reglab/statecodes huggingface dataset:
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-13 - Assets-Liabilities-Investments and reinsurance › CREDIT FOR REINSURANCE › Section 284-13-550 - Trust agreements qualified under WAC 284-13-540

Current through Register Vol. 24-14, July 15, 2024
(1) As used in this section:
(a) "Beneficiary" means the entity for whose
				sole benefit the trust has been established and any successor of the
				beneficiary by operation of law. If a court of law appoints a successor in
				interest to the named beneficiary, then the named beneficiary includes and is
				limited to the court appointed domiciliary receiver (including conservator,
				rehabilitator, or liquidator).
(b)
				"Grantor" means the entity that has established a trust for the sole benefit of
				the beneficiary. When established in conjunction with a reinsurance agreement,
				the grantor is the unlicensed, unaccredited insurer.
(c) "Obligations," as used in subsection
				(2)(k) of this section, means:
(i) Reinsured
				losses and allocated loss expenses paid by the ceding company, but not
				recovered from the assuming insurer;
(ii) Reserves for reinsured losses reported
				and outstanding;
(iii) Reserves for
				reinsured losses incurred but not reported; and
(iv) Reserves for allocated reinsured loss
				expenses and unearned premiums.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-13 - Assets-Liabilities-Investments and reinsurance › CREDIT FOR REINSURANCE › Section 284-13-570 - Other security

Current through Register Vol. 24-14, July 15, 2024
A ceding insurer may take credit for unencumbered funds
				  withheld by the ceding insurer in the United States subject to withdrawal
				  solely by the ceding insurer and under its exclusive control.
Statutory Authority:
					 RCW
					  48.02.060,
					 48.12.160 and 1996 c 297 § 2.
					 97-05-012 (Matter No. R 96-10), §
											284-13-570, filed 2/10/97,
					 effective 3/13/97. Statutory Authority:
					 RCW
					  48.02.060 and
					 48.12.160. 93-19-002 (Order R
					 93-6), §
											284-13-570, filed 9/1/93,
					 effective 10/2/93.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-13 - Assets-Liabilities-Investments and reinsurance › CREDIT FOR REINSURANCE › Section 284-13-580 - Reinsurance contract

Current through Register Vol. 24-14, July 15, 2024
Credit will not be granted, nor an asset or reduction from
				  liability allowed, to a ceding insurer for reinsurance effected with assuming
				  insurers meeting the requirements of WAC
				  284-13-510, 284-13-516,
				  284-13-517,
				  284-13-520,
				  284-13-530, 284-13-531,
				  284-13-532, 284-13-533,
				  284-13-535, 284-13-536,
				  284-13-537, 284-13-538, 284-13-539, or
				  284-13-540 or otherwise is in
				  compliance with
				  RCW
				   48.12.405 through
				  48.12.455, after the adoption of
				  WAC 284-13-500 through
				  284-13-590 unless the reinsurance
				  agreement:
(1) Includes a proper
				insolvency clause, which stipulates that reinsurance is payable directly to
				the liquidator or successor without diminution regardless of the status of the
				ceding insurer under
				RCW
				 48.31.135;
(2) Includes a provision under
				RCW
				 48.12.405 through
				48.12.455, whereby the assuming
				insurer, if an unauthorized assuming insurer, has submitted to the jurisdiction
				of an alternative dispute resolution panel or court of competent jurisdiction
				within the United States, has agreed to comply with all requirements necessary
				to give such court or panel jurisdiction, has designated an agent upon whom
				service of process may be effected, and has agreed to abide by the final
				decision of such court or panel; and
(3) Includes a proper reinsurance
				intermediary clause, if applicable, that stipulates that the credit risk for
				the intermediary is carried by the assuming insurer.
Statutory Authority:
					 RCW
					  48.02.060,
					 48.12.154. 05-02-075 (Matter No. R
					 2004-06), §
											284-13-580, filed 1/4/05,
					 effective 2/4/05. Statutory Authority:
					 RCW
					  48.02.060 and
					 48.12.160. 93-19-002 (Order R
					 93-6), §
											284-13-580, filed 9/1/93,
					 effective 10/2/93.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-13 - Assets-Liabilities-Investments and reinsurance › CREDIT FOR REINSURANCE › Section 284-13-590 - Contracts affected

Current through Register Vol. 24-14, July 15, 2024
All new and renewal reinsurance transactions entered into
				  after December 31, 2015, must conform to the requirements of
				  RCW
				   48.12.400 through
				  48.12.499, and WAC
				  284-13-500 through
				  284-13-590 if credit is to be
				  given to the ceding insurer for the reinsurance.
Statutory Authority:
					 RCW
					  48.02.060,
					 48.12.160 and 1996 c 297 § 2.
					 97-05-012 (Matter No. R 96-10), §
											284-13-590, filed 2/10/97,
					 effective 3/13/97. Statutory Authority:
					 RCW
					  48.02.060 and
					 48.12.160. 93-19-002 (Order R
					 93-6), §
											284-13-590, filed 9/1/93,
					 effective 10/2/93.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-13 - Assets-Liabilities-Investments and reinsurance › CREDIT FOR REINSURANCE › Section 284-13-595 - Form AR-1

