WSR 21-17-122
PROPOSED RULES
OFFICE OF THE
INSURANCE COMMISSIONER
[Insurance Commissioner Matter R 2021-03—Filed August 17, 2021, 12:37 p.m.]
Original Notice.
Preproposal statement of inquiry was filed as WSR 21-13-135.
Title of Rule and Other Identifying Information: Resident adjuster continuing education requirements.
Hearing Location(s): On Thursday September 23, 2021, at 10:00 a.m., Zoom: Detailed information for attending the Zoom meeting here https://www.insurance.wa.gov/adjuster-continuing-education-requirements-r-2021-03. Due to the COVID-19 public health emergency, this meeting will be held via Zoom platform.
Date of Intended Adoption: September 24, 2021.
Submit Written Comments to: David Forte, P.O. Box 40260, Olympia, WA 98504-0260, email rulescoordinator@oic.wa.gov, fax 360-586-3109, by September 22, 2021.
Assistance for Persons with Disabilities: Contact Melanie Watness, phone 360-725-7013, fax 360-586-2023, TTY 360-586-0241, email MelanieW@oic.wa.gov.
Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: Section 2, chapter 22, Laws of 2021 (SHB 1037) necessitates resident adjusters have continuing education requirements, therefore, the commissioner is considering rule making to further clarify resident independent adjusters and public adjusters continuing education protocols.
The amended WAC simply include resident adjusters as requiring continuing education requirements.
Reasons Supporting Proposal: The intent is to match the National Association of Insurance Commissioners standard of 24 continuing education hours, including three hours of ethics, every two years. Having Washington state resident independent adjusters and public insurance adjusters have continuing education requirements is in alignment with other states. It is a benefit for our Washington state consumers to have a workforce that is continuing to receive updates on their profession. Finally, it will help our resident adjusters that work in other states find it easier to satisfy their continuing education requirements in those states if they are offered here in their home state.
Statutory Authority for Adoption: RCW 48.02.060, 48.17.005, and 48.17.150.
Statute Being Implemented: Section 2, chapter 22, Laws of 2021 (SHB 1037).
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: David Forte, P.O. Box 40260, Olympia, WA 98504-0260, 360-725-7042; Implementation and Enforcement: Todd Dixon, P.O. Box 40260, Olympia, WA 98504-0260, 360-725-7000.
A school district fiscal impact statement is not required under RCW 28A.305.135.
A cost-benefit analysis is required under RCW 34.05.328. A preliminary cost-benefit analysis may be obtained by contacting David Forte, P.O. Box 40260, Olympia, WA 98504-0260, phone 360-725-7042, fax 360-586-3109, email davidf@oic.wa.gov.
This rule proposal, or portions of the proposal, is exempt from requirements of the Regulatory Fairness Act because the proposal:
Is exempt under RCW 19.85.030 (1)(a).
Explanation of exemptions: The proposed rule does not impose more than minor costs. See explanation following.
The proposed rule does not impose more-than-minor costs on businesses. Following is a summary of the agency's analysis showing how costs were calculated. RCW 19.85.030 (1)(a) states that " … an agency shall prepare a small business economic impact state: (i) If the proposed rule will impose more than minor costs on businesses in an industry … " An analysis conducted by the office of the insurance commissioner determined that this rule would not impost [impose] more than minor costs on businesses.
A survey was administered to resident independent and public adjuster business entities. The survey was used to determine how many individuals a business employed and how much the rule would cost. For one of the baseline questions, "How many people does your business employ?," we received 32 responses. Of those 32 responses, 25 (78 percent) were classified as small businesses as defined by RCW 19.85.020(3), " … any business entity, including a sole proprietorship, corporation, partnership, or other legal entity, that is owned and operated independently from all other businesses, and that has fifty or fewer employees." The below table details anticipated annual cost to business entities based on the survey responses:
Table 1: Details on the analysis can be seen in the cost-benefit analysis. Figures are from a sample of 32 business entities.
