48.164.015 - Creation of association -- Hearing -- Required findings -- Appeal.

Creation of association — Hearing — Required findings — Appeal. (Expires December 31, 2016.)

(1) The commissioner may create an association to provide excess flood insurance to insure property at risk from, and business that is interrupted by, flood arising from the failure of a dam or from efforts to prevent the failure of a dam if the requirements of this section are met.

     (2) The commissioner must hold a hearing under chapters 48.04 and 34.05 RCW before forming an association.

     (3) An association may not begin underwriting operations for excess flood or business interruption insurance until the commissioner finds that:

     (a) If a market assistance plan formed under RCW 48.164.125 finds that there are fewer than four admitted or surplus lines insurers offering excess flood insurance, exclusive of personal insurance, then the market assistance plan is inadequate to insure property at risk from, and business that is interrupted by, flood arising from the failure of a dam or from efforts to prevent the failure of a dam;

     (b) Persons cannot buy excess flood insurance through the voluntary market; or

     (c) There are so few insurers selling excess flood insurance that a competitive market does not exist.

     (4) At a hearing to appeal the commissioner's finding that excess flood insurance is unavailable through the voluntary market or that a competitive market does not exist, the finding that four or more admitted or surplus lines insurers are offering excess flood insurance, exclusive of personal insurance, is prima facie evidence that a competitive market does exist. A decision of the commissioner, finding that excess flood insurance is unavailable through the market assistance plan, voluntary market, or that a competitive market does not exist, may be appealed under chapters 48.04 and 34.05 RCW.

[2010 c 230 § 3.]