Senate Bill 6244 — Insurance Policy Sublimits on the Declarations Page (Washington, 2020)

Summary

Senate Bill 6244, State of Washington, 66th Legislature, 2020 Regular Session, by Senators Wellman, Das, Hasegawa, Wilson, C., and Saldaña, read the first time January 14, 2020 and referred to the Committee on Financial Institutions, Economic Development & Trade. The bill is an act relating to notification of insurance policy sublimits on the policy's declarations page, adding a new section to chapter 48.18 RCW. It would require any rider, endorsement, or application attached to a policy to be noted clearly on the declarations page, and a sublimit's amount to be included in its description. Section 3 provides that the act takes effect July 1, 2021.

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Full text

     S-5204.2

                                  SENATE BILL 6244


     State of Washington          66th Legislature      2020 Regular Session

     By Senators Wellman, Das, Hasegawa, Wilson, C., and Saldaña

     Read first time 01/14/20.       Referred to     Committee   on   Financial
     Institutions, Economic Development & Trade.




 1       AN ACT Relating to notification of insurance policy sublimits on
 2   the policy's declarations page; adding a new section to chapter 48.18
 3   RCW; creating a new section; and providing an effective date.


 4   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:


 5       NEW SECTION.      Sec. 1.      The legislature finds that the
 6   declarations page of an insurance policy – the front page or pages
 7   specifying the named insured, address, policy period, location of
 8   premises, policy limits, and other key information – is essential to
 9   policyholders' ability to understand a policy and the losses it may
10   cover. The legislature also finds that certain insurance policies
11   contain riders, endorsements, or applications that sublimit coverage,
12   setting a maximum dollar amount or percentage available to cover
13   specific types of loss, and that this maximum amount may be less than
14   the policy limit indicated on the declarations page. The legislature
15   finds that the existence of any such sublimits to coverage should be
16   noted on the declarations page in order to ensure that policyholders
17   accurately understand a policy's coverage.


18       NEW SECTION.   Sec. 2.    A new section is added to chapter 48.18
19   RCW to read as follows:


                                        p. 1                            SB 6244
1       Any rider, endorsement, or application attached to and made a
2   part of a policy must be noted clearly and unambiguously on the
3   declarations page of that policy form. The description of the rider,
4   endorsement, or application must include whether it expands or
5   restricts coverage from the base policy. Any rider, endorsement, or
6   application that creates or enforces a sublimit within its coverage
7   must include the amount of the sublimit in its description.

8      NEW SECTION.   Sec. 3.   This act takes effect July 1, 2021.

                                  --- END ---




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