Original Notice.

     Preproposal statement of inquiry was filed as WSR 08-07-096.

     Title of Rule and Other Identifying Information: Producer licensing.

     Hearing Location(s): Insurance Commissioner's Office, Room TR 120, 5000 Capitol Boulevard, Tumwater, WA 98504-0255, on December 9, 2008, at 9:30 a.m.

     Date of Intended Adoption: December 16, 2008.

     Submit Written Comments to: Kacy Scott, P.O. Box 40258, Olympia, WA 98504-0258, e-mail KacyS@oic.wa.gov, fax (360) 586-3109, by December 8, 2008.

     Assistance for Persons with Disabilities: Contact Lorie Villaflores by December 8, 2008, TTY (360) 586-0241 or (360) 725-7087.

     Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: These proposed rules implement changes to the way insurance agents, brokers, solicitors, and general agents are licensed by the state. The proposed changes include: Reciprocity requirements (based on requirements of the Gramm-Leach-Bliley Act); the state's appointment and affiliation processes; agent compensation disclosure requirements; insurance producer lines of authority; fingerprint requirements for background checks of applicants; bonding requirements; grounds for disciplinary actions against insurance producers; licensing of business entities; and prelicensing and continuing education requirements. Several new sections or amendments are proposed to clarify the requirements for prelicensing and continuing insurance education.

     Reasons Supporting Proposal: During the 2007-09 legislative sessions, the legislature enacted many provisions of the NAIC's Producer Licensing Model Act. These proposed rules would effectuate the new laws.

     Statutory Authority for Adoption: RCW 48.02.060 and 48.17.005.

     Statute Being Implemented: Chapter 48.17 RCW.

     Rule is not necessitated by federal law, federal or state court decision.

     Name of Proponent: Mike Kreidler, insurance commissioner, governmental.

     Name of Agency Personnel Responsible for Drafting: Melodie Bankers, P.O. Box 40258, Olympia, WA 98504-0258, (360) 725-7039; Implementation and Enforcement: John Hamje, P.O. Box 40255, Olympia, WA 98504-0255, (360) 725-7262.

     No small business economic impact statement has been prepared under chapter 19.85 RCW. These proposed new administrative code provisions contain a number of changes which meet the legal definition of a "rule" under RCW 34.05.010(16). However, a careful staff review of the proposed substantive (as distinguished from the grammatical) administrative changes found that they would not impose "more than minor costs on businesses" in the industry (RCW 19.85.030(1)); as a result, no small business economic impact statement will be needed.

     A cost-benefit analysis is not required under RCW 34.05.328. There are a number of provisions in this set of proposed amendments and new rules which diverge from the explicit terms of the NAIC Producer Licensing Model Act or differ from existing administrative code provisions. All but three of these provisions deal explicitly with requirements for license or permit applications and, as such, fall within the definition of a "procedural rule" that "adopts, amends, or repeals... any filing or related process requirement for making application to an agency for a license or permit" (RCW 35.05.328 (5)(c)(i)(B)) and therefore do not require a cost-benefit analysis.

     Of the remaining three proposed administrative code provisions, one (the transition rules portion) appears to clearly meet the standard of "any policy statement pertaining to the consistent internal operations of an agency" contained in RCW 35.05.328 (5)(c)(i)(C) and is therefore not subject to a cost-benefit analysis.

     The final two proposed code provisions (allowing licensees who are required to publicly display their license(s) to obscure their residence addresses and setting the minimum standard for verifying an applicant's or insured's consent to compensation when purchases are made over the phone or electronically) both fall within the definition of an interpretative rule "that sets forth the agency's interpretation of statutory provisions it administers," especially because neither proposed code provision carries with it a penalty or sanction for violation (RCW 35.05.328 (5)(c)(ii)). These two provisions therefore do not require a cost-benefit analysis.

October 27, 2008

Mike Kreidler

Insurance Commissioner

OTS-1898.1

REPEALER

     The following section of the Washington Administrative Code is repealed:

WAC 284-12-090

When general agent may accept applications from nonappointed agents.

OTS-1800.2

AMENDATORY SECTION(Amending Matter No. R 2008-04, filed 7/2/08, effective 8/2/08)

WAC 284-15-010   Brokers -- Surplus line brokers -- Qualifications and examination.   (1) Each applicant for a resident surplus line broker's license must take and pass the required examination and pay the required fee prior to acting as a surplus line broker. The examination will test an applicant's qualifications and competence in all areas of surplus line insurance. Current information about testing procedures and examination dates is available on the commissioner's web site at: www.insurance.wa.gov.

     (2) Before the commissioner can issue a surplus line broker's license, the applicant must be licensed in this state as an ((agent or broker)) insurance producer with both property and casualty lines of authority. This requirement may be satisfied if the licenses are issued simultaneously.

     (3) The commissioner deems that a nonresident person holding a surplus line broker's license, or the equivalent, in the applicant's home state is qualified, competent and trustworthy and, therefore, meets the minimum standards of this state for holding a surplus line broker's license. For that reason, the commissioner will waive the Washington surplus line broker's examination for a person who has and maintains a current resident surplus line broker's license, or the equivalent, in the applicant's home state.

[Statutory Authority: RCW 48.02.060, 48.15.040(4), 48.15.073(2), and 48.15.160(2). 08-14-169 (Matter No. R 2008-04), § 284-15-010, filed 7/2/08, effective 8/2/08. Statutory Authority: RCW 48.02.060. 81-03-082 (Order R 81-1), § 284-15-010, filed 1/21/81.]

     (1) Return premiums or claim payments will not be deemed to have been paid to the insured or claimant until the payments are actually received by the insured or claimant.

     (2) Delivery of notices involving the insurance, such as cancellation or renewal notices, will not be deemed to have been made until actually received by the insured.

[Statutory Authority: RCW 48.02.060, 48.15.040(4), 48.15.073(2), and 48.15.160(2). 08-14-169 (Matter No. R 2008-04), § 284-15-080, filed 7/2/08, effective 8/2/08. Statutory Authority: RCW 48.02.060, 48.05.310, 48.30.010 and 48.15.080. 91-23-032 (Order R 91-7), § 284-15-080, filed 11/13/91, effective 1/1/92.]

OTS-1899.4

NEW SECTION
WAC 284-17-001   Definitions.   For purposes of this chapter, unless the context requires otherwise:

     (1) "Affiliation" is a type of appointment whereby a business entity authorizes an individual insurance producer or surplus line broker to represent it when conducting insurance business.

     (2) "Business entity" has the meaning set forth in RCW 48.17.010(2) and includes a sole proprietorship having associated licensees authorized to act on its behalf in the business or trade name of the sole proprietorship.

     (3) "Days" means calendar days including Saturday and Sunday and holidays, unless otherwise specified.

     (4) "File" means a record in any retrievable format, and unless otherwise specified, includes paper and electronic formats.

     (5) "Home state" has the meaning set forth in RCW 48.17.010(3).

     (6) "Insurer" has the meaning set forth in RCW 48.17.020(6).

     (7) "Licensee" means a person licensed by the commissioner under Title 48 RCW to sell, solicit or negotiate insurance and includes adjusters.

     (8) "Line of authority" means a license issued in one or more lines of insurance listed in RCW 48.17.170.

     (9) "NAIC" means the National Association of Insurance Commissioners.

     (10) "Reinstatement" means the reissuance by the commissioner of a license that was not renewed more than sixty days but fewer than twelve months after its expiration date.

     (11) "Resident" means a person who has elected to make Washington his or her home state, or, in the case of a business entity, has a place of business in this state.

     (12) "Sending written notice" or "sending a copy of the written notice" means transmitting the required information in writing and, where required, on forms designated by the commissioner for that purpose, via first class mail, commercial parcel delivery company, telefacsimile, or electronic transmission, unless a specific method of transmission is specified.

     (13) "Surety" means that limited line of authority of insurance or bond that covers obligations to pay the debts of, or answer for the default of another, including faithlessness in a position of public or private trust.

     (14) "Travel insurance" means that limited line of authority of insurance coverage for trip cancellation, trip interruption, baggage, life, sickness and accident, disability, and personal effects when limited to a specific trip and sold in connection with transportation provided by a common carrier.

     (15) "Written" or "in writing" means any retrievable method of recording an agreement or document, and, unless otherwise specified, includes paper and electronic formats.

[]

     Licensees must advise the commissioner of any change of address within thirty days after a change of address. This includes any change in the person's residence, mailing, business or e-mail address. Failure to advise the commissioner of a change of address may subject a licensee to disciplinary action under RCW 48.17.530 and 48.17.560.

[]

     (1) Insurers must ensure that their licensed and appointed insurance producers who transact the limited line credit insurance are qualified by education or experience to offer their credit insurance products.

     (2) The requirements of this chapter for prelicensing and continuing insurance education do not apply to insurance producers that transact only the limited line credit insurance.

[]

     (1) Insurers must ensure that their licensed and appointed insurance producers who transact the limited line of travel insurance are qualified by education or experience to offer their travel insurance products.

     (2) The requirements of this chapter for passing an insurance producer examination and for prelicensing and continuing insurance education do not apply to insurance producers that transact only the limited line of travel insurance.

[]

     (2) All licensees with the variable life and variable annuity products line of authority are also subject to the licensing requirements set forth in RCW 48.18A.060.

[]

     (1) Examinations.

     (a) Any resident person applying to take an examination for ((any type of)) a license ((shown)) listed in ((subsection (2) of)) this section must submit a registration form and the applicable examination fee to an independent testing service ((under contract with)) designated by the commissioner ((for the administration of licensee examinations)).

     ((This)) (i) The examination fee is not refundable.

     (ii) Registration forms and information about examinations may be obtained from the ((office of insurance)) commissioner((, any prelicensing education provider,)) or from the independent testing service((. Current information about the independent testing service, fees, dates of examinations, and other information related to licensing examinations, or to download an examination registration form, are available through)) under contract with the commissioner to conduct licensing examinations in this state.

     (iii) An examination registration form can be downloaded through the commissioner's web site ((()) and current information about registered testing services, fees, dates, and other information is available through the commissioner's web site at www.insurance.wa.gov(())).

     (((2) At least once each month at predetermined locations,)) (b) The examinations required for each line of authority are identified in the following table. The independent testing service will conduct ((the)) these examinations ((required for the following types of licenses:)) at least once each month at predetermined locations.

((TYPE OF LICENSE	EXAMINATION(S) REQUIRED
Life insurance agent or solicitor . . . . . . . . . . . .	Life
Disability insurance agent or solicitor . . . . . . . . . . . .	Disability
Life and disability agent or solicitor . . . . . . . . . . . .	Life, disability
Property/casualty agent or solicitor . . . . . . . . . . . .	Property, casualty
Property/casualty      and disability agent or solicitor . . . . . . . . . . . .	Property, casualty, disability
Life/disability/      property/casualty agent or solicitor . . . . . . . . . . . .	Life, disability, property, casualty
Vehicle only agent or solicitor . . . . . . . . . . . .	Vehicle
Surety only agent or solicitor . . . . . . . . . . . .	Surety
Credit life and disability agent      or solicitor . . . . . . . . . . . .	Credit life and disability
Credit casualty agent or solicitor . . . . . . . . . . . .	Credit casualty
Independent adjuster . . . . . . . . . . . .	Adjuster
Public adjuster . . . . . . . . . . . .	Adjuster
Life and disability broker . . . . . . . . . . . .	Life and disability
Property/casualty broker . . . . . . . . . . . .	Property and casualty (Disability questions are included)))

LINE OF AUTHORITY OR TYPE OF LICENSE	REQUIRED EXAMINATION(S)
Life	Life
Disability	Disability
Life and disability	Life((,)) and disability
Property	Property
Casualty	Casualty
Property and casualty	Property((,)) and casualty
Personal lines	Personal lines
Adjusters (independent or public)	Adjuster
Limited line ((of)) credit insurance	Credit
Surety	Surety
Surplus line	Surplus line
Variable life and variable annuity products	Life

     (((3))) (c) If an applicant fails to take a scheduled examination, and requests to take the exam at a later date, a new examination date must be scheduled and a new ((registration form and applicable)) examination fee((s)) must be ((submitted for any later examination)) paid, unless repayment of the fee is waived ((because)) by the commissioner ((finds)) because the commissioner agrees that a serious emergency prevented the applicant's attendance at the scheduled date.

