No. 35331 (Amendment): Rule R590-225. Submission of Property and Casualty Rate and Form Filings

(Amendment)

DAR File No.: 35331
Filed: 10/13/2011 07:53:16 AM

RULE ANALYSIS

Purpose of the rule or reason for the change:

Changes to this rule are being made to come into compliance with GRAMA.

Summary of the rule or change:

A new Section R590-225-11 has been added to the rule and the following sections renumbered. The new section adds GRAMA requirements that allow insurance companies who file documents with the department to designate them as protected from public access. This can be done as the company files their documents electronically. Documents can only be considered protected if they are a trade secret or commercial information, as defined in the law.

State statutory or constitutional authorization for this rule:

• Section 31A-2-201.1
• Subsection 31A-2-201(3)
• Section 31A-19a-203
• Subsection 31A-2-201(2)

Anticipated cost or savings to:

the state budget:

Currently and in the past the department has determined which property and casualty company filed documents are to be protected, as per the code. That responsibility is being turned over to the insurance company. They will mark the files to be protected when they file them electronically with the department. No programming changes will needed or additional work required of the department in order to make this change.

local governments:

These rule changes will have no effect on local government since they deal solely with rate and form filing procedures of the department's property and casualty insurance company licensees.

small businesses:

No small businesses will be affected by this rule. The rule only affects insurance companies, which are large businesses.

persons other than small businesses, businesses, or local governmental entities:

This rule affects all licensed property and casualty insurance companies. It will have no fiscal impact on them since it simply allows them to determine which of the filed documents they send to the department are to be protected. It will have no fiscal impact on individual insureds.

Compliance costs for affected persons:

This rule affects all licensed property and casualty insurance companies. It will have no fiscal impact on them since it simply allows them to determine which of the filed documents they send to the department are to be protected. It will have no fiscal impact on individual insureds.

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

The changes to this rule merely make the insurance company responsible for marking their own documents as protected when they file them with the department instead of having the department do it for them. This will have no fiscal impact on insurers.

Neal T. Gooch, 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:

12/01/2011

Interested persons may attend a public hearing regarding this rule:

• 11/15/2011 09:00 AM, State Office Bldg, 450 N State Street, Room 3112, Salt Lake City, UT

This rule may become effective on:

12/08/2011

Authorized by:

Jilene Whitby, Information Specialist

RULE TEXT

R590. Insurance, Administration.

R590-225. Submission of Property and Casualty Rate and Form Filings.

R590-225-11. Classification of Documents.

(1) The Department will not classify as protected,certain information in property and casualty ratefilings unless these procedures are complied with.

(2) Utah Code Ann. Section 31A-19a-204 requires rates, and supplementary rate information to be open for public inspection. Supporting information in a rate filing is not designated under Utah Code Ann. Section 31A-19a-204 as public information, however, under the Government Records Access and Management Act (GRAMA)supporting information in a rate filing would be considered open for public inspection unless it is classified as private, controlled, or protected. Under GRAMA the Department may classify certain information in a record as private, controlled, or protected. It is clear that the only category applicable to rate, rule and form filings other than as a public record is as a protected record. If a record is classified as protected, the Department may not disclose the information in the record to third persons specifically and to the public generally.

(3) The only information the Department may classify as protected, absent clear documentation otherwise, in accordance with Utah Code Ann. Section 63G-2-305 is the following items:

(a) Information deemed to be trade secret. Trade secret means information, including a formula, pattern, compilation, program, device, method, technique, or process, that:

(i) derives independent economic value, actual or potential, from not being generally known to, and not being readily ascertainable by proper means by, other persons who can obtain economic value from its disclosure or use; and

(ii) is the subject of efforts that are reasonable under the circumstances to maintain its secrecy.

(b) "Commercial Information and non-individual financial information obtained from a person which:"

(i) disclosure of the information could reasonably be expected to result in unfair competitive injury to the person submitting the information or would impair the ability of the governmental entity to obtain necessary information in the future ; and

(ii) the person submitting the information has a greater interest in prohibiting access than the public in obtaining access.

