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Agency 160
Insurance Commissioner
RCW 48.02

Request $21,946,700
Net change from current biennium $714,227 Increase
Percent change from current biennium 3.4% Increase


The Office of the Insurance Commissioner is responsible for the regulation of the sale of insurance in Washington State.

Goals of the Office are to: maintain a regulatory climate which will protect Washington's residents by effective regulation of the insurance industry; ensure the financial solvency of insurance companies, health care service contractors, health maintenance organizations, and other entities having responsibility to pay claims of insured persons; and ensure fair treatment of Washington's citizens by insurance companies, health care service contractors, health maintenance organizations, and other insuring entities and sales and adjusting personnel.

Links to Program Level Detail

Administration

Company Supervision

Consumer Protection

Rates and Forms

College Work Study

Agency Level Summary

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Operating Budget: Summary
1995-97 Appropriations Appropriated Funds Expenditures
Amount Estimated Balance 1993-95 Actual 1995-97 Estimated 1997-99 Proposed
105,353 General Fund - Basic Account - Federal 103,991 105,353 105,322
20,750,817 Insurance Commissioner's Regulatory - State 18,039,936 20,750,817 21,841,378
97,347 Insurance Commissioner's Regulatory - Federal Unanticipated 337,315 97,347
278,956 Insurance Commissioner's Regulatory - Private/Local Unanticipated 479,683 278,956

21,232,473

Total Appropriated Funds

18,960,925

21,232,473

21,946,700


Operating Budget: Summary by Object

1994-95 Actual 1995-96 Estimated 1996-97 Estimated 1997-98 Proposed 1998-99 Proposed
Salaries And Wages 5,643,151 6,218,197 6,507,615 6,675,415 6,675,415
Employee Benefits 1,419,301 1,543,130 1,601,233 1,640,805 1,639,613
Personal Service Contracts 4,000 150,343 87,157 41,880 41,880
Goods And Services 1,551,145 1,835,072 2,216,944 1,892,231 1,893,237
Travel 158,254 208,744 270,321 293,766 293,766
Capital Outlays 627,874 200,818 343,749 532,587 234,587
Grants, Benefits & Client Services 40,009 38,020 42,949 40,600 40,600
Debt Service 37,859 8,955 3,365 5,159 5,159
Interagency Reimbursements (27,249) (44,139)
Intra-Agency Reimbursements 3,804 (1,267) 1,267

Annual Total

9,458,148

10,157,873

11,074,600

11,122,443

10,824,257


Operating Budget: Program Summary

1994-95 Actual 1995-96 Estimated 1996-97 Estimated 1997-98 Proposed 1998-99 Proposed
Administration 2,448,365 2,254,947 2,679,696 2,573,983 2,574,945
Company Supervision 1,637,360 1,717,071 1,700,314 1,579,858 1,579,507
Consumer Protection 3,871,247 4,638,901 5,020,549 5,021,562 5,020,929
Rates And Forms 1,501,176 1,546,954 1,674,041 1,947,040 1,648,876
Annual Total

9,458,148

10,157,873

11,074,600

11,122,443

10,824,257

Fiscal Year 1993-94 9,502,777
Biennium Total

18,960,925

21,232,473

21,946,700


Operating Budget: Change from Preceding Biennium

1993-95 Actual 1995-97 Estimated 1997-99 Proposed
Amount Percent Amount Percent Amount Percent
Administration 869,060 24.9% 571,672 13.1% 214,285 4.3%
Company Supervision 516,690 17.3% (93,529) (2.7)% (258,020) (7.6)%
Consumer Protection 2,153,018 35.8% 1,498,682 18.4% 383,041 4.0%
Rates And Forms (545,220) (15.7)% 298,524 10.2% 374,921 11.6%
College Work Study 3,808 (54,400.0) (3,801) (100.0)%
Belated Claims (12,632) (100.0)%

Total

2,984,724

18.7%

2,271,548

12.0%

714,227

3.4%


Employment Summary

1994-95 Actual 1995-96 Estimated 1996-97 Estimated 1997-98 Proposed 1998-99 Proposed
FTE Staff Years 144.7 149.8 163.9 159.7 159.7
Average FTE Staff Year Costs 38,999 41,510 39,705 41,800 41,800


Program Level Detail

Administration

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The Administration program provides executive policy direction and administrative support for the insurance regulatory program.

Objectives of the program are to: establish agency regulatory policies based on insurance statutes; coordinate insurance regulation in Washington with federal requirements and regulatory actions in other states; ensure compliance with statutory requirements governing the operation of state agencies; and provide technical and administrative support services to other programs.


Program Employment

1994-95 Actual 1995-96 Estimated 1996-97 Estimated 1997-98 Proposed 1998-99 Proposed
FTE Staff Years 25.0 27.6 32.4 32.0 32.0
Average FTE Staff Year Costs 36,156 40,657 40,270 41,180 41,180


Expenditure Detail

1994-95 Actual 1995-96 Estimated 1996-97 Estimated 1997-98 Proposed 1998-99 Proposed
Salaries and Benefits 1,141,326 1,405,500 1,626,511 1,644,248 1,644,209
Grants and Subsidies 375
Other Operating Costs 1,307,039 849,072 1,053,185 929,735 930,736

Annual Total

2,448,365

2,254,947

2,679,696

2,573,983

2,574,945

Fiscal Year 1993-94 1,914,606
Biennium Total

4,362,971

4,934,643

5,148,928


Source of Funds - Insurance Commissioner's Regulatory - State


Company Supervision

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The Company Supervision program includes activities related to determining the financial solvency of entities offering insurance services and administering matters pertaining to corporate functions.

