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2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.88 - Day Care Services—Joint Underwriting Association. › 48.88.020 - Definitions.

RCW 48.88.020
Definitions.
Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.
(1) "Association" means the joint underwriting association established pursuant to the provisions of this chapter.
(2) "Day care insurance" means insurance coverage against the legal liability of the insured and against loss, damage, or expense incident to a claim arising out of the death or injury of any person as the result of negligence or malpractice in rendering professional service by any licensee.
(3) "Licensee" means any person or facility licensed to provide day care services pursuant to chapter 74.15 RCW.
[ 1986 c 141 § 2.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.88 - Day Care Services—Joint Underwriting Association. › 48.88.030 - Plan for joint underwriting association.

RCW 48.88.030
Plan for joint underwriting association.
The commissioner shall approve by July 1, 1986, a reasonable plan for the establishment of a nonprofit, joint underwriting association for day care insurance, subject to the conditions and limitations contained in this chapter.
[ 1986 c 141 § 3.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.88 - Day Care Services—Joint Underwriting Association. › 48.88.040 - Association—Membership.

RCW 48.88.040
Association—Membership.
The association shall be comprised of all insurers possessing a certificate of authority to write and engage in writing property and casualty insurance within this state on a direct basis, including the liability portion of multiperil policies, but not of ocean marine insurance. Every such insurer shall be a member of the association and shall remain a member as a condition of its authority to continue to transact business in this state.
[ 1986 c 141 § 4.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.88 - Day Care Services—Joint Underwriting Association. › 48.88.050 - Policies—Liability limits—Rating plan.

RCW 48.88.050
Policies—Liability limits—Rating plan.
Any licensee may apply to the association to purchase day care insurance, and the association shall offer a policy with liability limits of at least one hundred thousand dollars per occurrence. The commissioner shall require the use of a rating plan for day care insurance that permits rates to be modified for individual licensees according to the type, size and past loss experience of the licensee including any other difference among licensees that can be demonstrated to have a probable effect upon losses.
[ 1986 c 141 § 5.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.88 - Day Care Services—Joint Underwriting Association. › 48.88.070 - Rules.

RCW 48.88.070
Rules.
The commissioner may adopt all rules necessary to ensure the efficient, equitable operation of the association, including but not limited to, rules requiring or limiting certain policy provisions.
[ 1986 c 141 § 7.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.90 - Child Day Care Centers—Self-Insurance. › 48.90.010 - Findings and intent.

RCW 48.90.010
Findings and intent.
(1) Day care providers are facing a major crisis in that adequate and affordable business liability insurance is no longer available within this state for persons who care for children. Many child day care centers have been forced to purchase inadequate coverage at prohibitive premium rates from unregulated foreign surplus line carriers over which the state has minimal control.
(2) There is a danger that a substantial number of child day care centers who cannot afford the escalating premiums will be unable or unwilling to remain in business without adequate coverage. As a result the number of available facilities will be drastically reduced forcing some parents to leave the workforce to care for their children. A corresponding demand upon the state's resources will result in the form of public assistance to unemployed parents and day care providers.
(3) There is a further danger that a substantial number of child day care centers now licensed pursuant to state law, who currently provide specific safeguards for the health and safety of children but are unable to procure insurance, may choose to continue to operate without state approval, avoiding regulation and payment of legitimate taxes, and forcing some parents to place their children in facilities of unknown quality and questionable levels of safety.
(4) Most child day care centers are small business enterprises with limited resources. The state's policies encourage the growth and development of small businesses.
(5)(a) This chapter is intended to remedy the problem of nonexistent or unaffordable liability coverage for child day care centers, and to encourage compliance with state laws protecting children while meeting the state's sound economic policies of encouraging small business development, sustaining an active workforce, and discouraging policies that result in an increased drain on the state's resources through public assistance and other forms of public funding.
(b) This chapter will empower child day care centers to create self-insurance pools, to purchase insurance coverage, and to contract for risk management and administrative services through an association with demonstrated responsible fiscal management.
The intent of this legislation is to allow these associations maximum flexibility to create and administer plans to provide coverage and risk management services to licensed child day care centers.
[ 2003 c 248 § 21; 1986 c 142 § 1.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.90 - Child Day Care Centers—Self-Insurance. › 48.90.020 - Definitions.