Current through Register Vol. 24-14, July 15, 2024
FORM AR-1
CERTIFICATE OF ASSUMING INSURER
I, ___________________,
								________________________
(name of officer)
(title of officer)
of
								_____________________________________________,
(name of assuming insurer)
the assuming insurer under a reinsurance agreement
								with one or more insurers domiciled in Washington, hereby certify that:
_____________________________ ("Assuming
								Insurer"):
(name of assuming insurer)
1. Submits to
				the jurisdiction of any court of competent jurisdiction in the State of
				Washington for the adjudication of any issues arising out of the reinsurance
				agreement, agrees to comply with all requirements necessary to give the court
				jurisdiction, and will abide by the final decision of the court or any
				appellate court in the event of an appeal. Nothing in this paragraph
				constitutes or should be understood to constitute a waiver of Assuming
				Insurer's rights to commence an action in any court of competent jurisdiction
				in the United States, to remove an action to a United States District Court, or
				to seek a transfer of a case to another court as permitted by the laws of the
				United States or of any state in the United States. This paragraph is not
				intended to conflict with or override the obligation of the parties to the
				reinsurance agreement to arbitrate their disputes if the obligation is created
				in the agreement.
2. Designates
				the Insurance Commissioner of the State of Washington as its lawful attorney
				upon whom may be served any lawful process in any action, suit or proceeding
				arising out of the reinsurance agreement instituted by or on behalf of the
				ceding insurer.
3. Submits to the
				authority of the Insurance Commissioner of the State of Washington to examine
				its books and records and agrees to bear the expense of the
				examination.
4. Submits with this
				form a current list of insurers domiciled in the State of Washington reinsured
				by Assuming Insurer and undertakes to submit additions to or deletions from the
				list to the Insurance Commissioner at least once per calendar quarter.
Dated: _______________
								________________________
(name of assuming insurer)
BY: ________________________________
(name of officer)
__________________________
(title of officer)
Statutory Authority:
					 RCW
					  48.02.060,
					 48.12.160 and 1996 c 297 § 2.
					 97-05-012 (Matter No. R 96-10), §
											284-13-595, filed 2/10/97,
					 effective 3/13/97.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-13 - Assets-Liabilities-Investments and reinsurance › REINSURANCE INTERMEDIARIES › Section 284-13-700 - Definitions

Current through Register Vol. 24-14, July 15, 2024
(1) Terms used in
				this regulation (WAC
				284-13-700 through
				284-13-760)  that are defined in
				the Reinsurance Intermediary Act chapter 48.94 RCW ("the act") have the meaning
				stated there.
(2) Whether a person
				is an "employee" of the reinsurer for purposes of
				RCW
				 48.94.005(7)(a) depends on
				the facts and is not controlled by a mere labeling of the person as an employee
				in an agreement.
(3) A reinsurer is
				"licensed in this state" for purposes of
				RCW
				 48.94.005(8) when it holds a
				certificate of authority to transact the relevant line of insurance.
Statutory Authority:
					 RCW
					 48.02.060,
					 48.94.055, and
					 48.94.010. 09-24-102 (Matter No. R
					 2009-11), §
											284-13-700, filed 12/2/09,
					 effective 1/2/10. Statutory Authority:
					 RCW
					  48.02.060 and 1993 c 462 § 33. 93-19-011
					 (Order R 93-15), §
											284-13-700, filed 9/1/93,
					 effective 10/2/93.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-13 - Assets-Liabilities-Investments and reinsurance › REINSURANCE INTERMEDIARIES › Section 284-13-710 - Applications for license

Current through Register Vol. 24-14, July 15, 2024
An application for a license as a reinsurance intermediary by
				  a firm or association may name the members and the designated employees to be
				  authorized to act as reinsurance intermediaries under the license. If those
				  persons are not named on the application or a supplement to it, then the
				  application must be accompanied by a letter or other document identifying those
				  persons and signed by an officer of the firm or association.
Statutory Authority:
					 RCW
					 48.02.060 and 1993 c 462 § 33. 93-19-011
					 (Order R 93-15), §
											284-13-710, filed 9/1/93,
					 effective 10/2/93.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-13 - Assets-Liabilities-Investments and reinsurance › REINSURANCE INTERMEDIARIES › Section 284-13-715 - Changes to information contained in an application for license

Current through Register Vol. 24-14, July 15, 2024
A licensed reinsurance intermediary must notify the
				  commissioner within fifteen business days after occurrence of material changes
				  to the information that was included in the application. For example this
				  includes, but is not limited to, a change to:
(1) The reinsurance intermediary's legal
				name;
(2) The reinsurance
				intermediary's formation documents if it is a business entity;
(3) The reinsurance intermediary's registered
				address;
(4) Individuals authorized
				to act under the license; and
(5)
				The reinsurance intermediary's designation to receive service of
				process.
Statutory Authority:
					 RCW
					 48.02.060,
					 48.94.055, and
					 48.94.010. 09-24-102 (Matter No. R
					 2009-11), §
											284-13-715, filed 12/2/09,
					 effective 1/2/10.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-13 - Assets-Liabilities-Investments and reinsurance › REINSURANCE INTERMEDIARIES › Section 284-13-720 - Financial statement of reinsurance intermediary-manager