     (((4) Tests)) (d) Examinations will be graded by the independent testing service and each applicant will be provided a score report((, following examination)).

     ((If the examination is passed,)) (2) Application for a license. The application for a license must be accompanied by all of the following: The score report ((must be forwarded by the applicant to the insurance commissioner with)) from the testing service, a completed insurance license application, one finger print card((, appointment form(s) for each insurer to be represented,)) and the applicable license, ((finger print,)) appointment and filing fees.

     (3) Approval by the commissioner. The commissioner will review the application and if all requirements have been met will issue the license(s) applied for.

[Statutory Authority: RCW 48.02.060. 08-17-063 (Matter No. R 2008-03), § 284-17-120, filed 8/18/08, effective 9/18/08. 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), § 284-17-120, filed 6/28/94, effective 7/29/94. Statutory Authority: RCW 48.02.060. 88-24-054 (Order R 88-13), § 284-17-120, filed 12/7/88; 84-19-022 (Order R 84-3), § 284-17-120, filed 9/12/84; 82-10-016 (Order R 82-2), § 284-17-120, filed 4/28/82.]

     (a) The applicant has and maintains in good standing a similar license in ((the)) his or her home state ((of residence)) for the applicable line(s) of ((insurance)) authority defined in ((Washington's insurance statutes)) RCW 48.17.170; and

     (b) The home state ((of residence)) reciprocates and licenses Washington's ((agents and brokers)) insurance producers as nonresident ((agents or brokers)) insurance producers.

     (2) ((Applicants who are not residents of Washington may be licensed as nonresident adjusters if:

     (a) The applicant has and maintains an adjuster's license in the state of residence; and

     (b) The state of residence reciprocates and licenses Washington's adjusters as nonresident adjusters.

     If an applicant's state of residence does not issue an adjuster's license, the applicant must pass this state's written adjuster's examination.

     (3) All applicants for a nonresident license must provide written certification from the insurance department of their state of residence indicating:

     (a) All currently active license(s) held by an applicant;

     (b) The lines of insurance for which the agent or broker has qualified to sell; and

     (c) All disciplinary actions taken against the applicant.)) Nonresident applicants whose home state requires submission of a fingerprint card for conducting background checks in connection with resident insurance producer (or equivalent) license, need not provide a fingerprint card to the commissioner.

     (a) A list of states that the commissioner believes require a fingerprint card will be available on the commissioner's web site at www.insurance.wa.gov.

     (b) If the home state of an applicant does not appear on that list and the applicant believes that list should include his or her home state, the applicant may provide information concerning the requirements of his or her home state for the commissioner's review. The commissioner will consider that information and determine whether the applicant's home state should be added to that list.

[Statutory Authority: RCW 48.02.060. 90-04-060 (Order R 90-1), § 284-17-122, filed 2/2/90, effective 3/5/90.]

     (((2))) (a) Each (("))trainee((" shall)) must be ((under the supervision of)) supervised by a resident licensed adjuster. (("))Trainees((" shall)) must receive training in all adjustment activities and responsibilities. Activities of the (("))trainee((" shall)) must be restricted to participation in factual investigation and tentative closing of losses. All adjusting transactions ((shall)) must be completed in the name of the supervising licensed adjuster who ((shall)) must review, confirm, and be responsible for all acts of the (("))trainee.((")) Compensation of a (("))trainee((" shall)) must be on a salary basis only.

     (((3) Anyone)) (b) Any person employing trainees ((shall)) must immediately advise the ((insurance)) commissioner ((by letter of such employment, giving)) and provide the exact date ((of)) that employment of ((each ")) the trainee begins and ends.((")) The employer ((shall enclose)) must submit an application completed by each (("))trainee and one fingerprint card.(("

     (4))) (c) Trainees ((shall be)) are eligible to take the adjuster's examination required by the ((insurance)) commissioner after completing no fewer than six months ((in ")) as a trainee((" status)).

     (((5) No)) (d) The maximum period a person ((shall)) may be designated as a (("))trainee((" as defined herein for more than)) is one nine-month period.

     ((A)) (e) Any violation of this ((requirement)) section or a violation of any provision of the insurance code ((shall)) subjects both the trainee and ((their)) the supervisory adjuster to penalties of the code.

     (2) Applicants who are not residents of Washington may be licensed as nonresident adjusters as follows:

     (a) A nonresident adjuster license will be issued if the applicant has and maintains an adjuster license in good standing in his or her home state and the home state reciprocates and licenses Washington adjusters as nonresident adjusters.

     (b) If the home state of an applicant for an adjuster license does not issue an adjuster license, the applicant must pass this state's written adjuster examination.

     (c) If the home state of an applicant for a nonresident adjuster license does not issue an adjuster license but he or she has an active adjuster license as a nonresident in a state other than Washington that requires passing an examination, and he or she has taken and passed the examination and is in good standing with that state, the nonresident adjuster is deemed by the commissioner to have satisfied the examination required for adjusters in this state.

[Statutory Authority: RCW 48.02.060. 90-04-060 (Order R 90-1), § 284-17-123, filed 2/2/90, effective 3/5/90.]

[]

     (1) ((Conduct that compromises the security of insurance license examination materials, including but not limited to:

     (a) Unauthorized appropriation of examination questions or materials; or

     (b) Unauthorized reproduction or replication of any portion of an examination; or

     (c) Aiding, by any means, the unauthorized reproduction or replication of an examination; or

     (d) Providing examination questions or other examination information to any person or business engaged in preparing applicants to pass such examination; or

     (e) Obtaining examination questions or materials for the purpose of furnishing the questions or materials to license applicants; or

     (f) Unauthorized sale, distribution, purchase or possession of any portion of a previously administered, current, or prospective examination; or

     (g) Taking or attempting to take an examination in the line of insurance for which the examinee is already qualified.

     (2))) Behavior that undermines the evaluative objective of the examination((, including but not limited to:));

     (((a))) (2) Communication with any other examinee during the examination period; ((or

     (b))) (3) Copying answers or allowing another to copy answers;

     (((c) Possession of)) (4) Possessing during the examination any books, materials, notes, or photography or recording devices not issued or approved by the independent testing service representative; or

     (((d))) (5) Impersonating, or engaging another to impersonate, any applicant for the purpose of completing the examination on behalf of another.

[Statutory Authority: RCW 48.02.060. 88-23-063 (Order R 88-11), § 284-17-125, filed 11/16/88.]

     (1) Is not taking the examination for purposes other than as the means to qualify for a license;

     (2) Has not passed the examination for that line of ((insurance,)) authority within the ((previous two-year period)) last twelve months;

     (3) Has been advised that the performance of any of the acts ((proscribed)) prohibited by WAC 284-17-125 ((constitutes)) is a violation of RCW 48.17.530 and ((48.17.560, as well as other statutes and regulations, and)) subjects the ((offender)) person to disciplinary action, including refusal to issue ((an insurance)) a license ((to the offender)), revocation of any ((insurance)) license issued by the commissioner that is currently held by the ((offender)) licensee, and the imposition of a fine; and

     (4) Has been advised that the unauthorized appropriation or conversion of questions or materials comprising the examination for a Washington state insurance ((agent's, broker's, adjuster's, or solicitor's)) license is a violation of federal copyright law.

[Statutory Authority: RCW 48.02.060. 88-23-063 (Order R 88-11), § 284-17-130, filed 11/16/88.]

[Statutory Authority: RCW 48.02.060 and 48.17.070. 89-01-055 (Order R 88-14), § 284-17-175, filed 12/16/88.]

[Statutory Authority: RCW 48.02.060, 48.17.150, 48.17.563, 48.85.040. 05-07-091 (Matter No. R 2004-04), § 284-17-200, filed 3/17/05, effective 4/17/05. Statutory Authority: RCW 48.02.060. 89-19-037 (Order R 89-10), § 284-17-200, filed 9/15/89, effective 10/16/89. Statutory Authority: RCW 48.17.150 as amended by 1979 ex.s. c 269 §§ 7,10. 80-04-042 (Order R 80-3), § 284-17-200, filed 3/20/80.]

     (1) "Approved course" means ((an educational insurance related)) a program of continuing insurance education, including live presentations, correspondence courses and seminars ((that have been)), formally approved by ((OIC)) the commissioner.

     (2) "Credit hour((s))" means the value assigned to a course by the ((OIC)) commissioner. Generally, fifty minutes of instruction equals one credit hour.

     (3) "Certificate of completion" means a document signed by ((the course instructor or other responsible officer)) an authorized designee of the insurance education provider ((signifying)) attesting to the satisfactory completion of the course and ((reflecting)) confirming the credit hours earned. ((The certificate shall be in standard format, completed in its entirety, and containing such identifying information as is prescribed by the OIC.))

     (4) "Course number" means the identifying number assigned by ((OIC for)) the commissioner to an approved insurance education course.

     (5) "Course outline" ((includes)) means a summary of the insurance education course content ((and)), including the time allotted ((by)) to each topic.

     (6) (("Days" means calendar days including Saturday and Sunday.

     (7))) "Designation course" ((includes)) means a course of study taken to achieve an insurance professional ((studies taken to achieve nationally recognized professional distinctions)) certification, requiring passage of several standardized examinations, and granted by an insurance or professional organization or an accredited educational institution.

     (((8))) (7) "Instructor" means an individual knowledgeable in topic(s) of ((discussion.

     (9) "Licensee" means an individual licensed under Title 48 RCW, as a resident insurance agent, solicitor or broker to sell life, disability, property, casualty or vehicle insurance. An individual holding a limited license to sell credit life and disability insurance, or travel insurance, or holding a license to sell surety insurance, need not satisfy the continuing education requirement.

     (10) "Long-term care (LTC) special education" means education required by individual resident and nonresident agents and brokers prior to transacting long-term care insurance.

     (11) "Long-term care (LTC) special education refresher course" means a condensed version of the LTC special education course.

     (12))) instruction who has been designated by the insurance education provider to teach an approved course or courses.

     (8) "Monitor" ((is an)) means the individual responsible for verifying class attendance and course ((content)) completion.

     (((13) "Override commission" means compensation received for the sale of insurance by a licensee who is not directly involved with a consumer.

     (14) "OIC" means the Washington state office of insurance commissioner.

     (15))) (9) "Provider" or "insurance education provider" means any insurer, health care service contractor, health maintenance organization, professional association, educational institution ((created by Washington statutes)), ((or)) vocational school, or independent contractor ((to which)) authorized by the ((OIC has granted authority)) commissioner to conduct and certify completion of ((a course satisfying the)) insurance education ((requirements of resident individual agents and brokers)) courses.

     (((16))) (10) "Provider number" ((is)) means the identifying number assigned by ((OIC)) commissioner to an approved insurance education provider ((of insurance education.

     (17) "Refresher LTC special education" means a condensed version of the LTC special education course.

     (18) "Reinstatement" means the reissuance of a license that has expired more than sixty days but less than two years from the expiration date of the previous license.

     (19))) (11) "Request for approval," ((is)) depending on the context, means either a ((submission of information required)) request for ((approval of a)) authority to act as an insurance education provider ((and)) or for approval of an insurance education course.

     (((20) "Resident" means a licensee who resides in Washington state.

     (21))) (12) "Roster" ((is)) means a course attendance record ((or)), a record of a self-study course purchase ((and)), or a course completion record maintained by the insurance education provider.

     (((22) "Schedule" means written notification of when a course will be offered.

     (23) "Self-study" means a method of study independent of a classroom setting.

     (24) "Surety" insurance includes credit insurance, bail bonds, fidelity, insurance contract performance guarantees, bonds, guarantee undertakings, and contracts of suretyship, and indemnification of banks, bankers, brokers, financial or moneyed corporations or associations against certain losses enumerated in RCW 48.11.080(5).

     (25) "Transacting" means solicitation, negotiations preliminary to execution, execution of an insurance contract, transaction of matters subsequent to execution of the contract and arising out of it and insuring.

