Source: https://app.leg.wa.gov/wac/default.aspx?cite=284-19&full=true
Timestamp: 2019-06-17 17:29:30
Document Index: 17853130

Matched Legal Cases: ['§ 284', '§ 284', '§ 284', '§ 284', '§ 284', '§ 284', '§ 284', '§ 284', '§ 284', '§ 284', '§ 284', '§ 284', '§ 284', '§ 284', '§ 284', '§ 284', '§ 284', '§ 284', '§ 284', '§ 284', '§ 284', '§ 284', '§ 284', '§ 284', '§ 284', '§ 284', '§ 284', '§ 284', '§ 284', '§ 284', '§ 284', '§ 284', '§ 284', '§ 284', '§ 284', '§ 284', '§ 284', '§ 284', '§ 284', '§ 284']

Chapter 284-19 WAC:
WACs > Title 284 > Chapter 284-19
Chapter 284-19 WAC
WASHINGTON ESSENTIAL PROPERTY INSURANCE INSPECTION AND PLACEMENT PROGRAM
284-19-010 Title.
284-19-020 Purposes of program.
284-19-040 Participation.
284-19-050 Definitions.
284-19-060 FAIR plan—Inspections and reports.
284-19-070 FAIR plan business—Distribution and placement.
284-19-080 Procedure after inspection and submission.
284-19-090 Joint reinsurance association.
284-19-100 Standard policy coverage—Coding.
284-19-110 Cancellation and nonrenewal under this program.
284-19-120 Right of appeal.
284-19-130 Commission.
284-19-140 Administration.
284-19-150 Annual and special meetings.
284-19-160 Duties of the committee.
284-19-165 Cooperation of producers.
284-19-170 Public education and notices required.
284-19-180 Statistics, records and reports.
284-19-030 Effective date. [Order R-73-2, § 284-19-030, filed 3/30/73; Order R-69-1, § 284-19-030, filed 1/28/69.] Repealed by WSR 98-13-095 (Matter No. R 98-10), filed 6/16/98, effective 7/17/98. Statutory Authority: RCW 48.02.060.
284-19-200 Termination of program. [Statutory Authority: RCW 48.02.060. WSR 86-20-039 (Order R 86-4), § 284-19-200, filed 9/25/86; WSR 84-23-006 (Order R 84-5), § 284-19-200, filed 11/8/84; Order R 77-1, § 284-19-200, filed 3/24/77; Order R-73-2, § 284-19-200, filed 3/30/73; Order R-69-1, § 284-19-200, filed 1/28/69.] Repealed by WSR 87-22-022 (Order R 87-11), filed 10/27/87. Statutory Authority: RCW 48.02.060 and 48.58.010(5).
284-19-010
These rules and regulations are titled the Washington essential property insurance inspection and placement program (referred to as the program).
[Statutory Authority: RCW 48.02.060. WSR 98-13-095 (Matter No. R 98-10), § 284-19-010, filed 6/16/98, effective 7/17/98; Order R-69-1, § 284-19-010, filed 1/28/69.]
284-19-020
Purposes of program.
(1) To assure stability in the property insurance market of this state.
(2) To encourage maximum use, in obtaining essential property insurance, of the available, normal insurance market provided by authorized insurers.
(3) To make essential property insurance available where it cannot be obtained through the normal insurance market, subject to the conditions stated in this chapter.
(4) To encourage the improvement of the condition of properties located in the state of Washington and to further orderly community development.
(5) To establish a FAIR plan (fair access to insurance requirements), an industry placement facility and a joint reinsurance association for the equitable distribution and placement of risks among insurers in the manner and subject to the conditions stated in this chapter.
[Statutory Authority: RCW 48.02.060. WSR 06-15-030 (Matter No. R 2006-03), § 284-19-020, filed 7/10/06, effective 8/10/06; WSR 98-13-095 (Matter No. R 98-10), § 284-19-020, filed 6/16/98, effective 7/17/98; Order R-69-1, § 284-19-020, filed 1/28/69.]
284-19-040
Participation in this program is mandatory for all insurers and fraternal benefit societies authorized to engage in the property insurance business in this state, who have "premiums written," as defined in this chapter.
[Statutory Authority: RCW 48.02.060. WSR 98-13-095 (Matter No. R 98-10), § 284-19-040, filed 6/16/98, effective 7/17/98; Order R-69-1, § 284-19-040, filed 1/28/69.]
284-19-050
284-19-060
284-19-070
FAIR plan business—Distribution and placement.
(1) The facility shall not require that the applicant demonstrates that he or she is unable to obtain insurance in the normal market, as a precondition to the placement of business under the FAIR plan. The facility, however, may require an insurance producer to furnish copies of documents or information showing what effort was made by the insurance producer to obtain insurance in the normal market. The facility shall forward to the commissioner the names of insurance producers who fail to cooperate or who appear to fail to make reasonable efforts on behalf of applicants for insurance to obtain insurance in the normal market.
(2) Assessments upon each insurer participating in this program shall be levied by the facility on the same percentage allocation basis as the insurer's premiums written bears to the total of all premiums written by all insurers participating in the program.