Current through Register Vol. 24-14, July 15, 2024
A reinsurer shall obtain from each reinsurance
				  intermediary-manager, and a reinsurance intermediary-manager shall give to the
				  reinsurer, annual statements of financial condition prepared by an independent
				  certified public accountant. The form of the statements shall be such that the
				  statements clearly show the results of operations, and the assets, liabilities,
				  and equity of the reinsurance intermediary-manager. Nothing in the act or this
				  regulation (WAC
				  284-13-700 through
				  284-13-760)  prevents a reinsurer
				  from requiring additional information, more detail, or a specified format so
				  long as that specified format at least meets the requirements of this
				  section.
Statutory Authority:
					 RCW
					 48.02.060,
					 48.94.055, and
					 48.94.010. 09-24-102 (Matter No. R
					 2009-11), §
											284-13-720, filed 12/2/09,
					 effective 1/2/10. Statutory Authority:
					 RCW
					  48.02.060 and 1993 c 462 § 33. 93-19-011
					 (Order R 93-15), §
											284-13-720, filed 9/1/93,
					 effective 10/2/93.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-13 - Assets-Liabilities-Investments and reinsurance › REINSURANCE INTERMEDIARIES › Section 284-13-730 - Submission and approval of contracts between reinsurers and reinsurance intermediary - Managers

Current through Register Vol. 24-14, July 15, 2024
Contracts filed for approval under
				  RCW
				   48.94.030 must include the provisions
				  required by that section. If those provisions are not in the order given in
				  that section, or if any other provisions precede or separate any of those
				  required provisions, then the submitted contract shall be accompanied by a
				  statement showing where in the contract each required provision
				  is.
Statutory Authority:
					 RCW
					 48.02.060,
					 48.94.055, and
					 48.94.010. 09-24-102 (Matter No. R
					 2009-11), §
											284-13-730, filed 12/2/09,
					 effective 1/2/10. Statutory Authority:
					 RCW
					  48.02.060 and 1993 c 462 § 33. 93-19-011
					 (Order R 93-15), §
											284-13-730, filed 9/1/93,
					 effective 10/2/93.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-13 - Assets-Liabilities-Investments and reinsurance › REINSURANCE INTERMEDIARIES › Section 284-13-740 - Reporting of claims

Current through Register Vol. 24-14, July 15, 2024
The reporting threshold under
				  RCW
				   48.94.030(9)(b)(v) is the
				  lesser of fifty thousand dollars or an amount set by the
				  reinsurer.
Statutory Authority:
					 RCW
					 48.02.060,
					 48.94.055, and
					 48.94.010. 09-24-102 (Matter No. R
					 2009-11), §
											284-13-740, filed 12/2/09,
					 effective 1/2/10. Statutory Authority:
					 RCW
					  48.02.060 and 1993 c 462 § 33. 93-19-011
					 (Order R 93-15), §
											284-13-740, filed 9/1/93,
					 effective 10/2/93.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-13 - Assets-Liabilities-Investments and reinsurance › REINSURANCE INTERMEDIARIES › Section 284-13-750 - Reporting of discipline in another jurisdiction

Current through Register Vol. 24-14, July 15, 2024
A reinsurance intermediary, or a pending applicant, must
				  notify the commissioner within fifteen business days of a disciplinary action
				  taken against it by another governmental jurisdiction.
Statutory Authority:
					 RCW
					 48.02.060,
					 48.94.055, and
					 48.94.010. 09-24-102 (Matter No. R
					 2009-11), §
											284-13-750, filed 12/2/09,
					 effective 1/2/10.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-13 - Assets-Liabilities-Investments and reinsurance › REINSURANCE INTERMEDIARIES › Section 284-13-760 - Reporting of a felony conviction

Current through Register Vol. 24-14, July 15, 2024
A person holding a reinsurance intermediary license, or a
				  pending applicant, convicted of any felony involving dishonesty or a breach of
				  trust, or convicted of an offense under the Violent Crime Control and Law
				  Enforcement Act of 1994 (108 Stat. 2115;  18 U.S.C. Sec. 1033) must notify the
				  commissioner of the conviction within fifteen business days after the
				  conviction.
Statutory Authority:
					 RCW
					 48.02.060,
					 48.94.055, and
					 48.94.010. 09-24-102 (Matter No. R
					 2009-11), §
											284-13-760, filed 12/2/09,
					 effective 1/2/10.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-13 - Assets-Liabilities-Investments and reinsurance › REINSURANCE INTERMEDIARIES › Section 284-13-850 - Scope

