WSR 17-16-161
[Insurance Commissioner Matter No. R 2017-02—Filed August 1, 2017, 4:44 p.m.]
Original Notice.
Preproposal statement of inquiry was filed as WSR 17-12-063.
Title of Rule and Other Identifying Information: Obsolete citations to insurer investments under chapter 48.13 RCW.
Hearing Location(s): Office of the Insurance Commissioner, 301 Sid Snyder Avenue S.W., Olympia, WA 98501, on September 7, 2017, at 10:00 a.m.
Date of Intended Adoption: September 8, 2017.
Submit Written Comments to: Jim Tompkins, P.O. Box 40260, Olympia, WA 98504-0260, email, fax (360) 586-3109, by September 6, 2017.
Assistance for Persons with Disabilities: Contact Lorie Villaflores by September 6, 2017, TTY (360) 586-0241 or (360) 725-7087.
Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: The commissioner will consider adopting rules to amend/repeal obsolete statutory citations to domestic insurer investments.
Reasons Supporting Proposal: In 2011 chapter 188, Laws of 2011 (SHB 1257) was enacted repealing the then existing chapter 48.13 RCW and replaced [replacing] it with new sections. As a result there are several sections in Title 284 WAC that contain statutory citations to sections in chapter 48.13 RCW that were repealed.
Statutory Authority for Adoption: RCW 48.02.060 and 48.13.171(1).
Statute Being Implemented: Chapter 48.13 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: Jim Tompkins, P.O. Box 40260, Olympia, WA 98504-0260, (360) 725-7036; Implementation: Steve Drutz, P.O. Box 40255, Olympia, WA 98504-0255, (360) 725-7209; and Enforcement: Doug Hartz, P.O. Box 40255, Olympia, WA 98504-0255, (360) 725-7214.
No small business economic impact statement has been prepared under chapter 19.85 RCW. The proposed rule acts to update WAC references, standardize wording, and remove redundant language. Because it does not impose any new requirements on the businesses being regulated no small business economic impact statement is required.
A cost-benefit analysis is not required under RCW 34.05.328. This proposed rule acts to update WAC language to conform to statute and clarify/correct portions of existing rules. No new burdens/benefits are imposed by the rule. In accordance with RCW 34.05.328 (5)(b)(iii), (iv) and (v) no cost-benefit analysis is required.
August 1, 2017
Mike Kreidler
Insurance Commissioner
AMENDATORY SECTION (Amending WSR 93-19-010, filed 9/1/93, effective 10/2/93)
WAC 284-13-280 Real estate appraisals.
(((1) Except as provided in subsection (2) of this section, for purposes of RCW 48.13.120(1) and 48.13.140, an insurer may rely on an appraisal that is less than one year old.
(2))) An insurer may not rely on an appraisal if the insurer knows or should know that the appraisal is not reliable. An appraisal may be "not reliable" because it was incorrect when done, because conditions affecting the property have changed, or for other reasons.
AMENDATORY SECTION (Amending WSR 82-23-010, filed 11/5/82, effective 1/1/83)
WAC 284-44-330 Agreement guaranteed by a deposit of cash or securities.
(1) If, pursuant to RCW 48.44.030, the agreement is guaranteed by a deposit of cash or securities, ((such)) the deposit ((shall)) must be in an amount equal to the greater of (i) one hundred fifty thousand dollars, or (ii) one-twelfth of the total sum of money received during the preceding calendar year as prepayment for health care services, except as provided by WAC 284-44-340.
(2) Securities eligible for ((such)) the deposit ((shall be)) are those set forth in RCW ((48.13.040, 48.13.050, 48.13.080, 48.13.100, 48.13.200, and 48.13.220. The commissioner may, upon advance approval, allow other securities to be included as deposits pursuant to RCW 48.13.250)) 48.13.009 (12), (14), and 48.13.061 (2) and (4).
(3) In determining the value to be assigned to securities for compliance with the depository requirements, market value ((shall be)) is the measurement.
The following sections of the Washington Administrative Code are repealed:
WAC 284-16-100
Investments—Encumbrance—Interpretation of RCW 48.13.130.
WAC 284-16-110
F.H.A. mortgage loans and investments.