduction, is prohibited in an accounting or financial statement of the ceding insurer in respect to the reinsurance contract unless, in such contract, the reinsurer undertakes to indemnify the ceding insurer against all or a part of the loss or liability arising out of the original insurance. This section only applies to those reinsurance contracts entered into after December 31, 1996.
[ 1997 c 379 § 5. Formerly RCW 48.12.164.]
NOTES:
Purpose—Intent—1997 c 379: "(1) The purpose of this act is to protect the interest of insureds, claimants, ceding insurers, assuming insurers, and the public generally.
(2) It is the intent of the legislature to ensure adequate regulation of insurers and reinsurers and adequate protection for those to whom they owe obligations.
(3) It is also the intent of the legislature to declare that the matters contained in this act are fundamental to the business of insurance and to exercise its powers and privileges under 15 U.S.C. Secs. 1011 and 1012." [ 1997 c 379 § 1.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.12 - Assets and Liabilities. › 48.12.499 - Application of chapter 63, Laws of 2015.

RCW 48.12.499
Application of chapter 63, Laws of 2015.
Chapter 63, Laws of 2015 applies to all cessions after July 24, 2015, under reinsurance agreements that have an inception, anniversary, or renewal date not less than six months after July 24, 2015.
[ 2015 c 63 § 16.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.13 - Investments. › 48.13.005 - Purpose—Application.

RCW 48.13.005
Purpose—Application.
(1) The purpose of chapter 188, Laws of 2011 is to protect and to further the interests of insureds, creditors, and the general public by providing, with minimum interference with management initiative and judgment, prudent standards for the development and administration of insurer investment programs.
(2) Chapter 188, Laws of 2011 and the rules adopted to interpret and implement it apply to domestic insurers, United States branches of alien insurers entered through this state, alien insurers admitted and using this state as their port of entry, domestic fraternal benefit societies formed pursuant to chapter 48.36A RCW, domestic health care service contractors formed pursuant to chapter 48.44 RCW, domestic health maintenance organizations formed pursuant to chapter 48.46 RCW, and domestic self-funded multiple employer welfare arrangements formed pursuant to chapter 48.125 RCW.
(3) Separate accounts established in accordance with RCW 48.18A.020 shall be evaluated separately pursuant to that section.
[ 2011 c 188 § 1.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.13 - Investments. › 48.13.031 - Investment of funds—Board of directors—Judgment and care—Internal controls and procedures.

RCW 48.13.031
Investment of funds—Board of directors—Judgment and care—Internal controls and procedures.
(1) Subject to the provisions of this chapter, an insurer may loan or invest its funds, and may buy, sell, hold title to, possess, occupy, pledge, convey, manage, protect, insure, and deal with its investments, property, and other assets to the same extent as any other person or corporation under the laws of this state and of the United States.
(2) With respect to all of the insurer's investments, the board of directors of an insurer shall exercise the judgment and care, under the circumstances then prevailing, that persons of reasonable prudence, discretion, and intelligence exercise in the management of a like enterprise, not in regard to speculating but in regard to the permanent disposition of their funds, considering the probable income as well as the probable safety of their capital. Investments shall be of sufficient value, liquidity, and diversity to assure the insurer's ability to meet its outstanding obligations based on reasonable assumptions as to new business production for current lines of business. As part of its exercise of judgment and care, the board of directors shall take into account the prudence evaluation criteria of RCW 48.13.041.
(3) The insurer shall establish and implement internal controls and procedures to assure compliance with investment policies and procedures to assure that:
(a) The insurer's investment staff and any consultants used are reputable and capable;
(b) A periodic evaluation and monitoring process occurs for assessing the effectiveness of investment policy and strategies;
(c) Management's performance is assessed in meeting the stated objectives within the investment policy; and
(d) Appropriate analyses are undertaken of the degree to which asset cash flows are adequate to meet liability cash flows under different economic environments. These analyses shall be conducted at least annually and make specific reference to economic conditions.
[ 2011 c 188 § 4.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.13 - Investments. › 48.13.041 - Determining whether an investment portfolio or investment policy is prudent.