Current through Register Vol. 24-14, July 15, 2024
(1) The insurance
				commissioner recognizes that licensed insurers routinely enter into reinsurance
				agreements that yield legitimate relief to the ceding insurer from strain to
				surplus. It is improper, however, for an authorized insurer, in the capacity of
				ceding insurer, to enter into reinsurance agreements for the principal purpose
				of producing significant surplus aid for the ceding insurer, typically on a
				temporary basis, while not transferring all of the significant risks inherent
				in the business being reinsured. In substance or effect, the expected potential
				liability to the ceding insurer remains basically unchanged by the reinsurance
				transaction, notwithstanding certain risk elements in the reinsurance
				agreement, such as catastrophic mortality or extraordinary survival.
(2) This regulation (WAC
				284-13-850 through
				284-13-863)  applies to all
				domestic life and disability insurers and to all other licensed life and
				disability insurers which are not subject to a similar regulation in their
				domiciliary state. This regulation also applies to the disability insurance
				policies issued by authorized property and casualty insurers. This regulation
				does not apply to assumption reinsurance, yearly renewable term reinsurance or
				nonproportional reinsurance (such as stop loss or catastrophe
				reinsurance).
Statutory Authority:
					 RCW
					 48.02.060,
					 48.05.250 and
					 48.05.400. 95-19-018 (Order 95-4),
					 §
											284-13-850, filed 9/8/95,
					 effective 10/9/95.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-13 - Assets-Liabilities-Investments and reinsurance › REINSURANCE INTERMEDIARIES › Section 284-13-860 - Written agreements

Current through Register Vol. 24-14, July 15, 2024
(1) No
				reinsurance agreement or amendment to any agreement may be used to reduce any
				liability or to establish any asset in any financial statement filed with the
				commissioner, unless the agreement, amendment, or a binding letter of intent
				has been executed by both parties no later than the "as of date" of the
				financial statement.
(2) In the
				case of a letter of intent, a reinsurance agreement or an amendment to a
				reinsurance agreement must be executed within a reasonable period of time, not
				exceeding ninety days from the execution date of the letter of intent, in order
				for credit to be granted for the reinsurance ceded.
(3) The reinsurance agreement shall contain
				provisions which provide that:
(a) The
				agreement shall constitute the entire agreement between the parties with
				respect to the business being reinsured thereunder and that there are no
				understandings between the parties other than as expressed in the agreement;
				and
(b) Any change or modification
				to the agreement shall be null and void unless made by amendment to the
				agreement and signed by the parties.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-13 - Assets-Liabilities-Investments and reinsurance › REINSURANCE INTERMEDIARIES › Section 284-13-863 - Existing agreements

Current through Register Vol. 24-14, July 15, 2024
Insurers subject to this regulation shall reduce to zero by
				  December 31, 1996, any reserve credits or assets established with respect to
				  reinsurance agreements entered into prior to the effective date of this
				  regulation which under the provisions of this regulation would not be entitled
				  to recognition of the reserve credits or assets; provided however that: The
				  reinsurance agreements are in compliance with laws or regulations in existence
				  immediately preceding the effective date of this regulation.
Statutory Authority:
					 RCW
					 48.02.060,
					 48.05.250 and
					 48.05.400. 95-19-018 (Order 95-4),
					 §
											284-13-863, filed 9/8/95,
					 effective 10/9/95.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-13 - Assets-Liabilities-Investments and reinsurance › DERIVATIVE INSTRUMENTS › Section 284-13-900 - Purpose

Current through Register Vol. 24-14, July 15, 2024
The purpose of this rule is to set standards for the prudent
				  use of hedging and income generation derivative instruments under
				  RCW
				   48.13.171.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-13 - Assets-Liabilities-Investments and reinsurance › DERIVATIVE INSTRUMENTS › Section 284-13-920 - Derivative transactions

Current through Register Vol. 24-14, July 15, 2024
(1) An
				insurer may, directly or indirectly through an investment subsidiary, only
				engage in hedging and income generation derivative transactions. Use of
				derivative instruments for replication, speculative or any other purpose is
				prohibited.
(2) An insurer may
				enter into hedging transactions under this section if, as a result of and after
				giving effect to the transaction, the insurer can demonstrate to the
				satisfaction of the commissioner the intended hedging characteristics and
				ongoing effectiveness of the derivative transaction or combination of
				transactions through cash flow testing or other appropriate analysis.
(3) An insurer may only enter into covered
				income generation transactions if, as a result of and after giving effect to
				the transactions, the aggregate statement value of the fixed income assets that
				are subject to call or that generate the cash flows for payments under the caps
				and floors, plus the face value of the fixed income securities underlying a
				derivative instrument subject to call plus the amount of the purchase
				obligations under the puts, does not exceed
				chapter
				48.13 RCW
				limitations.
(4) An insurer must
				include all counterparty exposure amounts in determining compliance with
				general diversification requirements and medium and low-grade investment
				limitations under
				chapter
				48.13 RCW.
(5) Side-letter or similar agreements that
				directly or indirectly alter the original derivative transaction in any way are
				prohibited.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-13 - Assets-Liabilities-Investments and reinsurance › DERIVATIVE INSTRUMENTS › Section 284-13-930 - Guidelines and internal control procedures

Current through Register Vol. 24-14, July 15, 2024
(1) Before engaging in a derivative
				transaction, an insurance company must establish written guidelines approved by
				the commissioner, that must be used for effecting and maintaining derivative
				transactions. The guidelines must:
(a)
				Specify insurance company objectives for engaging in derivative transactions
				and derivative strategies and all applicable risk constraints, including credit
				risk limits;
(b) Establish
				counterparty exposure limits and credit quality standards;
(c) Identify permissible derivative
				transactions and the relationship of those transactions to insurance company
				operations; for example, a precise identification of the risks being hedged by
				a derivative transaction; and
(d)
				Require compliance with internal control procedures.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-13 - Assets-Liabilities-Investments and reinsurance › DERIVATIVE INSTRUMENTS › Section 284-13-940 - Commissioner approval