     (26) "Vehicle insurance" includes insurance against loss or damage to any land vehicle or aircraft or any draft or riding animal or to property while contained therein or thereon or being loaded or unloaded therefrom, and against any liability resulting from or incident to ownership.

     (27))) (13) "Waiver" means an ((OIC)) approved exemption from ((the)) this state's continuing insurance education requirement granted by the commissioner.

[Statutory Authority: RCW 48.02.060, 48.17.150, 48.17.563, 48.85.040. 05-07-091 (Matter No. R 2004-04), § 284-17-210, filed 3/17/05, effective 4/17/05. Statutory Authority: RCW 48.02.060. 89-19-037 (Order R 89-10), § 284-17-210, filed 9/15/89, effective 10/16/89; 82-10-016 (Order R 82-2), § 284-17-210, filed 4/28/82. Statutory Authority: RCW 48.17.150 as amended by 1979 ex.s. c 269 §§ 7,10. 80-04-042 (Order R 80-3), § 284-17-210, filed 3/20/80.]

[Statutory Authority: RCW 48.02.060 and 48.17.150. 08-07-102 (Matter No. R 2007-16), § 284-17-220, filed 3/19/08, effective 4/19/08; 06-23-105 (Matter No. R 2006-07), § 284-17-220, filed 11/16/06, effective 12/17/06. Statutory Authority: RCW 48.02.060, 48.17.150, 48.17.563, 48.85.040. 05-07-091 (Matter No. R 2004-04), § 284-17-220, filed 3/17/05, effective 4/17/05. Statutory Authority: RCW 48.02.060 and 48.17.150. 98-11-090 (Matter No. R 98-9), § 284-17-220, filed 5/20/98, effective 6/20/98. Statutory Authority: RCW 48.02.060, 48.17.150 and 48.85.030. 97-19-007, § 284-17-220, filed 9/4/97, effective 10/5/97. 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.]

[Statutory Authority: RCW 48.02.060 and 48.17.150. 08-07-102 (Matter No. R 2007-16), § 284-17-222, filed 3/19/08, effective 4/19/08. Statutory Authority: RCW 48.02.060, 48.17.150, 48.17.563, 48.85.040. 05-07-091 (Matter No. R 2004-04), § 284-17-222, filed 3/17/05, effective 4/17/05.]

[Statutory Authority: RCW 48.02.060, 48.17.150, 48.17.563, 48.85.040. 05-07-091 (Matter No. R 2004-04), § 284-17-224, filed 3/17/05, effective 4/17/05.]

     (1) The certificate of completion must be in the commissioner's designated format, completed in its entirety, and include all of the information prescribed by the commissioner. A form of certificate of completion is available to insurance education providers only on the commissioner's web site at www.insurance.wa.gov.

     (2) For designation courses, the passing grade report will be accepted by the commissioner in lieu of a certificate of completion.

[Statutory Authority: RCW 48.02.060, 48.17.150, 48.17.563, 48.85.040. 05-07-091 (Matter No. R 2004-04), § 284-17-226, filed 3/17/05, effective 4/17/05.]

     (1) Proof of attendance ((by)), including the signature of the instructor(s) or person in charge verifying ((licensee's)) attendance;

     (2) ((Sufficient)) Supporting materials ((regarding)) in sufficient detail to show the course content; and

     (3) ((Credit)) The number of hours ((sought)) of actual attendance.

[Statutory Authority: RCW 48.02.060, 48.17.150, 48.17.563, 48.85.040. 05-07-091 (Matter No. R 2004-04), § 284-17-244, filed 3/17/05, effective 4/17/05.]

     (1) Twelve hours will be assigned for each college quarter credit hour((.)); and

     (2) Sixteen hours will be assigned for each college semester credit hour.

[Statutory Authority: RCW 48.02.060, 48.17.150, 48.17.563, 48.85.040. 05-07-091 (Matter No. R 2004-04), § 284-17-246, filed 3/17/05, effective 4/17/05.]

[Statutory Authority: RCW 48.02.060, 48.17.150, 48.17.563, 48.85.040. 05-07-091 (Matter No. R 2004-04), § 284-17-250, filed 3/17/05, effective 4/17/05. 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), § 284-17-250, filed 6/28/94, effective 7/29/94. Statutory Authority: RCW 48.02.060. 89-19-037 (Order R 89-10), § 284-17-250, 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), § 284-17-250, 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), § 284-17-250, filed 3/20/80.]

[Statutory Authority: RCW 48.02.060, 48.17.150, 48.17.563, 48.85.040. 05-07-091 (Matter No. R 2004-04), § 284-17-252, filed 3/17/05, effective 4/17/05.]

     (1) ((Retirement waiver. If your request for a waiver is based upon your retirement, your request must be accompanied by a statement attesting that:

     (a) You are least sixty-five years of age;

     (b) You are retired from selling insurance products; and

     (c) You no longer represent any insurer either directly or through an affiliation with a business entity.

     (2))) Medical waiver. If ((your)) the request for a waiver is based ((upon a)) on the medical condition of the licensee, ((your)) the request must be accompanied by a ((physician's)) statement ((of your)) from the treating provider describing the illness or injury.

     (((3))) (2) Military waiver. If ((your)) the request for a waiver is based ((upon)) on activation to military service, ((your)) the request must be accompanied by a copy of the licensee's "Letter of Mobilization." ((and your))

     (a) The licensee must designate a representative(('s)) (including the name and address of the individual given power-of-attorney by the licensee), by name and address ((so that your)), to whom the license renewal notice or other correspondence can be sent ((to your representative)) during the licensee's active military service. ((Your))

     (i) The address of the designee may be a mailing address or may be an e-mail address.

     (ii) It is the obligation of the licensee to notify the commissioner of any change to the identity or contact information of the designee.

     (b) In order to renew a license during the licensee's military deployment, the designated representative must sign the renewal((. The renewal and)) form and submit it with the applicable fees ((must be returned)) to the ((OIC)) commissioner no later than the due date.

     (c) The ((OIC)) commissioner may waive the continuing insurance education requirement for renewal of ((your)) a license for the duration of the licensee's active military service.

     (3) A waiver is only valid ((up to two years from the licensee's regular license renewal date)) for the associated license continuation period. If the medical condition or period of active duty exists on the date of the next license renewal, a new waiver may be requested by the licensee or the licensee's designee.

[Statutory Authority: RCW 48.02.060, 48.17.150, 48.17.563, 48.85.040. 05-07-091 (Matter No. R 2004-04), § 284-17-254, filed 3/17/05, effective 4/17/05.]

[Statutory Authority: RCW 48.02.060, 48.17.150, 48.17.563, 48.85.040. 05-07-091 (Matter No. R 2004-04), § 284-17-256, filed 3/17/05, effective 4/17/05.]

[Statutory Authority: RCW 48.02.060, 48.17.150, 48.17.563, 48.85.040. 05-07-091 (Matter No. R 2004-04), § 284-17-270, filed 3/17/05, effective 4/17/05. Statutory Authority: RCW 48.02.060. 89-19-037 (Order R 89-10), § 284-17-270, 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), § 284-17-270, 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), § 284-17-270, filed 3/20/80.]

     (((1) Providing)) (a) Provide the ((OIC with the)) name of a contact person who is the responsible person for the provider;      (((2) Hiring and supervising)) (b) Hire only instructors who are trustworthy, competent, and knowledgeable;

     (((3) Providing)) (c) Provide adequate supervision over instructors;

     (((4) Notifying, in a format as required by OIC, the OIC with a)) (d) Notify the commissioner of the course schedule at least ten ((calendar)) days prior to the course start date in the format required by the commissioner;

     (((5) Identifying)) (e) Designate a monitor((, an individual)) who is responsible for verification of class attendance and course content completion;

     (((6) Maintaining)) (f) Maintain a course roster, consisting of ((a)) sign-in((/)) and sign-out registers, for lecture (classroom) courses;

     (((7) Maintaining)) (g) Maintain a purchase and completion roster for self-study courses;

     (((8) Filing)) (h) File the course roster electronically in ((a)) the format ((as)) required by ((OIC)) commissioner, within ten days after completion of the course;

     (((9) Issuing)) (i) Issue course completion certificates to attendees within ((fifteen)) ten days ((of)) after completion of course; and

     (((10) Maintaining)) (j) Maintain records for a period of three years ((from)) after the completion date of the course.

     (2) The format for providing this information is available on the commissioner's web site at www.insurance.wa.gov.

[Statutory Authority: RCW 48.02.060, 48.17.150, 48.17.563, 48.85.040. 05-07-091 (Matter No. R 2004-04), § 284-17-272, filed 3/17/05, effective 4/17/05.]

[Statutory Authority: RCW 48.02.060, 48.17.150, 48.17.563, 48.85.040. 05-07-091 (Matter No. R 2004-04), § 284-17-274, filed 3/17/05, effective 4/17/05.]

[Statutory Authority: RCW 48.02.060, 48.17.150, 48.17.563, 48.85.040. 05-07-091 (Matter No. R 2004-04), § 284-17-276, filed 3/17/05, effective 4/17/05.]

     (((1))) (a) Lecture (classroom)((;)) courses:

     (((a))) (i) Completed course approval request form;

     (((b))) (ii) Content outline ((which includes)), including a list of topics to be covered and an estimate of the time to be spent on each topic;

     (((c))) (iii) Biography or resume of instructor(s); and

     (((d))) (iv) Date(s) that course ((is to)) will be offered.

     (((2))) (b) Self-study((;)) courses:

     (((a))) (i) Completed course approval request form;

     (((b))) (ii) Study material; and

     (((c))) (iii) Sample exams.

     (2) Continuing insurance education courses eligible for approval to satisfy the continuing insurance education requirement include:

     (a) Courses demonstrating a direct and specific application to insurance; and

     (b) Courses presenting information relevant to insurance-related statutory and regulatory requirements.

     (3) General education, sales, motivation, management, leadership, and automation courses are not eligible unless the insurance education provider demonstrates to the satisfaction of the commissioner that a substantial portion of the course relates to the business of insurance and is not solely focused on a particular insurer's products. Prelicensing insurance education courses are not eligible for approval for continuing insurance education credit.

[Statutory Authority: RCW 48.02.060, 48.17.150, 48.17.563, 48.85.040. 05-07-091 (Matter No. R 2004-04), § 284-17-278, filed 3/17/05, effective 4/17/05.]

[Statutory Authority: RCW 48.02.060, 48.17.150, 48.17.563, 48.85.040. 05-07-091 (Matter No. R 2004-04), § 284-17-282, filed 3/17/05, effective 4/17/05.]

     Reviser's note: RCW 34.05.395 requires the use of underlining and deletion marks to indicate amendments to existing rules. The rule published above varies from its predecessor in certain respects not indicated by the use of these markings.
AMENDATORY SECTION(Amending Matter No. R 2004-04, filed 3/17/05, effective 4/17/05)

WAC 284-17-284   ((What courses are specifically approved?)) Designation courses.   (((Designation courses.)))

     (1) ((The following courses are)) Successful completion of any part of a course of study leading to an insurance professional designation is approved for the maximum number of credit hours required per renewal period((:

     (a) Any part of the American College Life Underwriting Training Council (LUTC) designation program.

     (b) Any part of the American College Chartered Life Underwriter (CLU) designation program and advanced study programs.

     (c) Any part of the Insurance Institute of America's program of insurance.

     (d) Any part of the American Institute for Chartered Property Casualty Underwriter (CPCU) designation program.

     (e) Any part of the Certified Insurance Counselor (CIC) program.

     (f) Any part of the Health Insurance Association of America (HIAA) designation program.

     (g) Any part of the Certified Employee Benefit Specialist (CEBS) designation program.

     (h) Any part of the Life Office Management Association (FLMI) designation program. Changes in the above identified courses are presumed to be approved by the OIC unless the sponsoring organization is advised of disapproval.

     (2) The OIC may approve additional designation courses of similar substance.)) as a designation course, as defined in WAC 284-17-210(7).

     (2) A current list of approved designations for course credit can be found on the commissioner's web site at www.insurance.wa.gov.

[Statutory Authority: RCW 48.02.060, 48.17.150, 48.17.563, 48.85.040. 05-07-091 (Matter No. R 2004-04), § 284-17-284, filed 3/17/05, effective 4/17/05.]

