No. 43323 (5-year Review): Rule R590-267. Personal Injury Protection Relative Value Study Rule

DAR File No.: 43323
Filed: 10/24/2018 11:22:49 AM

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:

Subsection 31A-2-201(3) authorizes the Insurance Commissioner to write rules to implement the provisions of the Insurance Code, Title 31A. Subsection 31A-22-307(2) requires the Commissioner to conduct, prepare, and publish a relative value study every other year.

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 of Insurance (Department) received one written comment in the past five years. It was sent to us in 2017 in response to a biannual update of the conversion factors as is required by Subsection 31A-22-307(2). The comment suggested that the increases that were proposed in the rule did not sufficiently factor in the impact of inflation. The Department disagreed with the comment because the law requires the Department to set the reasonable values at the 75th percentile charge for each type of service in the state's most populous county. The law does not require the Department to consider expected future inflation when setting these values. The Department believes that the process used to set the reasonable values is consistent with statutory requirements.

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

This rule is required by Subsection 31A-22-307(2). It must be continued because it gives the Insurance Department a mechanism by which to ensure that injured persons are treated equitably while receiving services covered by automobile personal injury protection coverage. This rule sets a reasonable value of services that acts as a baseline for such services.

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:

10/24/2018

Authorized by:

Steve Gooch, Information Specialist

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