GOODBYE -- OUT OF STATE TESTING REQUIREMENTS
HELLO -- NEW PROPOSAL TO REGULATIONS
This year and next year there are a number of changes effecting surplus lines. Two items are in process at the moment. One is the dropping of the non-resident testing requirement for the surplus lines test. The other is blending the changes necessitated by the new Producer Licensing Bill that is effective in July 2009.
1. The complete text of the proposed change to the testing requirements can be found on the OIC Laws/Regulations web page (See Pending Rule R 2008-04). Link to the web page is
The SLA has been active in discussing the concept of the change as well as the wording. Be aware the testing change is not the only change being proposed. Other areas in WAC 284-15 are under revision. I suggest you review the revisions.
At this time we have two areas we continue to discuss. In WAC-284-15-020 we are requesting the word “deemed” be retained and the substitute word “presumed” is deleted. The second area is of more significance. We feel WAC 284-15-080 should be removed in entirety when the Producer license is fully implemented. Our view is there is no need for this section when all individuals have a producer license. At this time we are looking for concurrence from the OIC.
On June 12th there is a hearing on this matter. Let us know your views.
2. The second item is tied into the producer bill. The producer bill that was passed in 2007 required change to the surplus line portion of the regulations as many other areas of the code. To make these changes a producer technical bill was proposed. This was proposed to be a 2008 legislative item.
You may remember we opposed areas of the proposed producer technical bill. You can see our views in our blog. We were concerned with the format proposed and general inclusion in areas that did not seen appropriate. After discussions the OIC agreed to take the surplus lines sections out of the technical bill. The technical bill was presented to the legislature and passed in 2008 without our inclusion. We are now starting on the format and wording for a bill to go to the 2009 legislature dealing with surplus lines and change brought by the producer bill. Those discussions are just starting. More details will be coming.