RCW 48.13.041
Determining whether an investment portfolio or investment policy is prudent.
The following factors shall be evaluated by the insurer and considered along with its business in determining whether an investment portfolio or investment policy is prudent; the commissioner shall consider the following factors prior to making a determination that an insurer's investment portfolio or investment policy is not prudent:
(1) General economic conditions;
(2) The possible effect of inflation or deflation;
(3) The expected tax consequences of investment decisions or strategies;
(4) The fairness and reasonableness of the terms of an investment considering its probable risk and reward characteristics and relationship to the investment portfolio as a whole;
(5) The extent of the diversification of the insurer's investments among:
(a) Individual investments;
(b) Classes of investments;
(c) Industry concentrations;
(d) Dates of maturity; and
(e) Geographic areas;
(6) The quality and liquidity of investments in affiliates;
(7) The investment exposure to the following risks, quantified in a manner consistent with the insurer's acceptable risk level identified in RCW 48.13.051(8):
(a) Liquidity;
(b) Credit and default;
(c) Systemic (market);
(d) Interest rate;
(e) Call, prepayment, and extension;
(f) Currency;
(g) Foreign sovereign; and
(h) Leverage;
(8) The amount of the insurer's assets, capital, and surplus, premium writings, insurance in force, and other appropriate characteristics;
(9) The amount and adequacy of the insurer's reported liabilities;
(10) The relationship of the expected cash flows of the insurer's assets and liabilities, and the risk of adverse changes in the insurer's assets and liabilities;
(11) The adequacy of the insurer's capital and surplus to secure the risks and liabilities of the insurer; and
(12) Any other factors relevant to whether an investment is prudent.
[ 2011 c 188 § 5.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.13 - Investments. › 48.13.051 - Written investment policy required—Annual review—Contents.

RCW 48.13.051
Written investment policy required—Annual review—Contents.
In acquiring, investing, exchanging, holding, selling, and managing investments, an insurer shall establish and follow a written investment policy that shall be reviewed and approved by the insurer's board of directors at least annually. The content and format of an insurer's investment policy are at the insurer's discretion, but shall include written guidelines appropriate to the insurer's business as to the following:
(1) The delegation and monitoring of policies, procedures, and controls covering all aspects of the investing function;
(2) Quantified goals and objectives regarding the composition of classes of investments, including maximum internal limits;
(3) Periodic evaluation of the investment portfolio as to its risk and reward characteristics. This subsection shall not preclude an insurer from the use of modern portfolio theory to manage its investments;
(4) Professional standards for the individuals making day-to-day investment decisions to assure that investments are managed in an ethical and capable manner;
(5) The types of investments to be made and those to be avoided, based on their risk and reward characteristics and the insurer's level of experience with the investments;
(6) The relationship of classes of investments to the insurer's insurance products and liabilities;
(7) The manner in which the insurer intends to implement RCW 48.13.041; and
(8) The level of risk, based on quantitative measures, appropriate for the insurer given the level of capitalization and expertise available to the insurer.
[ 2011 c 188 § 6.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.13 - Investments. › 48.13.081 - Investments in securities of different currencies.

RCW 48.13.081
Investments in securities of different currencies.
An insurer doing business that requires it to make payment in different currencies shall have investments in securities in each of these currencies in an amount that independently of all other investments meets the requirements of this chapter as applied separately to the insurer's obligations in each currency. The commissioner may by order exempt an insurer, or by rule a class of insurers, from this requirement if the obligations in other currencies are small enough that no significant problem for financial stability would be created by substantial fluctuations in relative currency values.
[ 2011 c 188 § 9.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.13 - Investments. › 48.13.091 - Prohibited investments.

RCW 48.13.091
Prohibited investments.
(1)(a) An insurer shall not invest in investments that are prohibited for an insurer by statutes or rules of this state.
(b) The use of a derivative instrument for replication, speculative, or for any purposes other than hedging or income generation, is prohibited.
(c) Investment in real property for speculative, ranching, farming, mining, gaming, amusement, oil, gas, or mineral exploration, or club purposes, is prohibited.
(d) Investment in issued shares of its own capital stock, held directly or indirectly, except for the purpose of mutualization in accordance with RCW 48.08.080, is prohibited.
(e) Investment in securities issued by any corporation if a majority of its stock having voting power is owned directly or indirectly by or for the benefit of any one or more of the insurer's officers and directors, is prohibited.
(f) Investment in securities issued by any insolvent corporation, is prohibited.
(g) Investment in any instrument or security which is found by the commissioner to be designed to evade any limitation or prohibition of this code, is prohibited.
(2) A reasonable time, not in excess of five years, shall be allowed for disposal of a prohibited investment in hardship cases if the investment is demonstrated by the insurer to have been legal when made, or the result of a mistake made in good faith, or if the commissioner deems that the sale of the asset would be contrary to the interests of insureds, creditors, or the general public.
[ 2011 c 188 § 10.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.13 - Investments. › 48.13.101 - Satisfaction of the minimum asset requirement—When assets may be counted.

