10-07-121

WSR 10-07-121

PROPOSED RULES

OFFICE OF

INSURANCE COMMISSIONER

[ Insurance Commissioner Matter No. R 2008-07 -- Filed March 23, 2010, 8:02 a.m. ]

     Original Notice.

     Preproposal statement of inquiry was filed as WSR 10-04-001.

     Title of Rule and Other Identifying Information: United States Longshore and Harbor Workers' Compensation Act (USL&H) Washington assigned risk plan (WARP).

     Hearing Location(s): OIC Tumwater Office, Training Room 120, 5000 Capitol Boulevard, Tumwater, WA, http://www.insurance.wa.gov/about/directions.shtml, on April 28, 2010, at 2:00 p.m.

     Date of Intended Adoption: May 12, 2010.

     Submit Written Comments to: Chris Carlson, P.O. Box 40258, Olympia, WA 98504-0258, e-mail [e-mail], fax [phone], by April 27, 2010.

     Assistance for Persons with Disabilities: Contact Lorie Villaflores by April 27, 2010, TTY [phone] or [phone].

     Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: Amends WAC 284-22-040 expanding the territory of the WARP. Answering rule-making petition P.43.

     Reasons Supporting Proposal: Some Washington employers have workers that temporarily work out-of-state. Currently, these employers cannot obtain USL&H from the WARP due to a territory restriction. This rule gives the WARP board discretion to provide such coverage to Washington employers.

     Statutory Authority for Adoption: RCW 48.02.060 and 48.22.070.

     Statute Being Implemented: RCW 48.22.070.

     Rule is not necessitated by federal law, federal or state court decision.

     Name of Proponent: Mike Kreidler, insurance commissioner, governmental.

     Name of Agency Personnel Responsible for Drafting: Chris Carlson, P.O. Box 40258, Olympia, WA 98504-0258, [phone]; Implementation and Enforcement: Carol Sureau, P.O. Box 40255, Olympia, WA 98504-0255, [phone].

     No small business economic impact statement has been prepared under chapter 19.85 RCW. This proposed rule provides the assigned risk plan the option of providing USL&H coverage for Washington state employers who are unable to purchase such coverage for their temporarily out-of-state employees. Allowing this option imposes no regulatory costs on small employers and, therefore, does not require a small business economic impact statement.

     A cost-benefit analysis is not required under RCW 34.05.328. The result of this proposed rule is a clarification and expansion of eligibility for businesses to use a government sponsored (and primarily governed) program - the assigned risk program for USL&H coverage. The proposed rule is not subject to violation by a nongovernment party and represents the commissioner's interpretation of the law. Therefore, no cost-benefit analysis is required.

March 23, 2010

Mike Kreidler

Insurance Commissioner

OTS-2896.1

AMENDATORY SECTION(Amending Order R 92-12, filed 9/16/92, effective 10/17/92)

WAC 284-22-040   Territory.   (1) The assigned risk plan shall provide coverage only for employers who are unable to purchase United States Longshore and Harbor Workers' Compensation Act (USL&H) coverage and maritime employers' liability coverage incidental to such workers' compensation coverage for their operations within the state of Washington.

     (2) The assigned risk plan may, at its discretion, provide USL&H coverage and maritime employers' liability coverage incidental to such workers' compensation coverage for Washington state employers who are unable to purchase USL&H coverage for their Washington employees who temporarily work out-of-state.

[Statutory Authority: RCW 48.02.060 and 1992 c 209. 92-19-095 (Order R 92-12), § 284-22-040, filed 9/16/92, effective 10/17/92.]