RCW 48.30.260
Right of debtor or borrower to select agent,
broker, insurer. (Effective until July 1, 2009.)
(1) Every
debtor or borrower, when property insurance of any kind is
required in connection with the debt or loan, shall have
reasonable opportunity and choice in the selection of the agent,
broker, and insurer through whom such insurance is to be placed;
but only if the insurance is properly provided for the protection
of the creditor or lender, whether by policy or binder, not later
than at commencement of risk as to such property as respects such
creditor or lender, and in the case of renewal of insurance, only
if the renewal policy, or a proper binder therefor containing a
brief description of the coverage bound and the identity of the
insurer in which the coverage is bound, is delivered to the
creditor or lender not later than thirty days prior to the
renewal date.
(2) Every person who lends money or extends credit and who
solicits insurance on real and personal property must explain to
the borrower in prominently displayed writing that the insurance
related to such loan or credit extension may be purchased from an
insurer or agent of the borrower's choice, subject only to the
lender's right to reject a given insurer or agent as provided in
subsection (3)(b) of this section.
(3) No person who lends money or extends credit may:
(a) Solicit insurance for the protection of property, after
a person indicates interest in securing a loan or credit
extension, until such person has received a commitment from the
lender as to a loan or credit extension;
(b) Unreasonably reject a contract of insurance furnished by
the borrower for the protection of the property securing the
credit or lien. A rejection shall not be deemed unreasonable if
it is based on reasonable standards, uniformly applied, relating
to the extent of coverage required and the financial soundness
and the services of an insurer. Such standards shall not
discriminate against any particular type of insurer, nor shall
such standards call for rejection of an insurance contract
because the contract contains coverage in addition to that
required in the credit transaction;
(c) Require that any borrower, mortgagor, purchaser,
insurer, broker, or agent pay a separate charge, in connection
with the handling of any contract of insurance required as
security for a loan, or pay a separate charge to substitute the
insurance policy of one insurer for that of another. This
subsection does not include the interest which may be charged on
premium loans or premium advancements in accordance with the
terms of the loan or credit document;
(d) Use or disclose, without the prior written consent of
the borrower, mortgagor, or purchaser taken at a time other than
the making of the loan or extension of credit, information
relative to a contract of insurance which is required by the
credit transaction, for the purpose of replacing such insurance;
(e) Require any procedures or conditions of duly licensed
agents, brokers, or insurers not customarily required of those
agents, brokers, or insurers affiliated or in any way connected
with the person who lends money or extends credit; or
(f) Require property insurance in an amount in excess of the
amount which could reasonably be expected to be paid under the
policy, or combination of policies, in the event of a loss.
(4) Nothing contained in this section shall prevent a person
who lends money or extends credit from placing insurance on real
or personal property in the event the mortgagor, borrower, or
purchaser has failed to provide required insurance in accordance
with the terms of the loan or credit document.
(5) Nothing contained in this section shall apply to credit
life or credit disability insurance.
[1990 1st ex.s. c 3 § 13; 1988 c 248 § 18; 1984 c 6 § 2; 1977 c 61 § 1; 1957 c 193 § 20.]
RCW 48.30.260
Right of debtor or borrower to select
insurance producer or insurer. (Effective July 1, 2009.)
(1)
Every debtor or borrower, when property insurance of any kind is
required in connection with the debt or loan, shall have
reasonable opportunity and choice in the selection of the
insurance producer and insurer through whom such insurance is to
be placed; but only if the insurance is properly provided for the
protection of the creditor or lender, whether by policy or
binder, not later than at commencement of risk as to such
property as respects such creditor or lender, and in the case of
renewal of insurance, only if the renewal policy, or a proper
binder therefor containing a brief description of the coverage
bound and the identity of the insurer in which the coverage is
bound, is delivered to the creditor or lender not later than
thirty days prior to the renewal date.
(2) Every person who lends money or extends credit and who
solicits insurance on real and personal property must explain to
the borrower in prominently displayed writing that the insurance
related to such loan or credit extension may be purchased from an
insurer or insurance producer of the borrower's choice, subject
only to the lender's right to reject a given insurer or insurance
producer as provided in subsection (3)(b) of this section.
(3) No person who lends money or extends credit may:
(a) Solicit insurance for the protection of property, after
a person indicates interest in securing a loan or credit
extension, until such person has received a commitment from the
lender as to a loan or credit extension;
(b) Unreasonably reject a contract of insurance furnished by
the borrower for the protection of the property securing the
credit or lien. A rejection shall not be deemed unreasonable if
it is based on reasonable standards, uniformly applied, relating
to the extent of coverage required and the financial soundness
and the services of an insurer. Such standards shall not
discriminate against any particular type of insurer, nor shall
such standards call for rejection of an insurance contract
because the contract contains coverage in addition to that
required in the credit transaction;
(c) Require that any borrower, mortgagor, purchaser,
insurer, or insurance producer pay a separate charge, in
connection with the handling of any contract of insurance
required as security for a loan, or pay a separate charge to
substitute the insurance policy of one insurer for that of
another. This subsection does not include the interest which may
be charged on premium loans or premium advancements in accordance
with the terms of the loan or credit document;
(d) Use or disclose, without the prior written consent of
the borrower, mortgagor, or purchaser taken at a time other than
the making of the loan or extension of credit, information
relative to a contract of insurance which is required by the
credit transaction, for the purpose of replacing such insurance;
(e) Require any procedures or conditions of duly licensed
insurance producers or insurers not customarily required of those
insurance producers or insurers affiliated or in any way
connected with the person who lends money or extends credit; or
(f) Require property insurance in an amount in excess of the
amount which could reasonably be expected to be paid under the
policy, or combination of policies, in the event of a loss.
(4) Nothing contained in this section shall prevent a person
who lends money or extends credit from placing insurance on real
or personal property in the event the mortgagor, borrower, or
purchaser has failed to provide required insurance in accordance
with the terms of the loan or credit document.
(5) Nothing contained in this section shall apply to credit
life or credit disability insurance.
[2008 c 217 § 41; 1990 1st ex.s. c 3 § 13; 1988 c 248 § 18; 1984 c 6 § 2; 1977 c 61 § 1; 1957 c 193 § 20.]
NOTES:
Severability -- Effective date -- 2008 c 217: See notes following RCW 48.03.020.