RCW 48.90.020
Definitions.
The definitions in this section apply throughout this chapter.
(1) "Child day care center" means an agency that regularly provides care for one or more children for periods of less than twenty-four hours as defined in *RCW 74.15.020(1)(a).
(2) "Association" means a corporation organized under Title 24 RCW, representative of one or more categories of child day care centers not formed for the sole purpose of establishing and operating a self-insurance program that:
(a) Maintains a roster of current names and addresses of member child day care centers and of former member child day care centers or their representatives, and of all employees of member or former member child day care centers;
(b) Has a membership of a size and stability to ensure that it will be able to provide consistent and responsible fiscal management; and
(c) Maintains a regular newsletter or other periodic communication to member child day care centers.
(3) "Subscriber" means a child day care center that:
(a) Subscribes to a plan created pursuant to this chapter;
(b) Complies with all state licensing requirements;
(c) Is a member in good standing of an association;
(d) Has consistently maintained its license free from revocation for cause, except where the revocation was not later rescinded or vacated by appellate or administrative decision; and
(e) Is prepared to demonstrate the willingness and ability to bear its share of the financial responsibility of its participation in the plan for each applicable contractual period.
[ 2003 c 248 § 22; 1986 c 142 § 2.]
NOTES:
*Reviser's note: RCW 74.15.020 was amended by 2006 c 265 § 401, deleting subsection (1)(a).
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.90 - Child Day Care Centers—Self-Insurance. › 48.90.030 - Authority to self-insure.

RCW 48.90.030
Authority to self-insure.
Associations meeting the criteria of RCW 48.90.020 are empowered to create and operate self-insurance plans to provide general liability coverage to member child day care centers who choose to subscribe to the plans.
[ 2003 c 248 § 23; 1986 c 142 § 3.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.90 - Child Day Care Centers—Self-Insurance. › 48.90.040 - Chapter exclusive.

RCW 48.90.040
Chapter exclusive.
Except as provided in this chapter, self-insurance plans formed and implemented pursuant to this chapter shall be governed by this chapter and shall be exempt from all other provisions of the insurance laws of this state.
[ 1986 c 142 § 4.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.90 - Child Day Care Centers—Self-Insurance. › 48.90.050 - Elements of plan.

RCW 48.90.050
Elements of plan.
Any association desiring to establish a plan pursuant to this chapter shall prepare and submit to the commissioner a proposed plan of organization and operation, including the following elements:
(1) A statement that the association meets the requirements of this chapter.
(2) A financial plan specifying:
(a) The coverage to be offered by the self-insurance pool, setting forth a deductible level and maximum level of claims that the pool will self-insure;
(b) The amount of cash reserves to be maintained for the payment of claims;
(c) The amount of insurance, if any, to be purchased to cover claims in excess of the amount of claims to be satisfied directly from the association's own cash reserves;
(d) The amount of stop-loss coverage to be purchased in the event the joint self-insurance pool's resources are exhausted in a given fiscal period;
(e) A mechanism for determining and assessing the contingent liability of subscribers in the event the assets in the contributing trust fund are at any time insufficient to cover liabilities; and
(f) Certification that all subscribers in the pool are apprised of the limitations of coverage to be provided.
(3) A plan of management setting forth:
(a) The means of fulfilling the requirements in RCW 48.90.050(2);
(b) The names and addresses of board members and their terms of office, and a copy of the corporate bylaws defining the method of election of board members;
(c) The frequency of studies or other evaluation to establish the periodic contribution rates for each of the subscribers;
(d) The responsibilities of subscribers, including procedures for entry into and withdrawal from the pool, the allocation of contingent liabilities and a procedure for immediate assessments if the contributing trust fund falls below the level set in RCW 48.90.050(2)(b);
(e) A plan for monitoring risks and disseminating information with respect to their reduction or elimination;
(f) A contract with a professional insurance management corporation, for the management and operation of any joint self-insurance pool established by the association; and
(g) The corporate address of the association.
[ 1986 c 142 § 5.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.90 - Child Day Care Centers—Self-Insurance. › 48.90.060 - Approval of plan.

RCW 48.90.060
Approval of plan.
If the plan submitted complies with RCW 48.90.050 and if the terms of the plan reflect sound financial management, the commissioner shall approve the plan submitted pursuant to RCW 48.90.050.
[ 1986 c 142 § 6.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.90 - Child Day Care Centers—Self-Insurance. › 48.90.070 - Contributing trust fund.

RCW 48.90.070
Contributing trust fund.
All funds contributed for the purpose of the self-insurance plan shall be deposited in a contributing trust fund, which shall at all times be maintained separately from the general funds of the association. The association shall not contribute to or draw upon the contributing trust fund at any time or for any reason other than administration of the trust fund and operation of the plan. All administration and operating costs related to the trust fund shall be drawn from it.
[ 1986 c 142 § 7.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.90 - Child Day Care Centers—Self-Insurance. › 48.90.080 - Initial implementation of plan—Conditions.

RCW 48.90.080
Initial implementation of plan—Conditions.
The initial implementation of the plan shall be conditioned upon establishment of the minimum deposits in the contributing trust fund at least thirty days prior to the first effective date of the program for its first year of operation.
[ 1986 c 142 § 8.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.90 - Child Day Care Centers—Self-Insurance. › 48.90.090 - Standard of care in fund management—Fiduciary.

