Effective Date of Rule: Immediately.
Purpose: The 2013 legislature enacted chapter 65, Laws of 2013 (HB 1035) which provides that title insurance companies and their agents must report financial information to a statistical reporting agent for use in the preparation of their title insurance rates to be filed with the commissioner. This emergency rule amends the existing rule to postpone the deadline by which title insurance agents must submit reports to their title insurance companies so that they will not incur unnecessary administrative cost and effort.
Citation of Existing Rules Affected by this Order: Amending WAC 284-29A-110.
Statutory Authority for Adoption: RCW 48.02.060 and 48.29.005.
Under RCW 34.05.350 the agency for good cause finds that immediate adoption, amendment, or repeal of a rule is necessary for the preservation of the public health, safety, or general welfare, and that observing the time requirements of notice and opportunity to comment upon adoption of a permanent rule would be contrary to the public interest.
Reasons for this Finding: Without an emergency rule, title insurance agents would be required to submit reports for the calendar years 2011 and 2012 to their title insurance company(s) in a manner that is not consistent with recently enacted legislation.
Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 1, Repealed 0.
Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.
Number of Sections Adopted on the Agency's Own Initiative: New 0, Amended 1, Repealed 0.
Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 0, Repealed 0.
Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 0, Repealed 0; Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 1, Repealed 0.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 30, 2013.
AMENDATORY SECTION(Amending Matter No. R 2012-10, filed 7/16/12, effective 8/16/12)
WAC 284-29A-110 Title insurance agents must report data to title insurers. (1) Each title insurance agent must report premium, policy count, and expense data annually to each title insurer for which it produces business in the state of Washington by April 1st of each year, except as provided in subsection (4) of this section. These data must be reported following the instructions published by the commissioner on the commissioner's web site at www.insurance.wa.gov. These instructions, called the Title Insurance Agent Annual Report, are incorporated into this chapter by reference.
(2) Each annual report required by this section must include:
(a) The following premium and policy count data:
(i) Title insurance premiums for all of the agent's business; and
(ii) Title insurance premiums produced for the title insurer to which the report is sent.
(iii) Number of policies issued by all of the title insurers with which the agent does business; and
(iv) Number of policies issued by the title insurer to which the report is sent.
(b) The following expense data related to issuing title insurance policies and commitments for all of the agent's business, excluding all expenses related to escrow and other activities not directly related to title insurance:
(i) Employees' salaries and wages;
(ii) Owners' and partners' salaries and wages representing reasonable compensation for personal services actually performed by owners and partners;
(iii) Employee benefits;
(vi) Legal expense;
(vii) Licenses, taxes, and fees;
(viii) Title plant expense and maintenance;
(ix) Office supplies;
(xi) Automobile expense;
(xii) Communication expense;
(xiii) Education expense;
(xiv) Bad debts;
(xv) Interest expense;
(xvi) Employee travel and lodging;
(xvii) Loss and loss adjustment expense;
(xviii) Accounting and auditing expense;
(xix) Public relations expense; and
(xx) Other specifically identified expenses.
(c) An explanation that:
(i) Describes how expenses are allocated between the title operations and escrow or other operations of the title insurance agent; and
(ii) Demonstrates that the expenses described in WAC 284-29A-070(2) have been excluded.
(d) The estimated average cost to issue a title insurance commitment.
(3) If a title insurer does not receive a report required under this section by April 1st of each year, the title insurer must notify the commissioner by April 15th. This notice must include the name of the agent that did not send the report on time.
(4) For the 2011, 2012, and the 2013 calendar year
reports, each title agent must submit the report to the title
insurer(s) on or before ((
April)) September 1, (( 2013)) 2014.
[Statutory Authority: RCW 48.02.060, 48.29.140, 48.29.143, and 48.29.147. 12-15-049 (Matter No. R 2012-10), § 284-29A-110, filed 7/16/12, effective 8/16/12. Statutory Authority: RCW 48.02.060 and 48.29.005. 10-15-092 (Matter No. R 2009-01), § 284-29A-110, filed 7/20/10, effective 8/20/10.]