2720-S AMC CONF S4676.2
SHB 2720 - CONF REPT
By Conference Committee
ADOPTED 3/12/92
Strike everything after the enacting clause and insert the following:
"NEW SECTION. Sec. 1. The legislature finds and declares that the continued existence of a strong and healthy maritime industry in this state is threatened by the unavailability and excessive cost of workers' compensation coverage required by the United States longshoreman's and harbor worker's compensation act. The legislature, therefore, acting under its authority to protect industry and employment in this state hereby establishes a commission to devise and implement both a near and long-term solution to this problem, for the purpose of maintaining employment for Washington workers and a vigorous maritime industry."
"NEW SECTION. Sec. 2. A new section is added to chapter 48.22 RCW to read as follows:
(1) Before July 1, 1992, the commissioner shall adopt rules establishing a reasonable plan to insure that workers' compensation coverage as required by the United States longshoreman's and harbor worker's compensation act, 33 U.S.C. Secs. 901 through 950, and maritime employer's liability coverage incidental to the workers' compensation coverage is available to those unable to purchase it through the normal insurance market. This plan shall require the participation of all authorized insurers writing primary and excess workers' compensation insurance or reinsurance and the Washington state industrial insurance fund as defined in RCW 51.08.175 which is authorized to participate in the plan and to make payments in support of the plan in accordance with this section. Any underwriting losses incurred by the plan shall be shared by plan participants in accordance with the following ratios: The state industrial insurance fund, fifty percent; authorized insurers writing United States longshoreman's and harbor workers' compensation insurance, forty-eight percent; and authorized insurers writing excess workers' compensation insurance or reinsurance, two percent.
(2) The Washington state industrial insurance fund shall obtain or provide coverage for the plan created under subsection (1) of this section on an excess of loss basis that would cover plan losses exceeding the net earned and retained premiums written including investment income of the plan as negotiated between the state fund and the plan. If such coverage is not provided by July 1, 1992, or if the commissioner determines that the premium to be charged for such coverage would result in unaffordable rates for coverage provided by the plan, the industrial insurance fund shall be relieved of responsibility for obtaining or providing excess of loss coverage. In considering whether excess of loss coverage premiums would result in unaffordable rates for workers' compensation coverage provided by the plan, the commissioner shall compare the resulting plan rates to those provided under any similar pool or plan of other states in existence prior to July 1, 1992.
(3) An applicant for plan insurance, a person insured under the plan, or an insurer, affected by a ruling or decision of the manager or committee designated to operate the plan may appeal to the commissioner for resolution of a dispute. In adopting rules under this section, the commissioner shall require that the plan use generally accepted actuarial principles for rate making."
"NEW SECTION. Sec. 3. A new section is added to chapter 48.22 RCW to read as follows:
Before April 15, 1992, the commissioner shall appoint a committee to provide assistance in drafting the rules required by section 2 of this act. After July 1, 1992, the committee shall assist the commissioner in overseeing the operation of the plan. The committee shall consist of at least eight members. The commissioner and the director of the department of labor and industries shall be members. The remaining members shall be selected to insure equal representation of authorized insurers writing primary or excess workers' compensation insurance, insurance producers, organized labor, and maritime employers."
"NEW SECTION. Sec. 4. A new section is added to chapter 48.22 RCW to read as follows:
The committee appointed pursuant to section 3 of this act shall submit a report to the legislature no later than January 1, 1993, that examines all aspects of the United States longshoreman's and harbor worker's act, 22 U.S.C. Secs. 901 through 950, coverage, and incidental maritime liability coverage, as it applies to Washington workers and employers. This study shall include but not be limited to the ability of private insurers to provide affordable coverage to eligible employers; whether the Washington state industrial insurance fund should participate in the plan adopted pursuant to section 2 of this act; whether there are methods that will satisfy the intent of chapter ..., Laws of 1992 (this act) that will not involve the Washington state industrial insurance fund; and the feasibility of requiring that this coverage be made directly available through the Washington state industrial insurance fund."
"NEW SECTION. Sec. 5. A new section is added to chapter 48.15 RCW to read as follows:
An unauthorized insurer shall not solicit or provide federally required longshore and harbor workers' insurance on subjects located, resident, or to be performed within the state."
"NEW SECTION. Sec. 6. This act shall expire on July 1, 1993."
"NEW SECTION. Sec. 7. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect immediately."
SHB 2720 - CONF REPT
By Conference Committee
ADOPTED 3/12/92
On page 1, line 2 of the title, after "insurance;" strike the remainder of the title and insert "adding new sections to chapter 48.22 RCW; adding a new section to chapter 48.15 RCW; creating a new section; providing an expiration date; and declaring an emergency."