RCW 48.13.101
Satisfaction of the minimum asset requirement—When assets may be counted.
(1) Invested assets may be counted toward satisfaction of the minimum asset requirement only so far as they are invested in compliance with this chapter and applicable rules adopted and orders issued by the commissioner pursuant to this chapter. Assets other than invested assets may be counted toward satisfaction of the minimum asset requirement at admitted annual statement value.
(2) An investment held as an admitted asset by an insurer on July 1, 2012, which qualified under this chapter shall remain qualified as an admitted asset under this chapter.
(3) Assets acquired in the bona fide enforcement of creditors' rights or in bona fide workouts or settlements of disputed claims may be counted for the purposes of subsection (1) of this section for five years after acquisition if real property and three years if not real property, even if they could not otherwise be counted under this chapter. The commissioner may allow reasonable extensions of these periods if replacement of the assets within the periods would not be possible without substantial loss.
(4) If an insurer does not own, or is unable to apply toward compliance with this chapter, an amount of assets equal to its minimum asset requirement, the commissioner may deem it to be financially hazardous under chapter 48.31 RCW.
[ 2011 c 188 § 11.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.13 - Investments. › 48.13.111 - Commissioner's powers—Requirements of persons subject to regulation.

RCW 48.13.111
Commissioner's powers—Requirements of persons subject to regulation.
(1) The commissioner may require any of the following from a person subject to regulation under this chapter:
(a) Statements, reports, answers to questionnaires, and other information, and evidence thereof, in whatever reasonable form the commissioner designates, and at such reasonable intervals as the commissioner chooses;
(b) Full explanation of the programming of any data storage or communication system in use;
(c) That information from any books, records, electronic data processing systems, computers, or any other information storage system be made available to the commissioner at a reasonable time and in a reasonable manner.
(2) The commissioner may prescribe forms for the reports under subsection (1) of this section and specify who shall execute or certify the reports. The forms for the reports required under subsection (1) of this section shall be consistent, so far as practicable, with those prescribed by other jurisdictions.
(3) The commissioner may prescribe reasonable minimum standards and techniques of accounting and data handling to ensure that timely and reliable information will exist and will be available to the commissioner.
(4) Any officer, manager or general agent of an insurer subject to this chapter, any person controlling or having a contract under which the person has a right to control the insurer, whether exclusively or otherwise, or a person with executive authority over or in charge of any segment of the insurer's affairs, shall reply promptly in writing or in other reasonably designated form, to a written inquiry from the commissioner requesting a reply. A timely response is one that is received by the commissioner within fifteen business days from receipt of the inquiry. Failure to make a timely response constitutes a violation of this section.
(5) The commissioner may require that any communication made to the commissioner under this section be verified.
(6) A communication to the commissioner, or to an expert or consultant retained by the commissioner, required by the provisions of this chapter shall not subject the person making it to an action for damages for the communication in the absence of actual malice.
(7) Notwithstanding the provisions of subsection (6) of this section, the commissioner may bring suit against any person providing information required under this chapter that is not truthful and accurate.
[ 2011 c 188 § 12.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.13 - Investments. › 48.13.121 - Commissioner may retain experts—Insurer's expense.

RCW 48.13.121
Commissioner may retain experts—Insurer's expense.
The commissioner may retain at the insurer's expense attorneys, actuaries, accountants, and other experts not otherwise a part of the commissioner's staff as may be reasonably necessary to assist in reviewing the insurer's investments. Persons so retained shall be under the direction and control of the commissioner and shall act in a purely advisory capacity.
[ 2011 c 188 § 13.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.13 - Investments. › 48.13.131 - When investment practices are not in compliance—Commissioner's authority.

