WSR 98-04-081

PREPROPOSAL STATEMENT OF INQUIRY

INSURANCE COMMISSIONER'S OFFICE

[Insurance Commissioner Matter No. R 98-2--Filed February 4, 1998, 11:24 a.m.]

Subject of Possible Rule Making: Cost of capital for property and casualty rate filings.

Statutes Authorizing the Agency to Adopt Rules on this Subject: RCW 48.02.060, 48.19.020, 48.19.080.

Reasons Why Rules on this Subject may be Needed and What They Might Accomplish: The provisions of WAC 284-24-065 regarding cost of capital were identified in the Insurance Commissioner's regulatory improvement review as a regulatory scheme that may need to be revised and updated. The commissioner will consider methods, including reorganization of the rules, to increase the effectiveness of the rules and to simplify the compliance and enforcement processes.

Other Federal and State Agencies that Regulate this Subject and the Process Coordinating the Rule with These Agencies: None.

Process for Developing New Rule: Agency study; and written comments may be submitted by March 11, 1998, to Kacy Brandeberry, P.O. Box 40256, Olympia, WA 98504-0256, e-mail inscomr@aol.com, FAX (360) 407-0351.

Interested parties can participate in the decision to adopt the new rule and formulation of the proposed rule before publication by contacting Kacy Brandeberry, P.O. Box 40256, Olympia, WA 98504-0256, phone (360) 407-0729, FAX (360) 407-0351, Internet kacyb@oic.wa.gov.

February 4, 1998

Greg Scully