Date of Adoption: December 28, 2001.
Purpose: Continuation of a rate filing exemption for certain property casualty products.
Citation of Existing Rules Affected by this Order: Amending WAC 284-24-120.
Statutory Authority for Adoption: RCW 48.02.060, 48.18.100, 48.19.080.
Adopted under notice filed as WSR 01-23-075 on November 20, 2001.
Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 0, Repealed 0.
Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.
Number of Sections Adopted on the Agency's Own Initiative: New 0, Amended 1, Repealed 0.
Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 1, Repealed 0.
Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 0, Repealed 0; Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 0, Repealed 0.
Other Findings Required by Other Provisions of Law as Precondition to Adoption or Effectiveness of Rule: The amended
rule contains a "sunset clause." A rate filing exemption was to
expire December 31, 2001. The accelerated effective date is
necessary to continue the existing rule. This continuation will
avoid the considerable confusion resulting from the expiration of
an existing rate filing exemption, the default to a different
system, and then the renewal of the expired exemption within
weeks. The rule will avoid significant and unnecessary expense
for industry by allowing the continuation of existing practices.
The accelerated effective date will ensure that these commercial
products will continue to be available without interruption to
the purchasers in Washington.
Effective Date of Rule: December 31, 2001.
December 28, 2001
AMENDATORY SECTION(Amending Matter No. R 99-5, filed 11/15/99, effective 12/16/99)
WAC 284-24-120 Suspension of rate filing requirements -- Large commercial accounts. (1) Under RCW 48.19.080, the rate filing requirements in chapter 48.19 RCW are suspended with respect to large commercial property casualty accounts.
(2) For purposes of this section, "large commercial property casualty account" means insurance coverage that:
(a) Pertains to a business, nonprofit organization, or public entity;
(b) Involves the lines of property and casualty insurance defined in RCW 48.11.040, 48.11.050, 48.11.060, 48.11.070, and/or 48.11.080; and
(c) Has an estimated annual collected premium of $25,000 or more, excluding workers compensation insurance issued by the department of labor and industries and types of insurance listed in subsection (6) of this section.
(3) Before an insurer issues coverage in reliance on this section, the insurer or its agent shall notify the insured in writing that the rates have not been and will not be filed for the commissioner's approval.
(4) Property rates used on large commercial property casualty accounts will not be audited by the Washington Insurance Examining Bureau under WAC 284-20-006.
(5) The commissioner retains the right and ability to examine the rates used on large commercial property casualty accounts to ascertain whether they meet the requirements of RCW 48.19.020 and other statutes. The insurer shall maintain records supporting the rating and premium determination of each policy issued in reliance on this section. These records shall be retained by the insurer for a minimum of three years and made available at all reasonable times for the commissioner's examination.
(6) Subsection (1) of this section does not apply to:
(a) Professional liability insurance, including medical malpractice insurance;
(b) Directors' and officers' liability insurance purchased by individuals;
(c) Motor vehicle service contract reimbursement insurance, as defined in RCW 48.96.010(4); and
(d) Master policies under which certificates of coverage are issued to individual consumers, households, businesses, or other organizations.
(7) If this subsection is not amended, the provisions of
this section shall expire on December 31, ((
[Statutory Authority: RCW 48.02.060 and 48.19.080. 99-23-068 (Matter No. R 99-5), § 284-24-120, filed 11/15/99, effective 12/16/99.]