BILL REQ. #:  H-1267.1 

Read first time 02/08/13.   Referred to Committee on Business & Financial Services.

     AN ACT Relating to due process in the filing and approval of insurance rates, forms, and agreements and insurance regulatory policies and procedures; and adding a new section to chapter 48.02 RCW.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION.  Sec. 1   A new section is added to chapter 48.02 RCW to read as follows:
     (1) An agency practice, policy, or procedure used when administering, interpreting, enforcing, or implementing any law is not effective before and unless all of the following have been met:
     (a) The insurance commissioner has communicated the practice, policy, or procedure in writing to those affected at least thirty days in advance of its use or implementation along with identification of the statute conferring authority for that practice, policy, or procedure;
     (b) The commissioner publishes on the agency web site the practice, policy, or procedure upon use or implementation along with prior versions of that practice, policy, or procedure and enforcement actions based upon that practice, policy, or procedure;
     (c) Agency enforcement and application of a practice, policy, or procedure applies equally to all similar products, services, and licensees except as explicitly required otherwise by a law identified by the commissioner; and
     (d) The commissioner applies any new practice, policy, or procedure prospectively only except as explicitly required otherwise by a law identified by the commissioner.
     (2) The commissioner may not impose a fine or suspend or revoke a license for a violation of law relating to the filing, use, or approval of a rate, form, or agreement by a carrier if the commissioner had previously approved, waived a requirement for, or waived enforcement against any carrier for a substantially similar rate, form, or agreement in similar circumstances.
     (3) The commissioner may not prohibit or take action against any person for the negotiation of a provider or facility agreement in advance of filing the agreement. The commissioner may not prohibit the execution or use of a health care provider or facility agreement that varies from the carrier's filed and approved agreements solely with respect to terms and conditions:
     (a) For which the commissioner has no statutory authority to disapprove; or
     (b) Required by another state or federal government agency with jurisdiction over the agreement.
     (4) In any action by the commissioner against any person for a violation of law relating to the use of a rate, form, or agreement, the determination of whether a material difference exists between the approved and used rate, form, or agreement must be made in accordance with state common law governing material modification of agreements.