No. 30490 (New Rule): R590-243. Commercial Motor Vehicle Insurance Coverage

DAR File No.: 30490
Filed: 09/26/2007, 11:06
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

The purpose of this rule is to define commercial motor vehicle insurance coverage as it applies to motor vehicle insurance reporting.

Summary of the rule or change:

This rule defines commercial motor vehicle insurance coverage as it applies to the motor vehicle insurance reporting requirement of Subsection 31A-22-315(2)(b).

State statutory or constitutional authorization for this rule:

Section 31A-22-315

Anticipated cost or savings to:

the state budget:

This rule will have no fiscal impact on the department. It is being proposed to help insurers define which commercial auto policies they are required in Subsection 31A-22-315(2)(b) to report to the Department of Public Safety on a monthly basis.

local governments:

This rule deals solely with commercial auto insurers and the laws of the State of Utah requiring them to verify that registered vehicles are covered by insurance. It does not affect local government regulation.

small businesses and persons other than businesses:

This rule will help clear up confusion as to which commercial auto policies an insurer needs to report to the Department of Public Safety, as required by Subsection 31A-22-315(2)(b). It should help clarify the requirements of the law but will have negligible, if any, fiscal impact on insurers, the Department of Public Safety or consumers.

Compliance costs for affected persons:

This rule will help clear up confusion as to which commercial auto policies an insurer needs to report to the Department of Public Safety, as required by Subsection 31A-22-315(2)(b). It should help clarify the requirements of the law but will have negligible, if any, fiscal impact on insurers, the Department of Public Safety or consumers.

Comments by the department head on the fiscal impact the rule may have on businesses:

This rule should have minimal, if any, fiscal impact on businesses. D. Kent Michie, Commissioner

The full text of this rule may be inspected, during regular business hours, at the Division 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:

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

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

11/14/2007

This rule may become effective on:

11/21/2007

Authorized by:

Jilene Whitby, Information Specialist

RULE TEXT

R590. Insurance, Administration.

R590-243. Commercial Motor Vehicle Insurance Coverage.

R590-243-1. Authority.

This rule is promulgated by the insurance commissioner pursuant to Subsections 31A-22-315(1)(b)

 

R590-243-2. Purpose and Scope.

The purpose of this rule is to define commercial motor vehicle insurance coverage as it applies to motor vehicle insurance reporting.

 

R590-243-3. Definitions.

Commercial Motor Vehicle Insurance Coverage means any coverage provided under a commercial automobile, garage or truckers policy form, regardless of the number of vehicles or entity covered and rated from either a commercial manual or rating rule as filed with the Utah Insurance Department.

 

R590-243-4. Rule.

All persons must use the above definition of commercial motor vehicle insurance to identify those vehicles within this classification, when reporting as required by 31A-22-315(2)(b).

 

R590-243-5. Penalties.

A person found, after a hearing or other regulatory process, to be in violation of this rule shall be subject to penalties as provided under Section 31A-2-308.

 

R590-243-6. Enforcement Date.

The commissioner will begin enforcing the provisions of this rule 45 days from the effective date of the rule.

 

R590-243-7. Severability.

If any provision of this rule or its application to any person or circumstance is for any reason held to be invalid, the remainder of the rule and the application of the provision to other persons or circumstances shall not be affected by it.

 

KEY: commercial motor vehicle insurance

Date of Enactment or Last Substantive Amendment: 2007

Authorizing, and Implemented or Interpreted Law: 31A-22-315