Date of Adoption: July 28, 1999.

Purpose: Reduce the amount of copies of the annual reports that must be filed with the commissioner.

Citation of Existing Rules Affected by this Order: Amending WAC 284-07-050.

Statutory Authority for Adoption: RCW 48.02.060, 48.44.050, 48.46.200.

Adopted under notice filed as WSR 99-11-101 on May 19, 1999.

Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 0, Repealed 0.

Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.

Number of Sections Adopted on the Agency's Own Initiative: New 0, Amended 1, Repealed 0.

Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 1, Repealed 0.

Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 0, Repealed 0; Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 0, Repealed 0. Effective Date of Rule: Thirty-one days after filing.

July 28, 1999

Robert A. Harkins

Chief Deputy Commissioner

OTS-2834.1

AMENDATORY SECTION(Amending Matter No. R 95-18, filed 8/21/96, effective 9/21/96)

WAC 284-07-050
Annual statement instructions.

(1) For the purpose of this section, the following definitions shall apply:

(a) "Insurer" shall have the same meaning as set forth in RCW 48.01.050.  It also includes health care service contractors registered under RCW 48.44 and health maintenance organizations registered under RCW 48.46.

(b) "Insurance" shall have the same meaning as set forth in RCW 48.01.040.  It also includes prepayment of health care services as set forth in RCW 48.44.010(3) and prepayment of comprehensive health care services as set forth in RCW 48.46.020(1).

(2) Each authorized insurer is required to file with the commissioner an annual statement for the previous calendar year in the general form and context as promulgated by the National Association of Insurance Commissioners (NAIC) for the kinds of insurance to be reported upon, and shall also file a copy thereof with the NAIC.  To effectuate RCW 48.05.250, 48.05.400, 48.44.095 and 48.46.080 and to enhance consistency in the accounting treatment accorded various kinds of insurance transactions, the valuation of assets, and related matters, insurers shall adhere to the appropriate Annual Statement Instructions and the Accounting Practices and Procedures Manuals promulgated by the NAIC.

(3) This section does not relieve an insurer from its obligation to comply with specific requirements of the insurance code or rules thereunder.

(4) Number of statements:

(a) For domestic insurers, the statements are to be filed in ((quadruplicate)) triplicate to assist with public viewing and copying.  ((Three)) Two statements must be permanently bound on the left side.  The ((fourth)) third statement must be unbound.  ((Two bound)) The statements ((and one unbound statement)) are to be filed in the Olympia office ((and one bound statement is to be filed in the Seattle office)).

(b) For foreign insurers, except for health care service contractors and health maintenance organizations, one statement shall be filed in the Olympia office.  For health care service contractors and health maintenance organizations, two left side permanently bound and one unbound statement shall be filed in the Olympia office to assist with public viewing and copying.

(5) Each domestic insurer shall file quarterly reports of its financial condition with the commissioner.  Each foreign insurer shall file quarterly reports of its financial condition with the NAIC.  The commissioner may require a foreign insurer to file quarterly reports with the commissioner whenever, in the commissioner's discretion, there is a need to more closely monitor the financial activities of the foreign insurer.  The reports shall be filed in the commissioner's office not later than the forty-fifth day after the end of the insurer's calendar quarters.  Such quarterly reports shall be in the form and content as promulgated by the NAIC for quarterly reporting by insurers, shall be prepared according to appropriate Annual and Quarterly Statement Instructions and the Accounting Practices and Procedures Manuals promulgated by the NAIC and shall be supplemented with additional information required by this title and by the commissioner.  The statement is to be completed and filed in the same manner and places as the annual statement.  Quarterly reports for the fourth quarter are not required.

(6) As a part of any investigation by the commissioner, the commissioner may require an insurer to file monthly financial reports whenever, in the commissioner's discretion, there is a need to more closely monitor the financial activities of the insurer.  Monthly financial statements shall be filed in the commissioner's office no later than the twenty-fifth day of the month following the month for which the financial report is being filed.  Such monthly financial reports shall be the internal financial statements of the company.  In addition, the commissioner may require these internal financial statements to be accompanied by a schedule converting the financial statements to reflect financial position according to statutory accounting practices and submitted in a form using the same format and designation as the insurer's quarterly financial reports of insurers.

(7) Health care service contractors shall use the Hospital, Medical, Dental Service or Indemnity Corporation's Statement Form promulgated by the NAIC for their statutory filings.

(8) Each health care service contractor's and health maintenance organization's annual statement shall be accompanied by a monthly enrollment data form (IC-16-HC/IC-15-HMO) and additional data statement form (IC-13A-HC/IC-14-HMO).

(9) An insurer who on December 31, 1996, has not previously filed its annual or quarterly statements with the NAIC, shall comply with this rule for the year ending December 31, 1996, and each year thereafter.  To enhance the intrastate and interstate surveillance of the insurer's financial condition earlier application is permitted.

(10) The commissioner may allow a reasonable extension of the time within which such financial statements shall be filed.

[Statutory Authority: RCW 48.02.060, RCW 48.44.050 and RCW 48.46.200.  96-17-079 (Matter No. R 95-18), § 284-07-050, filed 8/21/96, effective 9/21/96.  Statutory Authority: RCW 48.02.060.  92-19-040 (Order R 92-10), § 284-07-050, filed 9/9/92, effective 10/10/92.]