Effective Date of Rule: Thirty-one days after filing.

     Purpose: This new rule establishes electronic licensing as the exclusive process for licensing transactions relating to certain licenses issued by the office of the insurance commissioner.

     Citation of Existing Rules Affected by this Order: Repealing WAC 284-17-650; and amending WAC 284-17-001, 284-17-005, 284-17-120, 284-17-122, 284-17-262, 284-17-278, 284-17-429, 284-17-435, 284-17-443, 284-17-445, 284-17-449, 284-17-473, 284-17-483, 284-17-490 and 284-17-530; and new sections WAC 284-17-055 and 284-17-065.

     Statutory Authority for Adoption: RCW 48.15.015 and 48.17.005.

      Adopted under notice filed as WSR 10-24-095 on December 1, 2010.

     Changes Other than Editing from Proposed to Adopted Version:

     •     WAC 284-17-005 (1)(b) language added: This will be the e-mail address listed in the mailing address section of the commissioner's licensing database. The commissioner's licensing database contains three areas for e-mail addresses.

     •     WAC 284-17-120(2) the word application was deleted because it is no longer required at this point.

     •     WAC 284-17-122 insurance producer was added to the heading for clarification.

     •     WAC 284-17-278(1) and 284-17-530 (4)(a) sent via e-mail or electronic telefacsimile was replaced with electronically or via electronic means.

     •     WAC 284-17-435 within fifteen days was removed because this is no longer a practice; the insurer or business entity receives an instant response.

     A final cost-benefit analysis is available by contacting Kacy Scott, P.O. Box 40258, Olympia, WA 98504-0258, phone (360) 725-7041, fax (360) 586-3535, e-mail kacys@oic.wa.gov.

     Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 0, Repealed 0.

     Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.

     Number of Sections Adopted on the Agency's Own Initiative: New 0, Amended 17, Repealed 1.

     Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 0, Repealed 0.

     Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 0, Repealed 0;      Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 17, Repealed 1.

     Date Adopted: January 28, 2011.

Mike Kreidler

Insurance Commissioner

OTS-3782.5

AMENDATORY SECTION(Amending Matter No. R 2008-06, filed 1/6/09, effective 7/1/09)

WAC 284-17-001   Definitions.   For purposes of this chapter, unless the context requires otherwise:

     (1) "Affiliation" is a type of appointment whereby a business entity authorizes an individual insurance producer or surplus line broker to represent it when conducting insurance business.

     (2) "Business entity" has the meaning set forth in RCW 48.17.010(2) and includes a sole proprietorship having associated licensees authorized to act on its behalf in the business or trade name of the sole proprietorship.

     (3) "Days" means calendar days including Saturday and Sunday and holidays, unless otherwise specified.

     (4) "Electronic submission" or "submitted electronically" means submission of a licensing process by an applicant, licensee, insurer, or education provider by means of the commissioner's web site or a third-party licensing provider.

     (5) "File" means a record in any retrievable format, and unless otherwise specified, includes paper and electronic formats.

     (((5))) (6) "Home state" has the meaning set forth in RCW 48.17.010(3).

     (((6))) (7) "Insurer" has the meaning set forth in RCW 48.17.010(6).

     (((7))) (8) "Licensee" means a person licensed by the commissioner under Title 48 RCW to sell, solicit or negotiate insurance and includes adjusters and surplus line brokers.

     (((8))) (9) "Line of authority" means a license issued in one or more lines of insurance listed in RCW 48.17.170.

     (((9))) (10) "NAIC" means the National Association of Insurance Commissioners.

     (((10))) (11) "Third-party licensing provider" is designated on the commissioner's web site at: www.insurance.wa.gov.

     (12) "Reinstatement" means the reissuance by the commissioner of a license that was not renewed more than sixty days but fewer than twelve months after its expiration date.

     (((11))) (13) "Resident" means a person who has elected to make Washington his or her home state, or, in the case of a business entity, has a place of business in this state.

     (((12))) (14) "Sending written notice" or "sending a copy of the written notice" means transmitting the required information in writing and, where required, on forms designated by the commissioner for that purpose, via first class mail, commercial parcel delivery company, telefacsimile, or electronic transmission, unless a specific method of transmission is specified.

