WSR 17-19-065
[Insurance Commissioner Matter No. R 2017-10—Filed September 13, 2017, 2:58 p.m.]
Original Notice.
Preproposal statement of inquiry was filed as WSR 17-15-086.
Title of Rule and Other Identifying Information: Surplus lines broker licensing.
Hearing Location(s): On October 24, 2017, at 10:00 a.m., at the Office of Insurance Commissioner (OIC), Training Room, TR 120, 5000 Capitol Boulevard S.E., Tumwater, WA 98504.
Date of Intended Adoption: October 27, 2017.
Submit Written Comments to: Stacy Middleton, P.O. Box 40260, Olympia, WA 98504, email, fax 360-586-3109, other 360-725-9651, by October 23, 2017.
Assistance for Persons with Disabilities: Contact Lorie Villafores [Villaflores], phone 360-725-7087, fax 360-582-3109 [360-586-3109], TTY 360-586-0241, email, other, by October 23, 2017.
Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: SHB 1027, enacted by the legislature in 2017, amends the surplus line broker licensing statute to provide that OIC will (1) license a nonresident applicant for a surplus line broker license if the person's resident state issues nonresident surplus line broker licenses to residents of this state, and (2) waive the examination requirement if a licensed nonresident surplus line broker moves to this state and wishes to become licensed as a resident surplus line broker and their application is received by OIC within ninety days of the cancellation of the broker's resident license in the other state. The amendments in SHB 1027 differ from the provisions currently contained in WAC 284-15-010(2). Because these RCW amendments fully set out this aspect of the licensing of nonresident surplus line brokers this subsection of WAC is proposed to be repealed.
Reasons Supporting Proposal: To bring OIC's rules into full compliance with the provisions of recently passed legislation, SHB 1027.
Statutory Authority for Adoption: RCW 48.02.060, 48.15.015.
Statute Being Implemented: RCW 48.15.070, 48.15.073.
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: Jeff Baughman, 5000 Capitol Boulevard, Tumwater, WA 98504-0255, 360-725-7156; and Enforcement: Toni Hood, 5000 Capitol Boulevard, Tumwater, WA 98504-0255, 360-725-7050.
A school district fiscal impact statement is not required under RCW 28A.305.135.
A cost-benefit analysis is not required under RCW 34.05.328. This rule is being enacted to comply with SHB 1027 and thus no cost-benefit analysis is required as per RCW 34.05.328 (5)(b)(iii).
This rule proposal, or portions of the proposal, is exempt from requirements of the Regulatory Fairness Act because the proposal:
Is exempt under RCW 19.85.025(3) as the rule content is explicitly and specifically dictated by statute.
September 13, 2017
Mike Kreidler
Insurance Commissioner
AMENDATORY SECTION (Amending WSR 13-11-042, filed 5/13/13, effective 6/13/13)
WAC 284-15-010 BrokersSurplus line brokersQualifications and examination.
(((1))) Each applicant for a resident surplus line broker's license must take and pass the required examination, meet the additional producer licensing requirement per RCW 48.15.070 and pay the required fee prior to acting as a surplus line broker. The examination will test an applicant's qualifications and competence in all areas of surplus line insurance. Current information about testing procedures and examination dates is available on the commissioner's web site at:
(((2) The commissioner deems that a nonresident person holding a surplus line broker's license, or the equivalent, in the applicant's home state is qualified, competent and trustworthy and, therefore, meets the minimum standards of this state for holding a surplus line broker's license. For that reason, the commissioner will waive the Washington surplus line broker's examination for a person who has and maintains a current resident surplus line broker's license, or the equivalent, in the applicant's home state.))