48.164.105 - Association funded by premiums -- Assessments authorized.

Association funded by premiums — Assessments authorized. (Expires December 31, 2016.)

(1) The association is funded by premiums paid by persons insured by the association.

     (a) All premiums for the association must be deposited into a fund or funds under management of the board.

     (b) Premiums must be used to pay claims, administrative costs, and other expenses of the association.

     (2) The association may assess its members to pay past and future financial obligations of the association, not funded by premiums. Each member insurer must be assessed a proportionate share based on the sum of direct premiums earned in this state for all property insurance and casualty insurance.

     (3) If the association makes an assessment, an assessed insurer must pay the association within thirty days after it receives notice of the assessment. If an insurer does not pay an assessment within thirty days after it receives notice of the assessment:

     (a) The assessment accrues interest at the maximum legal rate until it is paid in full. The interest is paid to the association;

     (b) The association may collect the assessment in a civil action and must be awarded its attorneys' fees if it prevails;

     (c) The commissioner may suspend, revoke, or refuse to renew an insurer's certificate of authority; and

     (d) The commissioner may fine the insurer up to ten thousand dollars.

     (4) This section may be enforced under RCW 48.02.080.

[2010 c 230 § 12.]