     ((However, the number of credit hours assigned may be less)) (2) After evaluation of the content of a continuing insurance education course, the commissioner may assign fewer credits than the total ((amount of time)) hours spent by the licensee in the ((course, based upon an evaluation of the course content)) classroom or in self-study.

     (3) No continuing insurance education course will be approved for less than one hour of continuing insurance education credit.

[Statutory Authority: RCW 48.02.060, 48.17.150, 48.17.563, 48.85.040. 05-07-091 (Matter No. R 2004-04), § 284-17-286, filed 3/17/05, effective 4/17/05.]

     (1) Name of student;

     (2) Course title and number;

     (3) Date of purchase of course, if applicable;

     (4) Date of completion of course;

     (5) Number of credit hours;

     (6) Provider's name and number; and

     (7) Signature of instructor or monitor and date((; and

     (8) Certification of completion by student)).

[Statutory Authority: RCW 48.02.060, 48.17.150, 48.17.563, 48.85.040. 05-07-091 (Matter No. R 2004-04), § 284-17-292, filed 3/17/05, effective 4/17/05.]

[Statutory Authority: RCW 48.02.060, 48.17.150, 48.17.563, 48.85.040. 05-07-091 (Matter No. R 2004-04), § 284-17-294, filed 3/17/05, effective 4/17/05.]

[Statutory Authority: RCW 48.02.060, 48.17.150, 48.17.563, 48.85.040. 05-07-091 (Matter No. R 2004-04), § 284-17-296, filed 3/17/05, effective 4/17/05.]

     (1) Advertising or offering a course for credit without the prior approval of the commissioner;

     (2) ((Not following)) Failing to follow the approved course outline;

     (3) Issuing fraudulent completion certificates; ((and))

     (4) ((Recruitment within an advertisement or during the hours of a course presentation.)) Erroneous advertising; or

     (5) ((The provider has failed)) Failing to comply with ((or has violated)) any statute or ((regulation)) rule pertaining to continuing insurance ((continuing)) education providers.

[Statutory Authority: RCW 48.02.060, 48.17.150, 48.17.563, 48.85.040. 05-07-091 (Matter No. R 2004-04), § 284-17-302, filed 3/17/05, effective 4/17/05.]

     (a) The provider or any of its employees involved in continuing insurance education is found to have violated any ((of the)) provision((s)) of Titles 48 RCW or ((Title)) 284 WAC; or

     (b) The ((OIC)) commissioner finds ((under these titles)) that disciplinary action against ((any)) a continuing insurance education provider is appropriate((; the OIC may exercise the discretion to suspend or revoke the provider approval and all of its courses)) based on the facts and circumstances of the violation.

     (2) Reinstatement of a suspended or revoked approval ((shall be at the discretion of the OIC)) may be made by the commissioner only after ((receipt)) acceptance of satisfactory proof that the conditions responsible for the suspension or revocation have been successfully corrected and the possibility of reoccurrence of the violation has been eliminated.

     (3) Reinstatement is at the sole discretion of the commissioner.

[Statutory Authority: RCW 48.02.060, 48.17.150, 48.17.563, 48.85.040. 05-07-091 (Matter No. R 2004-04), § 284-17-304, filed 3/17/05, effective 4/17/05.]

     (a) The content of an approved course ((was)) is significantly changed without notice to and prior approval from((,)) the ((OIC)) commissioner;

     (b) A certificate of completion ((was)) is issued to ((any individual)) a person who did not complete the course;

     (c) A certificate of completion ((was)) is not issued to ((any individual)) a person who satisfactorily completed the course;

     (d) The actual instruction of the course is ((determined)) found by the commissioner to be inadequate; or

     (e) Within fifteen days after the date of the commissioner's request, the continuing insurance education provider ((failed)) fails to ((comply with the OIC's request for submissions of)) supply updated descriptions of any course ((offerings; or)), records, ((course)) materials, or audit ((information were not provided within fifteen days of the OIC's request)) reports.

     (2) Reinstatement of ((a suspended or revoked)) approval is at the sole discretion of the ((OIC. The OIC must receive)) commissioner and is conditioned upon receipt of satisfactory proof that the conditions responsible for the suspension have been corrected and the possibility of reoccurrence of the violation has been eliminated.

[Statutory Authority: RCW 48.02.060, 48.17.150, 48.17.563, 48.85.040. 05-07-091 (Matter No. R 2004-04), § 284-17-306, filed 3/17/05, effective 4/17/05.]

     (1) The insurance education provider's name, using the name registered with the commissioner;

     (2) The course title, as approved by the commissioner;

     (3) A brief description of the content of the course;

     (4) The number of credit hours ((applied for or)) approved by the commissioner;

     (5) The location where the course will be held;

     (6) The date and time that the course will be presented; and

     (7) The total cost of the course.

[Statutory Authority: RCW 48.02.060, 48.17.150, 48.17.563, 48.85.040. 05-07-091 (Matter No. R 2004-04), § 284-17-310, filed 3/17/05, effective 4/17/05. Statutory Authority: RCW 48.02.060. 89-19-037 (Order R 89-10), § 284-17-310, filed 9/15/89, effective 10/16/89; 82-10-016 (Order R 82-2), § 284-17-310, filed 4/28/82. Statutory Authority: RCW 48.02.060 and 48.17.150. 81-18-049 (Order R 81-5), § 284-17-310, 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), § 284-17-310, filed 3/20/80.]

     (1) An insurance education provider must be qualified as an approved provider in this state.

     (2) ((Participating states have agreed they will not review another state's CE credit hours. Instructor qualifications will also not be reviewed.)) A standard course filing form, available on the commissioner's web site or through the NAIC, will be ((used)) acceptable for reciprocity filings.

     (3) ((The)) Participation in the NAIC Uniform Continuing Education Reciprocity Agreement does not change ((any of a provider's current duties under Washington law)) this state's standards for insurance education providers. ((A provider must still be independently qualified as an approved provider in a participating state.))

[Statutory Authority: RCW 48.02.060, 48.17.150, 48.17.563, 48.85.040. 05-07-091 (Matter No. R 2004-04), § 284-17-312, filed 3/17/05, effective 4/17/05.]

     (((1))) The nonresident licensee's authority to transact insurance in this state is limited to the scope of the license granted by the licensee's home state.

     (((2) For purposes of this section, "personal lines only authority" means property and casualty insurance coverage sold to individuals and families for primarily noncommercial purposes.)) For example nonresident insurance producers holding a limited line crop insurance license in their home states will be issued Washington insurance producer licenses with a property line of authority.

[Statutory Authority: RCW 48.02.060. 08-17-063 (Matter No. R 2008-03), § 284-17-422, filed 8/18/08, effective 9/18/08.]

     (2) The renewal date of a business entity license is based on the date of application. The license is valid for two years. Additional licenses issued to the same active licensee will be on the same renewal cycle as the first license issued to that licensee.

[Statutory Authority: RCW 48.02.060 (3)(a) and 48.17.150 (1)(g)(ii). 06-12-025 (Matter No. R 2005-06), § 284-17-423, filed 5/30/06, effective 6/30/06.]

     (3) Initial appointments and affiliations are ((valid for the period ending with the insurer's first appointment renewal date after the initial issue date of the appointment. The appointment renewal date for the insurer is assigned by the commissioner)) continuous. Each appointment or affiliation is effective until the insurance producer's license is revoked, terminated, or nonrenewed; the appointment or affiliation renewal fee is not paid; or written notice of termination is received by the commissioner, whichever occurs first.

     (4) The insurer is obligated to ensure that its appointed insurance producers are licensed for the proper line of authority for which the insurance producer submits an application for insurance.

     (5) Individual surplus line brokers may be affiliated with a business entity possessing a surplus line broker license in the manner set forth in subsection (1) of this section.

     (6) Business entities are obligated to ensure that all affiliated insurance producers for the proper line of authority for which the insurance producer submits an application for insurance and that surplus line brokers are properly licensed.

     (7) The applicable initial and renewal appointment and affiliation fees, as set forth in RCW 48.04.010, must be paid at the time of appointment, affiliation, or their renewals.

[Statutory Authority: RCW 48.02.060 (3)(a) and 48.17.150 (1)(g)(ii). 06-12-025 (Matter No. R 2005-06), § 284-17-429, filed 5/30/06, effective 6/30/06.]

[Statutory Authority: RCW 48.02.060 (3)(a) and 48.17.150 (1)(g)(ii). 06-12-025 (Matter No. R 2005-06), § 284-17-435, filed 5/30/06, effective 6/30/06.]

[Statutory Authority: RCW 48.02.060. 08-17-063 (Matter No. R 2008-03), § 284-17-439, filed 8/18/08, effective 9/18/08. Statutory Authority: RCW 48.02.060 (3)(a) and 48.17.150 (1)(g)(ii). 06-12-025 (Matter No. R 2005-06), § 284-17-439, filed 5/30/06, effective 6/30/06.]

     (a) At least forty-five days prior to the renewal date, an appointment((, the commissioner will send)) or affiliation list will be sent to the insurer ((an appointment renewal notification. An insurer may renew an appointment by:

     (1) Sending notice to the commissioner that the appointment will be renewed on the form provided by the commissioner for that purpose or through the commissioner's web site (www.insurance.wa.gov); and

     (2) Paying the renewal fee for each agent appointed by the insurer no later than the renewal date assigned by the commissioner)) or business entity identifying all of the licensees appointed by or affiliated with the insurer or business entity whose appointments or affiliations are due to expire.

     (b) The insurer or business entity must verify that the list is accurate, make any changes, and return the list with the correct fees to the commissioner.

     (c) The verified and corrected list and fees are due to the commissioner no later than the renewal date.

     (2) Insurer and business entities that are registered with the commissioner's on-line services.

     (a) At least sixty days prior to the renewal date, an appointment or affiliation renewal fee notice will be sent to the insurer or business entity electronically.

     (b) The insurer or business entity may review the on-line list of appointees or affiliates, make any changes and must remit the correct fees to the commissioner.

     (c) The on-line appointment or affiliation renewal and payment of fees must be completed no later than the renewal date.

[Statutory Authority: RCW 48.02.060. 08-17-063 (Matter No. R 2008-03), § 284-17-443, filed 8/18/08, effective 9/18/08. Statutory Authority: RCW 48.02.060 (3)(a) and 48.17.150 (1)(g)(ii). 06-12-025 (Matter No. R 2005-06), § 284-17-443, filed 5/30/06, effective 6/30/06.]

     (2) The effective date of the termination is the date of receipt by the commissioner.

[Statutory Authority: RCW 48.02.060. 08-17-063 (Matter No. R 2008-03), § 284-17-445, filed 8/18/08, effective 9/18/08. Statutory Authority: RCW 48.02.060 (3)(a) and 48.17.150 (1)(g)(ii). 06-12-025 (Matter No. R 2005-06), § 284-17-445, filed 5/30/06, effective 6/30/06.]

     (1) A form for this purpose is available on the commissioner's web site ((()) at www.insurance.wa.gov(())).

     (2) ((If requested by the commissioner, the insurer must provide additional information, documents, records or other data pertaining to the "for cause" termination or activity of the agent.

     (3) "For cause" includes the following conduct:

     (a) Providing incorrect, misleading, incomplete or materially untrue information in the license application;

     (b) Violating any insurance law, or violating any regulation, subpoena or order of the commissioner or of another state's insurance commissioner;

     (c) Obtaining or attempting to obtain a license through misrepresentation or fraud;

     (d) Improperly withholding, misappropriating or converting any moneys or properties received in the course of transacting the business of insurance;

     (e) Intentionally misrepresenting the terms of an actual or proposed insurance contract or application for insurance;

     (f) Having been convicted of a felony;

     (g) Having admitted or been found to have committed any insurance unfair trade practice or fraud;

     (h) Using fraudulent, coercive, or dishonest practices, or demonstrating incompetence, untrustworthiness or financial irresponsibility in the conduct of business in this state or elsewhere;

     (i) Having an insurance license denied, suspended or revoked in any other state, province, district or territory;

     (j) Forging another's name to an application for insurance or to any document related to an insurance transaction;

     (k) Knowingly accepting insurance business from an individual who is not licensed;

     (l) Being incompetent;

     (m) Failing to account for premiums;

     (n) Rebating; and

     (o) Abandonment.)) Upon the request of the commissioner, additional information, documents, records or other data pertaining to the for-cause termination or activity of a licensee's affiliation must be provided promptly to the commissioner.