(a) The maximum limit of liability that may be placed through this program on any one property at one location is $1,500,000. The facility undertakes the responsibility of seeking to place that portion of a risk that exceeds $1,500,000.
(b) The term "at one location" as used in this chapter refers to real and personal property consisting of and contained in a single building, or consisting of and contained in contiguous buildings under one ownership.
[Statutory Authority: RCW 48.02.060 (3)(a) and 48.17.010(5). WSR 11-01-159 (Matter No. R 2010-09), § 284-19-070, filed 12/22/10, effective 1/22/11. Statutory Authority: RCW 48.02.060. WSR 98-13-095 (Matter No. R 98-10), § 284-19-070, filed 6/16/98, effective 7/17/98. Statutory Authority: RCW 48.01.030, 48.02.060, 48.18.480, and 48.30.020. WSR 79-08-019 (Order R 79-3), § 284-19-070, filed 7/11/79; Order R-69-1, § 284-19-070, filed 1/28/69.]
284-19-080
Procedure after inspection and submission.
(1) Within three business days after receipt of the inspection report, the facility shall notify the insured and the agent that:
(a) The risk is acceptable; or
(b) The risk will be acceptable if the improvements noted in the action report are made by the applicant and confirmed by reinspection; or
(c) The risk is not acceptable for the reasons stated in the action report.
(2) If the risk is accepted by the facility, and upon receipt of premium, the policy or binder shall be delivered within two business days. No coverage shall commence until the application is accepted and the premium paid to the facility.
(3) In the event a risk is declined because it fails to meet reasonable underwriting standards, the facility will so notify the applicant and the commissioner. Reasonable underwriting standards shall include the following:
(b) Its present use or housekeeping, such as vacancy, overcrowding, storage of rubbish or flammable materials;
(c) Other specific characteristics of ownership, condition, occupancy or maintenance which are violative of public policy and result in unreasonable exposures to loss. Neighborhood or area location or any environmental hazard beyond the control of the property owner is not an acceptable criterion for declining a risk.
(4) If the risk is conditionally declined because the property does not meet reasonable underwriting standards, but can be improved to meet such standards, the facility shall promptly advise the applicant and the commissioner what improvements noted in the action report should be made to the property. Upon completion of the improvements by the applicant or property owner, the facility will have the property promptly reinspected.
(5) If the inspection of the property reveals that there are one or more substandard conditions, surcharges shall be imposed in conformity with the substandard rating plan approved by the commissioner. In this event, the facility shall advise the applicant of what improvements, if any, the applicant may make to bring the property to insurable condition at unsurcharged rates.
[Statutory Authority: RCW 48.02.060. WSR 98-13-095 (Matter No. R 98-10), § 284-19-080, filed 6/16/98, effective 7/17/98; Order R-69-1, § 284-19-080, filed 1/28/69.]
284-19-090
Joint reinsurance association.
(1) A joint reinsurance association referred to as the association is created consisting of all insurers.
(2) The association is authorized to assume and cede reinsurance on behalf of insurers for eligible risks written by insurers through the FAIR plan. The reinsurance assumed by the association is 100% of each risk written under this program under $1,500,000.
(3) Each insurer participates in the total writings, expenses, profits and losses of the association in proportion to its premiums written.
(4) If any reinsuring member fails, by reason of insolvency, to pay its proportion of any expense or of any loss as an assuming reinsurer incurred by the facility under the program, the unpaid loss or expense shall be paid by the remaining members. Each remaining member contributes in the manner provided for in the distribution of expenses and losses under the program, deleting the proportion of the defaulting member. The facility is subrogated to the rights of the remaining members in any liquidation proceeding and has full authority on their behalf to exercise such rights in any action or proceeding.
[Statutory Authority: RCW 48.02.060. WSR 98-13-095 (Matter No. R 98-10), § 284-19-090, filed 6/16/98, effective 7/17/98; Order R-69-1, § 284-19-090, filed 1/28/69.]
284-19-100
Standard policy coverage—Coding.
All policies issued shall be for essential property insurance on standard policy forms. The policies shall be separately coded and issued for a term of one year, at rates set by the inspection bureau under filings approved by the commissioner. Individual company deviation filings shall not apply to risks written under this program.
[Statutory Authority: RCW 48.02.060. WSR 98-13-095 (Matter No. R 98-10), § 284-19-100, filed 6/16/98, effective 7/17/98; Order R-69-1, § 284-19-100, filed 1/28/69.]
284-19-110
Cancellation and nonrenewal under this program.
(1) The facility shall not cancel or nonrenew a policy issued under this program except:
(a) For cause which would have been grounds for nonacceptance of the risk under the program had the cause been known to the insurer at the time of acceptance; or
(b) For nonpayment of premium; or
(c) With the approval of the governing committee.
(2) Notice of cancellation or nonrenewal, together with a statement of the reason, shall be sent to the insured.
(3) Any cancellation or nonrenewal notice to the insured shall be accompanied by a statement that the insured has a right of appeal as provided in WAC 284-19-120.
