Washington Administrative Code

(1) Claim reserves are required for all incurred but unpaid claims on all disability insurance policies;(2) Appropriate claim expense reserves are required with respect to the estimated expense of settlement of all incurred but unpaid claims; and(3) All such reserves for prior va…

(1) For disability income:(a) The maximum interest rate for claim reserves is specified in WAC 284-16-520.(b) Minimum standards with respect to morbidity are those specified in WAC 284-16-500 and 284-16-510; except that, at the option of the insurer, for claims with a duration fr…

(1) General premium reserve requirements are:(a) Unearned premium reserves are required for all contracts, including credit insurance disability contracts, with respect to the period of coverage for which premiums, other than premiums paid in advance, have been paid beyond the da…

(1) General contract reserve requirements are:(a) Contract reserves are required, unless otherwise specified in (b) of this subsection for:(i) All individual and group contracts with which level premiums are used; or(ii) All individual and group contracts with respect to which, d…

The insurer shall determine the adequacy of its disability insurance reserves on the basis of the claim reserves, premium reserves, and contract reserves combined. However, these standards emphasize the importance of determining appropriate reserves for each of the three categori…

Increases to, or credits against reserves carried, arising because of reinsurance assumed or reinsurance ceded, must be determined in a manner consistent with these minimum reserve standards and with all applicable provisions of the reinsurance contracts which affect the insurer'…

(1) Disability income benefits due to accident or sickness.(a) Contract reserves for:(i) Contracts issued on or after January 1, 1967, and prior to January 1, 1986: The 1964 Commissioners Disability Table (64 CDT).(ii) Contracts issued on or after January 1, 1993: The 1985 Commis…

(1) Disability income benefits due to accident or sickness.(a) Contract reserves for:(i) Contracts issued prior to January 1, 1993: The same basis, if any, as that employed by the insurer as of December 31, 1992;(ii) Contracts issued on or after January 1, 1993: The 1987 Commissi…

(1) For contract reserves the maximum interest rate is the maximum rate permitted by law in the valuation of life insurance issued on the same date as the disability insurance contract.(2) For claim reserves the maximum interest rate is the maximum rate permitted by law in the va…

The mortality basis used shall be according to a table, but without use of selection factors, permitted by law for the valuation of whole life insurance issued on the same date as the disability insurance contract.[Statutory Authority: RCW 48.02.060. WSR 92-19-038 (Order R 92-8),…

(1) Waiver of premium reserves involve several special considerations. First, many disability valuation tables are based on exposures that include contracts on premium waiver as in-force contracts. Hence, contract reserves based on these tables are not reserves on "active lives" …

The purpose of this regulation, WAC 284-16-600 through 284-16-650, is to establish standards and procedures for the administrative supervision of insurers exceeding their powers or engaging in methods or practices that render the continuance of their business financially hazardou…

The following definitions apply throughout this regulation unless the context clearly requires otherwise:(1) The term "exceeded its powers" has the meaning set forth at RCW 48.31.020 (2)(a).(2) The term "financially hazardous" means the standards set forth at WAC 284-16-310.(3) "…

(1) The commissioner may issue an order for administrative supervision and appoint an administrative supervisor if the commissioner makes a finding that:(a) The insurer is in a condition which makes its continued operation financially hazardous to its policyholders, creditors or …

(1) This plan of correction must include one or more of the actions under WAC 284-16-320(2), and may include one or more prohibitions contained in the order.(2) The contents of a plan of correction must address the specific facts and circumstances that led to the order. The plan …

(1) Within fifteen days after receipt of the commissioner's order, the insurer under administrative supervision must submit its plan of correction to address or correct the stated requirements in writing to the commissioner. The commissioner may extend the fifteen-day time period…

(1) To the extent possible and consistent with the list of requirements referenced in RCW 48.31.400 (2)(b), the administrative supervisor will allow the insurer to continue its existing operations.(2) The administrative supervisor will establish appropriate disbursement limits co…

For purposes of this regulation, the following definitions apply:(1) "Financially significant activities and applications" means computer software, including system programs and application programs, which are used to perform automated processing of a financially significant acco…

(1) Each domestic insurer must create and maintain a written business continuity plan identifying procedures relating to a local, state or national emergency or significant business disruption. Such procedures must be reasonably designed to:(a) Enable the insurer to meet its exis…

(1) The purpose of this chapter is to adopt processes and procedures for creditors to use when they register with the commissioner under chapter 48.160 RCW, and otherwise implement the chapter.(2) This chapter is effective on January 1, 2010. All guaranteed asset protection waive…

For purposes of this chapter, unless the context requires otherwise, the following definitions apply:(1) "Complete filing" means the package of information containing the registration application, other supporting documents requested by the commissioner, and fees.(2) "Creditor" m…

Any person offering or selling guaranteed asset protection waivers to residents of the state of Washington or borrowers in the state of Washington, or acting as an obligor for guaranteed asset protection waivers sold to residents of this state, must register with the commissioner…

(1) Every guaranteed asset protection waiver contract issued to a resident of Washington state or in Washington state must conspicuously disclose the legal name, home office address, and local contact address of the creditor.(2) Upon any assignment or transfer of the waiver, as a…

(1) An applicant for registration to issue guaranteed asset protection waivers must file a completed application as required by the commissioner on the application form and its accompanying instructions. The application form and instructions for completing the form are available …

