WSR 18-21-159
[Insurance Commissioner Matter R 2018-13—Filed October 22, 2018, 1:56 p.m.]
Original Notice.
Preproposal statement of inquiry was filed as WSR 18-18-088.
Title of Rule and Other Identifying Information: Charitable gift annuities.
Hearing Location(s): On November 27, 2018, at 10:00 a.m., at the Office of the Insurance Commissioner, 301 [302] Sid Snyder Avenue S.W., Olympia, WA 98501.
Date of Intended Adoption: November 28, 2018.
Submit Written Comments to: Jim Tompkins, P.O. Box 40620, Olympia, WA 98504-0260, email, fax 360-586-3109, by November 26, 2018.
Assistance for Persons with Disabilities: Contact Lorie Villaflores, phone 360-725-7087, TTY 360-586-0241, email, by November 26, 2018.
Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: The commissioner will consider adopting rules to update the accounting requirements for licensing in the state of Washington for charities offering charitable gift annuities to comport with a change in accounting rules.
Reasons Supporting Proposal: Recent financial accounting rule changes, FASB ASU 2016-14, have changed the definition of what is considered unrestricted net assets for charities.
Statutory Authority for Adoption: RCW 48.02.060 and 48.38.075.
Statute Being Implemented: RCW 48.38.010.
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.
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 adopts national consensus codes that generally establish industry standards.
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 rules are adopting or incorporating by reference without material change federal statutes or regulations, Washington state statutes, rules of other Washington state agencies, shoreline master programs other than those programs governing shorelines of statewide significance, or, as referenced by Washington state law, national consensus codes that generally establish industry standards, if the material adopted or incorporated regulates the same subject matter and conduct as the adopting or incorporating rule.
October 22, 2018
Mike Kreidler
Insurance Commissioner
AMENDATORY SECTION(Amending WSR 14-05-017, filed 2/10/14, effective 3/15/14)
WAC 284-38-010Definitions.
The definitions in this section apply throughout this chapter:
"Certificate holder" means any insurer or educational, religious, charitable, or scientific institution that has been issued a certificate of exemption by the commissioner to conduct a charitable gift annuity business.
"Complete filing" means a package of information containing charitable gift annuity contracts, supporting information, documents and exhibits submitted to the commissioner electronically using the system for electronic rate and form filing (SERFF).
"Contract" means a charitable gift annuity contract as described in chapter 48.38 RCW.
"Date filed" means the date a complete charitable gift annuity contract filing has been received and accepted by the commissioner.
"Filer" means a person, organization, or other entity that files charitable gift annuity contracts with the commissioner.
"Objection letter" means correspondence sent by the commissioner to the filer that:
(a) Requests clarification, documentation or other information;
(b) Explains errors or omissions in the filing; or
(c) Disapproves a charitable gift annuity contract under RCW 48.38.010(9), 48.18.110, 48.38.030, or 48.38.042.
"SERFF" means the system for electronic rate and form filing. SERFF is a proprietary National Association of Insurance Commissioners (NAIC) computer-based application that allows filers to create and submit rate, rule, and form filings electronically to the commissioner.
"Unrestricted net assets" also means "net assets without donor restrictions."