(4) The person submitting the information under either section R590-225-11(3)(a) and or (b) above and claiming that such is or should be protected has provided the governmental entity with the information in Utah Code Ann. Section 63G-2-309(1)(a)(i).

(5) The department will handle supporting information a filer submits as part of a rate filing in the following manner:

(a) The filer will need to request which specific document the filer believes qualifies under GRAMA section 63G-2-305(1) or (2) or both when the filing is submitted; and

(b) the documentmust include a written statement of reasons supporting the request that the information should be classified as protected.

(c) If the filer does not request the information in the document to be classified as protected, the document will be classified as public.

(d) The Department will not automatically classify any document in a filing as protected.

(e) The Department will not re-open a filing to permit a company to request protected classification of previously filed documents.

(6) Once the filing has been received, the Department will review the documents the filer has requested to be classified as protected to see if it meets the requirements of Utah Code Ann. Section 63G-2-305(1)or(2).

(a) If all the information in the document meets the requirements for being classified as protected and the required statement is included, the document will be classified as protected, and the information will not be available to the public or third parties.

(b) If all the information in the document does not meet the requirements for being classified as protected, the Department will notify the filer of the denial, the reasons therefore, and of the filer's right under GRAMA to appeal the denial. The filer will have 30 days to appeal the denial as allowed by Utah Code Ann. 63G-2-401. Despite the denial of classifying the information as protected, the Department, pursuant to GRAMA, will nonetheless treat the information as if it had been classified as protected until:

(i) the filer has notified the Department that the filer withdraws the request for designation as protected; or

(ii) the 30 day time limit for an appeal to the Commissioner has expired; or

(iii) the filer has exhausted all appeals under GRAMA and the documentation has been found to be a public document.

(c) If the filer combines in the same document, information it wishes to be classified as protected with information that is public, the document will be classified as public.

(7) Filings submitted that show a pattern of requesting non-qualifying items as a protected document may be considered a violation of this rule. This would include putting both protected and public information in one document.

 

R590-225-[11]12. Correspondence, and Status Checks.

(1) Correspondence. When corresponding with the department, provide sufficient information to identify the original filing:

(a) type of insurance;

(b) date of filing; and

(c) Submission method, SERFF, or email; and

(d) tracking number

(2) Status Checks.

(a) A complete filing is usually processed within 45 days of receipt.

(b) A filer can request the status of its filing 60 days after the date of submission. A response will not be provided to a status request prior to 60 days.

 

R590-225-[12]13. Responses.

(1) Response to a Filing Objection Letter. When responding to a Filing Objection letter a filer must:

(a) provide an explanation identifying all changes made;

(b) include an underline and strikeout version for each revised document;

(c) a final version of revised documents that incorporates all changes; and

(d) for filings submitted in SERFF, attach the documents in Subsections R590-225-12(1)(b) and (c) to the appropriate Form Schedule or Rate/Rule Schedule tabs.

(3) Response to an Order to Prohibit Use.

(a) An Order to Prohibit Use becomes final 15 days after the date of the Order.

(b) Use of the filing must be discontinued not later than the date specified in the Order.

(c) To contest an Order to Prohibit Use, the commissioner must receive a written request for a hearing no later than 15 days after the date of the Order.

(d) A new filing is required if the licensee chooses to make the requested changes addressed in the Filing Objection Letter. The new filing must reference the previously prohibited filing.

 

R590-225-[13]14. Penalties.

A person found to be in violation of this rule shall be subject to penalties as provided under Section 31A-2-308.

 

R590-225-[14]15. Enforcement Date.

The commissioner will begin enforcing the revised provisions of this rule 15 days from the effective date of this rule.

 

R590-225-[15]16. Severability.

If any provision of this rule or its application to any person or situation is held to be invalid, that invalidity shall not affect any other provision or application of this rule which can be given effect without the invalid provision or application, and to this end the provisions of this rule are declared to be severable.

 

KEY: property casualty insurance filing

Date of Enactment or Last Substantive Amendment: [May 26, 2010]2011

Notice of Continuation: March 12, 2009

Authorizing, and Implemented or Interpreted Law: 31A-2-201; 31A-2-201.1; 31A-2-202; 31A-19a-203

 

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