H-2037.1  _______________________________________________

                          HOUSE BILL 2098

          _______________________________________________

State of Washington      55th Legislature     1997 Regular Session

By Representative L. Thomas

Read first time 02/20/97.  Referred to Committee on Financial Institutions & Insurance.

Making longshore and harbor workers' compensation insurance available.

    AN ACT Relating to longshore and harbor workers' compensation insurance; amending RCW 48.22.070; repealing 1995 c 327 s 2, 1993 c 177 s 3, & 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 1993 c 177 s 1 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 longshore and harbor 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 or excess United States longshore and harbor workers' compensation insurance in the state of Washington 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 or surpluses incurred by the plan shall be determined by the governing committee of the plan and 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 longshore and harbor workers' compensation insurance, fifty percent.

    (2) The Washington state industrial insurance fund may obtain or provide reinsurance coverage for the plan created under subsection (1) of this section the terms of which shall be negotiated between the state fund and the plan.  This coverage shall not be obtained or provided if the commissioner determines that the premium to be charged would result in unaffordable rates for coverage provided by the plan.  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. 2.  1995 c 327 s 2, 1993 c 177 s 3, & 1992 c 209 s 6 (uncodified) are each repealed.

NEW SECTION. Sec. 3.  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 takes effect immediately.

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