AN
ACT Relating to filing certain rates and contracts with the insurance commissioner;
amending RCW 48.18.100 and 48.19.060; adding a new section to chapter 48.18
RCW; and adding a new section to chapter 48.19 RCW.
BE IT
ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW
SECTION. Sec. 1. A
new section is added to chapter 48.18 RCW to read as follows:
(1)
It is the intent of the legislature to assist the purchasers of commercial
property casualty insurance by allowing policies to be issued more
expeditiously and provide a more competitive market for forms.
(2)
Commercial property casualty policies may be issued prior to filing the forms.
All commercial property casualty forms shall be filed with the commissioner
within thirty days after an insurer issues any policy using them.
(3)
If, within thirty days after a commercial property casualty form has been
filed, the commissioner finds that the form does not meet the requirements of
this chapter, the commissioner shall disapprove the form and give notice to the
insurer or rating organization that made the filing, specifying how the form
fails to meet the requirements and stating when, within a reasonable period
thereafter, the form shall be deemed no longer effective. The commissioner may
extend the time for review another fifteen days by giving notice to the insurer
prior to the expiration of the original thirty-day period.
(4)
Upon a final determination of a disapproval of a policy form under subsection
(3) of this section, the insurer shall amend any previously issued disapproved
form by endorsement to comply with the commissioner=s disapproval.
(5)
For purposes of this section, Acommercial
property casualty@ means
insurance pertaining to a business, profession, or occupation for the lines of
property and casualty insurance defined in RCW 48.11.040, 48.11.050, 48.11.060,
or 48.11.070.
(6)
Except as provided in subsection (4) of this section, the disapproval shall not
affect any contract made or issued prior to the expiration of the period set
forth in the notice of disapproval.
(7)
In the event a hearing is held on the actions of the commissioner under
subsection (3) of this section, the burden of proof shall be on the
commissioner.
NEW
SECTION. Sec. 2. A
new section is added to chapter 48.19 RCW to read as follows:
(1)
It is the intent of the legislature to assist the purchasers of commercial
property casualty insurance by allowing policies to be issued more
expeditiously and provide a more competitive market for rates.
(2)
Notwithstanding the provisions of RCW 48.19.040(1), commercial property
casualty policies may be issued prior to filing the rates. All commercial
property casualty rates shall be filed with the commissioner within thirty days
after an insurer issues any policy using them.
(3)
If, within thirty days after a commercial property casualty rate has been
filed, the commissioner finds that the rate does not meet the requirements of
this chapter, the commissioner shall disapprove the filing and give notice to
the insurer or rating organization that made the filing, specifying how the
filing fails to meet the requirements and stating when, within a reasonable
period thereafter, the filing shall be deemed no longer effective. The
commissioner may extend the time for review another fifteen days by giving
notice to the insurer prior to the expiration of the original thirty-day
period.
(4)
Upon a final determination of a disapproval of a rate filing under subsection
(3) of this section, the insurer shall issue an endorsement changing the rate
to comply with the commissioner=s
disapproval from the date the rate is no longer effective.
(5)
For purposes of this section, Acommercial
property casualty@ means
insurance pertaining to a business, profession, or occupation for the lines of
property and casualty insurance defined in RCW 48.11.040, 48.11.050, 48.11.060,
or 48.11.070.
(6)
Except as provided in subsection (4) of this section, the disapproval shall not
affect any contract made or issued prior to the expiration of the period set
forth in the notice of disapproval.
(7)
In the event a hearing is held on the actions of the commissioner under
subsection (3) of this section, the burden of proof shall be on the
commissioner.
Sec.
3. RCW
48.18.100 and 1989 c 25 s 1 are each amended to read as follows:
(1)
No insurance policy form other than surety bond forms, forms exempt under
section 1 of this act, or application form where written application is
required and is to be attached to the policy, or printed life or disability
rider or endorsement form shall be issued, delivered, or used unless it has
been filed with and approved by the commissioner. This section shall not apply
to policies, riders or endorsements of unique character designed for and used
with relation to insurance upon a particular subject.
(2)
Every such filing containing a certification, in a form approved by the
commissioner, by either the chief executive officer of the insurer or by an
actuary who is a member of the American academy of actuaries,
attesting that the filing complies with Title 48 RCW and Title 284 of the
Washington Administrative Code, may be used by such insurer immediately after
filing with the commissioner. The commissioner may order an insurer to cease
using a certified form upon the grounds set forth in RCW 48.18.110. This
subsection shall not apply to certain types of policy forms designated by the
commissioner by rule.
(3)
Except as provided in section 1 of this act, every filing that does not
contain a certification pursuant to subsection (2) of this section shall be
made not less than thirty days in advance of any such issuance, delivery, or
use. At the expiration of such thirty days the form so filed shall be deemed
approved unless prior thereto it has been affirmatively approved or disapproved
by order of the commissioner. The commissioner may extend by not more than an
additional fifteen days the period within which he or she may so
affirmatively approve or disapprove any such form, by giving notice of such
extension before expiration of the initial thirty-day period. At the
expiration of any such period as so extended, and in the absence of such prior
affirmative approval or disapproval, any such form shall be deemed approved.
The commissioner may withdraw any such approval at any time for cause. By
approval of any such form for immediate use, the commissioner may waive any
unexpired portion of such initial thirty-day waiting period.
(4)
The commissioner's order disapproving any such form or withdrawing a previous
approval shall state the grounds therefor.
(5)
No such form shall knowingly be so issued or delivered as to which the
commissioner's approval does not then exist.
(6)
The commissioner may, by order, exempt from the requirements of this section
for so long as he or she deems proper, any insurance document or form or
type thereof as specified in such order, to which in his or her opinion
this section may not practicably be applied, or the filing and approval of
which are, in his or her opinion, not desirable or necessary for the
protection of the public.
(7)
Every member or subscriber to a rating organization shall adhere to the form
filings made on its behalf by the organization. Deviations from such
organization are permitted only when filed with the commissioner in accordance
with this chapter.
Sec.
4. RCW
48.19.060 and 1989 c 25 s 5 are each amended to read as follows:
(1)
The commissioner shall review a filing as soon as reasonably possible after
made, to determine whether it meets the requirements of this chapter.
(2)
Except as provided in RCW 48.19.070 and section 2 of this act:
(a)
No such filing shall become effective within thirty days after the date of
filing with the commissioner, which period may be extended by the commissioner
for an additional period not to exceed fifteen days if he or she gives
notice within such waiting period to the insurer or rating organization which
made the filing that he or she needs such additional time for the
consideration of the filing. The commissioner may, upon application and for
cause shown, waive such waiting period or part thereof as to a filing that he or
she has not disapproved.
(b)
A filing shall be deemed to meet the requirements of this chapter unless
disapproved by the commissioner within the waiting period or any extension
thereof.
