Applications and binders.
(1) Every application form used in connection with homeowners', dwelling fire and vehicle insurance, shall contain a clear and conspicuous statement setting forth whether or not coverage has commenced.
(a) If coverage has commenced, the effective date shall be stated.
(b) If coverage has not commenced, there shall be an explanation as to the circumstances which will cause coverage to commence and the time when coverage will become effective.
(c) The statement concerning commencement of coverage shall not be minimized, rendered obscure, or presented in an ambiguous fashion or intermingled with the other contents of the application so as to be confusing, misleading or not readily evident.
(d) A copy of such application shall be delivered or mailed to the applicant promptly following its execution.
(2) Every binder used pending the issuance of a policy of property, marine and transportation, vehicle and general casualty insurance, as those kinds of insurance are defined in chapter 48.11
RCW, shall be reduced to writing or printed form and delivered or mailed to the insured as promptly as possible, which should generally be no later than the next business day.
(a) Such binder must be dated, identify the insurer in which coverage is bound, briefly describe the coverage bound, state the date and time coverage is effective, and acknowledge receipt of the amount of any premium money received.
(b) Such binder may be incorporated in or be attached to the application for the insurance but must be clear and conspicuous.
(3) Binders should be replaced promptly with insurance policies. With few exceptions and then only in compliance with RCW 48.18.230
(2), insurers must replace binders within ninety days of their effective date.
(4) It shall be an unfair practice and unfair competition for an insurer or insurance producer to engage in acts or practices which are contrary to or not in conformity with the requirements of this section, and a violation of this section is prohibited and shall subject an insurer and insurance producer to the penalties or procedures set forth in RCW 48.05.140
, 48.17.530, or 48.30.010.
(5) Each insurer shall inform its insurance producers and appropriate representatives of the requirements of this section.
[Statutory Authority: RCW 48.02.060
(3)(a) and 48.17.010(5). WSR 11-01-159 (Matter No. R 2010-09), § 284-30-560, filed 12/22/10, effective 1/22/11. Statutory Authority: RCW 48.02.060
(3)(a). WSR 85-02-019 (Order R 84-8), § 284-30-560, filed 12/27/84.]