1938-S AMS PELZ S3201.3

SHB 1938 - S AMD - 373

By Senator Pelz

    Strike everything after the enacting clause and insert the following:

    "NEW SECTION. Sec. 1.  A new section is added to chapter 51.14 RCW to read as follows:

    Any affiliated legal entity, including a subsidiary company or a holding company, of a reinsurer authorized to reinsure a self-insurer's liabilities under this title shall be allowed to participate in the administration of the responsibilities of a self-insurer if the entity is not involved in providing reinsurance.

NEW SECTION. Sec. 2.  A new section is added to chapter 51.14 RCW to read as follows:

    (1) The department shall establish rules regarding the relationship between a reinsurance company authorized to reinsure a self-insurer's liabilities under this title and any legal entity affiliated with that reinsurance company administering any of the responsibilities of the same self-insurer served by that reinsurance company.  The rules shall require at a minimum that the self-insurer, reinsurer, and administrator release to the department such records and financial statements as the department may request regarding the administration of claims under this title, any reinsurance policies issued, and the nature of the relationship between the reinsurer and the administrator.

    (2) The department shall conduct a study of self-insurer's adjudication outcomes, claims management practices, and other appropriate outcomes and practices.  The study shall compare outcomes and practices of self-insurers who use the services of reinsurers and administrators that are affiliated to those of self-insurers who use the services of unaffiliated reinsurers and administrators as well as to the outcomes and practices of the department.  The department shall report the results of the study to the legislature by January 1, 1999.  The department shall also, by January 1, 1999, make recommendations to the legislature, based on the results of the study, on whether affiliated legal entities of reinsurers should continue to be allowed to participate in the administration of responsibilities of a self-insurer under the terms of section 1 of this act."

SHB 1938 - S AMD - 373

By Senator Pelz

    On page 1, line 1 of the title, after "self-insurers;" strike the remainder of the title and insert "and adding new sections to chapter 51.14 RCW."

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