Original Notice.

     Preproposal statement of inquiry was filed as WSR 13-07-055.

     Title of Rule and Other Identifying Information: Communications equipment (specialty producers) rules.

     Hearing Location(s): Training Room (T-120), 5000 Capitol Way South, Tumwater, WA, on June 26, 2013, at 9:00 a.m.

     Date of Intended Adoption: July 1, 2013.

     Submit Written Comments to: Kacy Scott, P.O. Box 40258, Olympia, WA 98504, e-mail rulescoordinator@oic.wa.gov, fax (360) 586-3109, by June 25, 2013.

     Assistance for Persons with Disabilities: Contact Lori [Lorie] Villaflores by June 25, 2013, TTY (360) 586-0241 or (360) 725-7087.

     Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: During the 2012 legislative session revisions were made to chapter 48.120 RCW regarding the licensing of vendors offering insurance for communications equipment, now known as portable electronics. These changes were the result of uniform licensing guidelines being adopted by the National Association of Insurance Commissioner's producer licensing work group and input from the industry. The legislative amendments to chapter 48.120 RCW rendered many sections in chapter 284-17A WAC obsolete. These proposed rules will remove those obsolete WAC sections. A technical correction is proposed to WAC 284-24-080 also relative to the 2012 legislative amendments.

     Reasons Supporting Proposal: Legislative amendments to chapter 48.120 RCW rendered many sections in chapter 284-17A WAC obsolete. A correction to WAC 284-24-080 is also necessary because of the 2012 legislative amendments.

     Statutory Authority for Adoption: RCW 48.02.060 and 48.120.025.

     Statute Being Implemented: Chapter 48.120 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 40258, Olympia, WA 98504-0258, (360) 725-7041; Implementation: John Hamje, P.O. Box 40255, Olympia, WA 98504-0255, (360) 725-7262; and Enforcement: Charles Brown, 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. This proposed rule simply details the filing requirements and fees for application to be a specialty producer. As such this rule-making process is "a filing or relate process requirement for applying to an agency for a license or permit" as defined under RCW 34.05.310(4) and exempted from filing a small business economic impact statement under the provisions of RCW 19.85.025(3).

     A cost-benefit analysis is not required under RCW 34.05.328. This proposed rule simply details the filing requirements and fees for application to be a specialty producer. As such it is categorized as a procedural rule under RCW 34.05.328 (5)(c)(i) and does not require the filing of a cost-benefit analysis.

May 22, 2013

Mike Kreidler

Insurance Commissioner

OTS-5407.3

AMENDATORY SECTION(Amending Matter No. R 2012-26, filed 2/27/13, effective 7/1/13)

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) "Specialty producer license -- Portable electronics" means a license issued under RCW 48.120.010 that authorizes a vendor to offer or sell insurance as provided in RCW 48.120.015.

     (16) "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))) (17) "Travel insurance" means insurance coverage for personal risks incident to planned travel including, but not limited to:

     (a) Interruption or cancellation of trip or event;

     (b) Loss of baggage or personal effects;

     (c) Damages to accommodations or rental vehicles; or

     (d) Sickness, accident, disability, or death occurring during limited duration travel.

     Travel insurance does not include major medical plans, which provide comprehensive medical protection for travelers with trips lasting six months or longer, including those working overseas as an expatriate or military personnel being deployed.

     (((17))) (18) "Travel insurance producer" means a licensed limited lines producer of travel insurance.

     (((18))) (19) "Travel retailer" means a business entity that offers and disseminates travel insurance on behalf of and under the direction and supervision of a licensed travel insurance producer.

     (((19))) (20) "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 48.17.005. 13-06-023 (Matter No. R 2012-26), § 284-17-001, filed 2/27/13, effective 7/1/13. Statutory Authority: RCW 48.02.060 and 48.17.005. 12-22-020 (Matter No. R 2012-23), § 284-17-001, filed 10/29/12, effective 11/29/12. 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.]

     To apply for a specialty producer license -- Portable electronics, the following items must be submitted to the licensing section of the office of the insurance commissioner:

     (1) An application signed by the applicant, or an officer of the applicant, including the following:

     (a) Applicant's name;

     (b) If an entity, the type of entity and the name of the supervising person, as defined in RCW 48.120.005(9);

     (c) Address for its principal place of business;

     (d) A copy of its articles of incorporation; and

     (e) A certificate of good standing from the secretary of state.

     (2) An appointment as a licensed insurance producer completed by each authorized insurer(s) authorizing the applicant to represent the insurer.

