WSR 14-21-179 PERMANENT RULES OFFICE OF INSURANCE COMMISSIONER [Insurance Commissioner Matter No. R 2014-06—Filed October 22, 2014, 10:36 a.m., effective November 22, 2014] Effective Date of Rule: Thirty-one days after filing.
Purpose: This rule amends the existing rule regarding the composition of the governing committee of the FAIR plan.
Citation of Existing Rules Affected by this Order: Amending WAC 284-19-140.
Statutory Authority for Adoption: RCW 48.02.060.
Other Authority: RCW 48.01.030.
Adopted under notice filed as WSR 14-19-070 on September 12, 2014.
Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 0, Repealed 0.
Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 1, Repealed 0.
Number of Sections Adopted on the Agency's Own Initiative: New 0, Amended 0, Repealed 0.
Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 0, Repealed 0.
Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 0, Repealed 0; Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 1, Repealed 0.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: October 22, 2014.
Mike Kreidler
Insurance Commissioner
AMENDATORY SECTION (Amending WSR 98-13-095, filed 6/16/98, effective 7/17/98)
WAC 284-19-140 Administration.
(1) This program shall be administered by a governing committee (referred to as the committee) of the facility, subject to the supervision of the commissioner, and operated by a manager appointed by the committee.
(2) The committee consists of nine members, including five insurers, ((one of which is)) elected from each of the following:
(a) American Insurance Association (one member);
(b) ((Alliance of American Insurers;)) Property Casualty Insurers Association of America (two members);
(c) ((National Association of Independent Insurers;
(d))) All other stock insurers (one member); and
(((e))) (d) All other nonstock insurers (one member).
A sixth member shall be an insurer designated as the service insurer under the program. The commissioner shall designate a sixth member if there is more than one service insurer. The other three members are individuals who are appointed by the commissioner to serve, none of whom have a direct or indirect interest in any insurer except as a policyholder. The individual members serve for a period of one year or until their successors are appointed. Not more than one insurer in a group under the same management or ownership shall serve on the committee at the same time. One of the six insurers on the governing committee shall be a domestic insurer.
(3) The governing committee may issue operating procedures and other directives to carry out the purposes of this plan and directives of the commissioner.
(4) Each person serving on the committee or any subcommittee, each member of the facility, and each officer and employee of the facility shall be indemnified by the facility against all costs and expenses actually and necessarily incurred in connection with the defense of any action, suit, or proceeding in which he or she is made a party by reason of being or having been a member of the committee, or a member or officer or employee of the facility except in relation to matters as to which he or she has been judged in such action, suit, or proceeding to be liable by reason of willful misconduct in the performance of duties as a member of the committee, or a member or officer or employee of the facility. This indemnification does not apply to any loss, cost, or expense on insurance policy claims under the program. Indemnification is not exclusive of other rights to which such member or officer may be entitled as a matter of law.
|