     (3) The reasons an insurance producer may be terminated for cause are set forth in RCW 48.17.530 and 48.17.595. The reasons a surplus line broker may be terminated for cause are set forth in RCW 48.15.140.

[Statutory Authority: RCW 48.02.060. 08-17-063 (Matter No. R 2008-03), § 284-17-449, filed 8/18/08, effective 9/18/08. Statutory Authority: RCW 48.02.060 (3)(a) and 48.17.150 (1)(g)(ii). 06-12-025 (Matter No. R 2005-06), § 284-17-449, filed 5/30/06, effective 6/30/06.]

     (1) The insurance contract will be effective;

     (2) The ((agent)) insurance producer must not receive compensation for any insurance product sold by the ((agent)) insurance producer; and

     (3) The ((agent)) insurance producer and the insurer may be subject to disciplinary action under RCW 48.17.530.

[Statutory Authority: RCW 48.02.060. 08-17-063 (Matter No. R 2008-03), § 284-17-467, filed 8/18/08, effective 9/18/08. Statutory Authority: RCW 48.02.060 (3)(a) and 48.17.150 (1)(g)(ii). 06-12-025 (Matter No. R 2005-06), § 284-17-467, filed 5/30/06, effective 6/30/06.]

     (1))) Individual licensees that represent a business entity or act on its behalf must be affiliated with the licensed business entity. A business entity must have at least one affiliated individual licensee in order to transact insurance business. Each business entity must ((submit to)) provide the commissioner ((a notice of affiliation for)) with the names of all individual licensees authorized to represent the business entity and act on its behalf((. A)) using the form ((is)) provided by the commissioner for that purpose ((which can be obtained upon request or found on)) and paying the applicable fees, or by using the on-line services available through the commissioner's web site ((()) at www.insurance.wa.gov(())).

     (((2) A licensed business entity must have at least one affiliated individual licensee.

     (3) If an agent is affiliated with a licensed business entity, the agent is not required to be directly appointed by an insurer to sell its products if the business entity is appointed by the insurer.

     (4) The affiliated agent's, broker's, or surplus line broker's authority to act as a representative of a business entity is limited to those lines of authority for which the agent, broker, or surplus line broker is qualified and that are consistent with the business entity's lines of authority.

     (5) If an agent, broker, surplus line broker, or adjuster cannot be affiliated electronically, the commissioner will notify the business entity that the licensee is not eligible for affiliation. A licensee cannot be affiliated under the following circumstances:

     (a) The person's license is not valid;

     (b) The agent, broker, or surplus line broker is not licensed for at least one of the lines or limited lines of authority that the business entity is authorized to transact in this state; or

     (c) The agent is not licensed for at least one of the lines or limited lines of authority of the business entity's appointing insurers.

     (6)(a) At the time of renewal of a business entity license, a renewal affiliation list will be sent to the business entity listing the affiliated agents, brokers, surplus line brokers, or adjusters whose affiliations are due to expire.

     (b) A business entity may renew an affiliation by sending a list of affiliations to be renewed to the commissioner and paying the renewal fees by mail or through the commissioner's web site (www.insurance.wa.gov).))

[Statutory Authority: RCW 48.02.060. 08-17-063 (Matter No. R 2008-03), § 284-17-473, filed 8/18/08, effective 9/18/08. Statutory Authority: RCW 48.02.060 (3)(a) and 48.17.150 (1)(g)(ii). 06-12-025 (Matter No. R 2005-06), § 284-17-473, filed 5/30/06, effective 6/30/06.]

     (1) The individual insurance producer's authority to transact insurance is limited to those lines of authority for which the insurance producer is licensed and that are within the business entity's lines of authority.

     (2) When an insurance producer places business with an insurer that has appointed the business entity with which the insurance producer is affiliated, the insurance producer is deemed to be placing business with an insurer with which the insurance producer holds an appointment for the purpose of the bonding requirements set out in RCW 48.17.250.

[]

     (2) The notice must state that the insurance producer or surplus line broker will no longer transact insurance on behalf of the business entity, as the case may be.

     (3) The effective date of the termination is the date of receipt by the commissioner.

[Statutory Authority: RCW 48.02.060. 08-17-063 (Matter No. R 2008-03), § 284-17-483, filed 8/18/08, effective 9/18/08. Statutory Authority: RCW 48.02.060 (3)(a) and 48.17.150 (1)(g)(ii). 06-12-025 (Matter No. R 2005-06), § 284-17-483, filed 5/30/06, effective 6/30/06.]

     (1) As a precondition to late renewal or reinstatement of a license, payment of the following late fees, as set forth in RCW 48.17.170 (6) and (7), is required:

Days Late	Surcharge
First 30 days late	50% of the license renewal fee
31-60 days late	100% of the license renewal fee
61 days to one year late	200% of the license renewal fee

     (2) If no request for late renewal is received by the commissioner within sixty days after expiration of a license, the license and all associated appointments and affiliations will be terminated. All authority conferred by the license ends on its expiration date.

     (3) If a license is expired for more than sixty days but less than one year, a licensee may request its reinstatement. A license is not eligible for reinstatement if the reinstatement application is received by the commissioner more than one year after its expiration date.

     (4)(a) A licensee may request reinstatement of a license without retesting if no more than one year has passed since the expiration or cancellation date of the license, whichever is earlier. All of the following must accompany the request for reinstatement:

     (i) A completed application for reinstatement;

     (ii) Certificates for twenty-four credit hours of continuing education, including three hours of ethics education, completed during the twenty-four months prior to the date of application for reinstatement, as set forth in WAC 284-17-224; and

     (iii) The fee and surcharge applicable to the reinstatement, as set forth in subsection (1) of this section.

     (b) After one year, the licensee must retake and pass all applicable prelicensing education courses and the applicable license examinations. A new license application, including fingerprint card, and all required fees are also required. A new fingerprint card is not required if the licensee has other active licenses or held another license during the past year.

     (5)(a) If a licensee cancels a license prior to its renewal date and later asks that it be reissued and the request to reissue is submitted prior to the license renewal date, the licensee must submit an application and must pay the applicable fee prior to the license renewal date.

     (b) If a licensee cancels a license prior to its renewal date and a request to reissue the license is made after the license renewal date but before one year after the date the license was canceled, the request to reissue will be treated as though it were a late renewal or reinstatement and the late fee will be calculated from the cancellation date.

     (c) If the request to reissue is made more than one year after the license renewal date, it cannot be reissued.

     (d) The renewal date of any reissued license will be on the same renewal cycle as the original license.

     (6) Information regarding renewal or reinstatement of a license and the necessary forms are available at the commissioner's web site at www.insurance.wa.gov.

     (7) License renewals and reinstatements may be submitted by licensees that are registered with the commissioner's on-line services through the web site at www.insurance.wa.gov.

[]

     (1) "Approved ((prelicense)) prelicensing insurance education provider" or "provider" means any insurer, professional association, educational institution ((created by Washington statutes or)), community college or vocational school ((licensed under Title 28C RCW)), or independent contractor, to which the commissioner has granted authority to conduct and certify completion of an approved course satisfying the prelicensing insurance education requirements of ((RCW 48.17.150)) this state.

     (2) "Approved course" means a series of seminars, classes, or lectures meeting the requirements of WAC 284-17-517 and 284-17-550((;)), covering the prescribed ((curricula of WAC 284-17-551 and the applicable section(s) of WAC 284-17-552 through 284-17-555)) course of study. A course is approved only ((for offering by an approved provider, while)) if when offered it will be supervised by an approved program director, and presented by or under the supervision of an approved instructor, according to the applicable section of either WAC 284-17-540 or 284-17-545.

     (3)(((a))) "Instructor" means a person meeting the requirements of WAC 284-17-537.

     (((b) "Student" means an individual taking the prelicense education course that is required as a prerequisite to admission to the life, disability, property, or casualty resident insurance agent's license examination.))

     (4) "Curriculum" ((or "curricula")) means the ((topics)) course of study prescribed for ((prelicense)) prelicensing insurance education by the commissioner ((at WAC 284-17-551 through 284-17-555, concerning the)), covering personal lines, life, disability, property((, and)) or casualty lines of ((insurance)) authority, and ((including the)) Washington insurance ((statutes)) laws and ((regulations curriculum)) rules.

     (5) "Independent testing service" means the entity having a contract with ((which)) the commissioner ((has contracted)) to develop, administer, and score ((license)) prelicensing insurance examinations.

     (6) (("Insurer" means an insurance company, health care service contractor, or health maintenance organization authorized to conduct business in Washington under RCW 48.05.030, 48.44.015, or 48.46.027, respectively.)) "Independent provider" means an insurance education provider that is not an insurer or affiliated with an insurer.

     (7) "Provider" or "prelicensing insurance education provider" means any insurer, health care service contractor, health maintenance organization, professional association, educational institution, vocational school, or independent contractor authorized by the commissioner to conduct and certify completion of prelicensing insurance education courses.

[Statutory Authority: RCW 48.02.060. 89-14-045 (Order R 89-8), § 284-17-505, filed 6/29/89. Statutory Authority: RCW 48.02.060 and 48.17.070. 89-01-055 (Order R 88-14), § 284-17-505, filed 12/16/88.]

     Complete four)) twenty hours of ((instruction relating to)) prelicensing insurance education for each major line of authority for which the applicant will be tested. Each course must include training on Washington(('s general statutes)) insurance laws and ((regulations governing the sale of)) rules applicable to that line of authority and general insurance((, and sixteen hours of instruction relating to the specific line of:

     (a) Life insurance, if the applicant is seeking to be licensed as a life insurance agent or solicitor; or

     (b) Disability insurance, if the applicant is seeking to be licensed as a disability insurance agent or solicitor; or

     (c) Casualty insurance, if the applicant is seeking to be licensed as a casualty insurance agent or solicitor; or

     (d) Property insurance, if the applicant is seeking to be licensed as a property insurance agent or solicitor)) laws and rules.

     (2) ((An applicant planning to undergo examination for more than one major line need not repeat the four hours' instruction on general statutes and regulations.

     (3))) The prescribed curriculum for ((a particular,)) each line of authority to be tested and the ((prescribed curriculum for the)) related insurance ((statutes)) laws and ((regulations)) rules, must be successfully completed within the twelve-month period immediately preceding the examination.

[Statutory Authority: RCW 48.02.060 and 48.17.070. 89-01-055 (Order R 88-14), § 284-17-510, filed 12/16/88.]

     (1) ((Equivalent education.)) A ((written)) waiver((,)) based on a documentation of equivalent insurance education((,)) may be granted by the commissioner in lieu of the certificate of completion ((for the purpose of complying with)) of the ((prelicense)) required prelicensing insurance education ((requirement, provided that)) if the ((insurance education)) course of study was completed within the twelve months immediately preceding the date of the petition for waiver((;)) and the petitioner demonstrates to the satisfaction of the commissioner that the ((materials and/or classes required to complete such insurance)) education meets or exceeds the curriculum ((prescribed by WAC 284-17-552 through 284-17-555)) required for ((each)) the applicable line of authority.

     (((a) An equivalent education in insurance may be demonstrated by a course syllabus and the student's transcript from an accredited college, university, or a course of study recognized as a mark of distinction by the insurance industry and deemed by the commissioner to be fully qualified and competent.

     (b))) (2) Persons successfully completing the following insurance professional designations are deemed to have completed the required prelicensing education requirements and will be issued a waiver of the prelicensing insurance education requirements:

     (a) Life insurance: CEBS, ChFC, CIC, CFP, CLU, FLMI, and LUTCF;

     (b) Disability insurance: RHU, CEBS, REBC, and HIA; and

     (c) Property or casualty insurance: AAI, ARM, CIC, and CPCU.

     (3) Except as provided in subsection (2) of this section, the commissioner retains the discretion to determine whether a petitioner has presented sufficient evidence ((that her or his ")) of equivalent((")) education and merits a waiver of the ((prelicense)) prelicensing insurance education requirement.

