WSR 20-20-121

PROPOSED RULES

OFFICE OF THE

INSURANCE COMMISSIONER

[Insurance Commissioner Matter R 2020-11—Filed October 6, 2020, 11:37 a.m.]

Original Notice.

Preproposal statement of inquiry was filed as WSR 20-115-130 [20-15-130].

Title of Rule and Other Identifying Information: Prompt response requirement.

Hearing Location(s): On November 10, 2020, at 10:00 a.m. Remote access information for public testimony will be made available at the webpage linked here: https://www.insurance.wa.gov/prompt-response-requirement-r-2020-11. Due to the COVID-19 public health emergency, this hearing will be held via Zoom.

Date of Intended Adoption: November 11, 2020.

Submit Written Comments to: Bode Makinde, P.O. Box 40260, Olympia, WA 98504-0260, email rulescoordinator@oic.wa.gov, fax 360-586-3109, by November 12, 2020.

Assistance for Persons with Disabilities: Contact Melanie Watness, phone 360-725-7013, fax 360-586-2023, TTY 360-586-0241 or 360-725-7087, email MelanieW@oic.wa.gov, by November 9, 2020.

Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: The proposed rules will seek to clarify/amend WAC 284-30-650. These rules will also seek to explicitly clarify that the changes apply to all other regulated entities that have to comply with chapter 48.30 RCW.

Reasons Supporting Proposal: Prompt responses are required to all office of the insurance commissioner (OIC) division inquiries, regardless of line of business or coverage and extend to all forms of delivery to OIC. Not all OIC inquiries and responses are complaint driven and channeled through the commissioner's electronic response system. The rule change would offer guidance to all respondents using any method of response and restores the original regulation prior to January 1, 2014, while retaining the electronic response system when appropriate.

Statutory Authority for Adoption: RCW 48.02.060, 48.44.050, 48.46.200, and 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: Bode Makinde, P.O. Box 40260, Olympia, WA 98504-0260, 360-725-7041; Implementation: Melanie Anderson, P.O. Box 40255, Olympia, WA 98504-0255, 360-725-7156; and Enforcement: Toni Hood, P.O. Box 40255, Olympia, WA 98504-0255, 360-725-7264.

A school district fiscal impact statement is not required under RCW 28A.305.135.

A cost-benefit analysis is required under RCW 34.05.328. A preliminary cost-benefit analysis may be obtained by contacting Bode Makinde, P.O. Box 40260, Olympia, WA 98504-0260, phone 360-725-7041, fax 360-586-3109, TTY 360-586-0241, email bodem@oic.wa.gov.

This rule proposal, or portions of the proposal, is exempt from requirements of the Regulatory Fairness Act because the proposal:

Is exempt under RCW 19.85.025(3) as the rules only correct typographical errors, make address or name changes, or clarify language of a rule without changing its effect; and rules adopt, amend, or repeal a procedure, practice, or requirement relating to agency hearings; or a filing or related process requirement for applying to an agency for a license or permit.

Is exempt under RCW 34.05.310 (4)(g); WAC 284-30-650.

Explanation of exemptions: Correct or clarify language in WAC 284-30-650 and update agency process.

The proposed rule does not impose more-than-minor costs on businesses. Following is a summary of the agency's analysis showing how costs were calculated.

Section 1 - Background: Prompt responses are required to any OIC division inquiry. Not all OIC inquiries and responses are channeled through the commissioner's electronic response system. The rule change would offer guidance to all respondents using any method of response.

Section 2 - Rule groups and their status relative to RFA analysis:

Section 3 - Cost of compliance/minor cost threshold: The Washington insurers, health care service contractors and health maintenance organizations (HMO) that are affected by this rule are not small businesses as defined in RCW 19.85.020(3). The OIC applied a default cost of compliance ($100) when analyzing whether the rules would have a disproportionate impact on small businesses as defined in RCW 19.85.020(3). Below are calculations for minor cost thresholds across all impacted industries based on the best analogous NAICS types. For these reasons, the proposed rules do not impose more than minor costs on businesses as defined by RCW 19.85.020(2).

October 6, 2020

Mike Kreidler

Insurance Commissioner