WSR 18-16-031
EXPEDITED RULES
OFFICE OF THE
INSURANCE COMMISSIONER
[R 2018-05—Filed July 24, 2018, 2:18 p.m.]
Title of Rule and Other Identifying Information: Definition of earned surplus.
Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: Remove outdated reference to 1992 convention blank.
Reasons Supporting Proposal: Existing language referencing the 1992 convention blank is an outdated reference which no longer resembles new versions leading to potential confusion. New language maintains ability to update information without requiring reference to older, unused documents.
Statutory Authority for Adoption: RCW
48.02.060.
Rule is not necessitated by federal law, federal or state court decision.
Name of Proponent: Office of the insurance commissioner, governmental.
Name of Agency Personnel Responsible for Drafting: Micah Sanders, P.O. Box 40256, Olympia, WA 98504-0256, 360-725-7040; 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.
This notice meets the following criteria to use the expedited adoption process for these rules:
Corrects typographical errors, make address or name changes, or clarify language of a rule without changing its effect.
Explanation of the Reason the Agency Believes the Expedited Rule-Making Process is Appropriate: This rule does not change the intent or practice of WAC 284-13-160 but by removing an outdated reference serves to clarify the existing procedure for compliance.
NOTICE
THIS RULE IS BEING PROPOSED UNDER AN EXPEDITED RULE-MAKING PROCESS THAT WILL ELIMINATE THE NEED FOR THE AGENCY TO HOLD PUBLIC HEARINGS, PREPARE A SMALL BUSINESS ECONOMIC IMPACT STATEMENT, OR PROVIDE RESPONSES TO THE CRITERIA FOR A SIGNIFICANT LEGISLATIVE RULE. IF YOU OBJECT TO THIS USE OF THE EXPEDITED RULE-MAKING PROCESS, YOU MUST EXPRESS YOUR OBJECTIONS IN WRITING AND THEY MUST BE SENT TO Micah Sanders, Office of the Insurance Commissioner, 302 Sid Snyder Avenue S.W., Olympia, WA 98504, phone 360-725-7040, email MicahS@oic.wa.gov, AND RECEIVED BY October 2, 2018.
July 24, 2018
Mike Kreidler
Insurance Commissioner
AMENDATORY SECTION(Amending WSR 93-19-004, filed 9/1/93, effective 10/2/93)
WAC 284-13-160Definition of "earned surplus."
(1) As used in RCW
48.08.030(1), "earned surplus" means that part of surplus that represents net earnings, gains, or profits, after deduction of all losses, that have not been distributed to share holders as dividends or transferred to stated capital or capital surplus or lawfully applied to other purposes. It does not include unrealized appreciation of assets, unrealized capital gains, or reevaluation of assets.
(2) Earned surplus can be determined from the annual statement. ((On the 1992 convention blank,))
(a) For stock life companies, earned surplus is unassigned funds (((page 3, line 34))) less any unrealized gains included in that figure; and
(b) For property and casualty stock companies, earned surplus is unassigned funds (((page 3, line 25B))), less any unrealized gains included in that figure. ((On convention blanks for other years, the determination is adjusted to allow for changes in the form.))