     (((c) Prior to the petitioner's participation in the insurance agent's license examination,)) (4) The petition must be submitted and the commissioner's written waiver of prelicensing insurance education must ((be)) have been issued before the petitioner will be admitted to the insurance licensing examination.

     (((d) A waiver is valid for twelve months from the date signed by the commissioner. A waiver of the applicable insurance line curriculum requirement is not a waiver of the insurance statutes and regulations curriculum requirement, or of any other requirement prescribed by the commissioner for insurance license examination eligibility.

     (2) Licensed experience. A written waiver from the prelicense education requirement for life, disability, casualty, or property insurance as defined respectively by WAC 284-17-552, 284-17-553, 284-17-554, or 284-17-555 may be granted by the commissioner to any person who can demonstrate that (a) he or she has been licensed within the previous ninety days for the same line or lines of insurance in another state and that (b) he or she was licensed continuously for at least two years. Such waiver is not a waiver of Washington's statutes and regulations curriculum as defined in WAC 284-17-551.

     (3) Unavailability. Any person who believes that a prelicense education course is unavailable to her or him may file a written petition with the commissioner for permission to undertake self-study. Written permission to undertake self-study of the prelicense education curricula, based on a showing of the unavailability of an approved prelicense education course, may be granted by the commissioner provided that the petition shall specify in detail the reasons why a prelicense education course for the identified line of insurance is unavailable, and shall identify with particularity the materials to be used to study the prescribed curricula.

     The petitioner shall demonstrate that the materials cover the curriculum prescribed for Washington insurance statutes and regulations as well as the curriculum prescribed for that line.

     (a) The commissioner retains the discretion to determine whether the petitioner has presented sufficient cause to justify a grant of permission to self-study the prelicense curriculum.

     (b) If the commissioner grants permission to self-study, such study must be completed within twelve months of the grant. Upon completion of study, the petitioner shall present to the commissioner a certified statement in which the self-study materials that have been utilized are identified, and in which the amount of time spent in study is clearly recorded by dates and clock times as covering at least the prelicense education hour requirement.

     (c) Upon the petitioner's satisfactory completion of the approved program of self-study, the commissioner will issue a certificate of completion of approved self-study.))

[Statutory Authority: RCW 48.02.060 and 48.17.150. 91-12-032 (Order R 91-2), § 284-17-515, filed 6/3/91, effective 7/4/91. Statutory Authority: RCW 48.02.060 and 48.17.070. 89-01-055 (Order R 88-14), § 284-17-515, filed 12/16/88.]

     (2) A list of approved prelicensing insurance education providers is available on the commissioner's web site at www.insurance.wa.gov.

     (3) The candidate must complete all prelicensing insurance education requirements set forth in WAC 284-17-510.

     (4) After completion of the program of home self-study, the petitioner must provide verification of completion of each course to the prelicensing insurance education provider before the provider can issue a certificate of completion. A certificate of completion is required before the candidate will be admitted to the insurance licensing examination.

     (5) The prelicensing insurance education provider must keep accurate purchase and completion rosters of all students participating in home self-study.

     (6) "Home self-study" means a form of study using course materials approved by the commissioner and completed away from an insurance school; and a course other than a lecture or classroom course. It includes approved internet-based on-line courses accessed from a home computer. The course materials may include textbooks, CDs or reading material accessed on-line from the insurance school's web site.

[]

     (2) To qualify for the commissioner's approval, the prelicensing insurance education provider must demonstrate to the commissioner's satisfaction that the study materials for each course include all prescribed curriculum specified in the examination content outline of the candidate handbook for the particular line of authority.

     (3) Each course must be divided into individual lessons covering the prescribed curriculum. The table of contents of the materials must follow the examination content outline as published in the candidate handbook. Each course must cover all required content and must be designed so that a candidate will complete twenty hours of study per line of authority.

     (4) Approved prelicensing education providers must apply to the commissioner for amendment to the course approval if there is a change in the content of the study material other than changes made to conform the study materials to modifications of the candidate handbook examination content outline.

     (5) Prior to implementation of any change, the prelicensing insurance education provider must advise the commissioner if it makes any change to its course tuition charge or to its rebate policy.

     (6) The candidate handbook is available through the commissioner's web site at www.insurance.wa.gov.

[]

     (1) ((Any)) In order to be admitted to the examination, an applicant ((seeking)) for a resident(('s)) license ((as a)) with a personal lines, life, disability, property((,)) or casualty ((insurance agent or solicitor in the state of Washington who appears at an examination site)) line of authority must present certificates of completion of the ((requisite)) required number of hours of approved ((prelicense)) prelicensing insurance education((,)) or a written waiver ((of the applicable line curriculum and a certificate of completion of the statutes and regulations curriculum, to be allowed access to the examination)).

     (2) ((Any)) The commissioner will issue a license after the applicant ((who receives a passing score on the licensing examination must include validated certificates of completion of the approved prelicense education, or a written waiver of the applicable line curriculum requirement, along with)) provides the passing score report, all other required license application documents, ((to be issued the license)) and the proper fee.

[Statutory Authority: RCW 48.02.060. 89-14-045 (Order R 89-8), § 284-17-520, filed 6/29/89. Statutory Authority: RCW 48.02.060 and 48.17.070. 89-01-055 (Order R 88-14), § 284-17-520, filed 12/16/88.]

     (8) It shall be unlawful for any prelicense education provider to use any name that implies or suggests that the provider is affiliated with either the office of insurance commissioner or with the independent testing service that conducts the examination, or to use any name that implies or suggests that the provider is the only person authorized to provide prelicense education in the state of Washington.)) This section applies to all persons seeking to be approved by the commissioner to act as prelicensing insurance education providers.

     (1) Approval to act as prelicensing education providers. Persons seeking to be approved as prelicensing insurance education providers must obtain the written approval of the commissioner prior to offering any prelicensing insurance education course for credit.

     (a) Requests for approval must include all information, disclosures, statements and certifications required by the commissioner. An approved form for this purpose is available on the commissioner's web site at www.insurance.wa.gov.

     (b) The provider must comply with the standards for licensing and regulating this state's private vocational schools, but need not be actually licensed as a private vocational school.

     (c) The commissioner may grant approval of the prelicensing insurance education provider upon a showing that the provider has satisfied all requirements of this chapter.

     (d) Approval of a prelicensing education provider is valid for a period of twelve months.

     (2) Approval of the prelicensing insurance education provider's program director.

     (a) The prelicensing insurance education provider must identify its proposed program director, must complete a background investigation of that person, must certify that the qualifications of the proposed program director meet or exceed the requirements of WAC 284-17-535 and must verify that the proposed program director is trustworthy.

     (b) The commissioner's approval of the program director is valid for twelve months.

     (c) The provider must certify on its annual renewal notice that the approved individual continues to act as its program director.

     (d) The provider must apply for an amendment to its approval at least ten days before changing its program director, unless the change is required due to an emergency.

     (e) The commissioner retains discretion to determine whether the qualifications of each proposed program director meet the minimum scholastic and professional criteria required for approval.

     (3) Approval of the provider's instructors.

     (a) The provider must identify each proposed instructor, conduct a background investigation of each individual, certify that each proposed instructor's qualifications meet or exceed the requirements in WAC 284-17-537, and verify that each proposed instructor is trustworthy.

     (b) Approval of each instructor is valid until the next renewal date of the prelicensing education provider.

     (c) The provider must state on its annual renewal notice whether each individual continues to act as its instructor.

     (d) The provider must apply to the commissioner for amended approval at least ten days before adding a new instructor, except if an instructor vacancy is created by an emergency.

     (e) The commissioner retains discretion to determine whether the qualifications of each proposed instructor meet the minimum scholastic and professional criteria required for approval.

     (4) Approval of courses.

     (a) Course materials must be submitted to the commissioner prior to use.

     (b) The provider must provide all of the following information to the commissioner with its request for course approval:

     (i) The total tuition to be charged to students; and

     (ii) The provider's referral and rebate policy.

     (c) No course may be advertised until the provider has been finally approved by the commissioner in writing.

     (5) Duties of approved providers. Throughout any period of approval to act as a prelicensing insurance education provider, the provider must:

     (a) Retain all student enrollment and performance data, personnel records, and copies of course materials and student evaluations for each course and make them available to the commissioner upon request;

     (b) Continually monitor its program director's supervision of instruction;

     (c) Immediately remove the program director if that individual violates any law or rule related to insurance;

     (d) Apply for amended approval to act as a provider at least ten days prior to a change of ownership, the executive officer, or of the program director. Amended approval, if granted, is valid only until the original provider approval expiration date;

     (e) Report to the commissioner by the fifteenth day of each month the name of each student receiving a certificate of completion for each approved course offered during the previous calendar month;

     (f) Permit the commissioner or the commissioner's designee to conduct unannounced audits of any approved course in order to monitor the provider's continuing compliance with WAC 284-17-530 through 284-17-580;

     (g) Provide a true and complete copy of the provider's instructional plan for each approved course, upon request;

     (h) Notify the commissioner if it intends to terminate its prelicensing education program at least thirty days prior to the date of termination;

     (i) Notify the commissioner at least ten days in advance of its intent to change the tuition amount, the referral or rebate policy, or initiate a referral or rebate policy with a person other than a full-time employee of the provider.

     (6) Provider advertising and name. A provider must not:

     (a) Use license examination performance data for advertising or promotional purposes; or

     (b) Use any name that implies or suggests that the provider is affiliated with either the commissioner or with the independent testing service that conducts the examination.

     (7) Renewal requirements for all providers.

     (a) At the time of renewal all providers must provide all of the following information:

     (i) List of prelicensing education courses currently offered and the tuition for each and verify that the course curricula meet the requirements of WAC 284-17-550;

     (ii) A description of the instruction method used for each course, lecture, proctored self-study, or home self-study;

     (iii) List of all active instructors and verify that each has complied with the requirements of WAC 284-17-537;

     (iv) Verify that the program director has complied with WAC 284-17-535; and

     (v) Confirm the address and contact information for each business location.

     (b) The commissioner may approve renewal of the prelicensing insurance education provider upon a showing that the provider has satisfied all requirements of this chapter required for renewal, including the annual renewal requirements provided in WAC 284-17-547.

     (c) Detailed information related to course standards is available on the commissioner's web site at www.insurance.wa.gov.

     (8) Required disclosures to students.

     (a) The prelicensing insurance education provider must disclose to prospective students the total amount of tuition that will be charged for each proposed course.

     (b) The provider must post in a conspicuous location at the prelicensing insurance education site a note containing all of the following:

     (i) Procedures for applying for an insurance license, including all preexamination qualifications;

     (ii) A notice of prohibited examination behavior; and

     (iii) The tuition for each approved course.

     (c) If the provider has a referral or rebate program, it must be fully disclosed to each student in writing.

     (i) The disclosure must state the amount of the course tuition that will be paid to persons other than the provider's full-time employees as compensation for referring students to the provider;

     (ii) The full text of the policy must be posted, including the specific amount of tuition payable to persons other than full-time employees of the provider as compensation for referring students to the provider, and the names of any individuals to whom referral fees or rebates may be paid.

     (9) Penalties.

     (a) The commissioner may refuse to renew or immediately terminate a provider for the following reasons:

     (i) Failure to notify the commissioner that a course will be terminated at least thirty days prior to the date of termination;

     (ii) Failure to respond to an inquiry of the commissioner within the time limit specified in the inquiry.

     (b) A provider is responsible for the conduct of its employees and may be subject to disciplinary action for failure of any employee to comply with the requirements of this chapter.

[Statutory Authority: RCW 48.02.060 and 48.17.070. 89-01-055 (Order R 88-14), § 284-17-530, filed 12/16/88.]

     (a))) must have at least five years of teaching experience and knowledge of insurance products, principles, ((and)) laws and rules.

     (((i))) (b) Each independent prelicensing insurance education provider's program director must possess and hold in good standing a Washington ((agent's or broker's)) insurance license((.

     (ii) Each insurer provider's program director must)) and possess ((such a license or comparable)) scholastic or professional credentials ((that)) acceptable to the commissioner ((deems equivalent to such a license.

