H-4538              _______________________________________________

                                          SUBSTITUTE HOUSE BILL NO. 1685

                        _______________________________________________

State of Washington                              49th Legislature                              1986 Regular Session

By House Committee on Financial Institutions & Insurance (originally sponsored by Representatives Scott, Locke, Allen, Fisher, Day, Haugen, Barrett, Hine, Grimm, Nutley, Cole, Rust, Leonard, Armstrong, G. Nelson, McMullen, Todd, Lux, Zellinsky, Walker, R. King, Miller,  Niemi, Rayburn, Unsoeld, P. King and Addison;by request of Governor Gardner)

Read first time 2/7/86 and passed to Committee on Rules.

AN ACT Relating to insurance reporting; and amending RCW 48.05.380 and 48.05.390.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

        Sec. 1.  Section 1, chapter 238, Laws of 1985 and RCW 48.05.380 are each amended to read as follows:

          The insurance commissioner shall promulgate rules requiring insurers who are authorized to write ((malpractice)) property and casualty insurance in the state of Washington and any entity formed pursuant to chapter 48.62 RCW to record and report their Washington state loss and expense experiences and other data, as required by RCW 48.05.390.

        Sec. 2.  Section 2, chapter 238, Laws of 1985 and RCW 48.05.390 are each amended to read as follows:

          (1) The report required by RCW 48.05.380 shall include the types of insurance written by the insurer for ((both)) commercial ((and personal)) policies pertaining to:

(a)  Medical malpractice ((insurance)) for physicians and surgeons, hospitals, other health care professions, and other health care facilities individually;

(b) Products liability;

(c) Attorneys' malpractice;

(d) Architects' and engineers' malpractice;

(e) Municipal liability;

(f) Day care center liability;

(g) Liquor liability; and

(h) Trucking liability.

          (2) The report shall include the following data by the type of insurance for the previous year ending on the thirty-first day of December:

          (a) Direct premiums written;

          (b) Direct premiums earned;

          (c) ((Net investment income, including net realized capital gain and losses, using appropriate estimates where necessary;

          (d))) Incurred claims, development as the sum of the following:

          (i) Dollar amount of claims closed with payments; plus

          (ii) Reserves for reported claims at the end of the current year; minus

          (iii) Reserves for reported claims at the end of the previous year; plus

          (iv) Reserves for incurred but not reported claims at the end of the current year; minus

          (v) Reserves for incurred but not reported claims at the end of the previous year; plus

          (vi) Reserves for loss adjustment expense at the end of the current year; minus

          (vii) Reserves for loss adjustment expense at the end of the previous year.

          (((e))) (d) Actual incurred expenses allocated separately to loss adjustment, commissions, and other acquisition costs((, advertising, general office expenses, taxes, licenses and fees, and all other expenses));

          (((f))) (e) Net underwriting gain or loss;

          (((g))) (f) Net operation gain or loss((, including net investment income));

          (((h))) (g) The number and dollar amount of claims closed with payment, by year incurred and the amount reserved for them;

          (((i))) (h) The number of claims closed without payment and the dollar amount reserved for those claims; and

          (((j))) (i) Other information requested by the insurance commissioner.

          (3) The report shall be included as an addendum to the annual statement required by RCW 48.05.250.