PREPROPOSAL STATEMENT OF INQUIRY
OFFICE OF THE
[Insurance Commissioner Matter R 2020-08—Filed June 2, 2020, 8:12 a.m.]
Subject of Possible Rule Making: Change of insurance, offset of expenses of group policy holder (SHB 1075).
Statutes Authorizing the Agency to Adopt Rules on this Subject: SHB 1075 (chapter 253, Laws of 2019, effective date July 1, 2020) and RCW 48.02.060
Reasons Why Rules on this Subject may be Needed and What They Might Accomplish: The legislature passed SHB 1075 during the 2019 legislative session. The bill establishes that the insurance code's prohibition on offering rebates or inducements does not prohibit an insurer from issuing payment to offset documented expenses incurred by a group policy holder in changing coverage from one insurer to another or for implementing new insurance coverage. Based on the legislation, the OIC needs to develop rules to provide guidance for companies to use and apply implementation credits.
Other Federal and State Agencies that Regulate this Subject and the Process Coordinating the Rule with These Agencies: Not applicable.
Process for Developing New Rule: Agency study.
Interested parties can participate in the decision to adopt the new rule and formulation of the proposed rule before publication by contacting Scott Bird, 302 Sid Snyder Avenue S.W., Olympia, WA 98504, phone 360-725-77169 , fax 360-586-3109, TTY 360-586-0241, email firstname.lastname@example.org, website www.insurance.wa.gov.
June 2, 2020