     (iii))) (c) The requirements of (((a)(i) and (ii) of)) this subsection ((shall)) do not apply to program directors employed by ((approved providers governed by chapters 28B.19 and 28B.50 RCW, community colleges within Washington state; or to program directors employed by vocational-technical institutes)) community or technical colleges governed by the ((superintendent of public instruction and the)) state board ((of education)) for community and technical colleges.

     (((b) An employment)) (2) A program director must have a history ((involving)) of employment demonstrating administrative educational experience.

     (((c) Trustworthiness.)) (3) A program director must be trustworthy. A program director is ((untrustworthy)) not trustworthy if he or she has violated any ((statute)) law or ((regulation)) rule pertaining to insurance((,)) or to any other regulated occupation((; or)), has had an occupational or professional license revoked in any state((;)), or has been convicted of a crime ((evidencing lack of fitness to assume fiduciary duties)) reasonably related to his or her honesty or integrity.

     (((2) Information on)) (4) The program director ((which)) must ((be submitted to the commissioner includes the full disclosure of)) fully disclose to the commissioner any regulatory or legal action ((involving the program director's)) related to his or her honesty, integrity, or professional or occupational activities.

     (((3))) (5) A program director's responsibilities include:

     (a) Conducting a ((competent)) background investigation to ascertain that each instructor is trustworthy and qualified ((under WAC 284-17-537 and under WAC 284-17-540 or 284-17-545 for)) to teach the line of ((insurance)) authority he or she has been designated to instruct((;)), except ((that)) as follows:

     (i) In the event of an emergency created by the unavoidable absence of an approved instructor, the program director may appoint an interim instructor who was not previously certified and approved((,)) to complete the current course offering((, however:));

     (ii) If it is necessary to appoint an interim instructor, the program director must immediately notify the commissioner of the nature of the emergency, the name of the interim instructor, and the date ((upon which)) the current course offering will conclude((.)); and

     (iii) At the conclusion of the ((current)) affected course ((offering)) the program director and provider ((shall suspend operation of)) must not continue to offer the affected course until an approved instructor is available ((to conduct the classes)).

     (b) Supervising each approved course and reviewing all completed student evaluations ((of the course)); and

     (c) ((Insuring)) Ensuring that instructors properly issue certificates of completion according to WAC 284-17-539 to ((the)) students at the ((completion)) end of each course.

[Statutory Authority: RCW 48.02.060. 89-19-036 (Order R 89-9), § 284-17-535, filed 9/15/89, effective 10/16/89; 89-14-045 (Order R 89-8), § 284-17-535, filed 6/29/89. Statutory Authority: RCW 48.02.060 and 48.17.070. 89-01-055 (Order R 88-14), § 284-17-535, filed 12/16/88.]

     (1) To qualify as ((an)) a prelicensing insurance education instructor for an approved provider, each proposed instructor must:

     (a) Demonstrate any combination of at least three years of experience instructing insurance education courses, supervising students completing self-paced insurance instructional materials, or experience as ((a licensed)) an insurance ((agent or broker)) producer.

     (b) Be trustworthy. An instructor is ((untrustworthy)) not trustworthy if he or she has violated any statute or ((regulation)) rule pertaining to insurance((,)) or to any other regulated occupation((; or)), has had an occupational or professional license revoked in any state((;)), or has been convicted of a crime ((evidencing lack of fitness to assume fiduciary duties)) reasonably related to his or her honesty or integrity.

     (c) Demonstrate competence in the line of ((insurance)) authority he or she proposes to teach:

     (i) Each independent provider's instructor must possess and hold in good standing a Washington ((agent's or broker's)) insurance producer license for the applicable line(s) of ((insurance)) authority.

     (ii) Each ((insurer provider's)) instructor of an insurer-based provider must ((possess such a)) have a current license or provide to the satisfaction of the commissioner evidence of appropriate scholastic or professional credentials ((that the commissioner deems)) reasonably equivalent to ((such a)) an insurance license.

     (2) The instructor of each approved course ((shall)) must perform all of the following instructional and administrative duties:

     (a) At the beginning session of each approved course, ((assure)) ensure that each student has been properly registered.

     (b) Remain on the premises whenever instruction is being offered.

     (c) Ensure that the study materials ((utilized,)) incorporate the prescribed curriculum((,)) and ((comply with)) follow the lesson plans filed with the commissioner.

     (d) ((The instructor may)) Teach approved courses on a live-instruction basis((,)) or combine live instruction with the use of other instructional aids, or proctor student use of self-paced insurance instructional materials.

     (e) At the conclusion of the course, distribute ((the standard)) a course evaluation form ((prescribed by the commissioner,)) to each student who ((has completed)) completes the course((;)) and collect the completed forms.

     (i) A form that can be used for evaluation of a course is available at the commissioner's web site at www.insurance.wa.gov.

     (ii) A copy of each evaluation must be available to the commissioner upon request for three years after conclusion of the course.

     (f) ((To each student who has completed the course,)) Issue a signed certificate of completion ((by signing each certificate, and thereby certify)) to each student who completes the course that certifies that the student actually completed the course.

     (g) Review course evaluations with the program director.

[Statutory Authority: RCW 48.02.060. 89-14-045 (Order R 89-8), § 284-17-537, filed 6/29/89. Statutory Authority: RCW 48.02.060 and 48.17.070. 89-01-055 (Order R 88-14), § 284-17-537, filed 12/16/88.]

     (2) Both the student and the instructor(s) ((shall)) must certify that the course was conducted and completed according to the credit hours and curriculum required((, by affixing their original signatures in the spaces provided on the certificate of completion)).

     (3) The provider ((shall indicate,)) must include on the face of the certificate of completion((,)) the correct codes assigned by the commissioner to each approved ((prelicense)) prelicensing insurance education provider and to each approved course.

     (4) The approved ((prelicense)) prelicensing insurance education provider must issue ((each valid)) certificates of completion within ((twenty-four hours from)) two business days after the ((time the)) course ((was)) is completed.

     (5) No instructor may issue a certificate of completion to herself or himself.

     (6) Completion of less than the full course curriculum, or of individual classes((,)) does not qualify ((for)) a student to receive a certificate of completion.

     (7) A valid certificate of completion (or a valid waiver) for the line of ((insurance)) authority on which the student will be examined((, and a certificate of completion for the statutes and regulations curriculum,)) must be presented to the independent testing service as a prerequisite to ((participating in any of the agent's)) taking any insurance license examination(((s) for life, disability, property, or casualty insurance)).

     (8) The certificate ((is valid)) of completion for the prelicensing insurance education course will be accepted for twelve months ((from)) after the course completion date ((shown on its face)). Unless waived in accordance with RCW 48.17.175, a prelicensing insurance education course must be retaken if a student does not pass the required examination within twelve months after completion of prelicensing education.

[Statutory Authority: RCW 48.02.060 and 48.17.070. 89-01-055 (Order R 88-14), § 284-17-539, filed 12/16/88.]

     (5) Noninsurer course providers shall have an exact physical location or locations.)) In addition to the requirements set forth in WAC 284-17-530, all independent providers must comply with the following additional requirements:

     (1) The proposed program director must meet the standards set forth in WAC 284-17-535.

     (2) The proposed instructors must be in good standing with the commissioner and must meet the standards set forth in WAC 284-17-537.

     (3) All tuition funds received must be promptly deposited into an account separate from any other account or depository.

     (4) The accounting system used must provide an audit trail so that details underlying the summary data can be identified.

     (5) Records of tuition accounting must be available for inspection by the commissioner during regular business hours for three years after the date of the transaction.

     (6) Lecture or proctored self-study courses must be offered at one or more physical locations accessible to the public within Washington.

[Statutory Authority: RCW 48.02.060. 89-19-036 (Order R 89-9), § 284-17-540, filed 9/15/89, effective 10/16/89; 89-14-045 (Order R 89-8), § 284-17-540, filed 6/29/89. Statutory Authority: RCW 48.02.060 and 48.17.070. 89-01-055 (Order R 88-14), § 284-17-540, filed 12/16/88.]

     (4) The commissioner retains discretion to determine whether the proposed instructor'(s) and the proposed program director's asserted qualifications meet the minimum scholastic and professional criteria required herein.)) In addition to the requirements set forth in WAC 284-17-530, all insurer-based providers are subject to the following additional requirements:

     (1) Each course must be supervised from the insurer's corporate level.

     (2) If the program director does not hold a current Washington insurance license, the insurer must provide the following to the commissioner:

     (a) Description of the program director's qualifications, including educational degrees or professional designations earned;

     (b) Summary of the program director's past insurance education and past teaching experience; and

     (c) Evidence of past insurance education and insurance licenses held in this or other states.

[Statutory Authority: RCW 48.02.060 and 48.17.070. 89-01-055 (Order R 88-14), § 284-17-545, filed 12/16/88.]

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     (2) To qualify for approval, each course ((shall be presented under the supervision of an approved instructor, utilizing)) must use study materials that include all ((the prescribed)) required curriculum, ((and shall be presented under the general supervision of an approved prelicense education provider.

     (a) Each instructor's qualifications shall be identified, according to the requirements of WAC 284-17-530 (2)(d) and 284-17-537, and 284-17-540 or 284-17-545, for approval by the commissioner.

     (b) The course instructor shall be on the premises whenever instruction is being offered)) as set forth in the examination content outline published in the candidate handbook for each line of authority. The candidate handbook is available through the commissioner's web site at www.insurance.wa.gov.

     (3) Each prelicensing insurance education course ((shall)) must be broken into individual lesson components covering the prescribed curriculum and the table of contents must follow the examination content outline.

     (a) The course may include instruction ((may include coverage of)) on related subject matter; however, ((such peripheral instruction must be presented in the individual lesson components)) any optional subject matter must be designated as supplementary and must be provided as an addition to the prescribed curriculum hours set forth in WAC 284-17-510.

     (b) The provider ((may choose the prelicense education study materials, and shall)) must certify that the study materials include all of the prescribed curriculum.

     (4) (("Hours" are approved by the commissioner for an approved course. Each "hour" shall represent at least fifty minutes of actual instruction on a topic within the prescribed prelicense education curriculum.

     (5))) No prelicensing insurance education course may be represented as approved until the approved ((prelicense)) prelicensing insurance education provider has received the commissioner's written approval of the instructor and of the course.

     (a) Approved ((prelicense)) prelicensing insurance education providers must apply to the commissioner for amended course approval if any of the following changes or revisions ((are instituted)) will be made before the original course approval expiration date:

     (i) Change of study materials; or

     (ii) Change of location((; or

     (iii) Change of course tuition or rebate policy)).

     (b) Amended approval, if granted, is valid only until the original course approval expiration date.

     (5) Detailed requirements of course content are available on the commissioner's web site at www.insurance.wa.gov.

[Statutory Authority: RCW 48.02.060. 89-14-045 (Order R 89-8), § 284-17-550, filed 6/29/89. Statutory Authority: RCW 48.02.060 and 48.17.070. 89-01-055 (Order R 88-14), § 284-17-550, filed 12/16/88.]

     (k) Discrimination.)) The prelicensing insurance education curriculum is described in the candidate handbook. The candidate handbook is incorporated by reference and its entire contents will be enforced by the commissioner. A copy of the current candidate handbook is available through the commissioner's web site at www.insurance.wa.gov.

     (1) Information in the current version of the candidate handbook must be provided to each license candidate at the time of enrollment.

     (2) If changes are implemented in the prescribed prelicensing education curriculum, the prelicensing insurance education provider must submit a revised course outline at least fifteen calendar days before the implementation date.

[Statutory Authority: RCW 48.02.060 and 48.17.150. 91-12-033 (Order R 91-3), § 284-17-551, filed 6/3/91, effective 7/4/91. Statutory Authority: RCW 48.02.060 and 48.17.070. 89-01-055 (Order R 88-14), § 284-17-551, filed 12/16/88.]

