No. 42212 (Repeal): Rule R590-256. Health Benefit Plan Internet Portal Solvency Rating

(Repeal)

DAR File No.: 42212
Filed: 10/13/2017 02:26:34 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

During the 2017 General Session, the Legislature passed H.B. 336 which repealed Subsection 31A-22-613.5(3). That statute was the enabling language for the rule.

Summary of the rule or change:

The rule is being repealed in its entirety to comply with H.B. 336 (2017).

Statutory or constitutional authorization for this rule:

• Subsection 31A-22-635(7)
• Title 63G, Chapter 3

Anticipated cost or savings to:

the state budget:

There is no anticipated cost or savings to the state budget. The same process was previously used by the Insurance Department and the Department will continue to use it for other regulatory purposes.

local governments:

There is no anticipated cost or savings to local governments. The same process was previously used by the Insurance Department and the Department will continue to use it for other regulatory purposes.

small businesses:

There is no anticipated cost or savings to small businesses. The same process was previously used by the Insurance Department and the Department will continue to use it for other regulatory purposes.

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

There is no anticipated cost or savings to any other persons. The same process was previously used by the Insurance Department and the Department will continue to use it for other regulatory purposes.

Compliance costs for affected persons:

There is no compliance cost for any affected persons. The repeal of the rule requires no compliance of any sort by any persons.

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

After conducting a thorough analysis, it was determined that this proposed rule change will not result in a fiscal impact to businesses.

Todd E. Kiser, Commissioner

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]

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:

12/01/2017

This rule may become effective on:

12/08/2017

Authorized by:

Steve Gooch, Information Specialist

RULE TEXT

R590. Insurance, Administration.

[R590-256. Health Benefit Plan Internet Portal Solvency Rating.

R590-256-1. Authority.

This rule is promulgated by the Insurance Department pursuant to Utah Code Sections:

(1) 63G, Chapter 3, Utah Administrative Rule Making Act; and

(2) 31A-22-635(7) which requires the Insurance Department to establish a methodology establishing a calendar year solvency rating to be posted on the internet portal.

 

R590-256-2. Purpose and Scope.

(1) The purpose of this rule is to establish the methodology for determining the solvency rating for each insurer who posts a health benefit plan on the Internet portal.

(2) The scope of this rule applies only to insurers who post a health benefit plan on the internet portal.

 

R590-256-3. Definitions.

In addition to the definitions in Sections 31A-1-301 and 31A-17-601, the following definitions shall apply for the purpose of this rule:

(1) "Insurer" means an insurer who posts a health benefit plan on the Internet portal under 63M-1-2504(2)(a).

 

R590-256-4. Solvency Rating Methodology.

(1) An insurer's solvency rating shall fall within one of three tiers:

(a) Solvent;

(b) Hazardous; or

(c) Insolvent.

(2) An insurer shall have a solvency rating of solvent if the insurer's annual risk based capital report demonstrates that the insurer is not in an action level event defined under Sections 31A-17-603 to 606.

(3) An insurer shall have a solvency rating of hazardous if the insurer's annual risk based capital report demonstrates the insurer is in an action level event defined under Sections 31A-17-603 or 604.

(4) An insurer shall have a solvency rating of insolvent if the insurer's annual risk based capital report demonstrates that the insurer is in an action level event defined under Sections 31A-17-605 or 606.

 

R590-256-5. Enforcement Date.

The Commissioner will begin enforcing this rule on the effective date of this rule.

 

R590-256-6. 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: insurance internet portal

Date of Enactment or Last Substantive Amendment: March 10, 2010

Notice of Continuation: March 10, 2015

Authorizing, and Implemented or Interpreted Law: 63G-3; 63M-1-2506]

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