Effective Date of Rule: Thirty-one days after filing.
Purpose: This rule amends WAC 284-29A-030 to postpone by one year the date upon which title insurers must file their rates with the commissioner under RCW 48.29.147 and when rate filings must be made under RCW 48.29.147 rather than RCW 48.29.140. The rule also postpones the filing of the title agent report under WAC 284-29A-110 for the calendar year 2011 to April 1, 2013, rather than April 1, 2012.
Citation of Existing Rules Affected by this Order: Amending WAC 284-29A-030 and 284-29A-110.
Statutory Authority for Adoption: RCW 48.02.060 and 48.29.140.
Other Authority: RCW 48.29.143 and 48.29.147.
Adopted under notice filed as WSR 12-12-066 on June 5, 2012.
A final cost-benefit analysis is available by contacting Jim Tompkins, P.O. Box 40258, Olympia, WA 98504-0258, phone (360) 725-7036, fax (360) 586-3109, e-mail email@example.com.
Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 0, Repealed 0.
Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.
Number of Sections Adopted on the Agency's Own Initiative: New 0, Amended 2, Repealed 0.
Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 0, Repealed 0.
Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 0, Repealed 0; Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 2, Repealed 0.
Date Adopted: July 13, 2012.
AMENDATORY SECTION(Amending Matter No. R 2011-07, filed 7/27/11, effective 8/27/11)
WAC 284-29A-030 Transition to prior approval system. (1) On and after January 1, ((
2013)) 2014, all rates used in
Washington state must be filed and approved under RCW 48.29.147.
(2) Title insurers must submit the rate filings required
under RCW 48.29.147 and subsection (1) of this section to the
commissioner by September 1, ((
2012)) 2013, for rates to be
effective on January 1, (( 2013)) 2014. This rule allows the
commissioner time to take final action on rates filed under
this chapter before the effective date of January 1, (( 2013))
(3) Rates filed under RCW 48.29.140(2) must not be used
for commitments issued on or after January 1, ((
[Statutory Authority: RCW 48.02.060 and 48.29.140. 11-16-031 (Matter No. R 2011-07), § 284-29A-030, filed 7/27/11, effective 8/27/11. Statutory Authority: RCW 48.02.060 and 48.29.005. 10-15-092 (Matter No. R 2009-01), § 284-29A-030, filed 7/20/10, effective 8/20/10.]
(2) Each annual report required by this section must include:
(a) The following premium and policy count data:
(i) Title insurance premiums for all of the agent's business; and
(ii) Title insurance premiums produced for the title insurer to which the report is sent.
(iii) Number of policies issued by all of the title insurers with which the agent does business; and
(iv) Number of policies issued by the title insurer to which the report is sent.
(b) The following expense data related to issuing title insurance policies and commitments for all of the agent's business, excluding all expenses related to escrow and other activities not directly related to title insurance:
(i) Employees' salaries and wages;
(ii) Owners' and partners' salaries and wages representing reasonable compensation for personal services actually performed by owners and partners;
(iii) Employee benefits;
(vi) Legal expense;
(vii) Licenses, taxes, and fees;
(viii) Title plant expense and maintenance;
(ix) Office supplies;
(xi) Automobile expense;
(xii) Communication expense;
(xiii) Education expense;
(xiv) Bad debts;
(xv) Interest expense;
(xvi) Employee travel and lodging;
(xvii) Loss and loss adjustment expense;
(xviii) Accounting and auditing expense;
(xix) Public relations expense; and
(xx) Other specifically identified expenses.
(c) An explanation that:
(i) Describes how expenses are allocated between the title operations and escrow or other operations of the title insurance agent; and
(ii) Demonstrates that the expenses described in WAC 284-29A-070(2) have been excluded.
(d) The estimated average cost to issue a title insurance commitment.
(3) If a title insurer does not receive a report required under this section by April 1st of each year, the title insurer must notify the commissioner by April 15th. This notice must include the name of the agent that did not send the report on time.
(4) For the 2011 calendar year report, each title agent must submit the report to the title insurer(s) on or before April 1, 2013.
[Statutory Authority: RCW 48.02.060 and 48.29.005. 10-15-092 (Matter No. R 2009-01), § 284-29A-110, filed 7/20/10, effective 8/20/10.]