Z-1436               _______________________________________________

                                                   SENATE BILL NO. 4686

                        _______________________________________________

State of Washington                              49th Legislature                              1986 Regular Session

By Senators Moore, Bender and Bauer; by request of Governor

Read first time 1/20/86 and referred to Committee on Financial Institutions.

AN ACT Relating to insurance reporting; adding new sections to chapter 48.05 RCW; and creating a new section.

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

NEW SECTION. Sec. 1.  A new section is added to chapter 48.05 RCW to read as follows:

          The insurance commissioner shall promulgate rules requiring insurers who are authorized to write liability insurance in the state of Washington to record and report their Washington state loss and expense experiences and other data, as required by section 2 of this act.

NEW SECTION. Sec. 2.  A new section is added to chapter 48.05 RCW to read as follows:

          (1) The report required by section 1 of this act shall include the types of insurance written by the insurer for both commercial and personal liability insurance policies pertaining to day care centers licensed under chapter 74.15 RCW.

          (2) The report shall include the following data by the type of insurance, subdivided by state day care license category, 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 gains 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) Actual incurred expenses allocated separately to loss adjustment, commissions, other acquisition costs, advertising, general office expenses, taxes, licenses and fees, and all other expenses;

          (f) Net underwriting gain or loss;

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

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

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

          (j) 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.

NEW SECTION. Sec. 3.     The requirements of sections 1 and 2 of this act shall commence with the year-end report for the reporting period ending December 31, 1986.  In addition, the data required under section 2 of this act shall be provided for the years 1976 through 1985 and shall be filed with the commissioner on or before March 1, 1987.