PREPROPOSAL STATEMENT OF INQUIRY
INSURANCE COMMISSIONER
Subject of Possible Rule Making: Insurance producer's, surplus line broker's, and title insurance agent's separate premium accounts.
Statutes Authorizing the Agency to Adopt Rules on this Subject: RCW 48.02.060 and 48.17.005.
Reasons Why Rules on this Subject may be Needed and What They Might Accomplish: Some licensed producers and surplus line brokers have been treating the separate premium account as their personal asset by pledging the account as security for loans and withdrawing premium tax funds from the account for their personal use rather than maintaining the funds in the account until paid to the state. Although the commissioner believes that the existing rule makes it clear that the separate premium account cannot be used in this manner a recent administrative decision has put this into question. Therefore, this rule making is being undertaken to make it clear and beyond question that the separate premium account may not be used as a personal asset by licensed producers and surplus line brokers and that premium tax funds in the account may not be withdrawn, except for payment to the state or refund of unearned taxes.
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 February 10, 2012, to Jim Tompkins, P.O. Box 40258, Olympia, WA 98504-0258, e-mail jimt@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 Jim Tompkins, P.O. Box 40258, Olympia, WA 98504-0258, e-mail jimt@oic.wa.gov, fax (360) 586-3109.
December 21, 2011
Mike Kreidler
Insurance Commissioner