Subject of Possible Rule Making: Revisions to chapter 284-60 WAC relating to disability insurance loss ratios.

     Statutes Authorizing the Agency to Adopt Rules on this Subject: RCW 48.02.060.

     Reasons Why Rules on this Subject may be Needed and What They Might Accomplish: The current regulation results in the use of exceptions under WAC 284-60-010(1) or of WAC 284-60-090 Special circumstances in the review of many rate filings. The commissioner believes that the current regulation does not provide sufficient guidance as to what rates are reasonable under RCW 48.18.110(2) when the filing reviewer needs to consider special circumstances or when the entire chapter 284-60 WAC does not apply. To improve objectivity and consistency in the review of rate filings, the commissioner will consider adopting regulations that set reasonable minimum loss ratio standards for the full range of disability insurance coverages, without necessitating special considerations.

     There are also some inconsistencies between the current chapter 284-60 WAC and recent health insurance reform legislation; specifically, with regard to individual health plans. The revised regulations will remove those inconsistencies.

     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 November 6, 2009, to Jim Tompkins, P.O. Box 40258, Olympia, WA 98504-0258, e-mail jimt@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 Jim Tompkins, P.O. Box 40258, Olympia, WA 98504-0258, e-mail jimt@oic.wa.gov, fax (360) 586-3109.

September 21, 2009

Mike Kreidler

Insurance Commissioner

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