     (((13))) (15) "Surety" means that limited line of authority of insurance or bond that covers obligations to pay the debts of, or answer for the default of another, including faithlessness in a position of public or private trust.

     (((14))) (16) "Travel insurance" means that limited line of authority of insurance coverage for trip cancellation, trip interruption, baggage, life, sickness and accident, disability, and personal effects when limited to a specific trip and sold in connection with transportation provided by a common carrier.

     (((15))) (17) "Written" or "in writing" means any retrievable method of recording an agreement or document, and, unless otherwise specified, includes paper and electronic formats.

[Statutory Authority: RCW 48.02.060, 48.17.005. 09-02-073 (Matter No. R 2008-06), § 284-17-001, filed 1/6/09, effective 7/1/09.]

     (a) For disciplinary orders, the last U.S. mailing address provided by the person or business entity to the commissioner;

     (b) For all other matters, the last e-mail address provided by the person or business entity to the commissioner. This will be the e-mail address listed in the mailing address section of the commissioner's licensing date base.

     (2) Licensees must advise the commissioner of any change of address within thirty days after a change of address. This includes any change in the person's residence, mailing, business or e-mail address. Failure to advise the commissioner of a change of address may subject a licensee to disciplinary action under RCW 48.17.530 and 48.17.560.

[Statutory Authority: RCW 48.02.060, 48.17.005. 09-02-073 (Matter No. R 2008-06), § 284-17-005, filed 1/6/09, effective 7/1/09.]

     (2) Beginning June 1, 2011, all license renewals, both individual and business entity, must be submitted electronically.

     (3) Beginning July 1, 2011, all applications for licenses, including affiliations, must be submitted electronically.

     (4) Beginning July 1, 2011, all processes determined by the commissioner to be exclusive on-line licensing processes must be completed electronically through the commissioner's web site or through a third-party licensing provider. A list of exclusive on-line licensing processes is available on the commissioner's web site at: www.insurance.wa.gov.

     (5) The commissioner will no longer print or mail any document generated as part of a licensing process which the commissioner has determined to be an exclusive on-line licensing process.

[]

     (2) Each applicant, individual or business entity licensee, insurance education provider, and insurer must notify the commissioner of any change to their e-mail address within thirty days after the change.

     (3) This section applies to an insurer when appointing, terminating, or renewing the appointment of a licensee.

[]

     (1) Examinations.

     (a) Any resident person applying to take an examination for a license listed in this section must submit a registration form and the applicable examination fee to an independent testing service designated by the commissioner.

     (i) The examination fee is not refundable.

     (ii) Registration forms and information about examinations may be obtained from the commissioner or from the independent testing service under contract with the commissioner to conduct licensing examinations in this state.

     (iii) An examination registration form can be downloaded through the commissioner's web site and current information about registered testing services, fees, dates, and other information is available through the commissioner's web site at www.insurance.wa.gov.

     (b) The examinations required for each line of authority are identified ((in the following table)) on the commissioner's web site at: www.insurance.wa.gov. The independent testing service will conduct these examinations at least once each month at predetermined locations.

((LINE OF AUTHORITY OR TYPE OF LICENSE	REQUIRED EXAMINATION(S)
Life	Life
Disability	Disability
Life and disability	Life and disability
Property	Property
Casualty	Casualty
Property and casualty	Property and casualty
Personal lines	Personal lines
Adjusters (independent or public)	Adjuster
Limited line credit insurance	Credit
Surety	Surety
Surplus line	Surplus line
Variable life and variable annuity products	Life))

     (c) If an applicant fails to take a scheduled examination, and requests to take the exam at a later date, a new examination date must be scheduled and a new examination fee must be paid, unless repayment of the fee is waived by the commissioner because the commissioner agrees that a serious emergency prevented the applicant's attendance at the scheduled date.

     (d) Examinations will be graded by the independent testing service and each applicant will be provided a score report.

     (2) Application for a license. The application for a license must be accompanied by all of the following: The score report from the testing service, a completed insurance license application, one fingerprint card, and the applicable license((, appointment)) and filing fees. Specific instructions for applying for a license may be found on the commissioner's web site at: www.insurance.wa.gov.

