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Alternative Share Insurance Rulemaking

Please Read This First

This rulemaking is based on a 1996 law passed by the Washington State Legislature. The Department of Financial Institutions (DFI) does not make rules without statutory authority, and the law was not passed at the request of DFI.

The law was “on the books” (RCW 31.12.408) from 1996 until 2006, when the Washington Credit Union League and five state chartered credit unions requested DFI to look into providing the regulatory standards for alternative share insurance in Washington.

Because alternative share insurance is already permitted in state law, DFI agreed to begin rulemaking. The rulemaking process includes an in-depth study of alternative share insurance, a substantial series of stakeholder meetings (open to the public), a lengthy review process and, eventually, public hearings under the state’s Administrative Procedures Act.

This website is about the rulemaking for companies seeking to provide alternative share insurance. After completion of the rulemaking, if any company applies with DFI, it must meet significant standards required by the underlying law, before being permitted to offer alternative share insurance, possibly by 2009.

Because any state-chartered credit unions that want to convert to private share insurance would need the approval of their members and DFI before conversion, a separate rulemaking has been started for credit union rules. View the alternative share insurance rulemaking for credit unions webpage.

On October 18, 2007, DFI received two requests to suspend the CR-101 rulemaking process. The requests were in an email received from the Washington Credit Union League and a letter from five Washington credit unions. The League and credit unions were the original requestors inquiring as to the regulatory standards for companies seeking to provide alternative share insurance in Washington.

What's New

Chart of Drafting Changes Posted
A chart of alternative share insurance proposed regulation drafting changes has been posted. View chart (PDF)*.
Assets in Federally Insured Credit Unions Table
Assets in federally insured credit unions listed by states and by regions of the Bureau of Economic Development. View table (PDF)*.

Documents

Chart of Drafting Changes (PDF)*
October Discussion Draft of Proposed Regulations (Word)**
This draft indicates only those changes made since the June draft. For mark-up of previous changes, please see the June draft (Word)**.
September 2007 Memorandum from the Assistant Attorney General (PDF)*
June Discussion Draft of Proposed Regulations (Word)**
Project and Meeting Schedule Timeline (PDF)*
RCW 31.12.408
Introductory Letter to Credit Unions (PDF)*
CR-101 - Pre-Proposal Statement of Inquiry (PDF)*
Alternative Share Insurance & Draft Regulations Bulletin

Submit Comments

Comments are welcome and will continue to be received throughout the rulemaking process.

To submit comments online, please use our rulemaking comment form.

You may also comment by mail, fax, or email. Please see our contact information below.

Note: Written comments are public record, and may be linked to the Division of Credit Unions website.

Comments & Letters Received

View comments and letters received by DFI regarding alternative share insurance rulemaking.

Rulemaking Meeting Audio

MP3 audio files from previous rulemaking meetings are available for download.

Contact Us

If you need additional information, please contact:

Joanne Conrad
Project Manager/Specialist Consultant
P.O. Box 41200
Olympia WA 98504-1200
Phone: 360-902-8813
Fax: 360-704-6490
jconrad@dfi.wa.gov

* This document is a PDF file, and you will need Adobe Acrobat Reader to view it. If you don't already have Acrobat Reader installed on your computer, you may download it for free from Adobe.

** This document is a Microsoft Word file, and you will need Microsoft Word to view it. If you do not have Microsoft Word installed on your machine, you can download the free Microsoft Word Viewer.

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