WSR 10-01-132

PROPOSED RULES

OFFICE OF

INSURANCE COMMISSIONER

[ Insurance Commissioner Matter No. R 2008-13 -- Filed December 21, 2009, 9:10 a.m. ]

Supplemental Notice to WSR 09-17-124.

Preproposal statement of inquiry was filed as WSR 08-09-136.

Title of Rule and Other Identifying Information: Personal injury protection (PIP) coverage on automobile liability insurance policies.

Hearing Location(s): OIC Tumwater Office, Training Room 120, 5000 Capitol Boulevard, Tumwater, WA, http://www.insurance.wa.gov/about/directions.shtml, on March 17, 2010, at 11:00 a.m.

Date of Intended Adoption: March 29, 2010.

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 March 16, 2010.

Assistance for Persons with Disabilities: Contact Lorie Villaflores by March 16, 2010, TTY (360) 586-0241 or (360) 725-7087.

Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: RCW 48.22.085 through 48.22.100 provide for the mandatory offering of PIP with the issuance of automobile liability insurance policies. There are companies that do not demonstrate a clear understanding of the amounts and way that PIP coverage must be offered to insureds, and when insurers must offer PIP coverage on commercial auto liability policies. These proposed rules are intended to clarify this confusion and assist insurers in issuing PIP coverage with automobile insurance policies.

Reasons Supporting Proposal: There are companies that do not demonstrate a clear understanding of the amounts and way that PIP coverage must be offered to insureds, and when insurers must offer PIP coverage on commercial auto liability policies.

Statutory Authority for Adoption: RCW 48.02.060, 48.22.105.

Statute Being Implemented: RCW 48.18.300.

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: Kacy Scott, P.O. Box 40248 [40258], Olympia, WA 98504-0258, (360) 725-7041; Implementation and Enforcement: Carol Sureau, P.O. Box 40255, Olympia, WA 98504-0255, (360) 725-7050.

No small business economic impact statement has been prepared under chapter 19.85 RCW. None of the domestic insurers actively offering coverage in Washington state meet the definition of small business under the law.

A cost-benefit analysis is required under RCW 34.05.328. A preliminary cost-benefit analysis may be obtained by contacting Kacy Scott, P.O. Box 4025 [40258], Olympia, WA 98504-0258, phone (360) 725-7041, fax (360) 586-3109, e-mail kacys@oic.wa.gov.

December 21, 2009

Mike Kreidler

Insurance Commissioner

OTS-2497.3


NEW SECTION
WAC 284-20-300   Mandatory offering of personal injury protection.   (1) Insurers issuing an automobile liability insurance policy must offer the minimum personal injury protection coverage limits required in RCW 48.22.095, and must make available, if requested, additional personal injury protection limits as defined in RCW 48.22.100. Insurers may also offer other personal injury protection limits, in addition to these required offerings.

(2) If the named insured rejects personal injury protection coverage, the insurer must promptly delete the coverage after the insurer receives the rejection notice from the named insured. The insurer must retain a copy of the rejection notice or request to delete coverage with the policy record.

(3) Insurers may use electronic forms, electronic signatures and electronic attestations, per WAC 284-01-050, to comply with this rule. The insurer must maintain an auditable compliance record and provide this information to the commissioner upon request.

(4) This section does not apply to corporations, partnerships, or any other nonhuman entity named as the insured.

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Washington State Code Reviser's Office