     (3) Approval by the commissioner. The commissioner will review the application and if all requirements have been met will issue the license(s) ((applied for)).

[Statutory Authority: RCW 48.02.060, 48.17.005. 09-02-073 (Matter No. R 2008-06), § 284-17-120, filed 1/6/09, effective 7/1/09. Statutory Authority: RCW 48.02.060. 08-17-063 (Matter No. R 2008-03), § 284-17-120, filed 8/18/08, effective 9/18/08. Statutory Authority: RCW 48.01.030, 48.02.060(3), 48.14.010, 48.17.150(2), 48.17.160 (1)(5) and 48.17.500(3). 94-14-033 (Order R 94-14), § 284-17-120, filed 6/28/94, effective 7/29/94. Statutory Authority: RCW 48.02.060. 88-24-054 (Order R 88-13), § 284-17-120, filed 12/7/88; 84-19-022 (Order R 84-3), § 284-17-120, filed 9/12/84; 82-10-016 (Order R 82-2), § 284-17-120, filed 4/28/82.]

     (((a))) (1) The applicant has and maintains in good standing a similar license in his or her home state for the applicable line(s) of authority defined in RCW 48.17.170; and

     (((b))) (2) The home state reciprocates and licenses Washington's insurance producers as nonresident insurance producers.

     (((2) Nonresident applicants whose home state requires submission of a fingerprint card for conducting background checks in connection with resident insurance producer (or equivalent) license, need not provide a fingerprint card to the commissioner.

     (a) A list of states that the commissioner believes require a fingerprint card will be available on the commissioner's web site at www.insurance.wa.gov.

     (b) If the home state of an applicant does not appear on that list and the applicant believes that list should include his or her home state, the applicant may provide information concerning the requirements of his or her home state for the commissioner's review. The commissioner will consider that information and determine whether the applicant's home state should be added to that list.))

[Statutory Authority: RCW 48.02.060, 48.17.005. 09-02-073 (Matter No. R 2008-06), § 284-17-122, filed 1/6/09, effective 7/1/09. Statutory Authority: RCW 48.02.060. 90-04-060 (Order R 90-1), § 284-17-122, filed 2/2/90, effective 3/5/90.]

     (1) Each insurer that has long-term care policies approved for sale in this state must certify annually that all of its insurance producers engaged in the sale, solicitation or negotiation of long-term care insurance coverage in this state have:

     (a) Completed the eight-hour, one-time long-term care education and training course required by RCW 48.83.130 (2)(a)(i) prior to selling, soliciting, or negotiating the company's long-term care insurance coverage in this state; or

     (b) Completed the required long-term care continuing education requirement imposed by RCW 48.83.130 (2)(b).

     (2) The certification must be provided to the commissioner by the insurer annually on or before March 31st. The certification must be sent via e-mail to the licensing and education program manager in the commissioner's office. A form for this purpose is available on the commissioner's web site at: www.insurance.wa.gov.

[Statutory Authority: RCW 48.02.060, 48.83.070, 48.83.110, 48.83.120, 48.83.130(1), and 48.83.140 (4)(a). 08-24-019 (Matter No. R 2008-09), § 284-17-262, filed 11/24/08, effective 12/25/08. Statutory Authority: RCW 48.02.060, 48.17.150, 48.17.563, 48.85.040. 05-07-091 (Matter No. R 2004-04), § 284-17-262, filed 3/17/05, effective 4/17/05.]

     (a) Lecture (classroom) courses:

     (i) Completed course approval request form;

     (ii) Content outline, including a list of topics to be covered and an estimate of the time to be spent on each topic;

     (iii) Biography or resume of instructor(s); and

     (iv) Date(s) that course will be offered.

     (b) Self-study courses:

     (i) Completed course approval request form;

     (ii) Study material; and

     (iii) Sample exams.

     (2) Continuing insurance education courses eligible for approval to satisfy the continuing insurance education requirement include:

     (a) Courses demonstrating a direct and specific application to insurance; and

     (b) Courses presenting information relevant to insurance-related statutory and regulatory requirements.

