WSR 13-11-042

PERMANENT RULES

OFFICE OF

INSURANCE COMMISSIONER

[ Insurance Commissioner Matter No. R 2012-32 -- Filed May 13, 2013, 10:40 a.m. , effective June 13, 2013 ]


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

Purpose: This rule eliminates the requirement for surplus line brokers to have a concurrent Washington insurance producer license in order to be licensed as a surplus line broker. This rule will permit the commissioner to license both resident and nonresident surplus line brokers without requiring a concurrent Washington insurance producer license, thereby making Washington licensing requirements reciprocal with other states.

Citation of Existing Rules Affected by this Order: Amending 1 [WAC 284-15-010].

Statutory Authority for Adoption: RCW 48.020.060 [48.02.060] and 48.15.015.

Other Authority: RCW 48.15.070 and 48.15.073.

Adopted under notice filed as WSR 13-08-066 on April 1, 2013.

A final cost-benefit analysis is available by contacting Jim Tompkins, P.O. Box 40258, Olympia, WA 98504-0258, phone (360) 725-7036, fax (360) 586-3109, e-mail rulescoordinator@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Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 0, Repealed 0.

Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.

Number of Sections Adopted on the Agency's Own Initiative: New 0, Amended 1, Repealed 0.

Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 0, Repealed 0.

Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 0, Repealed 0; Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 1, Repealed 0.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: May 13, 2013.

Mike Kreidler

Insurance Commissioner

OTS-5186.1


AMENDATORY SECTION(Amending Matter No. R 2008-06, filed 1/6/09, effective 7/1/09)

WAC 284-15-010   Brokers -- Surplus line brokers -- Qualifications and examination.   (1) Each applicant for a resident surplus line broker's license must take and pass the required examination and pay the required fee prior to acting as a surplus line broker. The examination will test an applicant's qualifications and competence in all areas of surplus line insurance. Current information about testing procedures and examination dates is available on the commissioner's web site at: www.insurance.wa.gov.

(2) ((Before the commissioner can issue a surplus line broker's license, the applicant must be licensed in this state as an insurance producer with both property and casualty lines of authority. This requirement may be satisfied if the licenses are issued simultaneously.

(3))) The commissioner deems that a nonresident person holding a surplus line broker's license, or the equivalent, in the applicant's home state is qualified, competent and trustworthy and, therefore, meets the minimum standards of this state for holding a surplus line broker's license. For that reason, the commissioner will waive the Washington surplus line broker's examination for a person who has and maintains a current resident surplus line broker's license, or the equivalent, in the applicant's home state.

[Statutory Authority: RCW 48.02.060, 48.17.005. 09-02-073 (Matter No. R 2008-06), 284-15-010, filed 1/6/09, effective 7/1/09. Statutory Authority: RCW 48.02.060, 48.15.040(4), 48.15.073(2), and 48.15.160(2). 08-14-169 (Matter No. R 2008-04), 284-15-010, filed 7/2/08, effective 8/2/08. Statutory Authority: RCW 48.02.060. 81-03-082 (Order R 81-1), 284-15-010, filed 1/21/81.]