RCW 48.90.090
Standard of care in fund management—Fiduciary.
In managing the assets of the contributing trust fund, the association shall exercise the reasonable judgment and care that ordinary persons of prudence, intelligence, and discretion exercise in the sound management of their affairs, not in regard to speculation but in regard to preservation of their funds with maximum return, given the information reasonably available. The association may delegate this duty to a responsible fiduciary. If the fiduciary has special skills or represents that it has special skills, then the fiduciary is under a duty to use those skills in the management of the fund's assets.
[ 1986 c 142 § 9.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.90 - Child Day Care Centers—Self-Insurance. › 48.90.100 - Annual report.

RCW 48.90.100
Annual report.
The association shall provide an annual report of the operations of the plan to all subscribers, to the secretary of social and health services, and to the commissioner. This report shall:
(1) Review claims made, judgments entered, and claims rejected;
(2) Certify that the current level of the contributing trust fund is sufficient to meet reasonable needs, or provide a plan for establishing such a level within a reasonable time; and
(3) Make recommendations for specific measures of risk reduction.
[ 1986 c 142 § 10.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.90 - Child Day Care Centers—Self-Insurance. › 48.90.110 - Powers of association.

RCW 48.90.110
Powers of association.
The association shall have the power, in its capacity as plan administrator, to contract for or delegate services as necessary for the efficient management and operation of the plan, including but not limited to:
(1) Contracting for risk management and loss control services;
(2) Designing a continuing program of risk reduction, calling for the participation of all subscribers;
(3) Contracting for legal counsel for the defense of claims and other legal services;
(4) Consulting with the commissioner, the secretary of social and health services, or other interested state agencies with respect to any matters affecting the provision of day care for the state's children, and related risk problems; and
(5) Purchasing commercial insurance coverage in the form and amount as the subscribers may by contract agree, including reinsurance, excess coverage, and stop-loss insurance.
[ 1986 c 142 § 11.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.90 - Child Day Care Centers—Self-Insurance. › 48.90.120 - Contracts—Terms.

RCW 48.90.120
Contracts—Terms.
(1) All contracts between subscribers and the association shall be for one-year periods and shall terminate on the first day of the next fiscal year of the association following their signature. Subscribers withdrawing from participation in the plan during any contract period may do so only upon surrender of their licenses to care for children to the department of social and health services.
(2) Premiums should be annual, prorated quarterly in the event any subscriber withdraws, or any new subscriber contracts with the association to become part of the plan during the fiscal year. Subscribers should not have the power to delegate or assign the responsibility for their assessments.
(3) Contracts should provide for recovery by the association, of any assessments that are not promptly contributed, for methods of collection, and for resolution of related disputes.
[ 1986 c 142 § 12.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.90 - Child Day Care Centers—Self-Insurance. › 48.90.130 - Significant modifications in plan, statement on.

RCW 48.90.130
Significant modifications in plan, statement on.
Within six months of the beginning of any fiscal year in which significant modifications of the plan are envisioned, the association shall provide the commissioner with a statement of those modifications, setting forth the proposed changes, reasons for the changes, and reasonable alternatives, if any exist. The statement shall specifically include reference to coverage available in the commercial insurance market, together with suggested solutions within the joint self-insurance plan.
[ 1986 c 142 § 13.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.90 - Child Day Care Centers—Self-Insurance. › 48.90.140 - Dissolution of plan and association.

RCW 48.90.140
Dissolution of plan and association.
(1) If at any time the plan can no longer be operated on a sound financial basis, the association may elect to dissolve the plan, subject to explicit approval by the commissioner of a plan for dissolution. Once a plan operated by an association has been dissolved, that association may not again implement a plan pursuant to this chapter for five calendar years.
(2) At dissolution, the assets of the association represented by the contributing trust fund shall be deposited with the commissioner for a period of twenty-one years, to be made available for claims arising during that period based upon occurrences during the term of coverage. At the time of transfer of the funds, the association shall certify to the commissioner a list of all current subscribers, with their correct mailing addresses, and shall have notified all current subscribers of their obligation to keep the commissioner informed of any changes in their mailing addresses over the twenty-one year period, and that this obligation extends to their representatives, successors, assigns, and to the representatives of their estates. Upon dissolution, the association is required to provide to the commissioner a list of all plan subscribers during all of the years of operation of the plan.
At the end of the twenty-one year period, any funds remaining in the trust account must be distributed to those subscribers who were current subscribers in the most recent year of operation of the plan, with each current subscriber receiving an equal share of the distribution, without regard for the length of time each child day care center was a subscriber.
In the alternative, in the discretion of the association, the balance of the contributing trust fund may be used to purchase similar or more liberal coverage from a commercial insurer. Each subscriber shall, however, be given the option to deposit its share of the fund with the commissioner as provided in this section if it elects not to participate in the proposed commercial insurance.
[ 2003 c 248 § 24; 1986 c 142 § 14.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.90 - Child Day Care Centers—Self-Insurance. › 48.90.150 - Recovery limits.

RCW 48.90.150
Recovery limits.
No person with a claim covered by a plan established pursuant to this chapter shall be entitled to recover from the plan any amount in excess of the limits of coverage provided for in the plan.
[ 1986 c 142 § 15.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.90 - Child Day Care Centers—Self-Insurance. › 48.90.160 - Suspension of plan—Reconsideration.

