(1) The purpose of this regulation, WAC
284-23-600 through
284-23-730, is to define certain
minimum standards for the regulation of accelerated benefit provisions of
individual and group life insurance policies, a single violation of which will
be deemed to constitute an unfair claims settlement practice. The commissioner
finds and hereby defines it to be an unfair act or practice and an unfair
method of competition for any insurer to provide accelerated benefits except as
provided in this regulation.
(2)
The commissioner finds that accelerated benefits in life insurance policies are
primarily mortality risks rather than morbidity risks. The commissioner further
finds that accelerated benefits are optional modes of settlement of proceeds
under life insurance proceeds under
RCW
48.11.020. No qualifying event as defined
under WAC
284-23-620(3)
changes the nature of the underlying life insurance policy. No accelerated
benefits provision shall be called or marketed as long-term care as defined
under
RCW
48.83.020(5).
(3) This regulation applies to all
accelerated benefit provisions of individual and group life insurance policies
and riders which are issued or delivered to a resident of this state, on or
after the effective date of this regulation. The regulation applies to both
policies and riders. It also applies to solicitations for the sale of
accelerated benefits, whether in the form of policies or riders.
(4) This regulation does not require
inclusion or offering of any accelerated benefit in a life insurance policy.
This regulation regulates those accelerated benefits which individual and group
life insurers choose to advertise, offer, or market on or after the effective
date of this regulation.