     (3) General education, sales, motivation, management, leadership, and automation courses are not eligible unless the insurance education provider demonstrates to the satisfaction of the commissioner that a substantial portion of the course relates to the business of insurance and is not solely focused on a particular insurer's products.

     (4) Prelicensing insurance education courses are not eligible for approval for continuing insurance education credit.

[Statutory Authority: RCW 48.02.060, 48.17.005. 09-02-073 (Matter No. R 2008-06), § 284-17-278, filed 1/6/09, effective 7/1/09. Statutory Authority: RCW 48.02.060, 48.17.150, 48.17.563, 48.85.040. 05-07-091 (Matter No. R 2004-04), § 284-17-278, filed 3/17/05, effective 4/17/05.]

     (a))) by submitting electronically the notice of appointment or affiliation ((electronically)) through a third-party on-line licensing provider or the commissioner's on-line services, available at www.insurance.wa.gov((; or

     (b) By submitting the notice of appointment or affiliation to the commissioner using the form provided by the commissioner for that purpose available on the commissioner's web site at www.insurance.wa.gov)).

     (2) Insurance producers upon initial appointment by an insurer or upon initial affiliation by a business entity must be authorized to transact at least one line of authority within the authority of the insurer or the business entity.

     (3) Initial appointments and affiliations are continuous. Each appointment or affiliation is effective until the first of the following occurs:

     (a) The insurance producer's license is revoked, terminated, or nonrenewed;

     (b) The appointment or affiliation renewal fee is not paid; or ((written))

     (c) Notice of termination is ((received by)) electronically submitted to the commissioner((, whichever occurs first)).

     (4) The insurer is obligated to ensure that its appointed insurance producers are licensed for the proper line of authority for which the insurance producer submits an application for insurance.

     (5) Individual surplus line brokers may be affiliated with a business entity possessing a surplus line broker license in the manner set forth in subsection (1) of this section.

     (6) Business entities are obligated to ensure that all affiliated insurance producers for the proper line of authority for which the insurance producer submits an application for insurance and that surplus line brokers are properly licensed.

     (7) The applicable initial and renewal appointment and affiliation fees, as set forth in RCW 48.14.010, must be paid at the time of appointment, affiliation, or their renewals.

[Statutory Authority: RCW 48.02.060, 48.17.005. 09-02-073 (Matter No. R 2008-06), § 284-17-429, filed 1/6/09, effective 7/1/09. Statutory Authority: RCW 48.02.060 (3)(a) and 48.17.150 (1)(g)(ii). 06-12-025 (Matter No. R 2005-06), § 284-17-429, filed 5/30/06, effective 6/30/06.]

[Statutory Authority: RCW 48.02.060, 48.17.005. 09-02-073 (Matter No. R 2008-06), § 284-17-435, filed 1/6/09, effective 7/1/09. Statutory Authority: RCW 48.02.060 (3)(a) and 48.17.150 (1)(g)(ii). 06-12-025 (Matter No. R 2005-06), § 284-17-435, filed 5/30/06, effective 6/30/06.]

     (a))) At least sixty days prior to the renewal date, an appointment or affiliation renewal ((fee)) notice will be sent to the insurer or business entity ((electronically)) via e-mail.

     (((b))) (2) The insurer or business entity may review the ((on-line)) list ((of appointees or affiliates)) on-line, make any changes, and must remit the correct fees via electronic submission to the commissioner.

     (((c))) (3) The on-line appointment or affiliation renewal and payment of fees must be completed no later than the renewal date.

[Statutory Authority: RCW 48.02.060, 48.17.005. 09-02-073 (Matter No. R 2008-06), § 284-17-443, filed 1/6/09, effective 7/1/09. Statutory Authority: RCW 48.02.060. 08-17-063 (Matter No. R 2008-03), § 284-17-443, filed 8/18/08, effective 9/18/08. Statutory Authority: RCW 48.02.060 (3)(a) and 48.17.150 (1)(g)(ii). 06-12-025 (Matter No. R 2005-06), § 284-17-443, filed 5/30/06, effective 6/30/06.]

     (a) Through the commissioner's web site ((if the insurer or business entity is registered for on-line services by sending written notice of termination to the insurance producer or surplus line broker with a copy to the commissioner,)); or

     (b) Through a third-party on-line licensing provider. ((A form for that purpose is available on the commissioner's web site at www.insurance.wa.gov.))

