Subject of Possible Rule Making: Surplus line broker licensing requirements.

     Statutes Authorizing the Agency to Adopt Rules on this Subject: RCW 48.02.060 and 48.15.015.

     Reasons Why Rules on this Subject may be Needed and What They Might Accomplish: The federal Graham-Leach-Bliley Act requires states to reciprocate in regards to insurance producer licensing. Current Washington rules require that for both resident and nonresident surplus line brokers to become licensed, the broker must have a concurrent Washington insurance producer license. Other states do not have this requirement. In order for Washington to recognize nonresident surplus line brokers licensed in these other states and have reciprocity with these other states, the commissioner will consider rules to eliminate the requirement for nonresident surplus line brokers to have a Washington insurance producer license.

     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 February 1, 2013, to Jim Tompkins, P.O. Box 40258, Olympia, WA 98504-0258, e-mail rulescoordinator@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 rulescoordinator@oic.wa.gov, fax (360) 586-3109.

December 19, 2012

Mike Kreidler

Insurance Commissioner