Objectives of the program are to achieve compliance with National Association of Insurance Commissioners financial examination standards and determine that insurers or entities offering insurance services in Washington are financially solvent and comply with statutory requirements.


Program Employment

1994-95 Actual 1995-96 Estimated 1996-97 Estimated 1997-98 Proposed 1998-99 Proposed
FTE Staff Years 29.4 28.1 27.3 26.2 26.2
Average FTE Staff Year Costs 39,409 41,545 40,806 42,397 42,397


Expenditure Detail

1994-95 Actual 1995-96 Estimated 1996-97 Estimated 1997-98 Proposed 1998-99 Proposed
Salaries and Benefits 1,445,346 1,454,936 1,386,747 1,381,852 1,381,500
Other Operating Costs 192,014 262,135 313,567 198,006 198,007

Annual Total

1,637,360

1,717,071

1,700,314

1,579,858

1,579,507

Fiscal Year 1993-94 1,873,554
Biennium Total

3,510,914

3,417,385

3,159,365


Source of Funds

1994-95 Actual 1995-96 Estimated 1996-97 Estimated 1997-98 Proposed 1998-99 Proposed
Insurance Commissioner's Regulatory - State 1,428,083 1,522,077 1,616,352 1,579,858 1,579,507
Insurance Commissioner's Regulatory - Private/Local Unanticipated 209,277 194,994 83,962

Annual Total

1,637,360

1,717,071

1,700,314

1,579,858

1,579,507


Consumer Protection

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The Consumer Protection program monitors the business of insurance to ensure that it is conducted in the public interest and that all persons act in good faith, abstain from deception, and practice honesty and equity in all insurance matters.

Objectives of the program are to: improve consumer awareness of insurance buying issues; reduce complaints by the public against insurers and agents; develop and adopt consumer protection insurance regulations; and regulate the marketing of insurance products at the consumer level, which includes performing market conduct examinations and fraud investigations.


Program Employment

1994-95 Actual 1995-96 Estimated 1996-97 Estimated 1997-98 Proposed 1998-99 Proposed
FTE Staff Years 64.1 69.2 75.5 74.8 74.8
Average FTE Staff Year Costs 39,365 40,434 38,383 40,672 40,672


Expenditure Detail

1994-95 Actual 1995-96 Estimated 1996-97 Estimated 1997-98 Proposed 1998-99 Proposed
Salaries and Benefits 3,156,481 3,500,181 3,623,249 3,802,142 3,801,507
Grants and Subsidies 39,672 37,645 42,949 40,600 40,600
Other Operating Costs 675,094 1,101,075 1,354,351 1,178,820 1,178,822

Annual Total

3,871,247

4,638,901

5,020,549

5,021,562

5,020,929

Fiscal Year 1993-94 4,289,521
Biennium Total

8,160,768

9,659,450

10,042,491


Source of Funds

1994-95 Actual 1995-96 Estimated 1996-97 Estimated 1997-98 Proposed 1998-99 Proposed
General Fund - Basic Account - Federal 105,336 17 52,646 52,676
Insurance Commissioner's Regulatory - State 3,635,732 4,486,846 4,969,904 4,968,916 4,968,253
Insurance Commissioner's Regulatory - Federal Unanticipated 197,052 46,719 50,628
Insurance Commissioner's Regulatory - Private/Local Unanticipated 38,463

Annual Total

3,871,247

4,638,901

5,020,549

5,021,562

5,020,929


Rates and Forms

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The Rates and Forms program examines the rates and forms presented to the Commissioner for approval by all insurance companies required to submit such filings.

Objectives of the program are to: protect consumers by assuring that insurance products are reasonably and fairly priced; make sure that these products are consistent with statutes, regulations, and public policy; identify harmful practices and require corrective action; and provide quality technical assistance to other programs, government agencies, and consumers.


Program Employment

1994-95 Actual 1995-96 Estimated 1996-97 Estimated 1997-98 Proposed 1998-99 Proposed
FTE Staff Years 26.0 24.7 28.7 26.7 26.7
Average FTE Staff Year Costs 40,573 45,656 41,496 45,115 45,115


Expenditure Detail

1994-95 Actual 1995-96 Estimated 1996-97 Estimated 1997-98 Proposed 1998-99 Proposed
Salaries and Benefits 1,316,648 1,397,551 1,472,341 1,487,978 1,487,812
Grants and Subsidies 337
Other Operating Costs 184,191 149,403 201,700 459,062 161,064

Annual Total

1,501,176

1,546,954

1,674,041

1,947,040

1,648,876

Fiscal Year 1993-94 1,421,295
Biennium Total

2,922,471

3,220,995

3,595,916


Source of Funds - Insurance Commissioner's Regulatory - State


College Work Study

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The College Work Study program provides an opportunity for college students to gain experience from on-the-job training in the Office of the Insurance Commissioner.

The objectives of the program are to enable college students to increase their knowledge regarding administrative activities and insurance regulation and to provide part-time assistance to various staff personnel.


Program Employment

1994-95 Actual 1995-96 Estimated 1996-97 Estimated 1997-98 Proposed 1998-99 Proposed
FTE Staff Years 0.2 0.2
Average FTE Staff Year Costs 12,225 14,555


Expenditure Detail

1994-95 Actual 1995-96 Estimated 1996-97 Estimated 1997-98 Proposed 1998-99 Proposed
Salaries and Benefits 2,651 3,159
Other Operating Costs (2,651) (3,159)

Annual Total
Fiscal Year 1993-94 3,801
Biennium Total

3,801