PREPROPOSAL STATEMENT OF INQUIRY
INSURANCE COMMISSIONER
Subject of Possible Rule Making: Deregulation of commercial property casualty lines of insurance.
Statutes Authorizing the Agency to Adopt Rules on this Subject: RCW 48.02.060, 48.18.100(6), and 48.19.080.
Reasons Why Rules on this Subject may be Needed and What They Might Accomplish: The commissioner will review existing rate filing requirements for large commercial property casualty accounts in WAC 284-24-120 and consider the concept of commercial deregulation. The theory underlying commercial deregulation is that purchasers of large commercial property casualty policies are sophisticated buyers who have the ability to negotiate as equals over the rates and provisions of their policies and to adequately safeguard their interests.
The existing rules include a "sunset" provision and will expire unless amended. The commissioner will review the experience under WAC 284-24-120 since adoption. Among the concepts that will be explored and discussed in the rule making are [is] repealing the "sunset" provision in WAC 284-24-120(7). The commissioner will also consider altering the requirements of WAC 284-24-120 and the existing scheme of deregulation. This subject has been discussed extensively by the NAIC and other states and the commissioner will consider the recommendations of the "Speed to Market" and other appropriate NAIC working groups that address issues of commercial deregulation. The commissioner will review WAC 284-24-120 and other systems of commercial deregulation and determine what, if any, is the most appropriate for Washington.
Other Federal and State Agencies that Regulate this Subject and the Process Coordinating the Rule with These Agencies: None.
Process for Developing New Rule: Agency study; and send written comments by November 16, 2001, to Kacy Scott, P.O. Box 40255, Olympia, WA 98504-0255, fax (360) 664-2782, e-mail Kacyb@oic.wa.gov.
Interested parties can participate in the decision to adopt the new rule and formulation of the proposed rule before publication by contacting Kacy Scott, P.O. Box 40255, Olympia, WA 98504-0255, fax (360) 664-2782, e-mail Kacyb@oic.wa.gov.
October 3, 2001
Mike Kreidler
Insurance Commissioner