     (1) ((Such)) The prelicensing insurance education provider(('s refusal)) refuses or ((failure)) fails to comply with any ((of the)) requirement((s)) of chapter 284-17 WAC, including but not limited to the provider's employment and use of an unqualified program director or instructor; or

     (2) Any owner, ((operator,)) program director, or instructor((, or other employee of such provider has)), directly or indirectly, ((compromised)) compromises or ((attempted)) attempts to compromise the integrity or security of Washington state licensing examination questions, or has induced another to do so; or

     (3) Any owner, ((operator,)) program director, or instructor((, or other employee of such provider has been cited for noncompliance)):

     (a) Fails to comply with any of the requirements of ((this chapter or chapter 284-12 WAC, or of)) any ((other)) statute or ((regulation)) rule pertaining to the ((sale)) transaction of insurance or to insurance education; ((or has been cited for violations of))

     (b) Violates statute((s)), ((regulations)) rule, or copyright((s)) related to an examination for any occupational or professional license; or

     (c) Is convicted of a crime reasonably related to his or her honesty or integrity.

[Statutory Authority: RCW 48.02.060 and 48.17.070. 89-01-055 (Order R 88-14), § 284-17-560, filed 12/16/88.]

     (a) Any owner, ((operator,)) program director, or instructor ((, or other employee of such provider has)) failed to comply with any of the requirements of chapter 284-17 WAC, including but not limited to the failure to employ a qualified program director or instructor(s); or

     (b) Any owner, ((operator,)) program director, or instructor((, or other employee of such provider has)), directly or indirectly, compromised or attempted to compromise the integrity or security of Washington state insurance licensing examination questions, or has induced another to do so; ((or))

     (c) ((Such)) The provider ((has)) failed to maintain an effective instructional program((,)) or ((has)) misrepresented the quality of the instruction provided((,)) to the detriment of its students; or

     (d) An owner, program director, or instructor is or has been convicted of a crime reasonably related to his or her honesty or integrity.

     (2) The commissioner may suspend or revoke approval of any ((prelicense)) prelicensing insurance education provider based upon ((such)) a provider's failure to:

     (a) Reply promptly((, in writing,)) to an inquiry of the commissioner.

     (b) Submit revised course outlines requested by the commissioner. ((If changes are implemented in the prescribed prelicense curricula, affected providers must submit revised course outlines at least fifteen calendar days before the implementation date.))

     (c) Make timely disclosure to the ((office of insurance)) commissioner and to enrolling students at the time of their enrollment ((of)) about any offer or payment of any rebate, refund, fee, commission, or discount to persons((,)) other than the provider's full-time employees((, in connection with)) made by the provider based on referrals of students to the provider.

[Statutory Authority: RCW 48.02.060 and 48.17.070. 89-01-055 (Order R 88-14), § 284-17-565, filed 12/16/88.]

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     (1) Advertising or offering a course for credit without the prior approval of the commissioner;

     (2) Failing to follow the approved course outline;

     (3) Issuing fraudulent completion certificates;

     (4) Erroneous advertising; or

     (5) Failing to comply with any statute or rule pertaining to prelicensing insurance education providers.

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     (2) Reinstatement is at the sole discretion of the commissioner.

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     (a) The content of an approved course is significantly changed without notice to and prior approval from the commissioner;

     (b) A certificate of completion is issued to a person who did not complete the course;

     (c) A certificate of completion is not issued to a person who satisfactorily completed the course;

     (d) The actual instruction of the course is found by the commissioner to be inadequate; or

     (e) Within fifteen days after the date of the commissioner's request, the prelicensing insurance education provider fails to supply updated descriptions of any course, records, materials, or audit reports.

     (2) Reinstatement of approval of a prelicensing insurance education provider is at the sole discretion of the commissioner and is conditioned upon receipt of satisfactory proof that the conditions responsible for the suspension have been corrected and the possibility of reoccurrence of the violation has been eliminated.

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     (b) A business entity insurance producer that maintains more than one place of business in this state must ((be)) have an individual licensed as an insurance producer physically present in ((such)) the location ((during the times such)) when the location is open for the transaction of insurance((,)) to the same extent as would be expected of ((an agent)) an insurance licensee operating at a single location.

     (2) Each ((agent)) insurance producer involved in an insurance transaction must have ((the appointments)) all authority necessary for each ((such)) insurance transaction, whether by direct appointment from the insurer or by affiliation with ((an appropriately appointed agent.

     (2) If an insurance agent is also licensed as an insurance broker while maintaining more than one place of business in this state, transactions in any location which require the services of a broker shall be conducted only by a properly licensed broker)) a business entity.

     (3) ((A)) If a surplus line broker maintains more than one place of business in this state, transactions in any location which require the services of a surplus line broker must be conducted only by a properly licensed individual.

     (4) Each failure to comply with this section ((shall be)) is an unfair practice pursuant to RCW 48.30.010((, and a violation of a regulation pursuant to RCW 48.17.530 and 48.05.140.

     (4) As contemplated by RCW 48.01.060, the transaction of insurance includes solicitation, negotiations preliminary to execution, execution of an insurance contract, transaction of matters subsequent to execution of the contract and arising out of it, and insuring)).

[Statutory Authority: RCW 48.02.060 (3)(a), 48.05.140(9), 48.17.060, 48.17.180, 48.17.530 and 48.30.010. 90-22-039 (Order R 90-12), § 284-17-600, filed 11/1/90, effective 1/15/91.]

     (a) Individual insurance producers that claim multiple states as their home state must choose one state to be their home state for all insurance licensing purposes. This will usually be the state chosen for tax reporting.

     (b) Insurance producers or business entities that do not claim Washington to be their home state are Washington nonresidents for purposes of Titles 48 RCW and 284 WAC.

     (2) Business entities that have a location in this state must have a resident license.

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     (1) The following procedure is the minimum standard that must be followed to verify the applicant's or insured's consent:

     (a) The insurance producer must place a notice in the applicant's file documenting all of the following:

     (i) The date that the insurance producer disclosed to the applicant or insured that the insurance producer will receive compensation in addition to commissions;

     (ii) Who is expected to pay the additional compensation; and

     (iii) Any other understandings regarding the additional compensation agreed to between the insurance producer and the applicant or insured.

     (b) As soon as reasonably possible, but no later than five business days afterwards, a written confirmation of the content of the notice required in subsection (1) of this section must be sent to the applicant or insured for confirmation and signature.

     (c) The confirmation must provide a place for the signature of both the insurance producer and the applicant or insured.

     (d) It is the obligation of the insurance producer to make sure that the signed confirmation is returned and placed in the applicant's or insured's files kept by the insurance producer.

     (e) The insurance producer must promptly provide a copy of the document to both parties after it is signed by both the insurance producer and the applicant or insured.

     (2) In lieu of a signed consent form, the insurance producer and the applicant or insured may acknowledge that the required consent has been obtained in a recording, if it meets the standards of RCW 9.73.030. Both parties must clearly consent to the recording and to the compensation in addition to commissions. The recording must be made and maintained in a retrievable format.

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     (1) Insurance licenses held on June 30, 2009, as an agent, broker or solicitor will automatically transition to an insurance producer license at 12:01 a.m. on July 1, 2009. For example, persons holding an agent's license on June 30, 2009, will automatically become licensed insurance producers beginning at 12:01 a.m. on July 1, 2009. No application is required for this transition. It will occur automatically by operation of law.

     (2) The agent, general agent, broker and solicitor license types will be discontinued on June 30, 2009. After 12:01 a.m. on July 1, 2009, these types of licenses will be merged and converted to an insurance producer license. Additionally, all active appointments or affiliations associated with these license types will be merged and associated with the producer license.

     (3) Title insurance agent licenses will not transition to insurance producer licenses.

     (4) The limited appointments to an insurer by a resident general agent based on RCW 48.05.320 will be eliminated on June 30, 2009. No conversion of existing limited appointments will occur.

     (5) At 12:01 a.m. on July 1, 2009, licenses for the following lines of authority will automatically transition as follows:

Line of authority held on or before June 30, 2009	Line of authority transitioned to on July 1, 2009
Life	Life
Life with a securities license	Variable life and variable annuity products
Disability	Disability
Property	Property
Casualty	Casualty
Marine	Property and casualty
Surety	Surety
Vehicle	Personal lines
Credit life and disability	Limited line credit
Credit casualty	Limited line credit
Credit life and disability, with life, disability, property or casualty	Life, disability, property, casualty, or personal lines
Credit casualty, with life, disability, property or casualty	Life, disability, property, casualty, or personal lines
Travel	Travel

     (6) Any license renewed or issued by the commissioner prior to July 1, 2009, will not be reprinted using the new license type or line of authority. Licensees who wish to obtain a new license document should go to the commissioner's web site (www.insurance.wa.gov) after July 1, 2009, for instructions on how to obtain a new license document.

     (7) The license, licensing renewal and late fees must be paid beginning July 1, 2009, in accordance with RCW 48.17.170.

     (8) Applications for late renewal and reinstatement not received by the commissioner as of midnight June 30, 2009, will be processed based on the requirements in effect on July 1, 2009.

     (9) Pending applications for an initial or reinstated license or license renewal for agents, general agents, brokers, or solicitors received prior to June 30, 2009, but not approved for issuance until on or after July 1, 2009, will be issued as producer licenses.

     (10) Any over-payments received by the commissioner based on fees in effect until July 1, 2009, will not be refunded; however, applicants for licenses, renewals and reinstatements, and assessments for late fees will be assessed, and must be paid according to the requirements of RCW 48.14.010 beginning at 12:01 a.m. on July 1, 2009.

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     The following sections of the Washington Administrative Code are repealed:

WAC 284-17-121	Qualifications of agents of insurers authorized to transact more than one line of insurance -- Exceptions.
WAC 284-17-230	May I take any approved continuing education course?
WAC 284-17-232	When must I meet the continuing education requirement?
WAC 284-17-234	What happens if I am late renewing my license?
WAC 284-17-236	What happens if my renewal is received prior to expiration but is incomplete due to the submission of an invalid course(s), an incorrect fee or noncompletion of the renewal notice?
WAC 284-17-238	What happens if I do not meet the continuing education requirement?
WAC 284-17-240	Can I reinstate my license?
WAC 284-17-242	How long do I have to keep the course completion certificates?
WAC 284-17-248	How long are my certificates of completion valid?
WAC 284-17-280	What courses are eligible for approval?
WAC 284-17-288	What attendance records must the provider maintain?
WAC 284-17-290	How long must the provider maintain the attendance or purchase and completion records?
WAC 284-17-298	Must I submit an electronic attendance roster?
WAC 284-17-301	Does the commissioner have the authority to levy a fine against a CE provider or revoke or suspend a CE provider's approval?
WAC 284-17-308	May I advertise a course prior to approval?
WAC 284-17-320	What are the qualifications of an instructor?
WAC 284-17-421	Definitions.
WAC 284-17-425	How long are initial and reinstated business entity licenses in effect?
WAC 284-17-427	What is the renewal period for a license?
WAC 284-17-431	What is the renewal period for an appointment?
WAC 284-17-433	How long is an appointment effective?
WAC 284-17-437	Appointments of agents.
WAC 284-17-441	Notice to an insurer if an agent is not eligible for an appointment if the appointment was not submitted electronically.
WAC 284-17-447	Termination of an appointment by an agent.
WAC 284-17-455	Agent must be licensed for all lines of authority of the appointing insurer.
WAC 284-17-457	Authority of an agent to act as a representative of an insurer and solicit insurance on its behalf before notifying the commissioner of the appointment.
WAC 284-17-463	Who is responsible for ensuring that the agent is eligible for appointment?
WAC 284-17-469	Is the insurer responsible for the acts of the agent during the period of time the agent is acting as a representative of the insurer or soliciting insurance on its behalf?
WAC 284-17-471	What are the consequences if the commissioner is not notified of the appointment within thirty calendar days after the date the agent has signed the first application for insurance for submission to the insurer and the agent continues to act as a representative of the insurer or solicit insurance on its behalf?
WAC 284-17-477	Valid period of an affiliation.
WAC 284-17-479	Termination of an affiliation by a business entity.
WAC 284-17-481	Requirements for termination of an affiliation by a business entity "for cause."
WAC 284-17-482	Information to be provided relating to a "for cause" termination to the commissioner.
WAC 284-17-552	Life insurance curriculum.
WAC 284-17-553	Disability insurance curriculum.
WAC 284-17-554	Casualty insurance curriculum.
WAC 284-17-555	Property insurance curriculum.

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