Preproposal statement of inquiry was filed as WSR 12-01-109.
Title of Rule and Other Identifying Information: Certificates of insurance.
Hearing Location(s): OIC Tumwater Office, Training Room 120, 5000 Capitol Boulevard, Tumwater, WA, http://www.insurance.wa.gov/about/directions.shtml, on March 28, 2012, at 10:00 a.m.
Date of Intended Adoption: April 2, 2012.
Submit Written Comments to: Kacy Scott, P.O. Box 40258, Olympia, WA 98504-0258, e-mail Kacys@oic.wa.gov, fax (360) 586-3109, by March 26, 2012.
Assistance for Persons with Disabilities: Contact Lorrie [Lorie] Villaflores, TTY (360) 586-0241 or (360) 725-7087.
Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: This proposed rule governs the issuance of certificates of insurance.
Reasons Supporting Proposal: The purpose of this proposed rule is to prevent the issuance of certificates of insurance that purport to alter the terms of a policy or endorsement of insurance.
Statutory Authority for Adoption: RCW 48.02.060.
Statute Being Implemented: RCW 48.30.090.
Rule is not necessitated by federal law, federal or state court decision.
Name of Proponent: Mike Kreidler, insurance commissioner, governmental.
Name of Agency Personnel Responsible for Drafting: Kacy Scott, P.O. Box 40258, Olympia, WA 98504-0258, (360) 725-7041; Implementation: John Hamje, P.O. Box 40255, Olympia, WA 98504-0255, (360) 725-7262; and Enforcement: Carol Sureau, P.O. Box 40255, Olympia, WA 98504-0255, (360) 725-7050.
No small business economic impact statement has been prepared under chapter 19.85 RCW. There is no cost imposed by this proposed regulatory amendment on any business; the cost of not issuing a certificate of insurance that improperly represents the coverage provided by an insurance policy is zero.
A cost-benefit analysis is not required under RCW 34.05.328. The new rule section (WAC 284-30-355) proposed in this filing for certificates of insurance provides definitions and clarifications to be used in interpreting the provisions of RCW 48.30.090 but does not impose penalties or sanctions. Therefore, a cost-benefit analysis is not required for this rule because it is an "interpretive rule" as defined under RCW 34.05.328 (5)(c)(ii).
February 16, 2012
WAC 284-30-355 Certificates of insurance. (1) The following definitions apply to this section.
(a) "Certificate" or "certificate of insurance" means any document, without regard to title or description, that is issued by an insurer, insurance producer, or surplus line broker as evidence of property or casualty insurance coverage. Certificate or certificate of insurance as used in this section does not include an insurance policy, insurance binder, an automobile insurance identification or information card, or a certificate issued to a person or entity that has purchased coverage under a master policy.
(b) "Certificate holder" means any person, other than a policyholder, that requests, obtains, or possesses a certificate.
(c) "Property" means the insurance coverages described in RCW 48.11.040.
(d) "Casualty" means the insurance coverages described in RCW 48.11.070.
(e) "Insurance binder" means a temporary document that serves as evidence of insurance until the insurance policy is issued.
(f) "Insurance policy" means the executed insurance policy issued to the named insured as part of an insurance transaction as defined in RCW 48.01.060.
(2) This section applies to all:
(a) Certificate holders, policyholders, insurers, insurance producers, surplus line brokers; and
(b) Certificates issued as evidence of insurance coverage for risks located in this state without regard to where a certificate holder, policyholder, insurer, insurance producer, or surplus line broker is located.
(3)(a) If a certificate holder is named within the policy or endorsement and the policy or endorsement requires notice to be provided to the certificate holder, a certificate holder only possesses a right to notice of:
(ii) Nonrenewal; or
(iii) A material change, or any similar notice concerning the insurance policy.
(b) The insurance policy governs the terms and conditions of the notice, including the timing of the notice.
(4) No person may knowingly demand or require an insurer, insurance producer, surplus line broker, or policyholder to issue a certificate that contains any false or misleading information or that purports to alter, amend, or extend the coverage provided by the insurance policy.
(5) No person may knowingly issue or circulate a certificate that contains any false or misleading information or that purports to alter, amend, or extend the coverage provided by the insurance policy.
(6) No person may issue, demand, or require, either in addition to or in lieu of a certificate, a document that contains any false or misleading information or that purports to alter, amend, or extend the coverage provided by the insurance policy.
(7)(a) Nothing in this section affects or excuses a person's obligation to obtain an insurance policy for the benefit of a third party that conforms to specific contractual or legal requirements.
(b) Notwithstanding any requirement, term, or condition of any contract, the insurance coverage provided by the referenced policy of insurance is subject to all the terms, exclusions, and conditions of the policy. A certificate of insurance does not confer new or additional rights beyond what the referenced policy of insurance provides.