HB 1027 — Addressing surplus line broker licensing.

H-0890.1SUBSTITUTEZ-0174.1HOUSE HOUSE BILL 1027State of Washington65th Legislature2017 Regular SessionBy House Business & Financial Services (originally sponsored by Representatives Barkis, Vick, Stanford, Kirby, and Ryu;

by request of Insurance Commissioner)ANCommissionerPrefiled ACT12/08/16. Relating to surplus line broker licensing;

amendingRead RCWfirst 48.15.070time and01/09/17. 48.15.073;

andReferred providing an effective date.BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:Sec. 1.  RCW 48.15.070 and 2010 c 18 s 1 are each amended to readCommittee ason follows:AnyBusiness individual& whileFinancial aServices.AN residentACT ofRelating this state, or any firm, corporation, or other business entity that has in its employ a qualified individual who is a resident of this state and who is authorized to exercise the powers of the firm or corporation, deemed by the commissioner to be competent and trustworthy, and while maintaining an office at a designated location in this state, may be licensed as a surplus line broker inlicensing; accordance with this section.(1) An applicant and a licensee for a resident surplus line broker license must have and maintain a license from the commissioner as a resident insurance producer with property and casualty lines of authority.(2) Each applicant for a resident surplus line broker's license must pass the required examination and pay the required fee when applying for a license.(3) If a nonresident that is licensed as a resident surplus line broker in another state moves to this state and wishes to become licensed as a resident surplus line broker in this state, then the examination requirement is waived if the application is received by the commissioner within ninety days of the cancellation of the surplus line broker's resident license in the other state.(4) Application to the commissioner for the license must be made on forms furnished by the commissioner.

and amending RCW 48.15.070 and 48.15.073.BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:Sec. 1.  RCW 48.15.070 and 2010 c 18 s 1 are each amended to read as follows:Any individual while a resident of this state, or any firm, corporation, or other business entity that has in its employ a qualified individual who is a resident of this state and who is authorized to exercise the powers of the firm or corporation, deemed by the commissioner to be competent and trustworthy, and while maintaining an office at a designated location in this state, may be licensed as a surplus line broker in accordance with this section.(1) An applicant and a licensee for a resident surplus line broker license must have and maintain a license from the commissioner as a resident insurance producer with property and casualty lines of authority.(2) Each applicant for a resident surplus line broker's license must pass the required examination and pay the required fee when applying for a license.(3) If a nonresident that is licensed as a resident surplus line broker in another state moves to this state and wishes to become licensed as a resident surplus line broker in this state, then the examination requirement is waived if the application is received by the commissioner within ninety days of the cancellation of the surplus line broker's resident license in the other state.(4) Application to the commissioner for the license must be made on forms furnished by the commissioner.

Service upon the commissioner as attorney constitutes effective legal service upon the surplus line broker.(a) The appointment of the commissioner as attorney is irrevocable, binds any successor in interest or to the assets or liabilities of the surplus line broker, and remains in effect for as long as there could be any cause of action against the surplus line broker arising out of the surplus line broker's insurance transactions in this state.(b) Service of legal process must be accomplished and processed in the manner prescribed in RCW 48.02.200.NEW48.02.200.--- SECTION.  Sec. 3.  This act takes effect January 1, 2018.--- END ---