WSR 02-21-121

EXPEDITED RULES

OFFICE OF THE

INSURANCE COMMISSIONER

[ Filed October 23, 2002, 9:38 a.m. ]

Title of Rule: Date certain payment of automobile premiums.

Purpose: The proposed rule implements chapter 344, Laws of 2002 (SSB 6234).

Other Identifying Information: R 2002-10.

Statutory Authority for Adoption: RCW 48.02.060 and 48.18.140.

Statute Being Implemented: RCW 48.18.140.

Summary: The proposed rule states that insurers must state a consistent and specific day of the month as the due date for payment of premiums for private passenger automobile insurance paid periodically. Once the due date is established by the insurer, it can only be changed by agreement of the policyholder and insurer, or due to late payment. The proposed rule also provides an example of how an insurer can comply and clarifies that no filing is necessary for compliance.

Reasons Supporting Proposal: The proposed rule provides guidance for insurers implementing the law.

Name of Agency Personnel Responsible for Drafting: Jon Hedegard, Tumwater, Washington, (360) 725-7039; Implementation: Terry Nordahl, Tumwater, Washington, (360) 725-7134; and Enforcement: Carol Sureau, Tumwater, Washington, (360) 725-7050.

Name of Proponent: Mike Kreidler, Insurance Commissioner, governmental.

Rule is not necessitated by federal law, federal or state court decision.

Explanation of Rule, its Purpose, and Anticipated Effects: The proposed rule implements chapter 344, Laws of 2002 (SSB 6234). The law requires insurers to provide a "date certain" for periodic payment plans for private passenger automobile insurance. A late charge may not be required if payment is received within five days of the date payment is due.

The proposed rule state that insurers must state a consistent and specific day of the month as the due date for payment of premiums for private passenger automobile insurance paid periodically. Once the due date is established by the insurer, it can only be changed by agreement of the policyholder and insurer, or due to late payment. The proposed rule also provides and example of how an insurer can comply and clarifies that no filing is necessary for compliance.

The proposed rule should allow insurers to implement the law in a clear and consistent manner.

Proposal does not change existing rules. The proposed rule is a new WAC section.

NOTICE

THIS RULE IS BEING PROPOSED UNDER AN EXPEDITED RULE-MAKING PROCESS THAT WILL ELIMINATE THE NEED FOR THE AGENCY TO HOLD PUBLIC HEARINGS, PREPARE A SMALL BUSINESS ECONOMIC IMPACT STATEMENT, OR PROVIDE RESPONSES TO THE CRITERIA FOR A SIGNIFICANT LEGISLATIVE RULE. IF YOU OBJECT TO THE USE OF THE EXPEDITED RULE-MAKING PROCESS, YOU MUST EXPRESS YOUR OBJECTIONS IN WRITING AND THEY MUST BE SENT TO Kacy Scott, Office of the Insurance Commissioner, P.O. Box 40255, Olympia, WA 98504-0255, e-mail Kacys@oic.wa.gov , AND RECEIVED BY December 24, 2002.


October 23, 2002

Mike Kreidler

Insurance Commissioner

OTS-5923.3


NEW SECTION
WAC 284-30-510   Auto premium due date.   For the purposes of RCW 48.18.140, insurers must state a consistent and specific date of the month when a monthly payment for private passenger automobile insurance is due. For example, the payments could be due on the 15th of each month. After a due date is established for a policyholder, the date can only be changed (a) by agreement of the policyholder and insurer or (b) because of late payment. Insurers are not required to make filings with the insurance commissioner to satisfy the requirements of this section.

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Washington State Code Reviser's Office