Current through Register Vol. 24-14, July 15, 2024
Written documentation explaining the insurance company's
				  internal guidelines and controls governing derivative transactions must be
				  submitted for approval to the commissioner. The commissioner shall have
				  authority to disapprove the guidelines and controls proposed by the company if
				  the insurance company cannot demonstrate the proposed internal guidelines and
				  controls would be adequate to manage the risks associated with the derivative
				  transactions the insurance company intends to engage in.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-13 - Assets-Liabilities-Investments and reinsurance › DERIVATIVE INSTRUMENTS › Section 284-13-950 - Documentation requirements

Current through Register Vol. 24-14, July 15, 2024
An insurance company must maintain all documentation and
				  records relating to each derivative transaction, such as:
(1) The purpose or purposes of the
				transaction;
(2) The assets or
				liabilities to which the transaction relates;
(3) The specific derivative instrument used
				in the transaction;
(4) For
				over-the-counter derivative instrument transactions, the name of the
				counterparty and the market value; and
(5) For exchange traded derivative
				instruments, the name of the exchange and the name of the firm that handled the
				trade and the market value.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-13 - Assets-Liabilities-Investments and reinsurance › DERIVATIVE INSTRUMENTS › Section 284-13-960 - Trading requirements

Current through Register Vol. 24-14, July 15, 2024
Each derivative instrument must be:
(1) Traded on a qualified exchange;
(2) Entered into with, or guaranteed by, a
				business entity;
(3) Issued or
				written with the issuer of the underlying interest on which the derivative
				instrument is based; or
(4) Entered
				into with a qualified foreign exchange.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-15 - Surplus line insurance › Section 284-15-010 - Brokers-Surplus line brokers-Qualifications and examination

Current through Register Vol. 24-14, July 15, 2024
Each applicant for a resident surplus line broker's license
				must take and pass the required examination, meet the additional producer
				licensing requirement per
				RCW
				 48.15.070 and pay the required fee prior to
				acting as a surplus line broker. The examination will test an applicant's
				qualifications and competence in all areas of surplus line insurance. Current
				information about testing procedures and examination dates is available on the
				commissioner's web site at:
www.insurance.wa.gov
.
Statutory Authority:
				  RCW
				   48.02.060,
				  48.17.005. 09-02-073 (Matter No. R
				  2008-06), §
										284-15-010, filed 1/6/09,
				  effective 7/1/09. Statutory Authority:
				  RCW
				   48.02.060,
				  48.15.040(4), 48.15.073(2), and
				  48.15.160(2).
				  08-14-169 (Matter No. R 2008-04), §
										284-15-010, filed 7/2/08,
				  effective 8/2/08. Statutory Authority:
				  RCW
				   48.02.060. 81-03-082 (Order R 81-1), §
										284-15-010, filed
				  1/21/81.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-15 - Surplus line insurance › Section 284-15-015 - Procurement of insurance from an unauthorized insurer by an unlicensed person prohibited

Current through Register Vol. 24-14, July 15, 2024
(1)
			 "Procured" as used in chapter 48.15 RCW and chapter 284-15 WAC means the act or
			 acts necessary to obtain insurance coverage.
(2) A surplus line broker licensed under
			 chapter 48.15 RCW must not assist a person in complying with the requirements
			 of RCW
			  48.15.040 if the person:
(a) Is not licensed under chapter 48.15
			 RCW;
(b) Obtains insurance coverage
			 from an unauthorized insurer; and
(c) Fails to procure the insurance coverage
			 through a surplus line broker licensed under chapter 48.15 RCW.
This subsection applies without limitation to the services of a
				courtesy filer.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-15 - Surplus line insurance › Section 284-15-020 - Surplus line broker - Solvent insurer required

Current through Register Vol. 24-14, July 15, 2024
(1) A surplus line broker must not knowingly
			 place surplus line insurance with financially unsound insurers. Foreign
			 insurers must meet or exceed the minimum financial and other conditions
			 required by
			 RCW
			  48.15.090.
(2) A surplus line broker must substantiate
			 the financial condition of a foreign unauthorized insurer before placing
			 insurance with the insurer. The broker must also maintain evidence of the
			 financial condition of the insurer for at least five years.
(3) A surplus line broker may place insurance
			 with an alien unauthorized insurer shown on the National Association of
			 Insurance Commissioners (NAIC) Quarterly Listing of Alien Insurers. The
			 financial condition of an insurer named on the listing is deemed to be
			 adequately documented.
Statutory Authority:
				  RCW
				  48.02.060,
				  48.15.040(4), and
				  48.15.090(2).
				  12-04-082 (Matter No. R 2011-10), §
										284-15-020, filed 1/31/12,
				  effective 3/2/12. Statutory Authority:
				  RCW
				   48.02.060,
				  48.15.040(4),
				  48.15.073(2), and
				  48.15.160(2).
				  08-14-169 (Matter No. R 2008-04), §
										284-15-020, filed 7/2/08,
				  effective 8/2/08. Statutory Authority:
				  RCW
				  48.02.060. 81-03-082 (Order R 81-1), §
										284-15-020, filed
				  1/21/81.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-15 - Surplus line insurance › Section 284-15-035 - Exempt commercial purchasers

