WSR 11-13-126

PROPOSED RULES

OFFICE OF

INSURANCE COMMISSIONER

[ Insurance Commissioner Matter No. R 2011-07 -- Filed June 22, 2011, 9:42 a.m. ]

Original Notice.

Preproposal statement of inquiry was filed as WSR 11-09-084.

Title of Rule and Other Identifying Information: Postponing the transition date for title insurers to file their rates with the commissioner.

Hearing Location(s): Insurance Commissioner's Office, TR 120, 5000 Capitol Boulevard, Tumwater, WA 98504-02555 [98504-0255], on July 26, 2011, at 10:00 a.m.

Date of Intended Adoption: July 27, 2011.

Submit Written Comments to: Jim Tompkins, P.O. Box 40258, Olympia, WA 98504-0258, e-mail jimt@oic.wa.gov, fax (360) 586-3109, by July 25, 2011.

Assistance for Persons with Disabilities: Contact Lorrie [Lorie] Villaflores by July 25, 2011, TTY (360) 586-0241 or (360) 725-7087.

Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: The proposed rule will amend WAC 284-29A-030 to postpone by one year the date: Upon which title insurers must file their rates with the commissioner under RCW 48.29.147 and when rate filings must be made under RCW 48.29A.147 rather than RCW 48.29.140.

Reasons Supporting Proposal: The title insurers have indicated that a one year snapshoot [snapshot] of data would not be sufficient for determining their rates. A postponement of the transition date of filing the rates with the commissioner would permit the insurers to obtain at least two years of data from their agents and from their own businesses.

Statutory Authority for Adoption: RCW 48.02.060 and 48.29.140.

Statute Being Implemented: RCW 48.29.143 and 48.29.147.

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: Jim Tompkins, P.O. Box 40258, Olympia, WA 98504-0258, (360) 725-7036; Implementation and Enforcement: Beth Berendt, P.O. Box 40255, Olympia, WA 98504-0255, (360) 725-7117.

No small business economic impact statement has been prepared under chapter 19.85 RCW. Because this rule simply postpones for one year the transition date to the new rate approval system, it does not require title insurers or title insurance agents to incur any new costs. Therefore, no small business economic impact statement is required.

A cost-benefit analysis is required under RCW 34.05.328. A preliminary cost-benefit analysis may be obtained by contacting Jim Tompkins, P.O. Box 40258, Olympia, WA 98504-0258, phone (360) 725-7036, fax (360) 586-3109, e-mail jimt@oic.wa.gov.

June 22, 2011

Mike Kreidler

Insurance Commissioner

OTS-3966.1


AMENDATORY SECTION(Amending Matter No. R 2009-01, filed 7/20/10, effective 8/20/10)

WAC 284-29A-030   Transition to prior approval system.   (1) On and after January 1, ((2012)) 2013, all rates used in Washington state must be filed and approved under RCW 48.29.147.

(2) Title insurers must submit the rate filings required under RCW 48.29.147 and subsection (1) of this section to the commissioner by September 1, ((2011)) 2012, for rates to be effective on January 1, ((2012)) 2013. This rule allows the commissioner time to take final action on rates filed under this chapter before the effective date of January 1, ((2012)) 2013.

(3) Rates filed under RCW 48.29.140(2) must not be used for commitments issued on or after January 1, ((2012)) 2013.

[Statutory Authority: RCW 48.02.060 and 48.29.005. 10-15-092 (Matter No. R 2009-01), 284-29A-030, filed 7/20/10, effective 8/20/10.]

Washington State Code Reviser's Office