ENGROSSED SENATE BILL 6322
State of Washington 52nd Legislature 1992 Regular Session
By Senators Vognild, Owen and Moore
Read first time 01/24/92. Referred to Committee on Commerce & Labor.
AN ACT Relating to Longshore and Harbor Workers' Compensation Act insurance; amending RCW 48.32.020; adding new sections to chapter 48.22 RCW; creating a new section; and declaring an emergency.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1. The legislature finds and declares that the continued existence of a strong and health maritime industry in this state is threatened by the unavailability and excessive cost of workers' compensation coverage required by the United States Longshoreman's and Harbor Worker's Compensation Act. The legislature, therefore, acting under its authority to protect industry and employment in this state hereby establishes a commission to devise and implement both a near and long term solution to this problem, for the purpose of maintaining employment for Washington workers and a vigorous maritime industry.
Sec. 2. RCW 48.32.020 and 1987 c 185 s 29 are each amended to read as follows:
This chapter shall apply to all kinds of direct insurance, except life, title, surety, disability, credit, mortgage guaranty, workers' compensation included in the state of Washington industrial insurance fund defined in RCW 51.08.175, and ocean marine insurance. However, this chapter applies to workers' compensation insurance only if the applicable order of liquidation is adjudicated on or after July 1, 1992.
NEW SECTION. Sec. 3. A new section is added to chapter 48.22 RCW to read as follows:
Before July 1, 1992, the commissioner shall adopt rules establishing a reasonable plan to insure that workers' compensation coverage as required by the United States Longshoreman's and Harbor Worker's Compensation Act, 33 U.S.C. Secs. 901 through 950, and maritime employer's liability coverage incidental to the workers' compensation coverage is available to those unable to purchase it through the normal insurance market. This plan shall require the participation of all authorized insurers writing primary and excess workers' compensation insurance or reinsurance and the Washington state industrial insurance fund as defined in RCW 51.08.175 in amounts proportional to the premiums written by each of these entities. The Washington state industrial insurance fund is authorized to participate in the plan and to make payments in support of the plan in accordance with rules adopted by the commissioner pursuant to this section. The rules shall require that the plan use generally accepted actuarial principles for rate making. An applicant for such insurance, a person insured under the plan, an insurer, or the Washington state industrial insurance fund affected by a ruling or decision of the manager or committee designated to operate the plan may appeal to the commissioner for resolution of a dispute.
NEW SECTION. Sec. 4. A new section is added to chapter 48.22 RCW to read as follows:
Before April 15, 1992, the commissioner shall appoint a committee to provide assistance in drafting the rules required by section 3 of this act. After July 1, 1992, the committee shall assist the commissioner in overseeing the operation of the plan. The committee shall consist of at least eight members. The commissioner and the director of the department of labor and industries shall be members. The remaining members shall be selected to insure equal representation of authorized insurers writing primary or excess workers compensation insurance, insurance producers, organized labor, and maritime employers.
NEW SECTION. Sec. 5. A new section is added to chapter 48.22 RCW to read as follows:
The committee appointed pursuant to section 4 of this act shall submit a report to the legislature no later than January 1, 1993, that examines all aspects of the United States Longshoreman's and Harbors Worker's Act (22 U.S.C. Secs. 901 through 950) coverage, and incidental maritime liability coverage, as it applies to Washington workers and employers. This study shall include but not be limited to the ability of private insurers to provide affordable coverage to eligible employers; whether the Washington state industrial insurance fund should participate in the plan adopted pursuant to section 3 of this act; whether there are methods that will satisfy the intent of this act that will not involve the Washington state industrial insurance fund; and the feasibility of requiring that this coverage be made directly available through the Washington state industrial insurance fund.
NEW SECTION. Sec. 6. A new section is added to chapter 48.22 RCW to read as follows:
The plan adopted pursuant to section 3 of this act shall terminate on July 1, 1993.
NEW SECTION. Sec. 7. Sections 3 and 4 of this act are necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect immediately.