Washington § 18.390.100 - Actuarial analysis — Review. (Effective July 1, 2027.)

(1) The department and the office shall collaborate to develop a process for the department to transmit actuarial analyses received under RCW 18.390.030(1)(h) to the office for review and for the office to return the results of the review to the department for consideration in its registration decision.

(2) The department shall adopt standards for the contents of the actuarial materials that the office determines is necessary to conduct its review in subsection (3) of this section.

(3)(a) The office shall develop standards for the review of actuarial analyses received from the department. The standards must establish a process for determining the applicant's ability to meet its overall contract obligations under its life care contracts in accordance with currently accepted actuarial standards of practice, such as those adopted by the actuarial standards board. The standards shall consider whether the applicant's actuarial balance is satisfactory and reflects liabilities that are sufficient to cover obligations under moderately adverse conditions during the testing period. The term "moderately adverse conditions" anticipates unfavorable, but not extreme, events with a reasonable probability of occurring during the testing period.

(b) The office shall review actuarial analyses as required under RCW 18.390.030(1)(h).

(i) If the office's review of the applicant's actuarial analysis determines that the applicant's actuarial balance is satisfactory under the standards established in (a) of this subsection, it will notify the department of the results.

(ii) If the office's review of the applicant's actuarial analysis determines that the applicant's actuarial balance is not satisfactory under the standards established in (a) of this subsection, it will notify the department and the applicant of the results and notify the applicant of the right to an appeal of the decision and the reasons for the determination in sufficient detail that the applicant may attempt to cure deficiencies.

(c) Any appeal by an applicant regarding a determination under (b)(ii) of this subsection shall be made to the office.

(d) The office is not required to prepare or provide any materials, other than written notice to the department of its review determination under (b) of this subsection and written notice to the applicant of the right to an appeal of a determination under (b) of this subsection and the reasons for the determination, or review any materials, other than the actuarial analysis prepared by a qualified actuary and provided by the applicant.

(e) Nothing in this subsection prohibits the office from communicating with the applicant's actuarial representative for purposes of obtaining information necessary to complete its review. The office may request additional actuarial materials as needed to conduct its review.

Effective date—2026 c 140: See note following RCW 18.390.010.