INSURANCE COMMISSIONER

[Insurance Commissioner Matter No. R 2018-14—Filed October 22, 2018, 1:59 p.m.]

Preproposal statement of inquiry was filed as WSR 18-18-099.

Title of Rule and Other Identifying Information: Adjuster licensing special education criteria.

Hearing Location(s): On November 28, 2018, at 1:00 p.m., at the Office of the Insurance Commissioner, 302 Sid Snyder Avenue S.W., Suite 200, Olympia, WA 98501. All attendees should check in at reception.

Date of Intended Adoption: November 29, 2018.

Submit Written Comments to: David Forte, P.O. Box 40260, Olympia, WA 98504-0260, email rulescoordinator@oic.wa.gov, fax 360-586-3109, by November 27, 2018.

Assistance for Persons with Disabilities: Contact Lorie Villaflores, phone 360-725-7087, TTY 360-586-0241, email LorieV@oic.wa.gov, by November 27, 2018.

Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: The proposed rule would likely create new and amend existing subsections of WAC 284-17-123 to clarify the special education condition found in RCW 48.17.380 (3)(d) for an adjuster license candidate.

Reasons Supporting Proposal: This proposed rule more clearly communicates the requirements and responsibilities of a license candidate that wants to use the special education qualification to be eligible for an adjuster license.

Statutory Authority for Adoption: RCW 48.02.060 and 48.17.005.

Statute Being Implemented: RCW 48.17.380.

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: David Forte, P.O. Box 40260, Olympia, WA 98504-0260, 360-725-7042; Implementation and Enforcement: Jeff Baughman, P.O. Box 40255, Olympia, WA 98504-0255, 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. The office of the insurance commissioner has determined that under RCW 34.05.328 (5)(b)(iv), this rule making will only clarify language of a rule without changing its effect.

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.

Insurance Commissioner

AMENDATORY SECTION(Amending WSR 09-02-073, filed 1/6/09, effective 7/1/09)

WAC 284-17-123Resident and nonresident adjuster licenses((—Trainees)).

(1) Applicants for a resident adjuster license may satisfy the experience or special training requirements of RCW 48.17.380(((4)))(3)(d) by employment as a "trainee" for a minimum period of ((not fewer than)) six months.

(a) Each trainee must be supervised by a resident licensed adjuster. Trainees must receive training in all adjustment activities and responsibilities. Activities of the trainee must be restricted to participation in factual investigation and tentative closing of losses. All adjusting transactions must be completed in the name of the supervising licensed adjuster who must review, confirm, and be responsible for all acts of the trainee. Compensation of a trainee must be on a salary basis only.

(b) Any person employing trainees must immediately advise the commissioner and provide the exact date that employment of the trainee begins and ends. The employer must submit an application completed by each trainee and one fingerprint card.

(c) Trainees are eligible to take the adjuster's examination required by the commissioner after completing ((no fewer than))a minimum period of six months as a trainee.

(d) The maximum period a person may be designated as a trainee is one nine-month period.

(e) Any violation of this section or a violation of any provision of the insurance code subjects both the trainee and the supervisory adjuster to penalties of the code.

(2) Applicants for a resident adjuster license may satisfy the special education requirements of RCW 48.17.380 (3)(d) by:

(a) Successful completion of the chartered property casualty underwriter (CPCU) program and earning the CPCU professional designation from the American Institute for Chartered Property Casualty Underwriters, also known as the institutes;

(b) Successful completion of the associate in claims (AIC) program and earning the AIC professional designation from the American Institute for Chartered Property Casualty Underwriters, also known as the institutes; or

(c) Successful completion of the property program and earning the property claim law specialist (PCLS) professional designation from the American Educational Institute.

(3) Applicants who are not residents of Washington may be licensed as nonresident adjusters as follows:

(a) A nonresident adjuster license will be issued if the applicant has and maintains an adjuster license in good standing in his or her home state and the home state reciprocates and licenses Washington adjusters as nonresident adjusters.

(b) If the home state of an applicant for an adjuster license does not issue an adjuster license, the applicant must pass this state's written adjuster examination.

(c) If the home state of an applicant for a nonresident adjuster license does not issue an adjuster license but he or she has an active adjuster license as a nonresident in a state other than Washington that requires passing an examination, and he or she has taken and passed the examination and is in good standing with that state, the nonresident adjuster is deemed by the commissioner to have satisfied the examination required for adjusters in this state.