Chapter 48.70 RCW

SPECIFIED DISEASE INSURANCE ACT

Sections

48.70.010Legislative intent.
48.70.020DefinitionsRules.
48.70.030Expected returns to policyholdersRules.
48.70.040Rules required.
48.70.900Application of chapter.


Legislative intent.

This chapter shall be known as the specified disease insurance act and is intended to govern the content and sale of specified disease insurance as defined in this chapter. This chapter applies in addition to, rather than in place of, other requirements of Title 48 RCW. It is the intent of the legislature to guarantee that specified disease policies issued, delivered, or used in this state provide a reasonable level of benefits to the policyholders. This chapter shall be applied broadly to ensure achievement of its aim.



DefinitionsRules.

Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.
(1) "Specified disease policy" refers to any insurance policy or contract which provides benefits to a policyholder only in the event that the policyholder contracts the disease or diseases specifically named in the policy.
(2) "Loss ratio" means the incurred claims as a percentage of the earned premium, computed under rules adopted by the commissioner. Earned premiums and incurred claims shall be computed under rules adopted by the commissioner.



Expected returns to policyholdersRules.

(1) Commencing with reports for the accounting periods beginning on or after July 1, 1983, specified disease policies shall be expected to return to policyholders in the form of aggregate loss ratios under the policy:
(a) At least seventy-five percent of the earned premiums in the case of group policies; and
(b) At least sixty percent of the earned premiums in the case of individual policies.
(2) For the purpose of this section, specified disease insurance policies issued as a result of solicitation of individuals through the mail or mass media advertising, including both print and broadcast advertising, shall be treated as individual policies.
(3) By July 1, 1983, the commissioner shall adopt rules sufficient to accomplish the provisions of this section.



Rules required.

By July 1, 1983, the commissioner shall adopt all rules necessary to ensure that specified disease policies provide a reasonable level of benefits to policyholders, and that purchasers and potential purchasers of such policies are fully informed of the level of benefits provided.



Application of chapter.

This chapter shall apply to all policies issued on or after July 1, 1983. This chapter shall not apply to services provided by health care service contractors as defined in RCW 48.44.010.