PERMANENT RULES
Date of Adoption: November 15, 1999.
Purpose: Suspend rate filing requirements of certain large commercial property and casualty lines of insurance.
Statutory Authority for Adoption: RCW 48.02.060, 48.19.080.
Adopted under notice filed as WSR 99-19-174 on September 22, 1999.
Changes Other than Editing from Proposed to Adopted Version: WAC 284-24-120 (6)(d) "businesses, or other organizations" was added to clarify the focus of the rule. The premium threshold amount was changed to an account basis rather than a policy basis. Changes were made throughout the regulation to make the language of the regulation conform to this change.
Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 0, Repealed 0.
Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.
Number of Sections Adopted on the Agency's Own Initiative: New 1, Amended 0, Repealed 0.
Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 1, Amended 0, Repealed 0.
Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 0, Repealed 0; Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 0, Repealed 0. Effective Date of Rule: Thirty-one days after filing.
November 15, 1999
Robert A. Harkins
Chief Deputy Commissioner
OTS-3395.2
NEW SECTION
WAC 284-24-120
Suspension of rate filing
requirements -- Large commercial accounts.
(1) Under RCW 48.19.080, the rate filing requirements in chapter 48.19 RCW are suspended with respect to large commercial property casualty accounts.
(2) For purposes of this section, "large commercial property casualty account" means insurance coverage that:
(a) Pertains to a business, nonprofit organization, or public entity;
(b) Involves the lines of property and casualty insurance defined in RCW 48.11.040, 48.11.050, 48.11.060, 48.11.070, and/or 48.11.080; and
(c) Has an estimated annual collected premium of $25,000 or more, excluding workers compensation insurance issued by the department of labor and industries and types of insurance listed in subsection (6) of this section.
(3) Before an insurer issues coverage in reliance on this section, the insurer or its agent shall notify the insured in writing that the rates have not been and will not be filed for the commissioner's approval.
(4) Property rates used on large commercial property casualty accounts will not be audited by the Washington Insurance Examining Bureau under WAC 284-20-006.
(5) The commissioner retains the right and ability to examine the rates used on large commercial property casualty accounts to ascertain whether they meet the requirements of RCW 48.19.020 and other statutes. The insurer shall maintain records supporting the rating and premium determination of each policy issued in reliance on this section. These records shall be retained by the insurer for a minimum of three years and made available at all reasonable times for the commissioner's examination.
(6) Subsection (1) of this section does not apply to:
(a) Professional liability insurance, including medical malpractice insurance;
(b) Directors' and officers' liability insurance purchased by individuals;
(c) Motor vehicle service contract reimbursement insurance, as defined in RCW 48.96.010(4); and
(d) Master policies under which certificates of coverage are issued to individual consumers, households, businesses, or other organizations.
(7) If this subsection is not amended, the provisions of this section shall expire on December 31, 2001.
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