Original Notice.

     Preproposal statement of inquiry was filed as WSR 12-23-070.

     Title of Rule and Other Identifying Information: National Association of Insurance Commissioner's (NAIC) Actuarial Guideline XXXVIII regarding regulation of reserving for universal life products with secondary guarantees.

     Hearing Location(s): Insurance Commissioner's Office, TR 120, 5000 Capitol Boulevard, Tumwater, WA 98504-0255, on February 26, 2013, at 3:00 p.m.

     Date of Intended Adoption: March 4, 2013.

     Submit Written Comments to: Kacy Scott, P.O. Box 40258, Olympia, WA 98504-0258, e-mail rulescoordinator@oic.wa.gov, fax (360) 586-3109, by February 26, 2013.

     Assistance for Persons with Disabilities: Contact Lorrie [Lorie] Villaflores by February 25, 2013, TTY (360) 586-0241 or (360) 725-7087.

     Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: The NAIC adopted the revised Actuarial Guideline XXXVIII on September 12, 2012, which is a guideline for implementation of NAIC Model Regulation 830. This proposed rule would implement NAIC Model Regulation 830.

     Reasons Supporting Proposal: The proposed rule will provide uniformity in the application of Model 830.

     Statutory Authority for Adoption: RCW 48.02.060 and 48.74.030.

     Statute Being Implemented: RCW 48.74.030.

     Rule is not necessitated by federal law, federal or state court decision.

     Name of Proponent: Mike Kreidler, insurance commissioner, governmental.

     Name of Agency Personnel Responsible for Drafting: Kacy Scott, P.O. Box 40258, Olympia, WA 98504-0258, (360) 725-7041; Implementation and Enforcement: Jim Odiorne, P.O. Box 40255, Olympia, WA 98504-0255, (360) 725-7214.

     No small business economic impact statement has been prepared under chapter 19.85 RCW. There are no small domestic issuers of the types of policies that would be affected by this proposed regulation.

     A cost-benefit analysis is required under RCW 34.05.328. A preliminary cost-benefit analysis may be obtained by contacting Kacy Scott, P.O. Box 40258, Olympia, WA 98504-0258, phone (360) 725-7041, fax (360) 586-3109, e-mail rulescoordinator@oic.wa.gov.

January 23, 2013

Mike Kreidler

Insurance Commissioner

OTS-5222.2

NEW SECTION

WAC 284-74-365   Implementation of WAC 284-74-360.   (1) Insurers will fully apply NAIC Actuarial Guideline XXXVIII, as adopted on September 12, 2012, to properly and uniformly implement WAC 284-74-360.

     (2) NAIC Actuarial Guideline XXXVIII will be effective July 1, 2013.

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