WSR 14-19-079

PREPROPOSAL STATEMENT OF INQUIRY

[Insurance Commissioner Matter No. R 2014-12—Filed September 15, 2014, 11:44 a.m.]

Subject of Possible Rule Making: Fraternal benefit society risk-based surplus (RBS) standards.

Statutes Authorizing the Agency to Adopt Rules on this Subject: RCW 48.36A.100.

Reasons Why Rules on this Subject may be Needed and What They Might Accomplish: The National Association of Insurance Commissioners amends certain financial provisions and qualifications within the model laws and regulation from time to time. The risk-based capital (RBC) model for insurers (#312) was amended in 2012 that increased the trend test threshold from 2.5 to 3.0. The commissioner will consider rules to amend the RBS trend test for fraternal benefit societies to comport with this change in the RBC trend test.

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 October 31, 2014, 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.

September 15, 2014

Mike Kreidler

Insurance Commissioner