     (2) ((The effective date of the termination is the date of receipt by the commissioner.)) A business entity may terminate an affiliation of an insurance producer or surplus line broker through the commissioner's web site.

     (3) The effective date of the termination is the date of receipt by the commissioner.

[Statutory Authority: RCW 48.02.060, 48.17.005. 09-02-073 (Matter No. R 2008-06), § 284-17-445, filed 1/6/09, effective 7/1/09. Statutory Authority: RCW 48.02.060. 08-17-063 (Matter No. R 2008-03), § 284-17-445, filed 8/18/08, effective 9/18/08. Statutory Authority: RCW 48.02.060 (3)(a) and 48.17.150 (1)(g)(ii). 06-12-025 (Matter No. R 2005-06), § 284-17-445, filed 5/30/06, effective 6/30/06.]

     (1) A form for this purpose is available on the commissioner's web site at: www.insurance.wa.gov.

     (2) Upon the request of the commissioner, additional information, documents, records or other data pertaining to the for-cause termination or activity of a licensee's affiliation must be provided promptly to the commissioner.

     (3) The reasons an insurance producer may be terminated for cause are set forth in RCW 48.17.530 and 48.17.595. The reasons a surplus line broker may be terminated for cause are set forth in RCW 48.15.140.

[Statutory Authority: RCW 48.02.060, 48.17.005. 09-02-073 (Matter No. R 2008-06), § 284-17-449, filed 1/6/09, effective 7/1/09. Statutory Authority: RCW 48.02.060. 08-17-063 (Matter No. R 2008-03), § 284-17-449, filed 8/18/08, effective 9/18/08. Statutory Authority: RCW 48.02.060 (3)(a) and 48.17.150 (1)(g)(ii). 06-12-025 (Matter No. R 2005-06), § 284-17-449, filed 5/30/06, effective 6/30/06.]

[Statutory Authority: RCW 48.02.060, 48.17.005. 09-02-073 (Matter No. R 2008-06), § 284-17-473, filed 1/6/09, effective 7/1/09. Statutory Authority: RCW 48.02.060. 08-17-063 (Matter No. R 2008-03), § 284-17-473, filed 8/18/08, effective 9/18/08. Statutory Authority: RCW 48.02.060 (3)(a) and 48.17.150 (1)(g)(ii). 06-12-025 (Matter No. R 2005-06), § 284-17-473, filed 5/30/06, effective 6/30/06.]

     (2) The notice must state that the insurance producer or surplus line broker will no longer transact insurance on behalf of the business entity, as the case may be.

     (3) The effective date of the termination is the date of receipt by the commissioner.

[Statutory Authority: RCW 48.02.060, 48.17.005. 09-02-073 (Matter No. R 2008-06), § 284-17-483, filed 1/6/09, effective 7/1/09. Statutory Authority: RCW 48.02.060. 08-17-063 (Matter No. R 2008-03), § 284-17-483, filed 8/18/08, effective 9/18/08. Statutory Authority: RCW 48.02.060 (3)(a) and 48.17.150 (1)(g)(ii). 06-12-025 (Matter No. R 2005-06), § 284-17-483, filed 5/30/06, effective 6/30/06.]

     (1) As a precondition to late renewal or reinstatement of a license, payment of the following late fees, as set forth in RCW 48.17.170 (6) and (7), is required:

Days Late	Surcharge
First 30 days late	50% of the license renewal fee
31-60 days late	100% of the license renewal fee
61 days to twelve months late	200% of the license renewal fee

     (2) If no request for late renewal is received by the commissioner within sixty days after expiration of a license, the license and all associated appointments and affiliations will be terminated. All authority conferred by the license ends on its expiration date.

     (3) If a license is expired for more than sixty days but less than twelve months, a licensee may request its reinstatement. A license is not eligible for reinstatement if the reinstatement application is received by the commissioner more than twelve months after its expiration date.

