PDFWAC 284-16-630

Plan of correction.

(1) This plan of correction must include one or more of the actions under WAC 284-16-320(2), and may include one or more prohibitions contained in the order.
(2) The contents of a plan of correction must address the specific facts and circumstances that led to the order. The plan of correction must include all of the following elements necessary to fully address the list of requirements contained in the administrative supervision order:
(a) An executive summary identifying the objective goals of the plan with key implementation dates and a projected date for full statutory compliance;
(b) A background description of the insurer describing its history, ownership structure, relationships with affiliates, management structure, key employees, and overall operating structure of its organization;
(c) The financial condition of the insurer summarizing its major categories of assets and liabilities, revenues and expenses, and debt and capital structure based on actual annual results for the previous two calendar years and monthly financial forecasts and assumptions for the next three year period to include any specific business plans by function from the date of the commissioner's order;
(d) The causes of the financially hazardous condition or exceeding its powers situation giving rise to supervision proceedings;
(e) The proposed corrective actions specifically identifying operational changes, contractual changes, management changes, and internal control structure changes;
(f) A proposal for monitoring and reporting systems to provide periodic reviews of progress and comparisons of actual results with the plan of correction objectives;
(g) An agreement that the insurer will provide a copy of any notice, request, or other communication from any other regulatory authority that is received by the insurer under administrative supervision to the administrative supervisor or designee within five business days after receipt by the insurer; and
(h) Any other element necessary to fully address a requirement contained in the administrative supervision order.
[Statutory Authority: RCW 48.02.060, 48.31.435, 48.31.400, and 48.31.900. WSR 09-23-022 (Matter No. R 2008-15), § 284-16-630, filed 11/9/09, effective 12/10/09.]