Subject of Possible Rule Making: Chapter 284-34 WAC, Credit life and credit accident and health insurance.

     Statutes Authorizing the Agency to Adopt Rules on this Subject: RCW 48.02.060, 48.18.100, 48.18.110, 48.18.120, 48.18.290, 48.18.2901, 48.18.480, 48.18.540, 48.20.450, 48.20.460, 48.30.010, 48.30.300, 48.30.320, 48.34.100, 48.44.050, and 48.46.200.

     Reasons Why Rules on this Subject may be Needed and What They Might Accomplish: No section in chapter 284-34 WAC has been amended since 1976; several sections have not been amended since adoption in 1968. The commissioner will review chapter 284-34 WAC to determine if the regulation is effective, clear, and current. The commissioner will consider models drafted by the National Association of Insurance Commissioners (NAIC) which are used in other states to regulate these products. The commissioner will evaluate the loss ratios for credit life and credit accident and health insurance and consider establishing new prima facie rates.

     Other Federal and State Agencies that Regulate this Subject and the Process Coordinating the Rule with These Agencies: No other state or federal agencies regulate the subject.

     Process for Developing New Rule:      Agency study; and to ensure that comments are considered prior to the filing of a CR-102, interested parties should submit written comments by August 16, 2002, to Kacy Scott, P.O. Box 40255, Olympia, WA 98504-0255, e-mail Kacys@oic.wa.gov, fax (360) 586-3109, phone (360) 664-3784.

     Interested parties can participate in the decision to adopt the new rule and formulation of the proposed rule before publication by contacting Kacy Scott, P.O. Box 40255, Olympia, WA 98504-0255, fax (360) 586-3109, e-mail Kacys@oic.wa.gov.

July 3, 2002

Mike Kreidler

Insurance Commissioner

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