Business Size
Average Number of Employees
Estimated Cost of Rule per Year
Small Businesses
5
$471.43
Large Businesses
7,613
$385.50
All Businesses Together
1,434
$422.73
Small businesses are expected to pay slightly more annually than larger businesses based on our analysis. This is because generally large businesses where more likely to already reimburse resident adjusters for continuing education credits to comply with other states' requirements. The estimated cost of the rule per year on small businesses was used as the estimated cost of compliance when determining whether the cost was greater than the minor cost threshold. The following table details the cost and minor cost threshold for property and casualty insurance carriers and claims adjusters:
2017 Industry NAICS Code
Estimated Cost of Compliance
NAICS Code Title
Minor Cost Estimate
1% of Avg Annual Payroll
0.3% of Avg Annual Gross Business Income
524126
$471.43
Direct Property and Casualty Insurance Carriers
$33,951.09
$33,951.09
$2,571.20
524291
$471.43
Claims Adjusting
$4,302.81
$4,302.81
$2,779.17
Evidently, the estimated cost of compliance is below the minor cost threshold. The figures used for this calculation are drawn from the 2020 Washington State Employment Security Department's Quarterly Census of Employment and Wages.
August 17, 2021
Mike Kreidler
Insurance Commissioner
OTS-3217.1
AMENDATORY SECTION(Amending WSR 15-13-061, filed 6/10/15, effective 7/11/15)
WAC 284-17-200Insurance continuing educationPurpose.
WAC 284-17-200 through 284-17-312 establish the minimum continuing education requirements that must be met prior to the renewal of an insurance producer or adjuster license, and specify the minimum criteria that continuing education courses must meet to be approved by the commissioner.
AMENDATORY SECTION(Amending WSR 15-13-061, filed 6/10/15, effective 7/11/15)
WAC 284-17-220Insurance continuing education requiredResident licensees.
(1) Except as provided in WAC 284-17-222 or waived in accordance with WAC 284-17-254, all individual residents licensed to transact life, disability, personal lines, property, casualty or variable life and variable annuity products lines of authority must meet the continuing education requirements of this chapter.
(2) All individual residents licensed as independent adjuster, public adjuster, or crop adjuster must meet the continuing education requirements of this chapter.
AMENDATORY SECTION(Amending WSR 09-02-073, filed 1/6/09, effective 7/1/09)
WAC 284-17-222Continuing insurance education exemptions.
((Resident adjusters and))Individuals holding only limited credit insurance, travel insurance, or surety licenses are exempt from the continuing insurance education requirements of this chapter.
AMENDATORY SECTION(Amending WSR 15-13-061, filed 6/10/15, effective 7/11/15)
WAC 284-17-224Insurance continuing educationRequired credit hoursProducers and adjusters.
Timely completion of this state's continuing insurance education requirement is a prerequisite for renewal or reinstatement of a license. Before applying for renewal or reinstatement of a license, except as provided in WAC 284-17-222 or waived in accordance with WAC 284-17-254, all resident producers licensed for personal lines, life, disability, property, casualty or variable life and variable annuity product lines of authority and all resident licensed adjusters must complete twenty-four credit hours of approved insurance continuing education. The twenty-four hours of education must include three credit hours of ethics education during every license continuation period.
(1) Courses must be completed within the twenty-four month period prior to the:
(a) Expiration date of the license;
(b) Date of late renewal; or
(c) Date of the request for reinstatement.
(2) ((Producers))Licensees must maintain each continuing education certificate of completion for three years.
(3) For producers required to complete the annuity suitability training, flood training or long-term care training, producers should maintain certificates for as long as the producer transacts business for these products, but not less than three years.
(4) Adjusters must take either property and casualty insurance related continuing education courses, or insurance claim adjusting related continuing education courses, or both.
AMENDATORY SECTION(Amending WSR 15-13-061, filed 6/10/15, effective 7/11/15)
WAC 284-17-273Continuing insurance education attendance register.
A continuing education provider must use an attendance register in the format required by the commissioner to document attendance for a classroom or webinar course. The attendance register must include the following:
(1) Continuing education provider's name and provider number;
(2) Course title and course number;
(3) Location of the classroom or instructor's location for a webinar;
(4) Signature of the instructor or monitor for a classroom course;
(5) For a classroom course, the attendee's:
(a) Name and phone number;
(b) Washington ((producer)) license number;
(c) Arrival time;
(d) Signature; and
(e) Departure time with the attendee's initials.
An attendance register form for a classroom course is available on the insurance commissioner's web site.
(6) For a webinar course, the attendee's:
(a) Name and phone number;
(b) Washington ((producer)) license number;
(c) Log-in time to join the class;
(d) Chat history and polling responses; and
(e) Log-out time that the attendee exited the class.
AMENDATORY SECTION(Amending WSR 16-12-034, filed 5/24/16, effective 6/24/16)
WAC 284-17-278Approval of an insurance continuing education course.