RCW 48.90.160
Suspension of plan—Reconsideration.
The commissioner may disapprove, and require suspension of a plan for failure of the association to comply with any provision of this chapter, for gross mismanagement, or for wilful disregard and neglect of its fiduciary duty. The association shall have the right to request reconsideration of the commissioner's decision within fifteen days of the receipt of the commissioner's written notification of the decision, or to request a hearing according to chapter 48.04 RCW.
[ 1986 c 142 § 16.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.90 - Child Day Care Centers—Self-Insurance. › 48.90.170 - Costs of investigation or review of plan.

RCW 48.90.170
Costs of investigation or review of plan.
All reasonable costs of any investigation or review by the commissioner of an association's plan of organization and operation, or any changes or modifications thereof, including the dissolution of a plan, shall be paid by the association before issuance of any approval required under this chapter.
[ 1986 c 142 § 17.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.92 - Liability Risk Retention. › 48.92.010 - Purpose.

RCW 48.92.010
Purpose.
The purpose of this chapter is to regulate the formation and operation of risk retention groups and purchasing groups in this state formed pursuant to the provisions of the federal Liability Risk Retention Act of 1986.
[ 1993 c 462 § 91; 1987 c 306 § 1.]
NOTES:
Severability—Implementation—1993 c 462: See RCW 48.31B.901 and 48.31B.902.
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.92 - Liability Risk Retention. › 48.92.030 - Requirements for chartering.

RCW 48.92.030
Requirements for chartering.
(1) A risk retention group seeking to be chartered in this state must be chartered and licensed as a liability insurance company authorized by the insurance laws of this state and, except as provided elsewhere in this chapter, must comply with all of the laws, rules, regulations, and requirements applicable to the insurers chartered and licensed in this state and with RCW 48.92.040 to the extent the requirements are not a limitation on laws, rules, regulations, or requirements of this state.
(2) A risk retention group chartered in this state shall file with the department and the National Association of Insurance Commissioners an annual statement in a form prescribed by the National Association of Insurance Commissioners, and in electronic form if required by the commissioner, and completed in accordance with its instructions and the National Association of Insurance Commissioners accounting practices and procedures manual.
(3) Before it may offer insurance in any state, each domestic risk retention group shall also submit for approval to the insurance commissioner of this state a plan of operation or a feasibility study. The risk retention group shall submit an appropriate revision in the event of a subsequent material change in an item of the plan of operation or feasibility study, within ten days of the change. The group may not offer any additional kinds of liability insurance, in this state or in any other state, until a revision of the plan or study is approved by the commissioner.
(4) At the time of filing its application for charter, the risk retention group shall provide to the commissioner in summary form the following information: The identity of the initial members of the group; the identify of those individuals who organized the group or who will provide administrative services or otherwise influence or control the activities of the group; the amount and nature of the initial capitalization; the coverages to be afforded; and the states in which the group intends to operate. Upon receipt of this information, the commissioner shall forward the information to the National Association of Insurance Commissioners. Providing notification to the National Association of Insurance Commissioners is in addition to and is not sufficient to satisfy the requirements of RCW 48.92.040 or this chapter.
[ 1993 c 462 § 93; 1987 c 306 § 3.]
NOTES:
Severability—Implementation—1993 c 462: See RCW 48.31B.901 and 48.31B.902.
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.92 - Liability Risk Retention. › 48.92.050 - Insolvency guaranty fund, participation prohibited—Joint underwriting associations, participation required.

RCW 48.92.050
Insolvency guaranty fund, participation prohibited—Joint underwriting associations, participation required.
(1) No risk retention group shall be permitted to join or contribute financially to any insurance insolvency guaranty fund, or similar mechanism, in this state, nor shall any risk retention group, or its insureds or claimants against its insureds, receive any benefit from any such fund for claims arising under the insurance policies issued by a risk retention group.
(2) A risk retention group shall participate in this state's joint underwriting associations and mandatory liability pools or plans required by the commissioners.
(3) When a purchasing group obtains insurance covering its members' risks from an insurer not authorized in this state or a risk retention group, no such risks, wherever resident or located, are covered by an insurance guaranty fund or similar mechanism in this state.
(4) When a purchasing group obtains insurance covering its members' risks from an authorized insurer, only risks resident or located in this state are covered by the state guaranty fund established in chapter 48.32 RCW.
[ 1993 c 462 § 95; 1987 c 306 § 5.]
NOTES:
Severability—Implementation—1993 c 462: See RCW 48.31B.901 and 48.31B.902.
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.92 - Liability Risk Retention. › 48.92.060 - Countersigning not required.

RCW 48.92.060
Countersigning not required.
A policy of insurance issued to a risk retention group or any member of that group shall not be required to be countersigned.
[ 1987 c 306 § 6.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.92 - Liability Risk Retention. › 48.92.070 - Purchasing groups—Exempt from certain laws.

