WSR 09-14-082

PREPROPOSAL STATEMENT OF INQUIRY

OFFICE OF

INSURANCE COMMISSIONER

[ Insurance Commissioner Matter No. R 2009-06 -- Filed June 30, 2009, 7:31 a.m. ]

     Subject of Possible Rule Making: Standards for determining insurer's financial condition.

     Statutes Authorizing the Agency to Adopt Rules on this Subject: RCW 48.02.060, 48.31.435, 48.44.050, and 48.46.200.

     Reasons Why Rules on this Subject may be Needed and What They Might Accomplish: Accreditation standards require that a state's laws contain the NAIC's "Model Regulation to Define Standards and Commissioner's Authority for Companies Deemed to be in Hazardous Financial Condition" or a substantially similar provision. This provision authorizes the commissioner to order a company that may be in hazardous condition to take necessary corrective action, provide additional reporting, or cease certain practices. The NAIC has recently amended the model. The purpose of this rule making is to amend the existing regulatory standards to bring them in line with the NAIC model.

     Other Federal and State Agencies that Regulate this Subject and the Process Coordinating the Rule with These Agencies: None.

     Process for Developing New Rule: Submit written comments by August 17, 2009, to Kacy Scott, P.O. Box 40255, Olympia, WA 98504-0255, e-mail Kacys@oic.wa.gov, fax (360) 586-3109.

     Interested parties can participate in the decision to adopt the new rule and formulation of the proposed rule before publication by contacting Kacy Scott, P.O. Box 40255, Olympia, WA 98504-0255, e-mail Kacys@oic.wa.gov, fax (360) 586-3109.

June 30, 2009

Mike Kreidler

Insurance Commissioner

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