Statutes Authorizing the Agency to Adopt Rules on this Subject: RCW 48.02.060 and 48.70.040.

Reasons Why Rules on this Subject may be Needed and What They Might Accomplish: The provisions of chapter 284-60 WAC were identified in the Insurance Commissioner's regulatory improvement review as a regulatory scheme that may need to be revised and updated. New rules are needed to provide consistent and up-to-date guidelines for the filing of rate schedules, and specify the standard to be used to determine when benefits are unreasonable in relation to the proposed premium. Corresponding changes will be made to WAC 284-54-600 through 284-54-680 to maintain a consistent standard for long-term care policies.

Other Federal and State Agencies that Regulate this Subject and the Process Coordinating the Rule with These Agencies: None.

Process for Developing New Rule: Agency study; and written comments may be submitted by July 31, 1998, to Kacy Brandeberry, P.O. Box 40256, Olympia, WA 98504-0256, e-mail KacyB@oic.wa.gov, FAX (360) 407-0186.

Interested parties can participate in the decision to adopt the new rule and formulation of the proposed rule before publication by contacting Kacy Brandeberry, P.O. Box 40256, Olympia, WA 98504-0256, phone (360) 407-0729, FAX (360) 407-0186, Internet KacyB@oic.wa.gov. We intend to publish an initial draft of the proposed rules on the internet at www.wa.gov/ins by the end of June.

June 15, 1998

Greg J. Scully

Chief Deputy Commissioner