RCW 48.92.070
Purchasing groups—Exempt from certain laws.
A purchasing group and its insurer or insurers are subject to all applicable laws of this state, except that a purchasing group and its insurer or insurers are exempt, in regard to liability insurance for the purchasing group, from any law that:
(1) Prohibits the establishment of a purchasing group;
(2) Makes it unlawful for an insurer to provide or offer to provide insurance on a basis providing, to a purchasing group or its members, advantages based on their loss and expense experience not afforded to other persons with respect to rates, policy forms, coverages, or other matters;
(3) Prohibits a purchasing group or its members from purchasing insurance on a group basis described in subsection (2) of this section;
(4) Prohibits a purchasing group from obtaining insurance on a group basis because the group has not been in existence for a minimum period of time or because any member has not belonged to the group for a minimum period of time;
(5) Requires that a purchasing group must have a minimum number of members, common ownership or affiliation, or certain legal form;
(6) Requires that a certain percentage of a purchasing group must obtain insurance on a group basis;
(7) Otherwise discriminates against a purchasing group or any of its members.
[ 1993 c 462 § 96; 1987 c 306 § 7.]
NOTES:
Severability—Implementation—1993 c 462: See RCW 48.31B.901 and 48.31B.902.
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.92 - Liability Risk Retention. › 48.92.080 - Purchasing groups—Notice and registration.

RCW 48.92.080
Purchasing groups—Notice and registration.
(1) A purchasing group which intends to do business in this state shall furnish, before doing business, notice to the commissioner, on forms prescribed by the National Association of Insurance Commissioners which shall:
(a) Identify the state in which the group is domiciled;
(b) Identify all other states in which the group intends to do business;
(c) Specify the lines and classifications of liability insurance which the purchasing group intends to purchase;
(d) Identify the insurance company or companies from which the group intends to purchase its insurance and the domicile of that company or companies;
(e) Specify the method by which, and the person or persons, if any, through whom insurance will be offered to its members whose risks are resident or located in this state;
(f) Identify the principal place of business of the group; and
(g) Provide any other information as may be required by the commissioner to verify that the purchasing group is qualified under RCW 48.92.020(10).
(2) A purchasing group shall, within ten days, notify the commissioner of any changes in any of the items set forth in subsection (1) of this section.
(3) The purchasing group shall register with and designate the commissioner as its agent solely for the purpose of receiving service of legal documents or process, except that this requirement shall not apply in the case of a purchasing group that only purchases insurance that was authorized under the federal Product Liability Risk Retention Act of 1981 and:
(a) Which in any state of the United States:
(i) Was domiciled before April 1, 1986; and
(ii) Is domiciled on and after October 27, 1986;
(b) Which:
(i) Before October 27, 1986, purchased insurance from an insurance carrier licensed in any state;
(ii) Since October 27, 1986, purchased its insurance from an insurance carrier licensed in any state; or
(c) Which was a purchasing group under the requirements of the federal Product Liability Risk Retention Act of 1981 before October 27, 1986.
(4) A purchasing group that is required to give notice under subsection (1) of this section shall also furnish such information as may be required by the commissioner to:
(a) Verify that the entity qualifies as a purchasing group;
(b) Determine where the purchasing group is located; and
(c) Determine appropriate tax treatment.
[ 1993 c 462 § 97; 1987 c 306 § 8.]
NOTES:
Severability—Implementation—1993 c 462: See RCW 48.31B.901 and 48.31B.902.
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.92 - Liability Risk Retention. › 48.92.090 - Purchasing groups—Dealing with foreign insurers—Deductible or self-insured retention—Aggregate limits.

RCW 48.92.090
Purchasing groups—Dealing with foreign insurers—Deductible or self-insured retention—Aggregate limits.
(1) A purchasing group may not purchase insurance from a risk retention group that is not chartered in a state or from an insurer not admitted in the state in which the purchasing group is located, unless the purchase is effected through a licensed insurance producer acting pursuant to the surplus lines laws and regulations of that state.
(2) A purchasing group that obtains liability insurance from an insurer not admitted in this state or a risk retention group shall inform each of the members of the group that have a risk resident or located in this state that the risk is not protected by an insurance insolvency guaranty fund in this state, and that the risk retention group or insurer may not be subject to all insurance laws and rules of this state.
(3) No purchasing group may purchase insurance providing for a deductible or self-insured retention applicable to the group as a whole; however, coverage may provide for a deductible or self-insured retention applicable to individual members.
(4) Purchases of insurance by purchasing groups are subject to the same standards regarding aggregate limits that are applicable to all purchases of group insurance.
[ 2008 c 217 § 70; 1993 c 462 § 98; 1987 c 306 § 9.]
NOTES:
Severability—Effective date—2008 c 217: See notes following RCW 48.03.020.
Severability—Implementation—1993 c 462: See RCW 48.31B.901 and 48.31B.902.
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.92 - Liability Risk Retention. › 48.92.095 - Premium taxes—Imposition—Obligations—Member's liability.