RCW 48.13.131
When investment practices are not in compliance—Commissioner's authority.
(1) If the commissioner determines that an insurer's investment practices do not meet the provisions of this chapter, the commissioner may, after notification to the insurer of the commissioner's findings, order the insurer to make changes necessary to comply with the provisions of this chapter.
(2) If the commissioner determines that by reason of the financial condition, current investment practice, or current investment plan of an insurer, the interests of insureds, creditors, or the general public are or may be endangered, the commissioner may impose reasonable additional restrictions upon the admissibility or valuation of investments or may impose restrictions on the investment practices of an insurer, including prohibition or divestment.
(3) The commissioner may count toward satisfaction of the minimum asset requirement any assets in which an insurer is required to invest under the laws of a country other than the United States as a condition for doing business in that country if the commissioner finds that counting them does not endanger the interests of insureds, creditors, or the general public.
(4) If the commissioner is satisfied by evidence of the financial stability of an insurer and the competence of management and its investment advisors, the commissioner, after a hearing, may by order adjust the class limitations in RCW 48.13.071, for that insurer, to the extent that the commissioner is satisfied that the interests of insureds, creditors, and the public of this state are sufficiently protected in other ways. Adjustments granted with respect to RCW 48.13.071, in aggregate, are limited to an amount equal to ten percent of the insurer's liabilities.
[ 2011 c 188 § 14.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.13 - Investments. › 48.13.141 - Aggrieved insurer—Request for hearing.

RCW 48.13.141
Aggrieved insurer—Request for hearing.
An insurer aggrieved by an order or any other act or failure to act of the commissioner regarding compliance with this chapter or rules adopted under this chapter may request a hearing by following the procedures of chapters 48.04 and 34.05 RCW.
[ 2011 c 188 § 15.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.13 - Investments. › 48.13.151 - Confidentiality of investment policy information.

RCW 48.13.151
Confidentiality of investment policy information.
The investment policy, or information related to the investment policy provided to the commissioner for review under this chapter shall be considered confidential and shall not be a public record or subject to subpoena.
[ 2011 c 188 § 16.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.13 - Investments. › 48.13.161 - Chapter prevails over other statutes—Valuation of assets.

RCW 48.13.161
Chapter prevails over other statutes—Valuation of assets.
(1) This chapter prevails over any other statute purporting to authorize an insurer to make a particular investment if the other statute was enacted before July 1, 2012, and prevails over any statute enacted after July 1, 2012, unless the latter specifically includes amendments made to this chapter.
(2) An insurer shall value its assets in accordance with the valuation standards of the national association of insurance commissioners to the extent those standards are consistent with the statutes of this state or rules or orders of the commissioner.
[ 2011 c 188 § 17.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.13 - Investments. › 48.13.171 - Rule making—Special investment restrictions.

RCW 48.13.171
Rule making—Special investment restrictions.
(1) The commissioner may, in accordance with chapter 34.05 RCW, adopt rules interpreting and implementing the provisions of this chapter.
(2) The commissioner may, in accordance with chapter 34.05 RCW, adopt special investment restrictions as follows:
(a) The commissioner may by rule prescribe for defined classes of insurers special procedural requirements including special reports, prior approval, or subsequent disapproval of investments.
(b) The commissioner may by rule prescribe substantive restrictions on investments of defined classes of insurers, including:
(i) Specification of classes of assets that may not be counted toward satisfaction of the minimum asset requirement even though they may be counted for unrestricted insurers;
(ii) Specification of maximum amounts of assets that may be invested in a single investment, or an issue, a class or a group of classes of investments, expressed as percentages of total assets, capital, surplus, legal reserves, or other variables;
(iii) Prescription of qualitative tests for investments and conditions under which investments may be made, including requirements of specified ratings from investment advisory services, listing on specified stock exchanges, collateral, marketability, currency matching, and the financial and legal status of the issuer and its earnings capacity.
(3) If the commissioner is satisfied by evidence of the financial stability of an insurer and the competence of management and its investment advisors, the commissioner, after a hearing, may by order grant an exemption to that insurer from any restriction under subsection (2) of this section to the extent that the commissioner is satisfied that the interests of insureds, creditors, and the general public of this state are protected in other ways.
[ 2011 c 188 § 18.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.13 - Investments. › 48.13.350 - Written record of investments—Contents.

