State of Washington | 62nd Legislature | 2011 Regular Session |
Read first time 02/09/11. Referred to Committee on Financial Institutions, Housing & Insurance.
AN ACT Relating to usage-based automobile insurance and exempting certain usage-based insurance information from public inspection; amending RCW 48.19.040; and creating a new section.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1 The legislature finds that among the choices
of automobile insurance policies that are available to drivers in this
state should be policies whose premiums are priced based upon the
demonstration of safe driving behavior. Having such usage-based
policies available will provide people an opportunity to save money in
the costs of insuring their vehicles, and would provide an incentive
for reduced and safer driving that will reduce costs for fuel and
vehicle maintenance, reduce accidents, and decrease driving-related
pollution and congestion. Therefore, it is the purpose of this
legislation to encourage the offering of these policies in Washington
by eliminating existing regulatory barriers to offering usage-based
automobile insurance policies, expressly authorizing the insurance
commissioner to approve the offering of such policies, ensuring the
privacy of drivers is protected, and allowing trade secret protection
for proprietary usage-based insurance models.
Sec. 2 RCW 48.19.040 and 1994 c 131 s 8 are each amended to read
as follows:
(1) Every insurer or rating organization shall, before using, file
with the commissioner every classifications manual, manual of rules and
rates, rating plan, rating schedule, minimum rate, class rate, and
rating rule, and every modification of any of the foregoing which it
proposes. The insurer need not so file any rate on individually rated
risks as described in subdivision (1) of RCW 48.19.030; except that any
such specific rate made by a rating organization shall be filed.
(2) Every such filing shall indicate the type and extent of the
coverage contemplated and must be accompanied by sufficient information
to permit the commissioner to determine whether it meets the
requirements of this chapter. An insurer or rating organization shall
offer in support of any filing:
(a) The experience or judgment of the insurer or rating
organization making the filing;
(b) An exhibit detailing the major elements of operating expense
for the types of insurance affected by the filing;
(c) An explanation of how investment income has been taken into
account in the proposed rates; and
(d) Any other information which the insurer or rating organization
deems relevant.
(3) If an insurer has insufficient loss experience to support its
proposed rates, it may submit loss experience for similar exposures of
other insurers or of a rating organization.
(4) Every such filing shall state its proposed effective date.
(5)(a) A filing made pursuant to this chapter shall be exempt from
the provisions of RCW 48.02.120(3). However, the filing and all
supporting information accompanying it shall be open to public
inspection only after the filing becomes effective unless such
information is specifically exempt from public inspection.
(b) Information associated with an auto insurance filing for a
usage or mileage-based insurance product that constitutes a trade
secret as defined in RCW 19.108.010 is exempt from public inspection.
(6) Where a filing is required no insurer shall make or issue an
insurance contract or policy except in accordance with its filing then
in effect, except as is provided by RCW 48.19.090.