RCW 48.92.095
Premium taxes—Imposition—Obligations—Member's liability.
Premium taxes and taxes on premiums paid for coverage of risks resident or located in this state by a purchasing group or any members of the purchasing groups must be:
(1) Imposed at the same rate and subject to the same interest, fines, and penalties as those applicable to premium taxes and taxes on premiums paid for similar coverage from authorized insurers, as defined under chapter 48.05 RCW, or unauthorized insurers, as defined and provided for under chapter 48.15 RCW, by other insurers; and
(2) The obligation of the insurer; and if not paid by the insurer, then the obligation of the purchasing group; and if not paid by the purchasing group, then the obligation of the insurance producer for the purchasing group; and if not paid by the insurance producer for the purchasing group, then the obligation of each of the purchasing group's members. The liability of each member of the purchasing group is several, not joint, and is limited to the tax due in relation to the premiums paid by that member.
[ 2008 c 217 § 71; 1993 c 462 § 99.]
NOTES:
Severability—Effective date—2008 c 217: See notes following RCW 48.03.020.
Severability—Implementation—1993 c 462: See RCW 48.31B.901 and 48.31B.902.
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.92 - Liability Risk Retention. › 48.92.100 - Authority of commissioner.

RCW 48.92.100
Authority of commissioner.
The commissioner is authorized to make use of any of the powers established under Title 48 RCW to enforce the laws of this state so long as those powers are not specifically preempted by the federal Product Liability Risk Retention Act of 1981, as amended by the federal Risk Retention Amendments of 1986. This includes, but is not limited to, the commissioner's administrative authority to investigate, issue subpoenas, conduct depositions and hearings, issue orders, impose penalties, and seek injunctive relief. With regard to any investigation, administrative proceedings, or litigation, the commissioner can rely on the procedural law and regulations of the state. The injunctive authority of the commissioner in regard to risk retention groups is restricted by the requirement that any injunction be issued by a court of competent jurisdiction.
[ 1993 c 462 § 100; 1987 c 306 § 10.]
NOTES:
Severability—Implementation—1993 c 462: See RCW 48.31B.901 and 48.31B.902.
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.92 - Liability Risk Retention. › 48.92.110 - Penalties.

RCW 48.92.110
Penalties.
A risk retention group which violates any provision of this chapter shall be subject to fines and penalties applicable to licensed insurers generally, including revocation of its license and/or the right to do business in this state.
[ 1987 c 306 § 11.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.92 - Liability Risk Retention. › 48.92.120 - Soliciting, negotiating, or procuring liability insurance—License required.

RCW 48.92.120
Soliciting, negotiating, or procuring liability insurance—License required.
(1) A person may not act or aid in any manner in soliciting, negotiating, or procuring liability insurance in this state from a risk retention group unless the person is licensed as an insurance producer for casualty insurance in accordance with chapter 48.17 RCW and pays the fees designated for the license under RCW 48.14.010.
(2)(a) A person may not act or aid in any manner in soliciting, negotiating, or procuring liability insurance in this state for a purchasing group from an authorized insurer or a risk retention group chartered in a state unless the person is licensed as an insurance producer for casualty insurance in accordance with chapter 48.17 RCW and pays the fees designated for the license under RCW 48.14.010.
(b) A person may not act or aid in any manner in soliciting, negotiating, or procuring liability insurance coverage in this state for a member of a purchasing group under a purchasing group's policy unless the person is licensed as an insurance producer for casualty insurance in accordance with chapter 48.17 RCW and pays the fees designated for the license under RCW 48.14.010.
(c) A person may not act or aid in any manner in soliciting, negotiating, or procuring liability insurance from an insurer not authorized to do business in this state on behalf of a purchasing group located in this state unless the person is licensed as a surplus line broker in accordance with chapter 48.15 RCW and pays the fees designated for the license under RCW 48.14.010.
(3) For purposes of acting as an insurance producer for a risk retention group or purchasing group under subsections (1) and (2) of this section, the requirement of residence in this state does not apply.
(4) Every person licensed under chapters 48.15 and 48.17 RCW, on business placed with risk retention groups or written through a purchasing group, must inform each prospective insured of the provisions of the notice required under RCW 48.92.040(7) in the case of a risk retention group and RCW 48.92.090(2) in the case of a purchasing group.
[ 2008 c 217 § 72; 2005 c 223 § 31; 1993 c 462 § 101; 1987 c 306 § 12.]
NOTES:
Severability—Effective date—2008 c 217: See notes following RCW 48.03.020.
Severability—Implementation—1993 c 462: See RCW 48.31B.901 and 48.31B.902.
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.92 - Liability Risk Retention. › 48.92.130 - Federal injunctions.