Current through Register Vol. 24-14, July 15, 2024
A surplus line broker who has procured insurance with an
				unauthorized insurer for an exempt commercial purchaser must file with the
				commissioner within sixty days of the procurement (binding or effective date,
				whichever is later) of the insurance a report of the insurance. The report must
				be in a format acceptable to the commissioner. The report must include the
				following information:
(1) Policy or
			 certificate number;
(2) Premium,
			 including any policy fee;
(3) Name
			 and license number of the filing surplus line broker;
(4) Name and address of referring insurance
			 producer (if any);
(5) Name(s) of
			 unauthorized insurer(s);
(6) Name
			 and address of insured;
(7) Binding
			 or effective date, whichever is later;
(8) Brief statement of coverages (common
			 terms may be used); and
(9) Other
			 information as required by the commissioner.
Statutory Authority:
				  RCW
				  48.02.060,
				  48.15.040(4), and
				  48.15.090(2).
				  12-04-082 (Matter No. R 2011-10), §
										284-15-035, filed 1/31/12,
				  effective 3/2/12.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-15 - Surplus line insurance › Section 284-15-040 - Form for surplus line insurer to designate person to receive legal process

Current through Register Vol. 24-14, July 15, 2024
(1)RCW
			  48.15.150 permits service of legal process
			 against an unauthorized insurer to be made upon the commissioner. The
			 commissioner will mail the documents of process to the insurer at its principal
			 place of business last known to the commissioner, or to a person designated by
			 the insurer for that purpose in the most recent document filed with the
			 commissioner on a form prescribed by the commissioner. If an unauthorized
			 insurer elects to designate a person to receive legal process from the
			 commissioner, the designation must be in writing and filed with the
			 commissioner in substantially the form set forth on the commissioner's web site
			 at:
www.insurance.wa.gov
.
(2) The person designated by the insurer to
			 receive legal process may be an individual, firm or corporation.
(3) The process documents will be forwarded
			 by the commissioner to the person designated in the most recent notice filed
			 with the commissioner.
(4) As
			 specified in
			 RCW
			  48.15.150, each policy issued by an
			 unauthorized insurer as a surplus line contract must designate the commissioner
			 as the person upon whom service of process may be made.
Statutory Authority:
				  RCW
				  48.02.060,
				  48.15.040(4), 48.15.073(2), and
				  48.15.160(2).
				  08-14-169 (Matter No. R 2008-04), §
										284-15-040, filed 7/2/08,
				  effective 8/2/08. Statutory Authority:
				  RCW
				  48.02.060. 06-12-077 (Matter No. R 2006-04),
				  §
										284-15-040, filed 6/6/06,
				  effective 7/7/06; 81-03-082 (Order R 81-1), §
										284-15-040, filed
				  1/21/81.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-15 - Surplus line insurance › Section 284-15-050 - Surplus line - Waiver of financial requirements

Current through Register Vol. 24-14, July 15, 2024
(1) The commissioner may waive the financial
			 requirements specified in
			 RCW
			  48.15.090 in circumstances where insurance
			 cannot be otherwise procured on risks located in this state. Except as set
			 forth in (e) of this subsection, at least the following information must be
			 submitted when a surplus line broker requests the commissioner to waive the
			 financial requirements:
(a) A detailed letter
			 explaining the need to waive the financial requirements;
(b) Documentation of the financial condition
			 of the proposed insurer as reported in its annual statement as of the end of
			 the preceding calendar year;
(c)
			 Summary information showing the number of years the company has been writing
			 the specific line of insurance;
(d)
			 A written acknowledgment signed by the proposed insured confirming all of the
			 following:
(i) The insured has been informed
			 that the coverage will be issued by an insurer (or insurers) that is not an
			 authorized insurer in the state of Washington;
(ii) The insured understands that financial
			 requirements for surplus line insurers must be waived by all parties concerned
			 to enable this coverage to be obtained; and
(iii) The insured understands that there is
			 no protection for the insured under the Washington Insurance Guaranty
			 Association because the coverage will be issued by an unauthorized
			 insurer;
(e) For
			 accounts requiring a multiplicity of insurers, in lieu of the requirements in
			 (b) and (c) of this subsection, the commissioner may accept certification from
			 a surplus line broker that the broker has investigated the financial condition
			 of the prospective insurers and is satisfied that they are capable of
			 underwriting the specified risks. Records and documents supporting the broker's
			 certification must be maintained by the broker for the term of the policies and
			 as long thereafter as a claim may be litigated, but in no case less than five
			 years after completion of the transaction.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-15 - Surplus line insurance › Section 284-15-080 - Relationship between surplus line broker and insurance producer not acting as the agent of the insured

