WSR 16-21-067
[Insurance Commissioner Matter No. R 2016-14—Filed October 17, 2016, 10:53 a.m.]
Original Notice.
Preproposal statement of inquiry was filed as WSR 16-12-080.
Title of Rule and Other Identifying Information: Principle based reserving (PBR).
Hearing Location(s): Insurance Commissioner's Office, 302 Sid Snyder Avenue S.W., Suite 200, Olympia, WA 98504, on November 22, 2016, at 10:00 a.m.
Date of Intended Adoption: November 23, 2016.
Submit Written Comments to: Jim Tompkins, P.O. Box 40260, Olympia, WA 98504-0260, e-mail, fax (360) 586-3109, by November 21, 2016.
Assistance for Persons with Disabilities: Contact Lori [Lorie] Villaflores by November 21, 2016, TTY (360) 586-0241 or (360) 725-7087.
Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: The proposed rules will consider adopting rules to implement PBR and adopting the valuation manual.
Reasons Supporting Proposal: During the 2016 legislative session, chapter 142, Laws of 2016, regarding PBR for life insurance companies was enacted. Part of this legislation includes the adoption and use of the valuation manual when certain conditions have been met. When these conditions have been met the effective date of the use of the valuation manual needs to be established.
Statutory Authority for Adoption: RCW 48.02.060, 48.74.090, and 48.74.100(5).
Statute Being Implemented: RCW 48.74.100.
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: Jim Tompkins, P.O. Box 98504-0260 [40260], Olympia, WA 98504-0260, (360) 725-7036; Implementation and Enforcement: Doug Hartz, P.O. Box 98504-0255 [40255], Olympia, WA 98504-0255, (360) 725-7214.
No small business economic impact statement has been prepared under chapter 19.85 RCW. The domestic insurance issuers that are affected by this rule are not small businesses, pursuant to chapter 19.85 RCW.
A cost-benefit analysis is not required under RCW 34.05.328. This rule simply announces that the conditions set by the legislature for its enactment have occurred and therefore the office of the insurance commissioner is adopting the Washington state statute without material change. This meets the conditions found under RCW 34.05.328 (5)(b)(iii).
October 17, 2016
Mike Kreidler
Insurance Commissioner
WAC 284-74-600 Authority, purpose, and definition.
(1) The purpose of this subchapter is to formally adopt the valuation manual adopted by the National Association of Insurance Commissioners as specified in chapter 48.74 RCW.
(2) "Valuation manual" has the meaning set forth in RCW 48.74.015.
WAC 284-74-610 Determination of operative date of valuation manual.
(1) The insurance commissioner hereby makes the following determination:
(a) The valuation manual was adopted by the National Association of Insurance Commissioners on December 2, 2012, by an affirmative vote of forty-three members, representing over three-fourths of the members voting.
(b) The standard valuation law, as amended by the National Association of Insurance Commissioners in 2009, or legislation including substantially similar terms and conditions, has been enacted by states representing over eighty-five percent of the direct premiums written as reported in the following annual statements submitted in 2008: Life, accident and health annual statements; health annual statements; or fraternal annual statements.
(c) The standard valuation law, as amended by the NAIC in 2009, or legislation including substantially similar terms and conditions, has been enacted by forty-six states.
(2) Therefore, the operative date of the valuation manual for this state is January 1, 2017.