No. 41060 (5-year Review): Rule R590-121. Rate Modification Plan Rule

DAR File No.: 41060
Filed: 12/12/2016 03:49:38 PM

NOTICE OF REVIEW AND STATEMENT OF CONTINUATION

Concise explanation of the particular statutory provisions under which the rule is enacted and how these provisions authorize or require the rule:

Subsections 31A-2-201(3) and (4) authorize the commissioner to write rule to implement the provisions of Title 31A of the Utah Code. Section 31A-2-203 authorizes the commissioner to make rules pertaining to the financial condition and market regulation surveillance systems. Section 31A-2-204 deals with the conduct of an examination of an insurer by the department, including what is contained in the order; accessing licensees' records; compliance to the examiner's requests; resolving the issue of inadequate reports; and the preparation, issuance, and distribution of the report. Section 31A-2-205 sets standards for setting the cost of the examination of the insurer and how and when it is to be paid. Sections 31A-19a-201, 31A-19a-202, and 31A-19a-203 require a rule to set procedures for submitting rate filings electronically. Section 31A-23a-402 allows the commissioner to define by rule insurance practices that are an unfair method of competition or deceptive act or practice as determined after a finding of fact. The rule establishes criteria for the modification of manual rates through the application of insurer rate modification plans and for the reporting of pertinent information concerning utilization of such plans, in order to determine whether the rates developed meet the standards of the rating law.

Summary of written comments received during and since the last five-year review of the rule from interested persons supporting or opposing the rule:

The department has received no written comments regarding this rule during the past five years.

Reasoned justification for continuation of the rule, including reasons why the agency disagrees with comments in opposition to the rule, if any:

This rule give guidance to licensees about how they can develop alternative rating plans. The rule establishes criteria that must be applied to all policies written outside of a standard rating structure. This rule establishes guidelines that reduce the possibility of unfair rating by property and casualty insurance companies and rate service organizations. Therefore, this rule should be continued.

The full text of this rule may be inspected, during regular business hours, at the Office of Administrative Rules, or at:

Insurance
Administration
Room 3110 STATE OFFICE BLDG
450 N MAIN ST
SALT LAKE CITY, UT 84114-1201

Direct questions regarding this rule to:

• Steve Gooch at the above address, by phone at 801-538-3803, by FAX at 801-538-3829, or by Internet E-mail at [e-mail]

Effective:

12/12/2016

Authorized by:

Steve Gooch, Information Specialist

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