BILL REQ. #:  Z-1047.1 

Read first time 01/20/2004.   Referred to Committee on Financial Institutions & Insurance.

     AN ACT Relating to exempting certain insurance policy forms from filing requirements; and amending RCW 48.18.100 and 48.18.103.

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

Sec. 1   RCW 48.18.100 and 1997 c 428 s 3 are each amended to read as follows:
     (1) No insurance policy form ((other than surety bond forms, forms exempt under RCW 48.18.103,)) or application form where written application is required and is to be attached to the policy, or printed life or disability rider or endorsement form, shall be issued, delivered, or used unless it has been filed with and approved by the commissioner. This section shall not apply to:
     (a) Surety bond forms;
     (b) Forms filed under RCW 48.18.103;
     (c) Forms exempted from filing requirements by the commissioner under RCW 48.18.103; or
     (d) Manuscript policies, riders, or endorsements of unique character designed for and used with relation to insurance upon a particular subject.
     (2) Every such filing containing a certification, in a form approved by the commissioner, by either the chief executive officer of the insurer or by an actuary who is a member of the American academy of actuaries, attesting that the filing complies with Title 48 RCW and Title 284 of the Washington Administrative Code, may be used by such insurer immediately after filing with the commissioner. The commissioner may order an insurer to cease using a certified form upon the grounds set forth in RCW 48.18.110. This subsection shall not apply to certain types of policy forms designated by the commissioner by rule.
     (3) Except as provided in RCW 48.18.103, every filing that does not contain a certification pursuant to subsection (2) of this section shall be made not less than thirty days in advance of any such issuance, delivery, or use. At the expiration of such thirty days the form so filed shall be deemed approved unless prior thereto it has been affirmatively approved or disapproved by order of the commissioner. The commissioner may extend by not more than an additional fifteen days the period within which he or she may so affirmatively approve or disapprove any such form, by giving notice of such extension before expiration of the initial thirty-day period. At the expiration of any such period as so extended, and in the absence of such prior affirmative approval or disapproval, any such form shall be deemed approved. The commissioner may withdraw any such approval at any time for cause. By approval of any such form for immediate use, the commissioner may waive any unexpired portion of such initial thirty-day waiting period.
     (4) The commissioner's order disapproving any such form or withdrawing a previous approval shall state the grounds therefor.
     (5) No such form shall knowingly be so issued or delivered as to which the commissioner's approval does not then exist.
     (6) The commissioner may, by ((order)) rule, exempt from the requirements of this section ((for so long as he or she deems proper,)) any class or type of insurance ((document or form or type thereof as specified in such order, to which in his or her opinion this section may not practicably be applied, or the)) policy forms if filing and approval ((of which are, in his or her opinion,)) is not desirable or necessary for the protection of the public.
     (7) Every member or subscriber to a rating organization shall adhere to the form filings made on its behalf by the organization. Deviations from such organization are permitted only when filed with the commissioner in accordance with this chapter.

Sec. 2   RCW 48.18.103 and 2003 c 248 s 4 are each amended to read as follows:
     (1) It is the intent of the legislature to assist the purchasers of commercial property casualty insurance by allowing policies to be issued more expeditiously and provide a more competitive market for forms.
     (2) Commercial property casualty policies may be issued prior to filing the forms.
     (3) All commercial property casualty forms shall be filed with the commissioner within thirty days after an insurer issues any policy using them. This subsection does not apply to:
     (a) types or classes of forms that the commissioner exempts from filing by rule; and
     (b) Manuscript policies, riders, or endorsements of unique character designed for and used with relation to insurance upon a particular subject.
     (((3))) (4) If, within thirty days after a commercial property casualty form has been filed, the commissioner finds that the form does not meet the requirements of this chapter, the commissioner shall disapprove the form and give notice to the insurer or rating organization that made the filing, specifying how the form fails to meet the requirements and stating when, within a reasonable period thereafter, the form shall be deemed no longer effective. The commissioner may extend the time for review another fifteen days by giving notice to the insurer prior to the expiration of the original thirty-day period.
     (((4))) (5) Upon a final determination of a disapproval of a policy form under subsection (((3))) (4) of this section, the insurer shall amend any previously issued disapproved form by endorsement to comply with the commissioner's disapproval.
     (((5))) (6) For purposes of this section, "commercial property casualty" means insurance pertaining to a business, profession, occupation, nonprofit organization, or public entity for the lines of property and casualty insurance defined in RCW 48.11.040, 48.11.050, 48.11.060, or 48.11.070.
     (((6))) (7) Except as provided in subsection (((4))) (5) of this section, the disapproval shall not affect any contract made or issued prior to the expiration of the period set forth in the notice of disapproval.
     (((7))) (8) Every member or subscriber to a rating organization shall adhere to the form filings made on its behalf by the organization. Deviations from the organization are permitted only when filed with the commissioner in accordance with this chapter.
     (9) In the event a hearing is held on the actions of the commissioner under subsection (((3))) (4) of this section, the burden of proof shall be on the commissioner.