RCW 48.13.350
Written record of investments—Contents.
A written record of each investment or loan of the funds of a domestic insurer shall contain:
(1) In the case of loans: The name of the borrower; the location and legal description of the property; a physical description, and the appraised value of the security; the amount of the loan, rate of interest and terms of repayment.
(2) In the case of securities: The name of the obligor; a description of the security and the record of earnings; the amount invested, the rate of interest or dividend, the maturity and yield based upon the purchase price.
(3) In the case of real estate: The location and legal description of the property; a physical description and the appraised value; the purchase price and terms.
(4) In the case of all investments:
(a) The amount of expenses and commissions if any incurred on account of any investment or loan and by whom and to whom payable if not covered by contracts with mortgage loan representatives or correspondents which are part of the insurer's records.
(b) The name of any officer or director of the insurer having any direct, indirect, or contingent interest in the securities or loan representing the investment, or in the assets of the person in whose behalf the investment or loan is made, and the nature of such interest.
[ 2011 c 188 § 20; 2009 c 549 § 7055; 1949 c 190 § 20; 1947 c 79 § .13.35; Rem. Supp. 1949 § 45.13.35.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.13 - Investments. › 48.13.360 - Investments of foreign and alien insurers.

RCW 48.13.360
Investments of foreign and alien insurers.
The investments of a foreign or alien insurer shall be as permitted by the laws of its domicile but shall be of a quality substantially as high as those required under this chapter for similar funds of like domestic insurers.
[1947 c 79 § .13.36; Rem. Supp. 1947 § 45.13.36.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.13 - Investments. › 48.13.455 - Safeguarding securities—Deposit in a clearing corporation—Certificates—Records.

RCW 48.13.455
Safeguarding securities—Deposit in a clearing corporation—Certificates—Records.
Notwithstanding any other provision of law, a domestic insurance company may deposit or arrange for the deposit of securities held in or purchased for its general account and its separate accounts in a clearing corporation. When securities are deposited with a clearing corporation, securities certificates representing securities of the same class of the same issuer may be merged and held in bulk in the name of the nominee of such clearing corporation with any other securities deposited with such clearing corporation by any person, regardless of the ownership of such securities, and securities certificates representing securities of small denominations may be merged into one or more certificates of larger denominations. The records of any custodian through which an insurance company holds securities shall at all times show that such securities are held for such insurance company and for which accounts thereof. Ownership of, and other interests in, such securities may be transferred by bookkeeping entry on the books of such clearing corporation without physical delivery of securities certificates representing such securities.
[ 2008 c 234 § 2; 2000 c 221 § 2.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.13 - Investments. › 48.13.460 - Safeguarding securities—Authorized methods of holding securities.

RCW 48.13.460
Safeguarding securities—Authorized methods of holding securities.
The following are the only authorized methods of holding securities:
(1) A domestic insurance company may hold securities in definitive certificates;
(2) A domestic insurance company may, pursuant to an agreement, designate a custodian through which it can transact and maintain book-entry securities on behalf of the insurance company; or
(3) A domestic insurance company may, pursuant to an agreement, participate in depository systems of clearing corporations directly or through a custodian .
[ 2008 c 234 § 3; 2000 c 221 § 3.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.13 - Investments. › 48.13.465 - Safeguarding securities—Requirement to receive a confirmation.

RCW 48.13.465
Safeguarding securities—Requirement to receive a confirmation.
A domestic insurance company using the methods of holding securities under RCW 48.13.460 (2) or (3) is required to receive a confirmation from:
(1) The custodian whenever securities are received or surrendered pursuant to the domestic insurance company's instructions to a securities broker; or
(2) The securities broker provided that the domestic insurance company has given the custodian and the securities broker matching instructions authorizing the transaction, which have been confirmed by the custodian prior to surrendering funds or securities to conduct the transaction.
[ 2008 c 234 § 4; 2000 c 221 § 4.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.13 - Investments. › 48.13.470 - Safeguarding securities—Broker executing a trade—Time limits.