     (3) An affiliation completed by the applicant authorizing the supervising person to represent the applicant. The supervising person must be a licensed insurer or a licensed insurance producer under RCW 48.17.060.

     (4) Fees:

•	License fee	$500
•	Appointment fee	$20 each
•	Affiliation fee	$20

[]

     (2) The completed renewal notice and two hundred fifty dollar renewal fee must be received by the office of the insurance commissioner by July 1st.

     (3) If the completed renewal notice and the two hundred and fifty dollar fee is not received by the commissioner prior to July 1st, the applicant must pay, in addition to the renewal fee, a surcharge as follows:

     (a) One to thirty days late, the surcharge is fifty percent of the renewal fee;

     (b) Thirty-one to sixty days late, the surcharge is one hundred percent of the renewal fee;

     (c) Sixty-one days after the expiration date of the license but prior to twelve months, the license must be reinstated and the applicant must pay the renewal fee plus a surcharge of two hundred percent of the renewal fee.

[]

OTS-5406.1

REPEALER
     The following chapter of the Washington Administrative Code is repealed:

WAC 284-17A-010	Do I need to be licensed as a specialty producer?
WAC 284-17A-020	What definitions are important throughout the chapter?
WAC 284-17A-030	How do I apply for specialty producer license?
WAC 284-17A-040	How do I renew the license?
WAC 284-17A-050	What information must I provide to prospective customers?
WAC 284-17A-060	What is included in the written material?
WAC 284-17A-070	Do I need to provide training to my employees?
WAC 284-17A-080	What are the requirements for the accounting of premiums?
WAC 284-17A-090	Does the commissioner have authority to suspend, fine, or revoke my license or refuse to license me?
WAC 284-17A-100	What is the effective date of this rule?

OTS-5466.1

AMENDATORY SECTION(Amending Matter No. 2007-11, filed 10/15/08, effective 2/1/09)

WAC 284-24-080   Rate filings rule for inland marine risks.   Under RCW 48.19.030 and 48.19.070, insurers are not required to file rates with the commissioner for certain inland marine risks that are not written according to manual rates or rating plans. The following inland marine classes of risks, which are characterized by large numbers of insureds and homogeneous loss exposure, are written according to manual rates or rating plans and must be filed under chapter 48.19 RCW. Manual rates, classification or rating plans that apply to the following types of risks must be filed with the commissioner:

     (1) Accounts receivable coverage;

     (2) Agricultural machinery, farm equipment and livestock coverage;

     (3) Bicycle floater;

     (4) Boatowners' insurance or coverage for pleasure boats twenty-six feet and under in length;

     (5) Camera floater;

     (6) Camera and musical instrument dealers;

     (7) Commercial articles coverage (photographic equipment and musical instruments);

     (8) ((Communications equipment, including cell phones, pagers, and portable personal computers;

     (9))) Equipment dealers coverage;

     (((10))) (9) Film coverage form;

     (((11))) (10) Fine arts private collections;

     (((12))) (11) Floor plan merchandise coverage;

     (((13))) (12) Fur dealers;

     (((14))) (13) Hardware dealers;

     (((15))) (14) Implement dealers;

     (((16))) (15) Garment contractors;

     (((17))) (16) Golfer's equipment floater;

     (((18))) (17) Jewelry dealers;

     (((19))) (18) Mail coverage;

     (((20))) (19) Personal articles floater;

     (((21))) (20) Personal effects floater;

     (((22))) (21) Personal furs or fur floater;

     (((23))) (22) Personal jewelry or jewelry floater;

     (((24))) (23) Personal property floater;

     (((25))) (24) Physicians' and surgeons' equipment coverage;

     (25) Portable electronics as defined in RCW 48.120.005;

     (26) Signs coverage;

     (27) Silverware floater;

     (28) Stamp and coin collection floater;

     (29) Travel coverage other than accident and sickness;

     (30) Valuable papers and records; and

     (31) Wedding presents.

[Statutory Authority: RCW 48.02.060, 48.110.150. 08-21-091 (Matter No. 2007-11), § 284-24-080, filed 10/15/08, effective 2/1/09. Statutory Authority: RCW 48.02.060, 48.19.080, 48.19.370 and 48.19.020. 98-20-102 (Matter No. R 98-4), § 284-24-080, filed 10/7/98, effective 11/7/98. Statutory Authority: RCW 48.02.060 (3)(e). 86-24-043 (Order R 86-7), § 284-24-080, filed 11/26/86. Statutory Authority: RCW 48.02.060. 82-06-036 (Order R 82-1), § 284-24-080, filed 3/1/82.]