[Statutory Authority: RCW 48.02.060. WSR 98-13-095 (Matter No. R 98-10), § 284-19-110, filed 6/16/98, effective 7/17/98; Order R-69-1, § 284-19-110, filed 1/28/69.]
284-19-120
(1) Any applicant or insurer has a right of appeal to the committee, including the right to appear in person before the committee, if requested by the party seeking appeal.
(2) A decision of the committee may be appealed to the commissioner.
(3) Each denial of insurance under this program shall be accompanied by a statement setting forth the provisions of this section.
(4) Notification of appeal may be made to the committee through the manager of the facility or any member of the committee.
(5) All appeals to the committee or to the commissioner shall be in writing and must indicate in what respect the applicant feels aggrieved.
(6) The committee shall make decisions in writing on appeals within fifteen business days after notification of appeal is received, unless delayed by mutual consent. The majority of committee members must concur in all decisions adverse to the party seeking appeal.
(7) Appeals to the commissioner under this program, in all other respects not set forth in this chapter, shall be handled in accordance with chapters 48.04 and 34.05 RCW (Administrative Procedure Act).
[Statutory Authority: RCW 48.02.060. WSR 98-13-095 (Matter No. R 98-10), § 284-19-120, filed 6/16/98, effective 7/17/98; Order R-69-1, § 284-19-120, filed 1/28/69.]
284-19-130
Commission under this program shall be 10 percent on the policy premium and paid to the licensed producer designated by the applicant.
[Statutory Authority: RCW 48.02.060. WSR 98-13-095 (Matter No. R 98-10), § 284-19-130, filed 6/16/98, effective 7/17/98; Order R-69-1, § 284-19-130, filed 1/28/69.]
284-19-140
284-19-150
284-19-160
(1) The committee shall meet as often as may be required to perform the general duties of the administration of the program or on the call of the commissioner. Three insurers of the committee shall constitute a quorum.
(2) The committee may appoint a manager to budget expenses, levy assessments, disburse funds and perform all other duties provided in this chapter or necessary or incidental to the proper administration of the program. The manager serves at the pleasure of the committee. The adoption of or substantive changes in pension plans or employee benefit programs is subject to approval of the insurers. Assessments upon each insurer shall be levied on the basis of its premiums written.
(3) Annually the manager prepares an operating budget that is subject to approval of the committee. The budget shall be furnished to the insurers after approval. Any contemplated expenditure in excess of or not included in the annual budget requires prior approval by the committee.
(4) The committee furnishes to all insurers and to the commissioner a written report of operations annually in a form and detail as the committee may determine.
[Statutory Authority: RCW 48.02.060. WSR 98-13-095 (Matter No. R 98-10), § 284-19-160, filed 6/16/98, effective 7/17/98; Order R-69-1, § 284-19-160, filed 1/28/69.]
284-19-165
Cooperation of producers.
All licensed insurance producers shall provide full cooperation in carrying out the aims and the operation of the FAIR plan.
[Statutory Authority: RCW 48.02.060 (3)(a) and 48.17.010(5). WSR 11-01-159 (Matter No. R 2010-09), § 284-19-165, filed 12/22/10, effective 1/22/11; Order R-69-1, § 284-19-165, filed 1/28/69.]
284-19-170
Public education and notices required.
(1) All insurers shall undertake a continuing public education program in cooperation with producers and others, to assure that the program receives adequate public attention.
[Statutory Authority: RCW 48.02.060 and 48.22.105. WSR 12-19-081 (Matter No. R 2012-13), § 284-19-170, filed 9/18/12, effective 4/1/13. Statutory Authority: RCW 48.02.060. WSR 98-13-095 (Matter No. R 98-10), § 284-19-170, filed 6/16/98, effective 7/17/98; Order R 77-1, § 284-19-170, filed 3/24/77; Order R-69-1, § 284-19-170, filed 1/28/69.]
284-19-180
Statistics, records and reports.
(1) Statistics. The facility shall maintain separate statistics on business written in accordance with this plan. The facility shall make:
(a) A quarterly report to the commissioner including:
(i) Number of requests for inspections,
(ii) Number of risks inspected,
(iii) The number of risks accepted, total and average premiums charged, high and low premiums,
(iv) The number of risks declined, and
(v) The number of reinspections made on conditionally declined risks.
(b) Additional reports as required by the commissioner.
(2) Records. The facility shall maintain complete and separate records of all business transactions, including copies of all policies and endorsements issued in accordance with this plan.
(3) Reports to members. Regular reports of the facility's operations shall be submitted to all members by the committee. The reports shall include:
(a) Premiums written and earned;
(b) Losses, including loss adjustment expense, paid and incurred;
(c) All other expenses incurred; and
(d) Outstanding liabilities.
[Statutory Authority: RCW 48.02.060. WSR 98-13-095 (Matter No. R 98-10), § 284-19-180, filed 6/16/98, effective 7/17/98; Order R-69-1, § 284-19-180, filed 1/28/69.]