WSR 16-17-124 PROPOSED RULES OFFICE OF INSURANCE COMMISSIONER [Insurance Commissioner Matter No. R 2016-18—Filed August 23, 2016, 9:13 a.m.]
Original Notice.
Preproposal statement of inquiry was filed as WSR 16-13-102.
Title of Rule and Other Identifying Information: Amend existing motorist underinsured rejection form.
Hearing Location(s): Office of the Insurance Commissioner, 5000 Capitol Boulevard S.E., Training Room (TR-120), Tumwater, WA 98504-0255, on September 28, 2016, at 1:00 p.m.
Date of Intended Adoption: September 30, 2016.
Submit Written Comments to: Stacy Middleton, P.O. Box 40260, Olympia, WA 98504, e-mail rulescoordinator@oic.wa.gov, fax (360) 586-3109, by September 27, 2016.
Assistance for Persons with Disabilities: Contact Lorie Villaflores by September 27, 2016, TTY (360) 586-0241 or (360) 725-7087.
Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: A legislative task force on underinsured motorists (UIM) met in summer 2015 to discuss whether consumers understand consequences of declining UIM insurance. One of the outcomes was a request for rule making that would amend the requirements for rejection of UIM insurance coverage required by RCW 48.22.030(4) to require that the motorist be made aware in writing of the risk involved when they decline UIM insurance.
This rule-making goal is to be achieved by amending language and adding a section in WAC 284-20-300 to require that the following statement is included in any rejection form when a motorist is rejecting UIM coverage, "In order to provide for an informed decision of the potential consequences of rejecting underinsured motorist coverage; the undersigned acknowledges they understand that without underinsured motorist coverage there is exposure to the risk of not being fully compensated for injury and/or damages when involved in an accident with a driver of an underinsured vehicle."
Reasons Supporting Proposal: Ensure consumers are informed of the risk involved when declining UIM insurance.
Statute Being Implemented: RCW 48.22.030(4).
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: Stacy Middleton, 302 Sid Snyder Avenue, Olympia, WA 98504-0260, (360) 725-9651; Implementation and Enforcement: AnnaLisa Gellermann, 5000 Capitol Boulevard, Tumwater, WA 98504-0255, (360) 725-7050.
No small business economic impact statement has been prepared under chapter 19.85 RCW. The domestic insurance issuers that must comply with the rule are not small businesses, pursuant to chapter 19.85 RCW.
A cost-benefit analysis is required under RCW 34.05.328. A preliminary cost-benefit analysis may be obtained by contacting Stacy Middleton, P.O. Box 40260, Olympia, WA 98504-0260, phone (360) 725-9651, fax (360) 586-3109, e-mail rulescoordinator@oic.wa.gov.
August 23, 2016
Mike Kreidler
Insurance Commissioner
AMENDATORY SECTION (Amending WSR 10-10-058, filed 4/29/10, effective 5/30/10)
WAC 284-20-300 Mandatory offering of personal injury protection and required language when underinsured motorist coverage is rejected.
(1) Insurers issuing an automobile liability insurance policy must offer the minimum personal injury protection coverage limits required in RCW 48.22.095, and must make available, if requested, additional personal injury protection limits as defined in RCW 48.22.100. Insurers may also offer other personal injury protection limits, in addition to these required offerings.
(2) If the named insured rejects personal injury protection coverage, the insurer must promptly delete the coverage after the insurer receives the rejection notice from the named insured. The insurer must retain a copy of the rejection notice or request to delete coverage with the policy record.
(3) The written rejection of underinsured motorist coverage, as allowed by RCW 48.22.030(4), must include the following statement, "In order to provide for an informed decision of the potential consequences of rejecting underinsured motorist coverage; the undersigned acknowledges they understand that without underinsured motorist coverage there is exposure to the risk of not being fully compensated for injury and/or damages when involved in an accident with a driver of an underinsured vehicle." Such notice shall be prominently placed above the signature area and be bold.
(4) Insurers may use electronic forms, electronic signatures and electronic attestations, in accordance with 15 U.S.C. Sec. 7001, to comply with this rule. The insurer must maintain an auditable compliance record and provide this information to the commissioner upon request.
(((4))) (5) This section does not apply to corporations, partnerships, or any other nonhuman entity named as the insured.
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