WSR 11-09-027




[ Insurance Commissioner Matter No. R 2010-15 -- Filed April 14, 2011, 7:00 a.m. ]

Original Notice.

Preproposal statement of inquiry was filed as WSR 10-23-050.

Title of Rule and Other Identifying Information: WAC 284-30-393 Regarding how an insurer handles an insured's deductible in a subrogation recovery.

Hearing Location(s): OIC Tumwater Office, Training Room 120, 5000 Capitol Boulevard, Tumwater, WA,, on May 24, 2011, at 1:00 p.m.

Date of Intended Adoption: June 6, 2011.

Submit Written Comments to: Kacy Scott, P.O. Box 40258, Olympia, WA 98504-0258, e-mail, fax (360) 586-3109, by May 23, 2011.

Assistance for Persons with Disabilities: Contact Lorrie [Lorie] Villaflores by May 23, 2011, TTY (360) 586-0241 or (360) 725-7087.

Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: This proposed amendment will add clarity and improve the efficiency of claims handling in Washington for consumers and insurers.

Reasons Supporting Proposal: WAC 284-30-393 has been evaluated for clarity and the commissioner has determined that it is necessary to provide guidance about the requirements associated with subrogation demands.

Statutory Authority for Adoption: RCW 48.02.060.

Statute Being Implemented: RCW 48.30.010.

Rule is not necessitated by federal law, federal or state court decision.

Name of Proponent: Mike Kreidler, insurance commissioner, governmental.

Name of Agency Personnel Responsible for Drafting: Kacy Scott, P.O. Box 40258, Olympia, WA 98504-0257 [98504-0258], (360) 725-7041; Implementation: John Hamje, P.O. Box 40258, Olympia, WA 98504-0257 [98504-0258], (360) 725-7262; and Enforcement: Carol Sureau, P.O. Box 40258, Olympia, WA 98504-0257 [98504-0258], (360) 725-7050.

No small business economic impact statement has been prepared under chapter 19.85 RCW. This proposed rule amendment would only affect regulations that apply to property and casualty insurers. None of the active domestic insurers in this line can be considered small businesses (both having less than fifty employees and being owned/operated independently).

A cost-benefit analysis is required under RCW 34.05.328. A preliminary cost-benefit analysis may be obtained by contacting Kacy Scott, P.O. Box 40258, Olympia, WA 98504-0258, phone (360) 725-7041, fax (360) 586-3109, e-mail

April 14, 2011

Mike Kreidler

Insurance Commissioner


AMENDATORY SECTION(Amending Matter No. R 2007-08, filed 5/20/09, effective 8/21/09)

WAC 284-30-393   Insurer must include an insured's deductible in its subrogation demands.   The insurer must include the insured's deductible, if any, in its subrogation demands. ((Subrogation)) Any recoveries must be allocated first to the insured for any deductible(s) incurred in the loss, less applicable comparable fault. Deductions for expenses must not be made from the deductible recovery unless an outside attorney is retained to collect the recovery. The deduction may then be made only as a pro rata share of the allocated loss adjustment expense. The insurer must keep its insured regularly informed of its efforts related to the progress of subrogation claims. "Regularly informed" means that the insurer must contact its insured within sixty days after the start of the subrogation process, and no less frequently than every one hundred eighty days until the insured's interest is resolved.

[Statutory Authority: RCW 48.02.060 and 48.30.010. 09-11-129 (Matter No. R 2007-08), 284-30-393, filed 5/20/09, effective 8/21/09.]

Washington State Code Reviser's Office