INSURANCE COMMISSIONER

[Insurance Commissioner Matter No. R 2020-03—Filed April 27, 2020, 12:23 p.m., effective April 27, 2020, 12:23 p.m.]

Effective Date of Rule: Immediately upon filing.

Purpose: The purpose of this emergency regulation to address the impact of COVID-19 and the Governor's Stay Home, Stay Healthy Emergency Proclamation on licensed insurance producers by enabling licensed producers who have been impacted by COVID-19 to have more time to renew their producer licenses and pay the required renewal fee. This will also ensure that the producers who have been impacted by COVID-19 do not accrue late fees because they are unable to promptly renew their licenses.

Citation of Rules Affected by this Order: Amending WAC 284-17-423.

Statutory Authority for Adoption: RCW 48.01.030, 48.02.060, 48.17.005, and 48.17.170.

Other Authority: None.

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: Given the extraordinary impact of the COVID-19 outbreak and its impact on Washington businesses, Governor Jay Inslee issued Emergency Proclamation 20-25 on March 23, 2020, prohibiting all people in Washington state from leaving their homes or participating in social, spiritual and recreational gatherings of any kind regardless of the number of participants. On April 2, 2020, the governor extended the time frame for the proclamation by issuing Proclamation 20-25.1. During this time and possibly thereafter, it has become more difficult for licensed insurance producers to timely renew their producer licenses and pay the required renewal fee. To ensure that these individuals will not be burdened further by fees accrued for late renewal, it is necessary to provide for renewal extensions for licensed insurance producers impacted by COVID-19. Observing notice and comment rule making would not serve the public interest because it would deny relief to individuals whose licenses expire in the interim, limiting the number of producers available to help consumers during a time of unprecedented interest in insurance procurement and claims filing.

Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 0, Repealed 0.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 the 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 0, Repealed 0.

Date Adopted: April 27, 2020.

Insurance Commissioner

AMENDATORY SECTION(Amending WSR 18-22-069, filed 11/1/18, effective 12/17/18)

WAC 284-17-423Term of initial and reinstated individual license.

(1) Initial and reinstated individual licenses are valid from their date of issuance until the end of the licensee's next birth month plus one year. Additional licenses issued to the same active licensee will be on the same renewal cycle as the first license issued to that licensee.

(2) The renewal date of a business entity license is based on the date of application. The license is valid for two years. Additional licenses issued to the same active licensee will be on the same renewal cycle as the first license issued to that licensee. If a licensee's insurance license expires between March 1, 2020, and June 30, 2020, and the licensee has experienced a hardship related to COVID-19, the licensee's insurance license expiration date will be extended until July 31, 2020, if the licensee submits a request for an extension by email to licinfo@oic.wa.gov.