Senate Bill 5810 - Legal Service Contractors and Legal Service Plans, Insurance Regulation (2022)

Summary

Senate Bill 5810, State of Washington, 67th Legislature, 2022 Regular Session, by Senators Mullet and Dozier, relating to insurance regulation and adding a new section to chapter 48.01 RCW. The new section states that it is the public policy of the state of Washington to promote ready access to legal assistance and counsel for all citizens of the state. It provides that legal service contractors are not insurers and legal service plans are not insurance, and that the section does not in any way affect the practice of law. It lists arrangements it does not apply to, including retainer, fee, engagement, or representation agreements made by an attorney, and referral to an attorney by a nonprofit lawyer referral service where there is no fee or charge for the referral.

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Full text

     S-3468.1

                               SENATE BILL 5810


     State of Washington       67th Legislature       2022 Regular Session

     By Senators Mullet and Dozier




 1       AN ACT Relating to insurance regulation; and adding a new section
 2   to chapter 48.01 RCW.


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


 4       NEW SECTION.   Sec. 1.   A new section is added to chapter 48.01
 5   RCW to read as follows:
 6       (1) It is the public policy of the state of Washington to promote
 7   ready access to legal assistance and counsel for all citizens of the
 8   state and to encourage programs and plans that promote arrangements
 9   between members of the public as consumers of legal services and
10   lawyers who provide legal assistance and counsel to the general
11   public for any type of legal needs.
12       (2) Legal service contractors are not insurers under RCW
13   48.01.050 and legal service plans are not insurance under RCW
14   48.01.040.
15       (3) This section does not in any way affect the practice of law
16   in this state.
17       (4) This section does not apply to or affect any of the following
18   arrangements:
19       (a) Retainer, fee, engagement, or representation agreements made
20   by an attorney or firm of attorneys with any person or group other
21   than a legal service contractor;
                                     p. 1                           SB 5810
 1       (b) Referral of individual clients to an attorney by a nonprofit
 2   lawyer referral service or public corporation or entity such as state
 3   or local bar association provided there is no fee or charge for such
 4   referral;
 5       (c) Employee welfare benefit plans to the extent that state law
 6   or regulation is preempted by federal law or regulation;
 7       (d) The provision of legal assistance to low or moderate-income
 8   persons by nonprofit legal aid organizations or legal aid programs
 9   affiliated with the Washington state bar association, a local bar
10   association, a law school accredited by the American bar association,
11   or a program operated in conjunction with a paralegal education
12   program approved by the American bar association; or
13       (e) Policies of insurance, or coverage incidental to such
14   insurance which may include legal defense, issued by an insurer
15   holding a valid certificate of authority in this state and issued
16   under applicable laws in this title pertaining to such insurance.
17       (5) For the purposes of this section:
18       (a) "Legal service contractor" means any person, entity, or group
19   of persons, including associations, who does not engage in the
20   practice of law or the business of insurance and who, for
21   consideration, provides members with access to legal services through
22   agreements with providing attorneys.
23       (b) "Legal service plan" or "plan" means an arrangement between a
24   legal service contractor and an individual or person or group of
25   individuals or persons, whereby specified legal services may be
26   provided to, or provided at discounted rates to members by providing
27   attorneys in consideration of a periodic payment that does not
28   constitute payment of attorney fees of any providing attorneys.
29       (c) "Member" means an individual, person, or group of individuals
30   or persons eligible to receive legal services under a legal service
31   plan.
32       (d) "Providing attorney" means an attorney licensed, in good
33   standing, and eligible to practice law in this state who provides
34   legal services under a providing attorney agreement in accordance
35   with the terms of the legal service plan, and pursuant to an
36   engagement agreement between the providing attorney and the member.
37       (e) "Providing attorney agreement" means a written contract or
38   agreement between a legal service contractor and a providing attorney



                                     p. 2                          SB 5810
1   under which the providing attorney renders     and   provides    legal
2   services to members of a legal service plan.

                               --- END ---




                                  p. 3                              SB 5810


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