WSR 23-12-071
PERMANENT RULES
DEPARTMENT OF
LABOR AND INDUSTRIES
[Filed June 6, 2023, 8:50 a.m., effective July 7, 2023]
Effective Date of Rule: Thirty-one days after filing.
Purpose: Correcting a typographical error in the retro fatality calculation from $33,500 to $35,000 for the medical aid incurred loss.
Citation of Rules Affected by this Order: Amending WAC 296-17B-540 Determining loss incurred for each claim.
Statutory Authority for Adoption: RCW
51.18.010 (retrospective rating) and
51.04.020(1) (general authority).
Other Authority: RCW
51.18.010 (retrospective rating) and
51.04.020(1) (general authority).
Adopted under notice filed as WSR 23-08-065 on April 4, 2023.
Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 0, Repealed 0.
Number of Sections Adopted at the Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.
Number of Sections Adopted on the Agency's own Initiative: New 0, Amended 1, Repealed 0.
Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 0, Repealed 0.
Number of Sections Adopted using Negotiated Rule Making: New 0, Amended 0, Repealed 0; Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 0, Repealed 0.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: June 6, 2023.
Joel Sacks
Director
OTS-4437.1
AMENDATORY SECTION(Amending WSR 22-24-019, filed 11/30/22, effective 1/1/23)
WAC 296-17B-540Determining loss incurred for each claim.
(1) Calculating the initial loss incurred:
For each of your claims, we will multiply the case incurred loss by the appropriate discounted loss development factors to determine the initial loss incurred.
If you have a fatality, we will use $521,600 as the claim's initial incurred loss for the claim, with $486,600 for accident fund incurred loss and (($33,500))$35,000 for the medical aid incurred loss, regardless of the case incurred loss, and before recovery factors if applicable.
(2) Applying the single loss occurrence limit:
The initial loss incurred for a claim will be the amount we use as the loss incurred unless the single loss occurrence limit applies.
The single loss occurrence limit applies when the sum of all initial losses incurred for your claims arising out of a single event is greater than your selected single loss occurrence limit. In that case, each claim's initial loss incurred will be its proportionate share of your single loss occurrence limit.
(3) Applying the expected loss ratio factors:
The preliminary loss incurred for a claim will be the amount of the initial loss incurred, after application of the single loss limit, multiplied by the appropriate expected loss ratio factor. The accident fund and medical aid fund portions of each claim will have separate expected loss ratio factors applied.