No. 42214 (New Rule): Rule R590-276. Record Retention for Foreign, Alien, Commercially Domiciled, Foreign Title and Foreign Fraternals

(New Rule)

DAR File No.: 42214
Filed: 10/13/2017 02:27:55 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

The purpose of this rule is to notify insurers of a statute change for the keeping of records for the following types of insurers: foreign, alien, commercially domiciled, foreign title, and foreign fraternal.

Summary of the rule or change:

The rule notifies foreign, alien, commercially domiciled, and foreign fraternal insurers that they must keep records and reports for three years, plus the current year, for review by the Utah Insurance Department as needed. It also notifies all title insurers, foreign and domestic, that they must keep records for 15 years per Section 31A-20-110.

Statutory or constitutional authorization for this rule:

• Subsection 31A-14-205.5(5)(a)
• Section 31A-2-201

Anticipated cost or savings to:

the state budget:

There is no anticipated cost or savings to the state budget because the rule only applies to certain classes of insurer.

local governments:

There is no anticipated cost or savings to local governments because the rule only applies to certain classes of insurer.

small businesses:

There is no anticipated cost or savings to small businesses because the rule only applies to certain classes of insurer, none of which are small businesses.

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

There is no anticipated cost or savings to any other persons. All states require that all insurers in the affected categories, foreign, alien, commercially domiciled, foreign title, and foreign fraternal, keep records for a minimum of three years plus the current year for regulator review. Since insurers are already following the regulations, there will be no additional requirements to comply with, nor any costs.

Compliance costs for affected persons:

There are no compliance costs for any affected persons. All states require that all insurers in the affected categories, foreign, alien, commercially domiciled, foreign title, and foreign fraternal, keep records for a minimum of three years plus the current year for regulator review. Since insurers are already following the regulations, there will be no additional requirements to comply with, nor any costs.

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 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.

R590-276. Record Retention for Foreign, Alien, Commercially Domiciled, Foreign Title and Foreign Fraternals.

R590-276-1. Authority.

This rule is promulgated pursuant to Subsections 31A-2-201 and 31A-14-205.5(5)(a), which authorize the commissioner to adopt a rule to specify the length of time a foreign insurer, alien insurer, commercially domiciled insurer, foreign title insurer, or foreign fraternal must keep books and records for purposes of review by the insurance department.

 

R590-276-2. Scope.

This rule applies to all foreign insurers, alien insurers, commercially domiciled insurers, foreign title insurers, and foreign fraternals licensed to do business in Utah.

 

R590-276-3. Purpose.

The purpose of this rule is to notify and clarify to foreign insurers, alien insurers, commercially domiciled insurers, foreign title insurers and foreign fraternals of the record retention requirements for purposes of examination by the Utah Insurance Department.

 

R590-276-4. Retention Requirements.

(1) For all insurers under Subsection 31A-14-101 through Subsection 31A-14-217, except foreign title, the books and record retention requirement is three years plus current year.

(2) For all foreign title insurers, the books and record retention requirement is 15 years per Subsection 31A-20-110(1).

(3) All licensees under this subsection shall make the books and records available during normal business hours.

(4) Nothing in this section prohibits electronically stored books and records.

 

R590-276-5. Enforcement Date.

The commissioner will begin enforcing the provision of this rule 45 days from the rule's effective date.

 

R590-276-6. Severability.

If any provision of this rule or its application to any person or circumstances 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 thereby.

 

KEY: insurance, record retention

Date of Enactment or Last Substantive Amendment: December 8, 2017

Authorizing, and Implemented or Interpreted Law: 31A-2-201; 31A-14-205.5(5)(a)

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