Guarantee of officers' obligations prohibited.
Applied in 1 court decision — leading case 50 Wash. App. 299 - B & D LEASING CO. v. Ager (1988)
Most recently applied in 50 Wash. App. 299 - B & D LEASING CO. v. Ager (January 1988)
2009 c 549 s 7026; 1947 c 79 s .07.08; Rem
No domestic insurer or its affiliates or subsidiaries shall guarantee the financial obligation of any director or officer of such insurer or affiliate or subsidiary in his or her personal capacity, and any such guaranty attempted shall be void.
This prohibition shall not apply to obligations of the insurer under surety bonds or insurance contracts issued in the regular course of business.
Official source: Washington State Legislature. Reproduced from public-domain Washington statutes; confirm against the official source for the current text. Not legal advice.