RCW 48.92.130
Federal injunctions.
An order issued by any district court of the United States enjoining a risk retention group from soliciting or selling insurance, or operating, in any state or in all states or in any territory or possession of the United States, upon a finding that the group is in a hazardous financial or financially impaired condition, shall be enforceable in the courts of the state.
[ 1993 c 462 § 102; 1987 c 306 § 13.]
NOTES:
Severability—Implementation—1993 c 462: See RCW 48.31B.901 and 48.31B.902.
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.92 - Liability Risk Retention. › 48.92.140 - Rules.

RCW 48.92.140
Rules.
The commissioner may establish and from time to time amend the rules relating to risk retention or purchasing groups as may be necessary or desirable to carry out the provisions of this chapter.
[ 1993 c 462 § 103; 1987 c 306 § 14.]
NOTES:
Severability—Implementation—1993 c 462: See RCW 48.31B.901 and 48.31B.902.
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.94 - Reinsurance Intermediary Act. › 48.94.015 - Written authorization required between a reinsurance intermediary-broker and an insurer—Minimum provisions.

RCW 48.94.015
Written authorization required between a reinsurance intermediary-broker and an insurer—Minimum provisions.
Brokers transactions between a reinsurance intermediary-broker and the insurer it represents in such capacity may be entered into only under a written authorization, specifying the responsibilities of each party. The authorization must, at a minimum, provide that:
(1) The insurer may terminate the reinsurance intermediary-broker's authority at any time.
(2) The reinsurance intermediary-broker shall render accounts to the insurer accurately detailing all material transactions, including information necessary to support all commissions, charges, and other fees received by, or owing, to the reinsurance intermediary-broker, and remit all funds due to the insurer within thirty days of receipt.
(3) All funds collected for the insurer's account must be held by the reinsurance intermediary-broker in a fiduciary capacity in a bank that is a qualified United States financial institution as defined in this chapter.
(4) The reinsurance intermediary-broker will comply with RCW 48.94.020.
(5) The reinsurance intermediary-broker will comply with the written standards established by the insurer for the cession or retrocession of all risks.
(6) The reinsurance intermediary-broker will disclose to the insurer any relationship with any reinsurer to which business will be ceded or retroceded.
[ 1993 c 462 § 25.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.94 - Reinsurance Intermediary Act. › 48.94.020 - Accounts and records maintained by reinsurance intermediary-broker—Access by insurer.

RCW 48.94.020
Accounts and records maintained by reinsurance intermediary-broker—Access by insurer.
(1) For at least ten years after expiration of each contract of reinsurance transacted by the reinsurance intermediary-broker, the reinsurance intermediary-broker shall keep a complete record for each transaction showing:
(a) The type of contract, limits, underwriting restrictions, classes, or risks and territory;
(b) Period of coverage, including effective and expiration dates, cancellation provisions, and notice required of cancellation;
(c) Reporting and settlement requirements of balances;
(d) Rate used to compute the reinsurance premium;
(e) Names and addresses of assuming reinsurers;
(f) Rates of all reinsurance commissions, including the commissions on any retrocessions handled by the reinsurance intermediary-broker;
(g) Related correspondence and memoranda;
(h) Proof of placement;
(i) Details regarding retrocessions handled by the reinsurance intermediary-broker including the identity of retrocessionaires and percentage of each contract assumed or ceded;
(j) Financial records, including but not limited to, premium and loss accounts; and
(k) When the reinsurance intermediary-broker procures a reinsurance contract on behalf of a licensed ceding insurer:
(i) Directly from any assuming reinsurer, written evidence that the assuming reinsurer has agreed to assume the risk; or
(ii) If placed through a representative of the assuming reinsurer, other than an employee, written evidence that the reinsurer has delegated binding authority to the representative.
(2) The insurer has access and the right to copy and audit all accounts and records maintained by the reinsurance intermediary-broker related to its business in a form usable by the insurer.
[ 1993 c 462 § 26.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.94 - Reinsurance Intermediary Act. › 48.94.025 - Restrictions on insurer—Obtaining services—Employees—Financial condition of reinsurance intermediary.

RCW 48.94.025
Restrictions on insurer—Obtaining services—Employees—Financial condition of reinsurance intermediary.
(1) An insurer may not engage the services of a person, firm, association, or corporation to act as a reinsurance intermediary-broker on its behalf unless the person is licensed as required by RCW 48.94.010(1).
(2) An insurer may not employ an individual who is employed by a reinsurance intermediary-broker with which it transacts business, unless the reinsurance intermediary-broker is under common control with the insurer and subject to the insurer holding company act, chapter 48.31B RCW.
(3) The insurer shall annually obtain a copy of statements of the financial condition of each reinsurance intermediary-broker with which it transacts business.
[ 1993 c 462 § 27.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.94 - Reinsurance Intermediary Act. › 48.94.035 - Restrictions on reinsurance intermediary-manager—Retrocessions—Syndicates—Licenses—Employees.

