WSR 08-07-096

PREPROPOSAL STATEMENT OF INQUIRY

OFFICE OF

INSURANCE COMMISSIONER

[ Insurance Commissioner Matter No. R 2008-06 -- Filed March 19, 2008, 10:43 a.m. ]

     Subject of Possible Rule Making: Rules will be adopted to implement changes to the way insurance agents, brokers, solicitors and general agents are licensed by the state. After the rules are adopted, Washington's laws and rules will be more consistent with national standards.

     During the 2007 and 2008 legislative sessions, the legislature enacted many provisions of the National Association of Insurance Commissioner's (NAIC's) Producer Licensing Model Act (chapter 48.17 RCW). Rules will be adopted to effectuate the new laws, including: Reciprocity requirements (based on requirements of the Gramm-Leach-Bliley Act); the state's appointment and affiliation processes; agent compensation disclosure requirements; insurance producer lines of authority; fingerprint requirements for background checks of applicants; bonding requirements; grounds for disciplinary actions against insurance producers; licensing of business entities; and prelicensing and continuing education requirements.

     Statutes Authorizing the Agency to Adopt Rules on this Subject: RCW 48.02.060, 48.17.005.

     Reasons Why Rules on this Subject may be Needed and What They Might Accomplish: The goal of this rule making is to implement recent statutory changes to the way insurance agents, brokers, solicitors, and general agents are licensed in this state. After the rules are adopted, Washington's laws and rules will be more consistent with national standards.

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

     Process for Developing New Rule: Submit written comments by April 30, 2008, to Kacy Scott, P.O. Box 40258, Olympia, WA 98504-0258, e-mail Kacys@oic.wa.gov, fax (360) 586-3109.

     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 40258, Olympia, WA 98504-0258, e-mail Kacys@oic.wa.gov, fax (360) 586-3109.

March 19, 2008

Mike Kreidler

Insurance Commissioner

© Washington State Code Reviser's Office