48.31C.040 - Registration with commissioner -- Information required -- Rule making -- Disclaimer of affiliation -- Failure to file.

Registration with commissioner — Information required — Rule making — Disclaimer of affiliation — Failure to file.

(1) Every health carrier registered to do business in this state that is a member of a health carrier holding company system shall register with the commissioner, except a foreign health carrier subject to registration requirements and standards adopted by statute or regulation in the jurisdiction of its domicile that are substantially similar to those contained in:

     (a) This section;

     (b) RCW 48.31C.050(1) and 48.31C.060; and

     (c) Either RCW 48.31C.050(1)(b) or a provision such as the following: Each registered health carrier shall keep current the information required to be disclosed in its registration statement by reporting all material changes or additions within fifteen days after the end of the month in which it learns of each change or addition.

     A health carrier subject to registration under this section shall register within one hundred twenty days of May 7, 2001, and thereafter within fifteen days after it becomes subject to registration, and annually thereafter by May 15th of each year for the previous calendar year, unless the commissioner for good cause shown extends the time for registration, and then within the extended time. The commissioner may require a health carrier authorized to do business in the state that is a member of a health carrier holding company system, but that is not subject to registration under this section, to furnish a copy of the registration statement, the summary specified in subsection (3) of this section, or other information filed by the health carrier with the regulatory authority of its domiciliary jurisdiction.

     (2) A health carrier subject to registration shall file the registration statement on a form prescribed by the commissioner, containing the following current information:

     (a) The capital structure, general financial condition, ownership, and management of the health carrier and any person controlling the health carrier;

     (b) The identity and relationship of every member of the health carrier holding company system;

     (c) The following agreements in force, and transactions currently outstanding or that have occurred during the last calendar year between the health carrier and its affiliates:

     (i) Loans, other investments, or purchases, sales, or exchanges of securities of the affiliates by the health carrier or of the health carrier by its affiliates;

     (ii) Purchases, sales, or exchange of assets;

     (iii) Transactions not in the ordinary course of business;

     (iv) Guarantees or undertakings for the benefit of an affiliate that result in an actual contingent exposure of the health carrier's assets to liability, other than subscriber contracts entered into in the ordinary course of the health carrier's business;

     (v) All management agreements, service contracts, and cost-sharing arrangements;

     (vi) Reinsurance agreements;

     (vii) Dividends and other distributions to shareholders; and

     (viii) Consolidated tax allocation agreements;

     (d) Any pledge of the health carrier's stock, including stock of a subsidiary or controlling affiliate, for a loan made to a member of the health carrier holding company system; and

     (e) Other matters concerning transactions between registered health carriers and affiliates as may be included from time to time in registration forms adopted or approved by the commissioner by rule.

     (3) Registration statements must contain a summary outlining all items in the current registration statement representing changes from the prior registration statement.

     (4) No information need be disclosed on the registration statement filed under subsection (2) of this section if the information is not material for the purposes of this section. Unless the commissioner by rule or order provides otherwise, sales, purchases, exchanges, loans or extensions of credit, investments, or guarantees, involving two percent or less of a health carrier's admitted assets as of the 31st day of the previous December are not material for purposes of this section.

     (5) A person within a health carrier holding company system subject to registration shall provide complete and accurate information to a health carrier, where the information is reasonably necessary to enable the health carrier to comply with this chapter.

     (6) The commissioner shall terminate the registration of a health carrier under this section that demonstrates that it no longer is a member of a health carrier holding company system.

     (7) The commissioner may require or allow two or more affiliated health carriers subject to registration under this section to file a consolidated registration statement.

     (8) The commissioner may allow a health carrier registered to do business in this state and part of a health carrier holding company system to register on behalf of an affiliated health carrier that is required to register under subsection (1) of this section and to file all information and material required to be filed under this section.

     (9) This section does not apply to a health carrier, information, or transaction if, and to the extent that, the commissioner by rule or order exempts the health carrier, information, or transaction from this section.

     (10) A person may file with the commissioner a disclaimer of affiliation with an authorized health carrier, or a health carrier or a member of a health carrier holding company system may file the disclaimer. The disclaimer must fully disclose all material relationships and bases for affiliation between the person and the health carrier as well as the basis for disclaiming the affiliation. After a disclaimer has been filed, the health carrier is relieved of any duty to register or report under this section that may arise out of the health carrier's relationship with the person unless and until the commissioner disallows the disclaimer. The commissioner shall disallow the disclaimer only after furnishing all parties in interest with notice and opportunity to be heard and after making specific findings of fact to support the disallowance.

     (11) Failure to file a registration statement or a summary of the registration statement required by this section within the time specified for the filing is a violation of this section.

[2001 c 179 § 4.]