Current through Register Vol. 24-14, July 15, 2024
When a surplus line broker accepts surplus line business from
				an insurance producer not acting as an agent of the insured, as permitted by
				RCW
				 48.15.080, acceptance of the business does
				not mean that the insurance producer has become the representative of the
				insured with respect to that business. In this circumstance:
(1) Return premiums or claim payments will
			 not be deemed to have been paid to the insured or claimant until the payments
			 are actually received by the insured or claimant.
(2) Delivery of notices involving the
			 insurance, such as cancellation or renewal notices, will not be deemed to have
			 been made until actually received by the insured.
Statutory Authority:
				  RCW
				  48.02.060,
				  48.17.005. 09-02-073 (Matter No. R
				  2008-06), §
										284-15-080, filed 1/6/09,
				  effective 7/1/09. Statutory Authority:
				  RCW
				   48.02.060,
				  48.15.040(4), 48.15.073(2), and
				  48.15.160(2).
				  08-14-169 (Matter No. R 2008-04), §
										284-15-080, filed 7/2/08,
				  effective 8/2/08. Statutory Authority:
				  RCW
				   48.02.060, 48.05.310,
				  48.30.010 and
				  48.15.080. 91-23-032 (Order R
				  91-7), §
										284-15-080, filed 11/13/91,
				  effective 1/1/92.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-15 - Surplus line insurance › Section 284-15-110 - Surplus line insurance premium tax

Current through Register Vol. 24-14, July 15, 2024
RCW  48.15.120 requires that
				surplus line brokers must, by the first day of March, remit to the state
				treasurer through the commissioner a premium tax on surplus line insurance
				transacted by the surplus line broker during the preceding calendar year. The
				date the insurance was transacted is the date coverage is bound or the date
				coverage is effective, whichever is later.
Statutory Authority:
				  RCW
				  48.02.060,
				  48.15.040(4), and
				  48.15.090(2).
				  12-04-082 (Matter No. R 2011-10), §
										284-15-110, filed 1/31/12,
				  effective 3/2/12.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-16 - Insurers › TITLE INSURERS › Section 284-16-030 - Title insurers - Defining "complete set of tract indexes."

Current through Register Vol. 24-14, July 15, 2024
(1) The phrase "a
				complete set of tract indexes," as used in
				RCW
				 48.29.020 and
				48.29.040, is defined to mean a
				set of indexes from which the record ownership and condition of title to all
				land within the particular county can be traced and ascertained, such set of
				indexes to be complete from the inception of title from the United States of
				America.
(2) The basic component
				parts of such a set of indexes are:
(a) An
				index or indexes in which the reference is to geographic subdivisions of land,
				classified according to legal description (as distinguished from an index or
				indexes in which the reference is to the name of the title holder, commonly
				called a grantor-grantee index) wherein notations of or references to:
(i) All filed or recorded instruments
				affecting title to particularly described parcels of real property and which
				impart constructive notice under the recording laws; and
(ii) All judicial proceedings in the
				particular county affecting title to particularly described parcels of real
				property are posted, filed, entered or otherwise included in that part of the
				indexing system which designates the particular parcel of real property;
				provided, no reference need be made in such index to any judicial proceeding
				which is referred to or noted in the name index defined in subparagraph (b)
				below.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-16 - Insurers › CERTAIN REAL ESTATE ISSUES (Repealed) › Section 284-16-100 - Investments - Encumbrance - Interpretation of RCW 48.13.130 (Repealed)

Current through Register Vol. 24-14, July 15, 2024
Rule made 5/15/53, filed 3/22/60.
Reviser's note:
Subsection (1) above is an
					 interpretation of RCW  48.13.130 before it was revised by section 2, chapter
					 303, Laws of 1955. The old section contained the phrase "common to the
					 community in which the property is
					 located."
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-16 - Insurers › CERTAIN REAL ESTATE ISSUES (Repealed) › Section 284-16-110 - F.H.A. mortgage loans and investments (Repealed)

Current through Register Vol. 24-14, July 15, 2024
Order 1001, issued 10/2/47, filed
					 3/22/60.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-16 - Insurers › VALUATION OF STOCK OF SUBSIDIARY › Section 284-16-150 - Purpose

Current through Register Vol. 24-14, July 15, 2024
The purpose of this regulation, WAC
				  284-16-150 through
				  284-16-220, is to implement
				  RCW
				   48.12.180(3) by establishing
				  rules for the valuation of stock of a subsidiary of an
				  insurer.
Order R 76-7, §
											284-16-150, filed
					 11/30/76.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-16 - Insurers › VALUATION OF STOCK OF SUBSIDIARY › Section 284-16-160 - Definitions

Current through Register Vol. 24-14, July 15, 2024
For purpose of this regulation:
(1) "Subsidiary" has the same meaning as in
				RCW
				 48.31B.005;
(2) "Book value" means that value determined
				by dividing the amount of its capital and surplus as shown in its last annual
				statement or subsequent report of examination (excluding from its surplus, any
				reserves required by statute and any portion of surplus properly allocable to
				policyholders, other than stockholders) less the par or redemption value,
				whichever is the greater of all of its preferred stock outstanding, by the
				total number of shares of its common stock issued and outstanding.
Order R 76-7, §
											284-16-160, filed
					 11/30/76.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-16 - Insurers › VALUATION OF STOCK OF SUBSIDIARY › Section 284-16-170 - Usual valuation of stock of a subsidiary

Current through Register Vol. 24-14, July 15, 2024
The common stock of any subsidiary of an insurer may always
				  be valued on the basis of the value of only such of the assets of such
				  subsidiary as would constitute lawful investments for the insurer if acquired
				  or held directly by the insurer under either the requirements of chapter 48.13
				  or 48.31B RCW, or both.
Order R 76-7, §
											284-16-170, filed
					 11/30/76.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-16 - Insurers › VALUATION OF STOCK OF SUBSIDIARY › Section 284-16-180 - Other methods of valuing stock of a subsidiary

