Chapter 284-36 WAC

Last Update: 10/1/18

DOMESTIC FRATERNAL MUTUAL PROPERTY INSURERS' AGENTS AND DIRECTORS

WAC Sections

284-36-010Application.
284-36-020Agent-directors permitted.
284-36-030Election or service as director prohibited.
284-36-040Fiduciary responsibilities not affected.


284-36-010
Application.

This regulation, WAC 284-36-010 through 284-36-040, shall apply only as to domestic fraternal mutual property insurers, as defined in RCW 48.36A.040 and 48.36A.390, and to any domestic stock insurer while it is a subsidiary of such a fraternal mutual property insurer.
[Statutory Authority: RCW 48.02.060. WSR 18-20-089 (Matter No. R 2018-03), § 284-36-010, filed 10/1/18, effective 11/1/18; Order R 75-5, § 284-36-010, filed 10/22/75.]



284-36-020
Agent-directors permitted.

Pursuant to the authority vested in the commissioner under RCW 48.07.130(3) up to one-third (to the nearest whole number) of the members of the board of directors of such an insurer may also be insurance agents of the insurer, and be entitled to receive, and receive from the insurer payment of, commissions or other compensation for insurance business written or serviced by them on the same bases as apply to other agents of the insurer in general. Agent-directors qualified under this provision are excepted from the prohibition contained in RCW 48.07.130(1), to the extent of their activities hereby authorized.
[Order R 75-5, § 284-36-020, filed 10/22/75.]



284-36-030
Election or service as director prohibited.

No individual who is an insurance agent of such an insurer shall be elected or serve as a member of the insurer's board of directors if thereby the number of agent-directors of the insurer would exceed one-third (to the nearest whole number) of the total regular membership of the said board. Temporary vacancies on the board of directors resulting from death, disability or resignation of a director, shall not be deemed to reduce such total regular membership.
[Order R 75-5, § 284-36-030, filed 10/22/75.]



284-36-040
Fiduciary responsibilities not affected.

Nothing in this regulations shall be deemed to affect the responsibilities of a director as a fiduciary of the insurer, its members or stockholders, or other legal responsibilities of a director.
[Order R 75-5, § 284-36-040, filed 10/22/75.]