OLYMPIA – The Washington Department of Enterprise Services has adopted a new rule that updates self-insurance requirements for local government and non-profit property and liability risk pools.

There are currently fifteen self-managed pools formed under RCW 48.62, all overseen by the state risk manager at the Office of Risk Management within Enterprise Services. The oversight includes adopting rules and issuing cease-and-desist orders when pools are out of compliance or operating unsafely.

The amended rule:

• Increases the combined asset requirements for risk pools from a 70 to an 80 percent confidence level for paying claims.
• Clarifies when a pool has met a primary asset test and establishes criteria for second solvency tests.
• Identifies procedures when a risk pool operating under state supervision falls below a 70 percent confidence level.
• Clarifies specific work to be done by an independent actuary.
• Requires risk pools to regularly provide audited financial statements to Enterprise Services.

The new rules take effect January 2015. More information is available on our rule making page.