WSR 02-14-152

PREPROPOSAL STATEMENT OF INQUIRY

OFFICE OF THE

INSURANCE COMMISSIONER

[ Insurance Commissioner Matter No. R 2002-03 -- Filed July 3, 2002, 10:37 a.m. ]

Subject of Possible Rule Making: Unfair practices in the sale of single premium credit insurance.

Statutes Authorizing the Agency to Adopt Rules on this Subject: RCW 48.02.060, 48.18.100, 48.18.110, 48.18.120, 48.18.290, 48.18.2901, 48.18.480, 48.18.540, 48.20.450, 48.20.460, 48.30.010, 48.30.300, 48.30.320, 48.34.100, 48.44.050, and 48.46.200.

Reasons Why Rules on this Subject may be Needed and What They Might Accomplish: The commissioner is aware that single premium credit mortgage insurance has become the subject of lawsuits, consumer complaints, and controversy in Washington state and across the nation. The commissioner will review the subject and determine what practices may be unfair to consumers.

Other Federal and State Agencies that Regulate this Subject and the Process Coordinating the Rule with These Agencies: No other state or federal agencies regulate the subject. Single premium credit insurance is often sold in conjunction with a mortgage loan. Mortgage loans are regulated by the Department of Financial Institutions (DFI). Staff from the Office of the Insurance Commissioner will inform representatives of DFI of any proposal.

Process for Developing New Rule: Agency study; and to ensure that comments are considered prior to the filing of a CR-102, interested parties should submit written comments by August 16, 2002, to Kacy Scott, P.O. Box 40255, Olympia, WA 98504-0255, e-mail Kacys@oic.wa.gov, fax (360) 586-3109, phone (360) 664-3784.

Interested parties can participate in the decision to adopt the new rule and formulation of the proposed rule before publication by contacting Kacy Scott, P.O. Box 40255, Olympia, WA 98504-0255, fax (360) 586-3109, e-mail Kacys@oic.wa.gov.

July 3, 2002

Mike Kreidler

Insurance Commissioner

Washington State Code Reviser's Office