OFFICE OF THE
[Insurance Commissioner Matter R 2020-01—Filed November 5, 2020, 8:05 a.m., effective January 1, 2021]
Effective Date of Rule: January 1, 2021.
Purpose: The commissioner is amending WAC 284-33-030 to increase the allowable amount for risk reduction goods and services. For the noncommercial insurance companies that offer these types of goods and services, the twelve month aggregate limit would be raised to $7,500.
Citation of Rules Affected by this Order: Amending WAC 284-33-030.
Adopted under notice filed as WSR 20-18-070 on September 1, 2020.
A final cost-benefit analysis is available by contacting David Forte, P.O. Box 40260, Olympia, WA 98504-0260, phone 360-725-7042, email DavidF@oic.wa.gov.
Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 0, Repealed 0.
Number of Sections Adopted at the Request of a Nongovernmental Entity: New 0, Amended 1, Repealed 0.
Number of Sections Adopted on the Agency's own Initiative: New 0, Amended 0, Repealed 0.
Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 0, Repealed 0.
Number of Sections Adopted using Negotiated Rule Making: New 0, Amended 0, Repealed 0; Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 1, Repealed 0.
Date Adopted: November 5, 2020.
AMENDATORY SECTION(Amending WSR 18-24-084, filed 12/3/18, effective 1/3/19)
WAC 284-33-030Goods and services.
(1) All goods or services, or both, that are approved by the commissioner to be included within a property insurer's risk reduction program, or pilot risk reduction program, or both, must be implemented by the insurer to reduce either the probability of damage or extent of damage, or both, by a peril covered under the property policy, and may include:
(a) Smoke alarms;
(b) Fire extinguishers;
(c) Natural gas detectors;
(d) Brush and other wildfire fuel source removal services;
(e) Water monitors;
(f) Water shut off systems;
(g) Earthquake strapping;
(h) Locking mechanisms to secure property;
(i) Lightning protection devices;
(j) Security lighting;
(k) Security camera systems;
(l) Home safety monitoring systems; and
(m) Other goods or services, or both, the commissioner may approve through a form filing.
(2) A voucher provided from the insurer to the insured for either goods or services, or both, is only permissible for those items as described in subsection (1) of this section and must fully redeem either the goods or services, or both, being used in the risk reduction program.
(3) Under RCW 48.18.559, the commissioner may increase the value of goods and services permitted under RCW 48.18.558. The limit to the value of goods and services to be provided is increased to seven thousand five hundred dollars in value in aggregate in any twelve-month period if the insurer: (a) Submits a rate filing with the information required by RCW 48.19.530; and
(b) Includes an explanation and exhibit in the filing showing that the present value of the expected reduction in claims costs arising from the goods and services, over the service life of the goods and services, is greater than, or equal to, the total cost to the insurer of the goods and services.