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.
- SB 6049 bill history (leg.wa.gov)
- SB status: Executive action taken in the Senate Committee on Ways & Means on January 23: Majority voted that the bill do pass. Passed to Senate Rules Committee for second reading on January 27.
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.
- SHB 2207 bill history (leg.wa.gov)
- SHB status: Referred to House Rules Committee for review on January 24.
- SSB 6048 bill history (leg.wa.gov)
- SSB status: Passed to Senate Rules Committee for second reading on January 17 and placed on second reading consent calendar on January 28.
Long-term care (LTC) guaranty fund: NAIC model act (HB 2209 and SB 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 SB 6050 is Sen. Cleveland.
- HB 2209 bill history (leg.wa.gov)
- HB status: First read on January 13 and referred to Health Care and Wellness.
- SB 6050 bill history (leg.wa.gov)
- SB status: Public hearing held in the Senate Committee on Health & Long Term Care at 8:30 AM on January 24.
Inducements and performance standards in insurance contracts (HB 2208 and SB 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.
- HB 2208 bill history (leg.wa.gov)
- HB status: First read on January 13 and referred to Consumer Protection and Business.
- SB 6144 bill history (leg.wa.gov)
- SB status: Public hearing held in the Senate Committee on Financial Institutions, Economic Development & Trade at 8:30 AM on January 21.
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.