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SUBSTITUTE
HOUSE BILL 1543
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Passed
Legislature - 1993 Regular Session
State
of Washington 53rd Legislature 1993
Regular Session
By
Read
first time 03/03/93.
Insuring longshore and harbor workers.
AN ACT Relating to longshore and harbor
workers' compensation act insurance; amending RCW 48.22.070 and 48.22.072;
amending 1992 c 209 s 6 (uncodified); and declaring an emergency.
BE
IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1.
RCW 48.22.070 and 1992 c 209 s 2 are each amended 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)) longshore
and harbor ((worker's)) workers' 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)) or excess United
States longshore and harbor 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; and authorized insurers writing primary or excess
United States ((longshoreman's)) longshore and harbor workers'
compensation insurance, ((forty-eight)) fifty percent((; and
authorized insurers writing excess workers' compensation insurance or
reinsurance, two percent)).
(2) The Washington state industrial insurance
fund ((shall)) may obtain or provide reinsurance 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)) the terms
of which shall be negotiated between the state fund and the plan. ((If
such)) This coverage ((is)) shall not be obtained
or 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.
Sec. 2.
RCW 48.22.072 and 1992 c 209 s 4 is amended to read as follows:
The committee appointed pursuant to RCW
48.22.071 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;)) 1994
and 1995, summarizing the activities of the plan adopted under RCW 48.22.070
during its most recent fiscal year and since its inception. The committee
shall in each report examine, based on the experience of the plan or other
information made available to it, whether the Washington state industrial
insurance fund should participate in the plan adopted pursuant to RCW
48.22.070; whether there are methods that will satisfy the intent of chapter
209, Laws of 1992 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.
Sec. 3.
1992 c 209 s 6 (uncodified) is amended to read as follows:
This act shall expire on July 1, ((1993))
1995.
NEW SECTION. Sec. 4.
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.