RCW 48.13.470
Safeguarding securities—Broker executing a trade—Time limits.
(1) A broker executing a securities trade pursuant to an order from a domestic insurance company shall send confirmation to the domestic insurance company or the clearing corporation confirming the order has been executed within twenty-four hours after order completion.
(2) A broker may not hold in its own account for longer than seventy-two hours any securities bought or sold pursuant to an order from a domestic insurance company.
[ 2000 c 221 § 5.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.13 - Investments. › 48.13.475 - Safeguarding securities—Maintenance with a custodian—Commissioner may order transfer—Challenge to order—Standing at hearing or for judicial review.

RCW 48.13.475
Safeguarding securities—Maintenance with a custodian—Commissioner may order transfer—Challenge to order—Standing at hearing or for judicial review.
(1) Notwithstanding the maintenance of securities with a custodian pursuant to agreement, if the commissioner:
(a) Has reasonable cause to believe that the domestic insurer:
(i) Is conducting its business and affairs in such a manner as to threaten to render it insolvent;
(ii) Is in a hazardous condition or is conducting its business and affairs in a manner that is hazardous to its policyholders, creditors, or the public; or
(iii) Has committed or is committing or has engaged or is engaging in any act that would constitute grounds for rendering it subject to rehabilitation or liquidation proceedings; or
(b) Determines that irreparable loss and injury to the property and business of the domestic insurer has occurred or may occur unless the commissioner acts immediately;
then the commissioner may, without hearing, order the insurer and the custodian promptly to effect the transfer of the securities to another custodian approved by the commissioner. Upon receipt of the order, the custodian shall promptly effect the transfer of the securities. Notwithstanding the pendency of any hearing or request for hearing, the order shall be complied with by those persons subject to that order. Any challenge to the validity of the order shall be made under chapter 48.04 RCW, however, the stay of action provisions of RCW 48.04.020 do not apply. It is the responsibility of both the insurer and the custodian to oversee that compliance with the order is completed as expeditiously as possible. Upon receipt of an order, there shall be no trading of the securities without specific instructions from the commissioner until the securities are received by the new custodian, except to the extent trading transactions are in process on the day the order is received by the insurer and the failure to complete the trade may result in loss to the insurer's account. Issuance of an order does not affect the custodian's liabilities with regard to the securities that are the subject of the order.
(2) No person other than the insurer has standing at the hearing by the commissioner or for any judicial review of the order.
[ 2008 c 234 § 5; 2000 c 221 § 6.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.13 - Investments. › 48.13.490 - Safeguarding securities—Rules.

RCW 48.13.490
Safeguarding securities—Rules.
The commissioner may adopt rules governing the deposit by insurance companies of securities with clearing corporations, including establishing standards for national banks, state banks, trust companies, and brokers/dealers to qualify as custodians for insurance company securities.
[ 2008 c 234 § 6; 2000 c 221 § 7.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.14 - Fees and Taxes. › 48.14.021 - Reduction of tax—Policies connected with pension, etc., plans exempt or qualified under internal revenue code.

RCW 48.14.021
Reduction of tax—Policies connected with pension, etc., plans exempt or qualified under internal revenue code.
As to premiums received from policies or contracts issued in connection with a pension, annuity or profit-sharing plan exempt or qualified under sections 401, 403(b), 404, 408(b), or 501(a) of the United States internal revenue code, the rate of tax specified in RCW 48.14.020 shall be reduced twelve and one-half percent with respect to the tax payable in 1964, twenty-five percent with respect to the tax payable in 1965, thirty-seven and one-half percent with respect to the tax payable in 1966, fifty percent with respect to the tax payable in 1967, sixty-two and one-half percent with respect to the tax payable in 1968, seventy-five percent with respect to the tax payable in 1969, eighty-seven and one-half percent with respect to the tax payable in 1970, and one hundred percent with respect to the tax payable in 1971 and annually thereafter.
[1975-'76 2nd ex.s. c 119 § 1; 1974 ex.s. c 132 § 1; 1963 c 166 § 1.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.14 - Fees and Taxes. › 48.14.022 - Taxes—Exemptions and deductions.

