WSR 14-17-026 PERMANENT RULES OFFICE OF
INSURANCE COMMISSIONER
[Insurance Commissioner Matter No. R 2012-16—Filed August 12, 2014, 3:53 p.m., effective July 1, 2015] Effective Date of Rule: July 1, 2015.
Purpose: The rule will provide guidance to licensed insurance producers as to what may or may not constitute sharing commissions with nonlicensed persons.
Statutory Authority for Adoption: RCW 48.02.060 and 48.17.005.
Other Authority: RCW 48.17.490.
Adopted under notice filed as WSR 14-10-080 on May 7, 2014.
Changes Other than Editing from Proposed to Adopted Version: The word "compensation" in the second line of WAC 284-17-800 was changed to "consideration" to use the same word as in the statute being implemented, RCW 48.17.490.
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 rulescoordinator@oic.wa.gov.
Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 0, Repealed 0.
Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.
Number of Sections Adopted on the Agency's Own Initiative: New 4, Amended 0, Repealed 0.
Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 0, Repealed 0.
Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 0, Repealed 0; Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 4, Amended 0, Repealed 0.
Date Adopted: August 12, 2014.
Mike Kreidler
Insurance Commissioner
SHARING COMMISSIONS
NEW SECTION
WAC 284-17-800 Charitable contributions.
An insurance producer may donate all or a portion of a commission, fee, or other consideration received in connection with the sale, solicitation, or negotiation of insurance to a charity only if all of the following conditions are met:
(1) The insured or prospective insured has no influence over which charity receives the donation;
(2) The donation is not made in the insured's or prospective insured's name;
(3) The insured or prospective insured is not entitled to a tax benefit for the donation; and
(4) The insured or prospective insured does not select or influence the selection of the person or persons who benefit from the charity.
NEW SECTION
WAC 284-17-810 Lead cards and mailing lists.
(1) For the purposes of this section, lead card means communications distributed to the public which, regardless of form, content, or stated purpose, are used to compile a list containing names or other personal information regarding individuals who have expressed an interest in receiving information about insurance.
(2) A licensed insurance producer may compensate a person for the purchase of lead cards or a mailing list of prospective insureds, provided:
(a) The amount of the compensation is not based upon:
(i) The number of prospective insureds that apply for insurance or obtain insurance; or
(ii) The number of quotes issued to prospective insureds; and
(b) The person is in the business of selling lead cards or mailing lists.
(3) Lead cards may solicit interest in a particular line or type of insurance but must not:
(a) Seek information on behalf of or about a specific insurance company; or
(b) Seek information on behalf of or about a specific insurance producer.
NEW SECTION
WAC 284-17-820 Referrals.
(1) A licensed insurance producer may give to an individual, prizes, goods, wares, or merchandise not exceeding twenty-five dollars in value in the aggregate in any consecutive twelve-month period for the referral of insurance business to the insurance producer; provided the giving of the prizes, goods, wares, or merchandise is not conditioned upon the person who is referred either applying for, or obtaining, or both, insurance through the insurance producer.
(2) The payment for the referral must not be in cash, currency, bills, coins, check, or by money order.
NEW SECTION
WAC 284-17-830 Promotional games of chance.
An insurance producer may conduct a promotional game of chance provided that:
(1) The promotional game of chance is undertaken solely for the purpose of advertising and promoting the insurance producer;
(2) No person eligible to receive the prize is required to apply for insurance, purchase insurance, refer a person to the insurance producer, or pay any other consideration to enter the promotional game of chance;
(3) The promotional game of chance is open to the general public;
(4) The value of the prize is limited to twenty-five dollars in value;
(5) No person receives a total of prizes exceeding twenty-five dollars in value in the aggregate in any consecutive twelve-month period from the insurance producer; and
(6) The promotional game of chance complies with chapter 9.46 RCW and any and all other applicable Washington state statutes and rules.
|