WSR 97-19-007

PERMANENT RULES

INSURANCE COMMISSIONER'S OFFICE

[Filed September 4, 1997, 1:43 p.m.]

Date of Adoption: September 4, 1997.

Purpose: To clarify and modify the existing rules regarding educational requirements for licensees involved in the transaction of long-term care and long-term care partnerships. It also adds a certification form.

Citation of Existing Rules Affected by this Order: Amending WAC 284-17-220 and 284-85-085.

Statutory Authority for Adoption: RCW 48.02.060, 48.17.150, and 48.85.030.

Adopted under notice filed as WSR 97-15-150 on July 23, 1997.

Changes Other than Editing from Proposed to Adopted Version: (1) added "resident and nonresident" before licensee to clarify that the rule applies to all licensees who sell long-term care or long-term care partnership insurance.

(2) Added an address on the certification forms to which the certification reports should be sent.

(3) For clarity purposes, added the word "either" before "long-term care or long-term care and long-term care partnership" in WAC 284-54-750. In WAC 284-85-085, also added "either" before "long-term care partnership or long-term care partnership and long-term care."

Number of Sections Adopted in Order to Comply with Federal Statute: New 0, amended 0, repealed 0; Federal Rules or Standards: New 0, amended 0, repealed 0; or Recently Enacted State Statutes: New 0, amended 0, repealed 0.

Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, amended 0, repealed 0.

Number of Sections Adopted on the Agency's own Initiative: New 1, amended 2, repealed 0.

Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 1, amended 2, repealed 0.

Number of Sections Adopted using Negotiated Rule Making: New 0, amended 0, repealed 0; Pilot Rule Making: New 0, amended 0, repealed 0; or Other Alternative Rule Making: New 0, amended 0, repealed 0.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.

September 4, 1997

Greg J. Scully

Chief Deputy Commissioner

AMENDATORY SECTION (Amending Matter No. R 95-16, filed 8/13/96, effective 9/13/96)

WAC 284-17-220 Continuing education requirement. (1) Twenty-four credit hours of approved continuing education must be presented as a prerequisite to each license renewal or reinstatement.

(2)(a) Effective July 1, 1996, the number of required continuing education credit hours will be increased from twenty-four to thirty-two hours for each two-year licensing period.

(b)(i) ((Effective June 1, 1997, an additional six hours in every two-year period of continuing education credits will be required of agents and brokers engaged in the transaction of long-term care partnership insurance business. The commissioner will prescribe the course of study. Each course for these special lines of insurance shall be approved by the commissioner in advance.

(ii) Effective January 1, 1998, an additional six hours in every two-year period of continuing education credits will be required of agents and brokers engaged in the transaction of long-term care insurance business.

(iii) Agents involved in the transaction of both long-term care and long-term care partnership insurance are required to pass only six total hours of specialized long-term care and long-term care partnership continuing education combined.

(iv) An issuer shall annually certify to the commissioner that its appointed agents have completed the required education. Such reports shall be attached to the annual long-term care partnership report required at RCW 48.85.030 (2)(d).)) Resident and nonresident licensees engaged in the transaction of long-term care insurance, long-term care partnership insurance, or both, are required to take an approved six-hour course on long-term care, long-term care partnership, or both, every two years. The commissioner shall prescribe the content of the course. Each course shall be approved by the commissioner in advance.

(ii) Effective January 1, 1998, a resident or nonresident licensee shall not submit an application for a long-term care or long-term care partnership policy to an issuer unless he or she has completed the approved course.

(iii) The approved six-hour course may count towards the thirty-two required continuing education credit hours set forth in (a) of this subsection.

(iv) An issuer of long-term care or long-term care partnership policies shall annually certify to the commissioner that:

(A) Its affiliated resident and nonresident licensees involved in the transaction of long-term care or long-term care partnership policies have completed the approved six-hour course requirement every two years; and

(B) The issuer has only accepted applications from resident and nonresident licensees in compliance with the provisions of (b)(i) of this subsection.

The certification shall be filed with the commissioner on or before March 31 of each year.

(c) Each course credit applied toward satisfaction of the continuing education requirement must have been completed within the twenty-four month period immediately preceding the licensee's assigned license renewal date and the credit may not have been used previously to comply with the continuing education requirement.

(3) The course participated in and for which credit is received shall be reported to the commissioner as part of the application for license renewal and shall be subject to verification by audit.

(4) Repeating an approved course for which the licensee has previously claimed credit will not satisfy the continuing education requirement.

(5) The licensee must retain the certificate of completion for three years from the date on the certificate and must present the original of such certificate upon request of or audit by the commissioner.

[Statutory Authority: RCW 48.02.060, 48.17.150, 48.20.450, 48.85.030 and 48.85.040. 96-17-029 (Matter No. R 95-16), 284-17-220, filed 8/13/96, effective 9/13/96. Statutory Authority: RCW 48.01.030, 48.02.060(3), 48.14.010, 48.17.150(2), 48.17.160 (1)(5) and 48.17.500(3). 94-14-033 (Order R 94-14), 284-17-220, filed 6/28/94, effective 7/29/94. Statutory Authority: RCW 48.02.060. 89-19-037 (Order R 89-10), 284-17-220, filed 9/15/89, effective 10/16/89. Statutory Authority: RCW 48.02.060 and 48.17.150. 81-18-049 (Order R 81-5), 284-17-220, filed 8/31/81. Statutory Authority: RCW 48.17.150 as amended by 1979 ex.s. c 269 7,10. 80-04-042 (Order R 80-3), 284-17-220, filed 3/20/80.]

NEW SECTION

WAC 284-54-750 Standards for education of licensees soliciting long-term care contracts. (1) Every issuer shall annually certify to the commissioner that each resident and nonresident licensee involved in the transaction of long-term care insurance has completed an approved six-hour course on either long-term care or long-term care and long-term care partnership every two years in accordance with WAC 284-17-220 (2)(b)(i). Applications may only be accepted if the licensee involved in the transaction meets all of the requirements of WAC 284-17-220 (2)(b)(i).

(2) Beginning with the calendar year 1998, issuers shall file a copy of the following certification report with the commissioner on or before March 31 of each year:

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AMENDATORY SECTION (Amending Matter No. R 95-16, filed 8/13/96, effective 9/13/96)

WAC 284-85-085 Standards for education of ((agents)) licensees soliciting long-term care partnership contracts. (1) Every issuer shall annually certify to the commissioner that each ((agent appointed by the issuer involved in the solicitation of a long-term care partnership contract or the conversion of a long-term care contract or partnership contract, that each such agent has passed six hours of specialized education specifically related to insurance coverage under the Washington Long-Term Care Partnership Act in every two-year period beginning with the calendar year 1998, as required at WAC 284-17-220.)) resident and nonresident licensee involved in the transaction of long-term care partnership insurance has completed an approved six-hour course on either long-term care partnership or long-term care partnership and long-term care every two years in accordance with WAC 284-17-220 (2)(b)(i). Applications may only be accepted if the licensee involved in the transaction meets the requirements of WAC 284-17-220 (2)(b)(i).

(2) Beginning with the calendar year 1998, issuers shall file a copy of the following certification report with the commissioner on or before March 31 of each year:

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