1. (1) Some insuring entities and self-insurers use the services of internal staff to defend claims. For example, an insuring entity or self-insurer may:

   1. (a) Ask its professional medical staff to:

      1. (i) Evaluate medical care;
      2. (ii) Review medical records; or
      3. (iii) Assist in case preparation.

   2. (b) Retain in-house legal counsel to:

      1. (i) Assess risk of litigation;
      2. (ii) Evaluate legal issues;
      3. (iii) Engage in case preparation or management activities, or settlement negotiations.

2. (2) When calculating ALAE, a reporting entity that uses internal staff to defend a claim as described in subsection (1) of this section and WAC 284-24D-020(1):

   1. (a) Must include salary, benefits and an allocation for overhead for those employees; and
   2. (b) May use average salaries and time studies when calculating ALAE.

[Statutory Authority: RCW 48.02.060, 48.140.060, and 7.70.140. WSR 07-12-057 (Matter No. R 2006-02), § 284-24D-340, filed 6/4/07, effective 7/22/07.]