WSR 11-13-029

PERMANENT RULES

OFFICE OF

INSURANCE COMMISSIONER

[ Insurance Commissioner Matter No. R 2010-15 -- Filed June 7, 2011, 2:02 p.m. , effective July 8, 2011 ]


Effective Date of Rule: Thirty-one days after filing.

Purpose: This new rule provides clarity and improves the efficiency of claims handling in Washington for consumers and insurers.

Citation of Existing Rules Affected by this Order: Amending WAC 284-30-393.

Statutory Authority for Adoption: RCW 48.02.060.

Adopted under notice filed as WSR 11-09-027 on April 14, 2011.

A final cost-benefit analysis is available by contacting Kacy Scott, P.O. Box 40258, Olympia, WA 98504-0258, phone (360) 725-7041, fax (360) 586-3109, e-mail kacys@oic.wa.gov.

Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 0, Repealed 0.

Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 1, Repealed 0.

Number of Sections Adopted on the Agency's Own Initiative: New 0, Amended 0, Repealed 0.

Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 0, Repealed 0.

Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 0, Repealed 0; Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 1, Repealed 0.

Date Adopted: June 7, 2011.

Mike Kreidler

Insurance Commissioner

OTS-3928.1


AMENDATORY SECTION(Amending Matter No. R 2007-08, filed 5/20/09, effective 8/21/09)

WAC 284-30-393   Insurer must include an insured's deductible in its subrogation demands.   The insurer must include the insured's deductible, if any, in its subrogation demands. ((Subrogation)) Any recoveries must be allocated first to the insured for any deductible(s) incurred in the loss, less applicable comparable fault. Deductions for expenses must not be made from the deductible recovery unless an outside attorney is retained to collect the recovery. The deduction may then be made only as a pro rata share of the allocated loss adjustment expense. The insurer must keep its insured regularly informed of its efforts related to the progress of subrogation claims. "Regularly informed" means that the insurer must contact its insured within sixty days after the start of the subrogation process, and no less frequently than every one hundred eighty days until the insured's interest is resolved.

[Statutory Authority: RCW 48.02.060 and 48.30.010. 09-11-129 (Matter No. R 2007-08), 284-30-393, filed 5/20/09, effective 8/21/09.]

Washington State Code Reviser's Office