OFFICE OF THE
[Insurance Commissioner Matter No. R 2018-08—Filed September 18, 2018, 5:01 p.m.]
Preproposal statement of inquiry was filed as WSR 18-13-103.
Title of Rule and Other Identifying Information: Variable life and annuity definition product alignment.
Hearing Location(s): On October 24, 2018, at 1:00 p.m., at the Office of the Insurance Commissioner, 302 Sid Snyder Avenue S.W., Suite 200, Olympia, WA 98504. All attendees should check in at reception.
Date of Intended Adoption: November 7, 2018.
Submit Written Comments to: Zachary Mason, P.O. Box 40260, Olympia, WA 98504-0260, email email@example.com, fax 360-586-3109, by October 19, 2018.
Assistance for Persons with Disabilities: Contact Lorie Villaflores, phone 360-725-7087, TTY 360-586-0241, email LorieV@oic.wa.gov, by October 19, 2018.
Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: This proposed rule clarifies language which exists in statute. It corrects a reference from FINRA to the Washington department of financial institutions and clarifies wording for variable life and variable annuity producer authority.
Reasons Supporting Proposal: This proposed rule aligns rule language with that of the department of financial institutions and more clearly communicates the requirements and responsibilities of producers seeking the variable life and variable annuity life of authority.
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: Zachary Mason, P.O. Box 40260, Olympia, WA 98504-0260, 360-725-7043; Implementation and Enforcement: Jeff Baughman, P.O. Box 40260, Olympia, WA 98504-0260, 360-725-7156.
A school district fiscal impact statement is not required under RCW 28A.305.135
A cost-benefit analysis is not required under RCW 34.05.328
. Pursuant to RCW 34.05.328
(5)(b)(iv) it has been determined that it is not necessary to prepare a cost-benefit analysis.
This rule proposal, or portions of the proposal, is exempt from requirements of the Regulatory Fairness Act because the proposal:
Is exempt under RCW 19.85.025
(3) as the rules only correct typographical errors, make address or name changes, or clarify language of a rule without changing its effect.
September 18, 2018
AMENDATORY SECTION(Amending WSR 09-02-073, filed 1/6/09, effective 7/1/09)
WAC 284-17-015Variable life and variable annuity products—Standards for resident licenses.
(1) ((Resident insurance))Any producer((s)) who desires to sell, solicit or negotiate variable life and variable annuity products in this state must:
(a) Obtain a securities salesperson license from the department of financial institutions for a FINRA member broker-dealer; and
(b) If a resident of this state, obtain and maintain an insurance producer license with ((a))the life line of authority and ((an appropriate securities license from the Financial Industry Regulatory Authority (FINRA). Upon presentation of satisfactory evidence that the producer has fulfilled this requirement,))the variable life and variable annuity line of authority; or
(c) If a nonresident of this state, obtain and maintain a producer license with the life line of authority and the variable life and variable annuity line of authority in their resident or home state in order to be eligible to apply for and be issued a nonresident license in this state.
(2) The commissioner will only issue a resident or nonresident producer license with ((a))the variable life and variable annuity ((products)) line of authority when satisfactory evidence has been received that the producer has fulfilled the applicable requirements of subsection (1) of this section.
All licensees with the variable life and variable annuity products line of authority are also subject to the licensing requirements set forth in RCW 48.18A.060