Effective Date of Rule: Thirty-one days after filing.
Purpose: The purpose of these amendments is to make changes to sections of Title 284 WAC to avoid duplication of filings. Foreign and alien insurers currently file their audited financial statements with the NAIC and the office of insurance commissioner (OIC). This amendment will eliminate the requirement that they file with the OIC. The OIC has access to these reports at any time from the NAIC. The amendments also remove an outdated reference.
Citation of Existing Rules Affected by this Order: Amending WAC 284-07-100.
Statutory Authority for Adoption: RCW 48.02.060, 48.44.050, and 48.46.200.
Adopted under notice filed as WSR 06-11-178 on May 24, 2006.
Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 0, Repealed 0.
Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.
Number of Sections Adopted on the Agency's Own Initiative: New 0, Amended 1, Repealed 0.
Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 0, Repealed 0.
Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 0, Repealed 0; Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 1, Repealed 0.
Date Adopted: July 31, 2006.
AMENDATORY SECTION(Amending Matter No. R 2002-07, filed 10/23/02, effective 11/23/02)
WAC 284-07-100 Purpose and scope. (1) The purpose of this regulation, WAC 284-07-100 through 284-07-230, is to improve the Washington state insurance commissioner's surveillance of the financial condition of insurers by requiring an annual examination by independent certified public accountants of the financial statements reporting the financial position and the results of operations of insurers.
(2) Every insurer, as defined in WAC 284-07-110, shall be subject to this regulation. Insurers having direct premiums written of less than one million dollars in any calendar year and less than one thousand policyholders or certificate holders of directly written policies nation-wide at the end of such calendar year shall be exempt from this rule for such year (unless the commissioner makes a specific finding that compliance is necessary for the commissioner to carry out statutory responsibilities) except that insurers having assumed premiums pursuant to contracts and/or treaties of reinsurance of one million dollars or more will not be so exempt.
(3) Foreign or alien insurers filing audited financial reports in another state, pursuant to such other state's requirement of audited financial reports which has been found by the commissioner to be substantially similar to the requirements herein, are exempt from this rule if:
(a) A copy of the Audited Financial Report, Report on
Significant Deficiencies in Internal Controls, and the
Accountant's Letter of Qualifications which are filed with
such other state are filed with the ((
commissioner)) NAIC in
accordance with the filing dates specified in WAC 284-07-120,
284-07-190 and 284-07-200, respectively; and
(b) A copy of any Notification of Adverse Financial
Condition Report filed with such other state is filed with the
commissioner)) NAIC within the time specified in WAC 284-07-180.
Canadian insurers may submit accountants' reports as filed with the Canadian Dominion Department of Insurance.
(4) This rule shall not prohibit, preclude, or in any way limit the commissioner from ordering, conducting, or performing examinations of insurers under the rules, regulations, practices, and procedures of the insurance commissioner.
(5) After January 1, 2003, all reports and filings
required by WAC 284-07-100 through 284-07-230 must be filed
electronically with the commissioner. ((
This includes the
audit report for the insurer's financial statements for the
year ended December 31, 2002.)) Insurers must electronically
transmit the report or filing in PDF or other format as noted
on the commissioner's web site. The commissioner has the
discretion to allow an insurer to file paper copies of reports
and filings required by WAC 284-07-100 through 284-07-230.
The insurer must demonstrate that filing in electronic form
will create an undue financial hardship for the insurer.
Applications for permission to file in hard copy must be
received by the commissioner at least ninety days before the
statement of annual statement is due.
(6) To comply with statutory or other requirements that reports or filings be signed or verified, insurers and accountants may:
(a) Use a method of electronic signature verification that has been approved by the commissioner; or
(b) File a paper copy of the signature or verification at the time of the electronic transmission of the report or filing.
(7) The report or filing and the appropriate signatures and/or verifications must both be received to complete a filing. The date of receipt of the later of the two parts of the filing is considered the receipt date of the report or filing.
[Statutory Authority: RCW 48.02.060, 48.44.050, and 48.46.200. 02-21-120 (Matter No. R 2002-07), § 284-07-100, filed 10/23/02, effective 11/23/02. Statutory Authority: RCW 48.02.060, 48.43.140, 48.44.050 and 48.46.200. 94-04-045 (Order R 94-2), § 284-07-100, filed 1/27/94, effective 2/27/94. Statutory Authority: RCW 48.02.060. 92-19-040 (Order R 92-10), § 284-07-100, filed 9/9/92, effective 10/10/92.]