Preproposal statement of inquiry was filed as WSR 12-23-072.
Title of Rule and Other Identifying Information: Life settlements policyholder notice of options.
Hearing Location(s): Insurance Commissioner's Office, TR 120, 5000 Capitol Boulevard, Tumwater, WA 98504-0255, on April 23, 2013, at 10:00 a.m.
Date of Intended Adoption: April 24, 2013.
Submit Written Comments to: Jim Tompkins, P.O. Box 40258, Olympia, WA 98504-0258, e-mail email@example.com, fax (360) 586-3109, by April 22, 2013.
Assistance for Persons with Disabilities: Contact Lorie Villaflores by April 22, 2013, 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 would ensure that policyholders of term life insurance policies receive notice as necessary when certain events occur that affect their policy interests. Amends existing rules to provide for a definition of "term" life insurance; that the notice of options to policyholders when their policy is about to lapse in the current rule applies to other than "term" life insurance policies; and sets forth a new notice of options to policyholders when their policy is about to lapse for "term" life insurance policies.
Reasons Supporting Proposal: RCW 48.102.100 provides that a notice be given to life insurance policyholders of options that they may have when certain events occur. The current WAC 284-97-910 sets forth this notice form. However, some of the situations listed in this form do not apply to term life insurance policies and therefore are creating confusion with consumers when they receive the notice.
Statutory Authority for Adoption: RCW 48.02.060, 48.102.100, and 48.102.170.
Statute Being Implemented: RCW 48.102.100.
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. The net increased cost for life insurance companies to meet this proposed new requirement (changing the disclosure form provided to owners of individual life insurance) is significantly less than 0.3 percent of the Washington revenue of the smallest domestic life insurers. Therefore, a small business economic impact statement is not required for this proposed rule.
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 firstname.lastname@example.org.
March 19, 2013
AMENDATORY SECTION(Amending Matter No. R 2009-14, filed 1/27/10, effective 2/27/10)
WAC 284-97-015 Definitions. For purposes of this chapter:
(1) "Domestic life settlement provider" means a provider as defined in RCW 48.102.006(19) who if:
(a) A natural person either resides or has their principal place of business in this state, or both; or
(b) A legal entity that either has their principal place of business in this state, or is incorporated in or otherwise formed under the laws of the state of Washington, or both.
(2) "NAIC" means the National Association of Insurance Commissioners.
(3) "Nonresident or foreign life settlement provider" means a provider as defined in RCW 48.102.006(19) who if:
(a) A natural person does not either reside or have their principal place of business in this state, or both; or
(b) A legal entity who does not either have their principal place of business in this state, or is not incorporated in or otherwise formed under the laws of the state of Washington, or both.
(4) "SERFF" means the System for Electronic Rate and Form Filing. SERFF is a proprietary NAIC computer-based application that allows filers to create and submit rate, rule, and form filings electronically to the commissioner.
(5) "Solicitation" means, for example; proposing, negotiating, signing, or doing any act in furtherance of making or proposing to make a life settlement contract. Solicitation specifically includes advertising by mail, use of the print or electronic media, telephone, or any other method of presenting, distributing, issuing, circulating, or permitting to be issued or circulated any information or material in connection with a life settlement contract.
(6) "Term life insurance" means life insurance that provides a death benefit only if the insured dies during the period specified in the policy and coverage ceases without value if the insured survives until the end of the period.
[Statutory Authority: RCW 48.02.060, 48.102.011, 48.102.046, 48.102.100, 48.102.170, 48.102.021, 48.102.041, and 48.102.080. 10-04-042 (Matter No. R 2009-14), § 284-97-015, filed 1/27/10, effective 2/27/10. Statutory Authority: RCW 48.02.060, 48.30.010 and 1995 c 161 §§ 2, 4, 5 and 10. 95-22-016 (Order R 95-2), § 284-97-015, filed 10/20/95, effective 11/20/95.]
[Statutory Authority: RCW 48.02.060, 48.102.011, 48.102.046, 48.102.100, 48.102.170, 48.102.021, 48.102.041, and 48.102.080. 10-04-042 (Matter No. R 2009-14), § 284-97-910, filed 1/27/10, effective 2/27/10.]
Reviser's note: The brackets and enclosed material in the text of the above section occurred in the copy filed by the agency and appear in the Register pursuant to the requirements of RCW 34.08.040.
WAC 284-97-925 Insurance company disclosure form for term life insurance policies. RCW 48.102.100 requires that insurers provide a notice to owners of individual life insurance policies at certain times. The following is the only document approved by the commissioner to give this notice for term life insurance policies.