Current through Register Vol. 24-14, July 15, 2024
If sound business judgment of an insurer's management causes
				  it to believe that a valuation of common stock of a subsidiary pursuant to WAC
				  284-16-170
				  is inappropriate, it may value such stock on one of the following bases:
(1) "Book value," provided, however, that the
				common stock of a noninsurance company may not be valued on the basis of this
				subsection, and further provided that an insurer may value its holdings of
				stock in a subsidiary insurer at acquisition cost if acquisition cost is less
				than market or book value.
(2) One
				of the following bases appropriate to each type of subsidiary owned by it,
				provided, however, that an insurer shall not be required to value the stock of
				all its subsidiaries on the same basis:
(a)
				Subject to the limitations imposed under WAC
				284-16-190,
				the net worth of a noninsurance company determined in accordance with generally
				accepted accounting principles, as of the end of its most recent fiscal year,
				provided, subject to WAC
				284-16-200,
				that the financial statements of the company for its most recent fiscal year
				have been audited by an independent certified public accountant in accordance
				with generally accepted auditing standards. The common stock of an insurance
				company may not be valued under this subsection.
(b) Subject to the limitations imposed under
				WAC
				284-16-190,
				a value equal to the cost of the common stock of the subsidiary, provided such
				value is determined and adjusted to reflect subsequent operating results, in
				the case of insurance companies in accordance with statutory accounting
				requirements, and for other than insurance companies in accordance with
				generally accepted accounting principles.
(c) The market value of the common stock of
				the subsidiary, if the stock is listed on a national securities
				exchange.
(d) The value, if any,
				placed on the common stock of such subsidiary by the National Association of
				Insurance Commissioners.
(e) Any
				other value which the insurer can substantiate to the satisfaction of the
				commissioner as being a reasonable value.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-16 - Insurers › VALUATION OF STOCK OF SUBSIDIARY › Section 284-16-190 - Limitation on values

Current through Register Vol. 24-14, July 15, 2024
(1) With respect
				to values determined under WAC
				284-16-180(2)(a)
				or (b), amounts attributable to "good will,"
				and other intangibles shall not in the aggregate (of all direct and indirect
				subsidiaries) exceed (either initially on acquisition of a subsidiary, or
				thereafter), 10% of the capital and surplus of an insurer, as reported in its
				next preceding annual statement. Such amounts shall be written off over a
				period not in excess of ten years, written down for any other than temporary
				decline of the fair value of an investment as a subsidiary, or other
				adjustments in accordance with the NAIC statements of statutory accounting
				principles.
(2) For purposes of
				this section, "good will" shall be defined as the amount arising at a given
				point in time, resulting from an arm's-length transaction involving the
				transfer of a business, representing the difference between the value of the
				consideration given and the net asset value of the properties acquired on the
				books of the predecessor company.
(3) Where warranted in exceptional cases, the
				commissioner may require a more rapid write-off of good will than is otherwise
				provided in this section.
Order R 76-7, §
											284-16-190, filed
					 11/30/76.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-16 - Insurers › VALUATION OF STOCK OF SUBSIDIARY › Section 284-16-200 - Additional provisions

Current through Register Vol. 24-14, July 15, 2024
(1)
				Within 90 days after the effective date of this regulation, a domestic insurer
				using a method of valuation permitted by WAC
				284-16-180 shall file with the
				commissioner relevant information identifying, supporting and justifying the
				value of, and the basis of valuation used in accordance with the provisions of
				this regulation for each of its subsidiaries.
(2) Within 30 days after the acquisition of a
				subsidiary, a domestic insurer shall file with the commissioner relevant
				information identifying, supporting and justifying the value of, and the basis
				of valuation used in accordance with the provisions of this regulation for such
				subsidiary.
(3) A valuation basis
				used for a subsidiary shall thereafter be consistently used unless a change is
				substantiated as reasonable and on that basis is approved in writing by the
				commissioner.
(4) If a subsidiary
				is valued on the basis of WAC
				284-16-180(2)(a) and the books of the subsidiary are not
				audited at the time the valuation is included in the insurer's annual
				statement, the insurer shall thereafter report and explain the differences, if
				any, between the value of the subsidiary as reported in the annual statement
				and the value as determined by audit. Such report and explanation shall be made
				as soon as possible following such audit.
(5) If any subsidiary, which is not itself an
				insurance company, is valued other than on the basis of market value, there
				shall be deducted from the otherwise determined value a sum equal to the value
				claimed for any of its assets which would not constitute admitted assets for
				the insurer if held directly by the insurer, if such assets:
(a) Are held by the subsidiary but used,
				under a lease arrangement or otherwise, significantly in the conduct of the
				insurer's business; or
(b) Were
				acquired from or purchased for the benefit or use of the insurer by the
				subsidiary under circumstances that, in the opinion of the commissioner,
				support a finding that the primary purpose of such acquisition or purchase was
				the evasion or avoidance of
				RCW
				 48.12.010 or
				48.12.020.