Original Notice.

     Preproposal statement of inquiry was filed as WSR 12-16-090.

     Title of Rule and Other Identifying Information: Electronic submission of fingerprints to Washington State Patrol.

     Hearing Location(s): Insurance Commissioner's Office, TR 120, 5000 Capitol Boulevard, Tumwater, WA 98504-0255, on October 23, 2012, at 9:00 a.m.

     Date of Intended Adoption: October 29, 2012.

     Submit Written Comments to: Kacy Scott, P.O. Box 40258, Olympia, WA 98504-0258, e-mail rulescoordinator@oic.wa.gov, fax (360) 586-3109, by October 22, 2012.

     Assistance for Persons with Disabilities: Contact Lorrie [Lorie] Villaflores by October 22, 2012, TTY (360) 586-0241 or (360) 725-7087.

     Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: RCW 48.17.090 and 48.17.380 require the submission of fingerprints for background checks as part of the application process for resident licensees. This proposed rule would automate that process by requiring electronic submission to the Washington state patrol instead of the current manual process.

     Reasons Supporting Proposal: The proposed rule would automate a licensing process which would result in reduced staff time to process licenses and provide licensees faster returned background results.

     Statutory Authority for Adoption: RCW 48.02.060 and 48.17.005.

     Statute Being Implemented: Chapter 48.17 RCW.

     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 40255 [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. Although this proposed rule will impact small businesses the net cost effect will be minimal. The actual cost of being fingerprinted will be approximately the same; the charged processing cost for submitting fingerprints will be $10 less; and the distribution of the centers for getting an electronic fingerprint means that there should be little or no extra cost to travel to a location where electronic fingerprinting is done. These anticipated cost impacts to small businesses fall well below the minimum cost threshold for preparing a small business economic impact statement.

     A cost-benefit analysis is required under RCW 34.05.328. A preliminary cost-benefit analysis may be obtained by contacting Kacy Scott, P.O. Box 40258, Olympia, WA 98501-0258, phone (360) 725-7041, fax (360) 586-3109, e-mail rulescoordinator@oic.wa.gov.

September 18, 2012

Mike Kreidler

OTS-4967.3

AMENDATORY SECTION(Amending Matter No. R 2011-12, filed 9/13/11, effective 10/14/11)

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 or other state agency.

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

     (6) "Home state" has the meaning set forth in RCW 48.17.010(4).

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

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

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

     (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.

     (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.

     (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.

     (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.

     (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.

     (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 (3)(a) and 48.17.005. 11-19-040 (Matter No. R 2011-12), § 284-17-001, filed 9/13/11, effective 10/14/11. Statutory Authority: RCW 48.15.015 and 48.17.005. 11-04-067 (Matter No. R 2010-07), § 284-17-001, filed 1/28/11, effective 2/28/11. 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.]

     (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) Beginning February 1, 2013, all fingerprints for a resident insurance license must be submitted electronically. A list of locations where electronic submission is available can be found on the commissioner's web site: www.insurance.wa.gov.

     (6) 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.

[Statutory Authority: RCW 48.15.015 and 48.17.005. 11-04-067 (Matter No. R 2010-07), § 284-17-055, filed 1/28/11, effective 2/28/11.]