RCW 48.94.035
Restrictions on reinsurance intermediary-manager—Retrocessions—Syndicates—Licenses—Employees.
The reinsurance intermediary-manager may not:
(1) Cede retrocessions on behalf of the reinsurer, except that the reinsurance intermediary-manager may cede facultative retrocessions under obligatory automatic agreements if the contract with the reinsurer contains reinsurance underwriting guidelines for the retrocessions. The guidelines must include a list of reinsurers with which the automatic agreements are in effect, and for each such reinsurer, the coverages and amounts or percentages that may be reinsured, and commission schedules.
(2) Commit the reinsurer to participate in reinsurance syndicates.
(3) Appoint a reinsurance intermediary without assuring that the reinsurance intermediary is lawfully licensed to transact the type of reinsurance for which he or she is appointed.
(4) Without prior approval of the reinsurer, pay or commit the reinsurer to pay a claim, net of retrocessions, that exceeds the lesser of an amount specified by the reinsurer or one percent of the reinsurer's policyholder's surplus as of December 31st of the last complete calendar year.
(5) Collect a payment from a retrocessionaire or commit the reinsurer to a claim settlement with a retrocessionaire, without prior approval of the reinsurer. If prior approval is given, a report must be promptly forwarded to the reinsurer.
(6) Jointly employ an individual who is employed by the reinsurer unless the reinsurance intermediary-manager is under common control with the reinsurer subject to the insurer holding company act, chapter 48.31B RCW.
(7) Appoint a subreinsurance intermediary-manager.
[ 1993 c 462 § 29.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.94 - Reinsurance Intermediary Act. › 48.94.040 - Restrictions on reinsurer—Financial condition of reinsurance intermediary-manager—Loss reserves—Retrocessions—Termination of contract—Board of directors.

RCW 48.94.040
Restrictions on reinsurer—Financial condition of reinsurance intermediary-manager—Loss reserves—Retrocessions—Termination of contract—Board of directors.
(1) A reinsurer may not engage the services of a person, firm, association, or corporation to act as a reinsurance intermediary-manager on its behalf unless the person is licensed as required by RCW 48.94.010(2).
(2) The reinsurer shall annually obtain a copy of statements of the financial condition of each reinsurance intermediary-manager that the reinsurer has had prepared by an independent certified accountant in a form acceptable to the commissioner.
(3) If a reinsurance intermediary-manager establishes loss reserves, the reinsurer shall annually obtain the opinion of an actuary attesting to the adequacy of loss reserves established for losses incurred and outstanding on business produced by the reinsurance intermediary-manager. This opinion is in addition to any other required loss reserve certification.
(4) Binding authority for all retrocessional contracts or participation in reinsurance syndicates must rest with an officer of the reinsurer who is not affiliated with the reinsurance intermediary-manager.
(5) Within thirty days of termination of a contract with a reinsurance intermediary-manager, the reinsurer shall provide written notification of the termination to the commissioner.
(6) A reinsurer may not appoint to its board of directors an officer, director, employee, controlling shareholder, or subproducer of its reinsurance intermediary-manager. This subsection does not apply to relationships governed by the insurer holding company act, chapter 48.31B RCW, or, if applicable, the producer-controlled property and casualty insurer act, chapter 48.97 RCW.
[ 2008 c 217 § 74; 1993 c 462 § 30.]
NOTES:
Severability—Effective date—2008 c 217: See notes following RCW 48.03.020.
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.94 - Reinsurance Intermediary Act. › 48.94.045 - Examination by commissioner.

RCW 48.94.045
Examination by commissioner.
(1) A reinsurance intermediary is subject to examination by the commissioner. The commissioner has access to all books, bank accounts, and records of the reinsurance intermediary in a form usable to the commissioner.
(2) A reinsurance intermediary-manager may be examined as if it were the reinsurer.
[ 1993 c 462 § 31.]
2023 Revised Code of Washington › Title 48 - Insurance › Chapter 48.94 - Reinsurance Intermediary Act. › 48.94.050 - Violations of chapter—Penalties—Judicial review.

RCW 48.94.050
Violations of chapter—Penalties—Judicial review.
(1) A reinsurance intermediary, insurer, or reinsurer found by the commissioner, after a hearing conducted in accordance with chapters 48.17 and 34.05 RCW, to be in violation of any provision of this chapter, shall:
(a) For each separate violation, pay a penalty in an amount not exceeding five thousand dollars;
(b) Be subject to revocation or suspension of its license; and
(c) If a violation was committed by the reinsurance intermediary, make restitution to the insurer, reinsurer, rehabilitator, or liquidator of the insurer or reinsurer for the net losses incurred by the insurer or reinsurer attributable to the violation.
(2) The decision, determination, or order of the commissioner under subsection (1) of this section is subject to judicial review under this title and chapter 34.05 RCW.
(3) Nothing contained in this section affects the right of the commissioner to impose any other penalties provided in this title.
(4) Nothing contained in this chapter is intended to or in any manner limits or restricts the rights of policyholders, claimants, creditors, or other third parties or confer any rights to those persons.
[ 1993 c 462 § 32.]