Key Takeaways
- The Office of Insurance Commissioner (OIC) regulates all P&C insurance activities in Washington State
- The Insurance Commissioner is ELECTED by Washington voters to a 4-year term—one of only 11 states with elected commissioners
- OIC handles licensing, rate review, market conduct examinations, and consumer complaints for P&C insurance
- Washington uses a "file and use" rate system for most P&C lines—rates take effect upon filing
- The Commissioner has authority to disapprove rates that are excessive, inadequate, or unfairly discriminatory
Office of Insurance Commissioner (OIC)
Important: This study guide covers Washington state-specific Property & Casualty insurance content only. You should complete the national Property & Casualty exam preparation first, as it covers the foundational insurance concepts tested on your exam.
The Office of Insurance Commissioner (OIC) is the state agency responsible for regulating the Property & Casualty insurance industry in Washington. Unlike many state agencies headed by appointed officials, Washington's Insurance Commissioner is elected by voters.
The Insurance Commissioner
The Insurance Commissioner is:
- Elected by Washington voters to a 4-year term
- One of only 11 states where the commissioner is elected
- Responsible for enforcing the Revised Code of Washington (RCW) Title 48
- Authorized to adopt regulations (WAC Title 284), review rates, investigate violations, and discipline licensees
Commissioner Powers for P&C Insurance
| Power | Description |
|---|---|
| Licensing | Issue, suspend, and revoke producer licenses |
| Rate Review | Review and disapprove P&C insurance rates |
| Market Conduct | Examine insurer business practices |
| Enforcement | Investigate and prosecute violations |
| Consumer Protection | Handle complaints and protect policyholders |
| Rulemaking | Adopt regulations under WAC Title 284 |
Washington Insurance Code
Washington insurance law is found in:
Primary Sources
- RCW Title 48 - Washington Insurance Code (statutes)
- WAC Title 284 - Washington Administrative Code (regulations)
Key RCW Chapters for P&C
| Chapter | Subject |
|---|---|
| RCW 48.17 | Producer licensing |
| RCW 48.18 | Insurance contracts |
| RCW 48.19 | Rates |
| RCW 48.22 | Auto insurance |
| RCW 48.30 | Unfair practices |
Exam Tip: Remember that Washington's Insurance Commissioner is elected, not appointed. This is frequently tested.
Rate Regulation
Washington uses a "file and use" system for most P&C insurance rates:
How File and Use Works
- Insurers file rates with OIC before use
- Rates take effect immediately upon filing
- OIC reviews rates after they are in use
- Commissioner can disapprove rates that are:
- Excessive
- Inadequate
- Unfairly discriminatory
Rate Standards
Washington requires that rates be:
| Standard | Meaning |
|---|---|
| Not Excessive | Not unreasonably high for coverage provided |
| Not Inadequate | Sufficient to pay expected losses and expenses |
| Not Unfairly Discriminatory | Based on actuarially justified factors |
Prior Approval Lines
Some lines require prior approval:
- Title insurance
- Credit insurance
- Certain specialty lines
OIC Organization
OIC operates through several divisions for P&C insurance:
- Company Supervision - Monitors insurer financial condition
- Rates, Forms and Provider Networks - Reviews rates and policy forms
- Consumer Protection - Handles complaints and inquiries
- Legal Affairs - Enforcement and rulemaking
- Agent Licensing - Producer licensing and examination
How is the Washington Insurance Commissioner selected?
What rate system does Washington use for most P&C insurance?
Which RCW chapter governs producer licensing in Washington?