Administrative Hearings - Hearings Unit Purpose
Pursuant to RCW 48.04.010, any person or company who is aggrieved by any act, threatened act, or failure of the Insurance Commissioner to act, or any person or company who wishes to challenge any report, promulgation or order of the Commissioner, may file a written demand for hearing to contest that action of the Commissioner.
These types of actions are often challenges to the Commissioner's issuance of a disciplinary order against an individual insurance agent or broker or insurance company, or may be an appeal by an insurance company for the Commissioner's denial of a certain insurance contract which the company has filed for approval to sell in Washington.
Demands for hearing are submitted to the Hearings Unit, and at that point an administrative hearing has begun, which in most situations also means that the action of the Commissioner is considered ineffective until the matter is decided. Like other agencies, this proceeding is a legal proceeding designed to review the Commissioner's action before an impartial judge.
Each party to an administrative hearing has a right to present and question witnesses, and to submit or challenge documents regarding the decision. The result of all proceedings is that the administrative law judge affirms, modifies or sets aside the original agency decision.
All administrative hearings held in the Office of Insurance Commissioner are subject to strict laws concerning the proper conduct of the proceeding, as set forth in Title 34 RCW, and the administrative law judge who presides over the matter is subject to very stringent rules. Some of these rules require that the administrative law judge have no contact with any staff which has been involved in the matter - either before or during the matter - and have no information concerning the matter prior to receiving the demand for hearing.
This administrative law judge presides over the case and makes the final decision. This decision is not subject to review by the Insurance Commissioner or any member of his staff or any other individual. The Insurance Commissioner and his staff are treated just like any other private individual or company, and the administrative law judge may not communicate with either party alone.
The administrative law judge's decision is always in writing, includes findings of facts, conclusions of law and a final order in the case. This order is sent to both parties at the same time, and is only subject to appeal by the Superior Court.
Finally, the Insurance Commissioner is also required by law to hold a hearing, even without receiving a demand for hearing, in some situations such as when a company wishes to redomesticate to another state, or when two companies wish to merge or consolidate. The same rules apply to these proceedings.