     (4)(a) A licensee may request reinstatement of a license without retesting if no more than twelve months has passed since the expiration or cancellation date of the license, whichever is earlier. All of the following must accompany the request for reinstatement:

     (i) A completed application for reinstatement;

     (ii) Certificates for twenty-four credit hours of continuing insurance education, including three hours of ethics education, completed during the twenty-four months prior to the date of application for reinstatement, as set forth in WAC 284-17-224; and

     (iii) The fee and surcharge applicable to the reinstatement, as set forth in subsection (1) of this section.

     (b) After twelve months, the licensee must retake and pass all applicable prelicensing insurance education courses and the applicable license examinations. A new license application, including fingerprint card, and all required fees are also required. A new fingerprint card is not required if the licensee has other active licenses or held another license during the past year.

     (5)(a) If a licensee cancels a license prior to its renewal date and later asks that it be reissued and the request to reissue is submitted prior to the license renewal date, the licensee must submit an application and must pay the applicable fee prior to the license renewal date.

     (b) If a licensee cancels a license prior to its renewal date and a request to reissue the license is made after the license renewal date but before twelve months after the date the license was canceled, the request to reissue will be treated as though it were a late renewal or reinstatement and the late fee will be calculated from the cancellation date.

     (c) If the request to reissue is made more than twelve months after the license renewal date, it cannot be reissued.

     (d) The renewal date of any reissued license will be on the same renewal cycle as the original license.

     (6) Information regarding renewal or reinstatement of a license and the ((necessary forms are)) electronic submission process is available at the commissioner's web site at: www.insurance.wa.gov.

     (7) License renewals and reinstatements may be submitted by licensees that are registered with the commissioner's on-line services through the web site at: www.insurance.wa.gov.

[Statutory Authority: RCW 48.02.060, 48.17.005. 09-02-073 (Matter No. R 2008-06), § 284-17-490, filed 1/6/09, effective 7/1/09.]

     (1) Approval to act as prelicensing education providers. Persons seeking to be approved as prelicensing insurance education providers must obtain the written approval of the commissioner prior to offering any prelicensing insurance education course for credit.

     (a) Requests for approval must include all information, disclosures, statements and certifications required by the commissioner. An approved form for this purpose is available on the commissioner's web site at: www.insurance.wa.gov.

     (b) The provider must comply with the standards for licensing and regulating this state's private vocational schools, but need not be actually licensed as a private vocational school.

     (c) The commissioner may grant approval of the prelicensing insurance education provider upon a showing that the provider has satisfied all requirements of this chapter.

     (d) Approval of a prelicensing education provider is valid for a period of twelve months.

     (2) Approval of the prelicensing insurance education provider's program director.

     (a) The prelicensing insurance education provider must identify its proposed program director, must complete a background investigation of that person, must certify that the qualifications of the proposed program director meet or exceed the requirements of WAC 284-17-535 and must verify that the proposed program director is trustworthy.

     (b) The commissioner's approval of the program director is valid for twelve months.

     (c) The provider must certify on its annual renewal notice that the approved individual continues to act as its program director.

     (d) The provider must apply for an amendment to its approval at least ten days before changing its program director, unless the change is required due to an emergency.

     (e) The commissioner retains discretion to determine whether the qualifications of each proposed program director meet the minimum scholastic and professional criteria required for approval.

     (3) Approval of the provider's instructors.

     (a) The provider must identify each proposed instructor, conduct a background investigation of each individual, certify that each proposed instructor's qualifications meet or exceed the requirements in WAC 284-17-537, and verify that each proposed instructor is trustworthy.

     (b) Approval of each instructor is valid until the next renewal date of the prelicensing education provider.

     (c) The provider must state on its annual renewal notice whether each individual continues to act as its instructor.

     (d) The provider must apply to the commissioner for amended approval at least ten days before adding a new instructor, except if an instructor vacancy is created by an emergency.

     (e) The commissioner retains discretion to determine whether the qualifications of each proposed instructor meet the minimum scholastic and professional criteria required for approval.

     (4) Approval of courses.

     (a) Course materials must be submitted electronically or via electronic media to the commissioner prior to use.

     (b) The provider must provide all of the following information to the commissioner with its request for course approval:

     (i) The total tuition to be charged to students; and

     (ii) The provider's referral and rebate policy.

