Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-22 - USL&H assigned risk plan › Section 284-22-070 - Administration

Current through Register Vol. 24-14, July 15, 2024
(1) The governing
			 committee shall be responsible for the administration of the assigned risk
			 plan.
(2) The committee shall meet
			 at least once each calendar quarter. Seven members shall constitute a quorum,
			 provided that the department of labor and industries and each of the defined
			 interest groups must be represented.
(3) Members of the governing committee shall
			 serve without compensation. However, each person serving on the governing
			 committee or any subcommittee thereof shall be indemnified by the assigned risk
			 plan for all costs and expenses actually and necessarily incurred in connection
			 with the defense of any action, suit, or proceeding in which such person is a
			 named party by reason of being a member of the governing committee. This
			 indemnification shall not apply in those instances in which the person has been
			 judged in such action, suit, or proceeding to be liable by reason of willful
			 misconduct in performance of his/her duties as a member of the
			 committee.
(4) The committee shall:
(a) Select a presiding officer.
(b) Draft and submit to the commissioner for
			 approval operating procedures for the assigned risk plan. Such procedures shall
			 be drafted to carry out the purposes of chapter 209, Laws of 1992. These
			 procedures shall include, but are not limited to, provisions:
(i) Defining the specific conditions under
			 which employers become eligible for coverage.
(ii) Defining the role and functions of the
			 administrator.
(iii) Defining the
			 role and function of the servicing carrier(s). These roles shall include the
			 requirement that the servicing(s) carrier file the assigned risk plan's policy
			 forms and rates with the commissioner, on its behalf, prior to use.
(iv) Establishing specific procedures for the
			 control of the assigned risk plan's funds. These procedures shall ensure that
			 anyone handling funds do so responsibly.
(v) Defining standard policy forms similar to
			 those used for USL&H and maritime employers' liability coverage in the
			 voluntary market within Washington and requiring the use of such forms by the
			 servicing carrier(s).
(vi) Defining
			 how the rates to be used by the servicing carrier(s) shall be established. The
			 procedures shall require that rates be developed in an actuarially sound
			 manner. They must also require that the servicing carrier(s) use these rates
			 when issuing assigned risk policies.
(vii) Establishing how an applicant's
			 eligibility for maritime employers' liability will be determined. The procedure
			 must provide an eligibility test to be applied at the time of acceptance of the
			 applicant for such coverage and not upon receipt of notice of a
			 claim.
(viii) Defining the limits
			 of maritime employers' liability coverage to be offered by the assigned risk
			 plan. The assigned risk plan must offer such coverage with limits up to one
			 hundred thousand dollars per occurrence. It may provide higher limits if the
			 governing committee deems such limits are necessary to promote its
			 purpose.
(ix) Defining a procedure
			 under which appeals received from applicants, persons insured, or participating
			 insurers aggrieved by any action or decision of the assigned risk plan will be
			 received, investigated, and resolved.
(c) Select an administrator.
(d) Select the servicing
			 carrier(s).
(e) Retain such
			 accounting, actuarial, clerical, professional, or other services as the
			 committee deems necessary to operate the assigned risk plan in a sound and
			 competent manner.
(f) Maintain
			 separate statistics on business written by the assigned risk plan. These
			 statistics shall be in sufficient detail to permit the committee and the
			 commissioner to determine the financial condition of the plan when necessary.
			 In any event, the committee shall make quarterly reports to the commissioner
			 providing the following information:
(i) The
			 number of applications received by the administrator.
(ii) The number of policies issued.
(iii) The amount of premiums written during
			 the previous quarter and year-to-date.
(iv) The amount of losses incurred and paid,
			 and allocated loss adjustment expense incurred and paid during the previous
			 quarter and year-to-date.
(g) Initiate and carry out, with the approval
			 of the commissioner, such interim and regular assessments of those
			 participating in the assigned risk plan as may be necessary and reasonable for
			 its operation in a sound and competent manner.
(h) Take such other actions as the committee
			 considers necessary and appropriate to properly administer the activities of
			 the assigned risk plan.