Subject of Possible Rule Making: Declare that the Washington essential property insurance inspection and placement program must apply to all counties within Washington state.

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

     Reasons Why Rules on this Subject may be Needed and What They Might Accomplish: Presently, only properties in all or part of three counties designated "urban areas" in the WAC are eligible to apply for coverage in the FAIR plan. Certain properties outside of these designated areas cannot obtain property coverage and do not have access to the FAIR plan. This causes contract problems and economic insecurity for property owners outside the boundaries of the defined "urban areas." Expanding the geographic area of the FAIR plan to include all counties in Washington helps address this problem.

     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 submit written comments by May 11, 2006.

     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.

March 13, 2006

Mike Kreidler

Insurance Commissioner

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