     (c) No course may be advertised until the provider has been finally approved by the commissioner in writing.

     (5) Duties of approved providers. Throughout any period of approval to act as a prelicensing insurance education provider, the provider must:

     (a) Retain all student enrollment and performance data, personnel records, and copies of course materials and student evaluations for each course and make them available to the commissioner upon request;

     (b) Continually monitor its program director's supervision of instruction;

     (c) Immediately remove the program director if that individual violates any law or rule related to insurance;

     (d) Apply for amended approval to act as a provider at least ten days prior to a change of ownership, the executive officer, or of the program director. Amended approval, if granted, is valid only until the original provider approval expiration date;

     (e) Report to the commissioner by the fifteenth day of each month the name of each student receiving a certificate of completion for each approved course offered during the previous calendar month;

     (f) Permit the commissioner or the commissioner's designee to conduct unannounced audits of any approved course in order to monitor the provider's continuing compliance with WAC 284-17-530 through 284-17-580;

     (g) Provide a true and complete copy of the provider's instructional plan for each approved course, upon request;

     (h) Notify the commissioner if it intends to terminate its prelicensing education program at least thirty days prior to the date of termination;

     (i) Notify the commissioner at least ten days in advance of its intent to change the tuition amount, the referral or rebate policy, or initiate a referral or rebate policy with a person other than a full-time employee of the provider.

     (6) Provider advertising and name. A provider must not:

     (a) Use license examination performance data for advertising or promotional purposes; or

     (b) Use any name that implies or suggests that the provider is affiliated with either the commissioner or with the independent testing service that conducts the examination.

     (7) Renewal requirements for all providers.

     (a) At the time of renewal all providers must provide all of the following information:

     (i) List of prelicensing education courses currently offered and the tuition for each and verify that the course curricula meet the requirements of WAC 284-17-550;

     (ii) A description of the instruction method used for each course, lecture, proctored self-study, or home self-study;

     (iii) List of all active instructors and verify that each has complied with the requirements of WAC 284-17-537;

     (iv) Verify that the program director has complied with WAC 284-17-535; and

     (v) Confirm the address and contact information for each business location.

     (b) The commissioner may approve renewal of the prelicensing insurance education provider upon a showing that the provider has satisfied all requirements of this chapter required for renewal, including the annual renewal requirements provided in WAC 284-17-547.

     (c) Detailed information related to course standards is available on the commissioner's web site at: www.insurance.wa.gov.

     (8) Required disclosures to students.

     (a) The prelicensing insurance education provider must disclose to prospective students the total amount of tuition that will be charged for each proposed course.

     (b) The provider must post in a conspicuous location at the prelicensing insurance education site a note containing all of the following:

     (i) Procedures for applying for an insurance license, including all preexamination qualifications;

     (ii) A notice of prohibited examination behavior; and

     (iii) The tuition for each approved course.

     (c) If the provider has a referral or rebate program, it must be fully disclosed to each student in writing.

     (i) The disclosure must state the amount of the course tuition that will be paid to persons other than the provider's full-time employees as compensation for referring students to the provider; and

     (ii) The full text of the policy must be posted, including the specific amount of tuition payable to persons other than full-time employees of the provider as compensation for referring students to the provider, and the names of any individuals to whom referral fees or rebates may be paid.

     (9) Penalties.

     (a) The commissioner may refuse to renew or immediately terminate a provider for the following reasons:

     (i) Failure to notify the commissioner that a course will be terminated at least thirty days prior to the date of termination;

     (ii) Failure to respond to an inquiry of the commissioner within the time limit specified in the inquiry.

     (b) A provider is responsible for the conduct of its employees and may be subject to disciplinary action for failure of any employee to comply with the requirements of this chapter.

[Statutory Authority: RCW 48.02.060, 48.17.005. 09-02-073 (Matter No. R 2008-06), § 284-17-530, filed 1/6/09, effective 7/1/09. Statutory Authority: RCW 48.02.060 and 48.17.070. 89-01-055 (Order R 88-14), § 284-17-530, filed 12/16/88.]

     The following section of the Washington Administrative Code is repealed:

WAC 284-17-650

Transition rules -- July 1, 2009.

© Washington State Code Reviser's Office