RCW 48.14.022
Taxes—Exemptions and deductions.
(1) The taxes imposed in RCW 48.14.020 and 48.14.0201 do not apply to premiums and prepayments collected or received for policies of insurance issued under RCW 48.41.010 through 48.41.210.
(2) In computing tax due under RCW 48.14.020 and 48.14.0201, there may be deducted from taxable premiums and prepayments the amount of any assessment against the taxpayer under RCW 48.41.010 through 48.41.210. Any portion of the deduction allowed in this section which cannot be deducted in a tax year without reducing taxable premiums below zero may be carried forward and deducted in successive years until the deduction is exhausted.
[ 1995 c 304 § 1; 1987 c 431 § 23.]
NOTES:
Effective date—1995 c 304: "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 shall take effect immediately [May 9, 1995]." [ 1995 c 304 § 2.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.14 - Fees and Taxes. › 48.14.025 - Prepayment of tax obligations under RCW 48.14.020.

RCW 48.14.025
Prepayment of tax obligations under RCW 48.14.020.
(1) Every insurer with a tax obligation under RCW 48.14.020 shall make prepayment of the tax obligations under RCW 48.14.020 for the current calendar year's business, if the sum of the tax obligations under RCW 48.14.020 for the preceding calendar year's business is four hundred dollars or more.
(2) The commissioner shall credit the prepayment toward the appropriate tax obligations of the insurer for the current calendar year under RCW 48.14.020.
(3) The minimum amounts of the prepayments shall be percentages of the insurer's preceding calendar year's tax obligation recomputed using the rate in effect for the current year and shall be paid to the state treasurer through the commissioner's office by the due dates and in the following amounts:
(a) On or before June 15, forty-five percent;
(b) On or before September 15, twenty-five percent; and
(c) On or before December 15, twenty-five percent.
For good cause demonstrated in writing, the commissioner may approve an amount smaller than the preceding calendar year's tax obligation as recomputed for calculating the insurer's prepayment obligations.
(4) The effect of transferring policies of insurance from one insurer to another insurer is to transfer the tax prepayment obligation with respect to the policies.
(5) On or before June 1 of each year, the commissioner shall notify each insurer required to make prepayments in that year of the amount of each prepayment and shall provide remittance forms to be used by the insurer. However, an insurer's responsibility to make prepayments is not affected by failure of the commissioner to send, or the insurer to receive, the notice or forms.
[ 1986 c 296 § 2; 1982 c 181 § 4; 1981 c 6 § 1.]
NOTES:
Severability—Effective date—1986 c 296: See notes following RCW 48.14.020.
Severability—1982 c 181: See note following RCW 48.03.010.
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.14 - Fees and Taxes. › 48.14.027 - Exemption for state health care premiums before July 1, 1990.

RCW 48.14.027
Exemption for state health care premiums before July 1, 1990.
The taxes imposed in RCW 48.14.020 do not apply to premiums collected or received before July 1, 1990, for medical and dental coverage purchased under chapter 41.05 RCW.
[ 1988 c 107 § 32.]
NOTES:
Implementation—Effective dates—1988 c 107: See RCW 41.05.901.
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.14 - Fees and Taxes. › 48.14.030 - Tax statement.

RCW 48.14.030
Tax statement.
The insurer shall file with the commissioner as part of its annual statement a statement of premiums so collected or received according to such form as shall be prescribed and furnished by the commissioner. In every such statement the reporting of premiums for tax purposes shall be on a written basis or on a paid-for basis consistent with the basis required by the annual statement.
[1947 c 79 § .14.03; Rem. Supp. 1947 § 45.14.03.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.14 - Fees and Taxes. › 48.14.040 - Retaliatory provision.