When a registrant under this chapter provides notice to a borrower of the sale, transfer or any type of assignment of the waiver obligation, they must comply with the requirements in RCW 48.160.030.(1) The selling, transferring or assigning creditor must mail the notice to the bo…

When a borrower cancels a guaranteed asset protection contract and a refund is due that is payable to the borrower, the current obligor on the guaranteed asset protection contract must refund the amount due, and must not require the borrower to request the refund from the origina…

For each guaranteed asset protection contract entered into, registrants must retain records, preferably in electronic format, of all transactions associated with the contract, including correspondence from the borrower, notices sent to the borrower, and agreements or contracts as…

A guaranteed asset protection program must not use the term "insurance" to describe the program in its advertisements, marketing efforts, promotions, marketing materials, guaranteed asset protection program documents, brochures, or contracts, except when referring to the borrower…

If the commissioner determines that at least twenty-five or more insurers have volunteered to issue the coverage contemplated by chapter 230, Laws of 2010, the commissioner may require the insurers to form a market assistance plan (MAP) under section 15, chapter 230, Laws of 2010…

(1) Certain companies offering either property insurance, or property and casualty insurance, or both, are required to become members of the market assistance plan (MAP) as established by chapter 230, Laws of 2010.(2) The number of companies required to participate in the MAP mus…

For purposes of this chapter, unless the context requires otherwise:(1) "Affiliation" is a type of appointment whereby a business entity authorizes an individual insurance producer or surplus line broker to represent it when conducting insurance business.(2) "Business entity" has…

(1) The address of record used by the commissioner will be:(a) The last U.S. mailing address provided by the person or business entity to the commissioner for all notices, orders, or written communication, including any notification of investigation, notification of audit and fin…

Limited line credit insurance is defined at RCW 48.17.010(9).(1) Insurers must ensure that their licensed and appointed insurance producers who transact the limited line credit insurance are qualified by education or experience to offer their credit insurance products.(2) The req…

(1) Travel insurance is a limited line of authority. A person must not sell, solicit, or negotiate travel insurance in this state unless that person is licensed as an insurance producer with the travel limited line of authority or as set forth in subsection (2) of this section.(2…

(1) Any producer who desires to sell, solicit or negotiate variable life and variable annuity products in this state must:(a) Obtain a securities salesperson license from the department of financial institutions for a FINRA member broker-dealer; and(b) If a resident of this state…

Forms and instructions may be obtained from the licensing section of the office of insurance commissioner.To apply for a specialty producer license—Portable electronics, the following items must be submitted to the licensing section of the office of the insurance commissioner:(1)…

(1) A renewal notice will be mailed to each licensed specialty producer in May for renewal by July 1st of each year.(2) The completed renewal notice and two hundred fifty dollar renewal fee must be received by the office of the insurance commissioner by July 1st.(3) If the comple…

(1) All licensing processes must be completed electronically through the commissioner's website or through a third-party licensing provider. A list of exclusive online licensing processes is available on the commissioner's website at: www.insurance.wa.gov.(2) All fingerprints for…

(1) Each applicant, individual or business entity licensee, insurance education provider, and insurer must provide the commissioner with a valid email address. The following do not need to comply with the provisions of RCW 48.17.450(3) and 48.15.103(3) (affirmative consent and re…

Prior to the transaction of insurance, an applicant for a resident insurance producer's license must take and pass the required examination for each line of authority applied for, submit an application form with the required attachments and fees, and receive a license from the co…

Applicants who are not residents of Washington may be licensed as nonresident insurance producers without taking the required Washington examinations specified in WAC 284-17-120 (1)(b) if:(1) The applicant has and maintains in good standing a similar license in his or her home st…

(1) Applicants for a resident adjuster license may satisfy the experience or special training requirements of RCW 48.17.380 (3)(d) by employment as a "trainee" for a minimum period of six months.(a) Each trainee must be supervised by a resident licensed adjuster. Trainees must re…

Applicants for a limited line surety or limited line credit insurance license must take and pass the appropriate license examination. Information regarding the surety and credit insurance license examinations is available on the insurance commissioner's website at www.insurance.w…

In addition to the unlawful acts set forth in RCW 48.17.125, the following are prohibited acts or practices by persons taking examinations for licenses:(1) Behavior that undermines the evaluative objective of the examination;(2) Communication with any other examinee during the ex…

The exam content outlines are described in the candidate information bulletin. The candidate information bulletin is incorporated by reference and its entire contents will be enforced by the commissioner. A copy of the current candidate information bulletin is available through t…

As a prerequisite to admittance to any examination designed to test the applicant's qualifications to be an insurance licensee, each applicant must certify on the form provided, that he or she:(1) Is not taking the examination for purposes other than as the means to qualify for a…

No person may accept any rebate, refund, fee, commission, or discount in connection with referrals of students to a continuing insurance education provider without making a full disclosure to each student so referred.[Statutory Authority: RCW 48.02.060 and 48.17.005. WSR 23-21-10…

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 commiss…

The following definitions apply to WAC 284-17-200 through 284-17-312, unless the context clearly requires otherwise:(1) "Approved course" means an insurance continuing education course formally approved by the commissioner.(2) "Attendance register" is a record used to document at…

(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 educ…