WAC 284-24D-340. If defense services are provided by company employees, must company overhead be reported with ALAE?

(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: (a) Ask its professional medical staff to: (i) Evaluate medical care; (ii) Review medical records; or (iii) Assist in case preparation. (b) Retain in-house legal counsel to: (i) Assess risk of litigation; (ii) Evaluate legal issues; (iii) Engage in case preparation or management activities, or settlement negotiations. (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): (a) Must include salary, benefits and an allocation for overhead for those employees; and (b) May use average salaries and time studies when calculating ALAE.