RCW 48.14.040
Retaliatory provision.
(1) If pursuant to the laws of any other state or country, any taxes, licenses, fees, deposits, or other obligations or prohibitions, in the aggregate, or additional to or at a net rate in excess of any such taxes, licenses, fees, deposits or other obligations or prohibitions imposed by the laws of this state upon like foreign or alien insurers and their appointed insurance producers or title insurance agents, are imposed on insurers of this state and their appointed insurance producers or title insurance agents doing business in such other state or country, a like rate, obligation or prohibition may be imposed by the commissioner, as to any item or combination of items involved, upon all insurers of such other state or country and their appointed insurance producers or title insurance agents doing business in this state, so long as such laws remain in force or are so applied.
(2) For the purposes of this section, an alien insurer may be deemed to be domiciled in the state wherein it has established its principal office or agency in the United States. If no such office or agency has been established, the domicile of the alien insurer shall be deemed to be the country under the laws of which it is formed.
(3) For the purposes of this section, the regulatory and insurance fraud surcharges imposed by RCW 48.02.190 shall not be included in the calculation of any retaliatory taxes, licenses, fees, deposits, or other obligations or prohibitions imposed under this section.
[ 2020 c 195 § 3; 2008 c 217 § 7; 2007 c 153 § 4; 1988 c 248 § 8; 1949 c 190 § 21, part; 1947 c 79 § .14.04; Rem. Supp. 1949 § 45.14.04.]
NOTES:
Findings—Effective date—2020 c 195: See notes following RCW 48.02.190.
Severability—Effective date—2008 c 217: See notes following RCW 48.03.020.
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.14 - Fees and Taxes. › 48.14.060 - Failure to pay tax—Penalty.

RCW 48.14.060
Failure to pay tax—Penalty.
(1) Any insurer or taxpayer, as defined in RCW 48.14.0201, failing to file its tax statement and to pay the specified tax or prepayment of tax on premiums and prepayments for health care services by the last day of the month in which the tax becomes due shall be assessed a penalty of five percent of the amount of the tax; and if the tax is not paid within forty-five days after the due date, the insurer will be assessed a total penalty of ten percent of the amount of the tax; and if the tax is not paid within sixty days of the due date, the insurer will be assessed a total penalty of twenty percent of the amount of the tax. The tax may be collected by distraint, and the penalty recovered by any action instituted by the commissioner in any court of competent jurisdiction. The amount of any penalty collected must be paid to the state treasurer and credited to the general fund.
(2) In addition to the penalties set forth in subsection (1) of this section, interest will accrue on the amount of the unpaid tax or prepayment at the maximum legal rate of interest permitted under RCW 19.52.020 commencing sixty-one days after the tax is due until paid. This interest will not accrue on taxes imposed under RCW 48.15.120.
(3) The commissioner may revoke the certificate of authority or registration of any delinquent insurer or taxpayer, and the certificate of authority or registration will not be reissued until all taxes, prepayments of tax, interest, and penalties have been fully paid and the insurer or taxpayer has otherwise qualified for the certificate of authority or registration.
[ 2003 c 341 § 1; 1981 c 6 § 2; 1947 c 79 § .14.06; Rem. Supp. 1947 § 45.14.06.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.14 - Fees and Taxes. › 48.14.070 - Refunds.

RCW 48.14.070
Refunds.
In event any person has paid to the commissioner any tax, license fee or other charge in error or in excess of that which he or she is lawfully obligated to pay, the commissioner shall upon written request made to him or her make a refund thereof. A person may only request a refund of taxes within six years from the date the taxes were paid. A person may only request a refund of fees or charges other than taxes within thirteen months of the date the fees or charges were paid. Refunds may be made either by crediting the amount toward payment of charges due or to become due from such person, or by making a cash refund. To facilitate such cash refunds the commissioner may establish a revolving fund out of funds appropriated by the legislature for his use.
[ 2009 c 549 § 7056; 1979 ex.s. c 130 § 2; 1947 c 79 § .14.07; Rem. Supp. 1947 § 45.14.07.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.14 - Fees and Taxes. › 48.14.090 - Determining amount of direct premium taxable in this state.

RCW 48.14.090
Determining amount of direct premium taxable in this state.
In determining the amount of direct premium taxable in this state other than for policies issued by an eligible captive insurer as defined in RCW 48.201.020, all such premiums written, procured, or received in this state shall be deemed written upon risks or property resident, situated, or to be performed in this state except such premiums as are properly allocated or apportioned and reported as taxable premiums of any other state or states. For tax purposes, the reporting of premiums shall be on a written basis or on a paid-for basis consistent with the basis required by the annual statement.
[ 2021 c 281 § 11; 2009 c 161 § 4; 1963 c 195 § 14.]
NOTES:
Application—2021 c 281 §§ 8-11: See note following RCW 48.14.095.
Effective date—2021 c 281: See note following RCW 48.201.010.