Z-0313.2          _______________________________________________

                                  HOUSE BILL 1501

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State of Washington              54th Legislature             1995 Regular Session

By Representatives L. Thomas, Wolfe, Huff, Dellwo and Kessler; by request of Law Revision Commission

Read first time 01/27/95.  Referred to Committee on Financial Institutions & Insurance.

Correcting double amendments related to insurance examination expenses.

     AN ACT Relating to correcting double amendments related to insurance examination expenses; reenacting RCW 48.03.060; and creating a new section.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1.  The only intent of the legislature in this act is to correct double amendments.  It is not the intent of the legislature to change the substance or effect of any statute previously enacted.

     Sec. 2.  RCW 48.03.060 and 1993 c 462 s 47 and 1993 c 281 s 55 are each reenacted to read as follows:

     (1) Examinations within this state of any insurer domiciled or having its home offices in this state, other than a title insurer, made by the commissioner or the commissioner's examiners and employees shall, except as to fees, mileage, and expense incurred as to witnesses, be at the expense of the state.

     (2) Every other examination, whatsoever, or any part of the examination of any person domiciled or having its home offices in this state requiring travel and services outside this state, shall be made by the commissioner or by examiners designated by the commissioner and shall be at the expense of the person examined; but a domestic insurer shall not be liable for the compensation of examiners employed by the commissioner for such services outside this state.

     (3) When making an examination under this chapter, the commissioner may retain attorneys, appraisers, independent actuaries, independent certified public accountants, or other professionals and specialists as examiners, the cost of which shall be borne by the person who is the subject of the examination, except as provided in subsection (1) of this section.

     (4) The person examined and liable therefor shall reimburse the state upon presentation of an itemized statement thereof, for the actual travel expenses of the commissioner's examiners, their reasonable living expense allowance, and their per diem compensation, including salary and the employer's cost of employee benefits, at a reasonable rate approved by the commissioner, incurred on account of the examination.  Per diem salary and expenses for employees examining insurers domiciled outside the state of Washington shall be established by the commissioner on the basis of the National Association of Insurance Commissioner's recommended salary and expense schedule for zone examiners, or the salary schedule established by the Washington personnel resources board and the expense schedule established by the office of financial management, whichever is higher.  Domestic title insurer shall pay the examination expense and costs to the commissioner as itemized and billed by the commissioner.

     The commissioner or the commissioner's examiners shall not receive or accept any additional emolument on account of any examination.

     (5) Nothing contained in this chapter limits the commissioner's authority to terminate or suspend any examination in order to pursue other legal or regulatory action under the insurance laws of this state.  Findings of fact and conclusions made pursuant to any examination are prima facie evidence in any legal or regulatory action.

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