For Consumers

2020 legislative priorities

Legislative news

Criminal Investigation Unit (CIU) separate account (SB 6049 “Creating the insurance commissioner’s fraud account”)    

This legislation will enhance CIU's capacity to investigate and prosecute by expanding staff and protecting the funding for CIU by creating a separate account. The separate account will have its own surcharge cap of 1/100th of a percent. This will provide secure funding for CIU and allow the program to investigate more fraud, saving insurance companies and their consumers more money. 

The prime sponsor of SB 6049 is Sen. Liias.

Revision to the Insurance Holding Company System Regulatory Act (SHB 2207 and SSB 6048 "Addressing the group-wide supervision of internationally active insurance groups")

NAIC now requires that all of the provisions from 2014 Holding Company Act should be adopted by every state. In addition, this standard will now be applied for risk retention groups (RRGs) in a holding company that meets the definition of an IAIG. The passage of this revision is necessary to maintain our state’s accreditation with NAIC. 

The prime sponsor of SHB 2207 is Rep. Walen. The prime sponsor of SSB 6048 is Sen. Das. 

Long-term care (LTC) guaranty fund: NAIC model act (HB 2209 and SSB 6050 “Concerning insurance guaranty fund”)

This legislation will add health care service corporations (HCSCs) and health maintenance organizations (HMOs) to the LTC fund to have sufficient assessments to support it. The purpose of the LTC guaranty fund is to protect consumers by providing funding for the LTC programs consumers enroll in, even if an insolvent insurer can no longer pay.

The prime sponsor of HB 2209 is Rep. Cody. The prime sponsor of SSB 6050 is Sen. Cleveland.

Inducements and performance standards in insurance contracts (HB 2208 and SSB 6144 “Concerning implementation credits and performance standards”)

This legislation will provide more explicit criteria for the use of implementation credits, and provide the legal framework for the use of performance standards in insurance contracts. Implementation credits are a payment by an insurer to offset document expenses incurred by a group policyholder in changing coverage from one insurer to another. Performance standards or guarantees are contractual terms in insurance contracts for state purchased health care that establish a specific standard of performance needed to receive full reimbursement set in the contract.

The prime sponsor of HB 2208 is Rep. Kirby. The prime sponsor of SB 6144 is Sen. Hasegawa.

Captive insurance (HB 2291 and SB 6241 "Concerning independently procured insurance and applying the state insurance premium tax to such insurance for both in-state and out-of-state risk")

This legislation will create a statutory framework for how captive insurance companies can be formed by Washington state companies, who can form them and what taxes will be paid by them to Washington state. A “captive insurer” is defined as an insurance company that is wholly owned and controlled by its insureds. Its primary purpose is to insure the risks of its owners, and its insured benefits from the captive insurer’s underwriting profits.

The prime sponsor of HB 2291 is Rep. Walen. The prime sponsor of SB 6241 is Sen. Liias.