Washington Administrative Code Title 284 - Insurance Commissioner, Office of the
Overview of WAC Title 284 — Insurance Commissioner, Office of the
What is WAC Title 284?
WAC Title 284 contains the administrative rules issued by the Office of the Insurance Commissioner (OIC) in Washington State. The Insurance Commissioner is responsible for regulating the insurance industry in Washington, protecting consumers, ensuring the solvency of insurance companies, and enforcing insurance laws.
The rules in Title 284 cover a broad range of insurance-related topics, including:
Licensing of insurance companies and agents.
Conduct standards for insurers and producers.
Consumer protection measures.
Claims handling procedures.
Rate and form filings.
Market conduct examinations.
Enforcement and penalties.
Purpose and Scope of WAC Title 284
Consumer Protection: Ensure that consumers receive fair treatment and accurate information.
Industry Regulation: Maintain a stable and competitive insurance market.
Compliance Enforcement: Enforce insurance laws and regulations consistently.
Licensing and Monitoring: Control who may legally sell insurance in Washington.
Key Provisions of WAC Title 284
1. Licensing and Registration
Rules govern the licensing requirements for insurance companies, agents, and brokers.
Agents must meet educational and ethical standards.
The commissioner can deny, suspend, or revoke licenses for cause.
2. Market Conduct and Examination
The commissioner conducts market conduct exams to review insurers’ business practices, including claims handling and underwriting.
Insurers must cooperate with these examinations.
3. Consumer Protection
Rules provide for fair claims practices.
Procedures for complaint resolution and investigation of consumer grievances.
Prohibitions against unfair, deceptive, or fraudulent practices.
4. Rate and Form Filing
Insurance companies must file their rates and policy forms with the commissioner.
The commissioner reviews for compliance with statutory standards and may disapprove filings that are excessive or unfairly discriminatory.
5. Enforcement and Penalties
The commissioner can impose fines, sanctions, or take other disciplinary action against insurers or agents violating rules.
Procedures for hearings and appeals are established.
Relevant Case Law on Insurance Regulation in Washington
Several important Washington court decisions provide legal context and interpret how the Insurance Commissioner’s rules (like those in WAC Title 284) are applied:
1. State v. O'Connell, 123 Wn.2d 1 (1994)
Issue: Whether the Insurance Commissioner had authority to revoke an insurance agent's license based on misconduct.
Holding: The court upheld the commissioner’s authority to revoke licenses when an agent engages in dishonest or unethical conduct, reinforcing the importance of licensing rules under WAC Title 284.
Significance: This case underscores the broad regulatory powers granted to the commissioner to protect consumers and maintain industry integrity.
2. Miller v. Washington State Office of Insurance Commissioner, 87 Wn. App. 67 (1997)
Issue: Dispute over the commissioner's denial of a rate filing by an insurer.
Holding: The court affirmed the commissioner’s right to reject rates deemed excessive or unfairly discriminatory.
Significance: Demonstrates judicial deference to the commissioner’s expertise and regulatory authority in overseeing insurance rates.
3. Johnson v. State Farm Mutual Automobile Insurance Co., 102 Wn.2d 432 (1984)
Issue: The insurer’s bad faith in claims handling.
Holding: Established that insurers owe a duty of good faith to insureds, and violations can lead to damages.
Significance: WAC Title 284’s claims handling rules reflect this duty, and the case supports enforcement actions against unfair claims practices.
4. Erie Ins. Co. v. Washington State Office of the Insurance Commissioner, 152 Wn.2d 445 (2004)
Issue: Whether the commissioner’s enforcement actions exceeded statutory authority.
Holding: The court emphasized that the commissioner must act within the powers granted by statute but has wide discretion to protect the public.
Significance: This clarifies the limits and scope of WAC Title 284 enforcement provisions.
Summary and Practical Implications
WAC Title 284 governs how the Washington State Insurance Commissioner regulates the insurance industry.
It sets out licensing, consumer protections, rate regulation, and enforcement rules.
Washington courts support the commissioner’s broad regulatory authority but require adherence to due process.
The rules aim to maintain a fair insurance marketplace and protect policyholders from unfair practices.
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