State of Washington 68th Legislature 2023 Regular Session
By Senators Wellman, Keiser, Kuderer, Nobles, and SaldaƱa
Prefiled 12/15/22. Read first time 01/09/23. Referred to Committee
on Business, Financial Services, Gaming & Trade.
1 AN ACT Relating to adding sublimits of coverage to an insurance
2 policy's declaration page; and amending RCW 48.18.140.
4 Sec. 1. RCW 48.18.140 and 2002 c 344 s 1 are each amended to
5 read as follows:
6 (1) The written instrument, in which a contract of insurance is
7 set forth, is the policy.
8 (2) A policy shall specify:
9 (a) The names of the parties to the contract. The insurer's name
10 shall be clearly shown in the policy.
11 (b) The subject of the insurance.
12 (c) The risk insured against.
13 (d) The time at which the insurance thereunder takes effect and
14 the period during which the insurance is to continue.
15 (e) A statement of the premium, and if other than life,
16 disability, or title insurance, the premium rate where applicable.
17 (f) The conditions pertaining to the insurance.
18 (3) If under the contract the exact amount of premiums is
19 determinable only at termination of the contract, a statement of the
20 basis and rates upon which the final premium is to be determined and
21 paid shall be specified in the policy.
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1 (4)(a) Periodic payment plans for private passenger automobile
2 insurance shall allow a specific day of the month for a due date for
3 payment of premiums. A late charge may not be required if payment is
4 received within five days of the date payment is due.
5 (b) The commissioner shall adopt rules to implement this
6 subsection and shall take no disciplinary action against an insurer
7 until ninety days after the effective date of the rule.
8 (5)(a) A residential insurance policy that contains sublimits
9 shall include on the policy's declarations page a statement that the
10 policy may limit the amount of coverage available for certain losses,
11 and that the insured should review the policy carefully.
12 (b) For the purposes of this subsection (5) only:
13 (i) "Residential insurance policies" include all homeowners,
14 renters, condominium, mobile home, and manufactured home personal
15 insurance policies.
16 (ii) "Sublimit" means a limitation in a personal insurance policy
17 on the limits of coverage available to cover certain losses that are
18 lower than the overall policy limits.
19 (c) The entire declarations page must be delivered to the insured
20 at every policy renewal.
21 (d) This subsection applies to residential insurance policies
22 issued or renewed on or after January 1, 2024.
23 (e) This subsection shall not apply to policies issued pursuant
24 to chapter 48.15 RCW.
25 (6) This section shall not apply to surety insurance contracts.
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Statutes affected:
Original Bill: 48.18.140