(1) An application for approval of a continuing insurance education course or a new instruction method of a previously approved course must be submitted electronically or via email to the commissioner's education mailbox no fewer than twenty days prior to the first date the course is offered for credit.
(a) If the continuing education provider does not know the first date the course will be offered at the time the provider submits the application, then if the commissioner approves the course, the provider cannot offer the course until twenty days after the commissioner receives the course application;
(b) The provider can advertise a course after the approval date, but cannot offer the course until the effective date;
(c) The commissioner will not process a new course application submitted by a provider until after the commissioner has sent the provider's continuing education course renewal notice. The provider must immediately submit the continuing education course renewal request for processing. After the commissioner processes the provider's course renewal request, the commissioner will continue reviewing the provider's new course application.
(2) The request must include all of the following, as applicable:
(a) Classroom courses:
(i) Completed request for course and credit approval form or the National Association of Insurance Commissioners Uniform Continuing Education Reciprocity Course filing form;
(ii) Detailed course outline, including a list of topics that the continuing education provider will cover and an estimate of the amount of time the provider will spend on each topic. The commissioner will not accept video presentation slides in lieu of the detailed course outline;
(iii) Biography or resume of instructor(s); and
(iv) Sample of the attendance register form that the provider will use.
(b) Webinar courses:
(i) Completed request for course and credit approval form or the National Association of Insurance Commissioners Uniform Continuing Education Reciprocity Course filing form;
(ii) Detailed course outline, including a list of topics that the provider will cover and an estimate of the amount of time the provider will spend on each topic. The commissioner will not accept video presentation slides in lieu of the detailed course outline;
(iii) Biography or resume of instructor(s);
(iv) Polling questions or verification codes, including two for each credit hour of the course;
(v) Description of the process for monitoring and verifying attendance; and
(vi) Sample of the document the provider will use to record each attendee's attendance and participation.
(c) Self-study courses:
(i) Completed request for course and credit approval form or the National Association of Insurance Commissioners Uniform Continuing Education Reciprocity Course filing form;
(ii) Detailed course outline with word count for each chapter, section or module;
(iii) If ethics content is included, a separate word count for the ethics content;
(iv) Samples of the course reading material to assist the commissioner in determining course difficulty level;
(v) Sample of video content, if included in the course. If the course includes video exceeding fifty minutes and the information is mandatory for completing the course, one additional credit hour will be added to the course credit total;
(vi) Description of the verification process the provider will use to confirm that the licensee has completed the course study material before accessing the exam;
(vii) Resume of the course content developer showing education and work experience related to the course subject matter; and
(viii) Copy of the examination. All examination questions must be multiple choice.
(A) The provider must include a minimum of ten exam questions for a one credit hour course, with an additional five exam questions for each subsequent credit hour;
(B) To pass the exam, licensees must achieve a score of seventy percent or higher;
(C) If the licensee does not pass the first exam, the licensee must take a second exam that contains no more than fifty percent of the same questions from the first exam. If the licensee does not pass on the second attempt, the provider must alternate the exams until the licensee passes the exam.
(3) To be eligible for approval, a course must have a direct and specific application to insurance. A course about ethics or about laws and regulations specific to insurance is eligible. The subject matter should increase the ((producer's))licensee's technical knowledge of insurance principles, insurance coverage, and insurance laws and regulations. The continuing education provider is responsible for the accuracy of facts and figures used in the course.
(4) The commissioner will not award credit for topics such as personal improvement, general education, sales, marketing, motivation, business management, time management, leadership, supportive office skills, internet use, social media use, automation, and other courses that are not directly and specifically related to insurance.
(5) Insurance prelicensing education courses are not eligible for approval for continuing insurance education credit.
AMENDATORY SECTION(Amending WSR 15-13-061, filed 6/10/15, effective 7/11/15)
WAC 284-17-292Certificates of completion of insurance continuing education coursesForm.
The form of certificate of course completion required by the commissioner is available to continuing education providers by contacting the commissioner's office. The certificate and signature may be in electronic format.
(1) The certificate must indicate that it is a Washington approved insurance continuing education course; and
(2) The certificate must include the following:
(a) Licensee's name and Washington ((producer)) license number;
(b) Course title and number;
(c) Date of course completion;
(d) Total number of credit hours and ethics credit hours if included;
(e) Continuing education provider's name and number; and
(f) Signature of the authorized designee of the provider and date.