No. 33321 (New Rule): Rule R590-256. Health Benefit Plan Internet Portal Solvency Rating

(New Rule)

DAR File No.: 33321
Filed: 01/13/2010 05:39:07 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

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.

Summary of the rule or change:

This rule establishes the methodology for determining the solvency rating for each insurer who posts a health benefit plan on the Internet portal.

State statutory or constitutional authorization for this rule:

• Title 63G, Chapter 3
• Section 63M-1-2506

Anticipated cost or savings to:

the state budget:

Some additional analysis work may be required of department staff but it would be so insignificant that it would create no fiscal impact.

local governments:

This rule will have no affect on local governments since it deals with the relationship between the department and their life licensees.

small businesses:

All work required by this rule will be provided by department staff in the way of financial analysis. The rule will have no fiscal impact on groups of individuals outside of department personnel.

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

All work required by this rule will be provided by department staff in the way of financial analysis. The rule will have no fiscal impact on groups of individuals outside of department personnel.

Compliance costs for affected persons:

All work required by this rule will be provided by department staff in the way of financial analysis. The rule will have no fiscal impact on groups of individuals outside of department personnel.

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

This rule will have no fiscal impact on businesses of any size.

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
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:

03/03/2010

Interested persons may attend a public hearing regarding this rule:

• 02/23/2010 03:00 PM, State Office Building, 450 N State St, Room 3112, Salt Lake City, UT

This rule may become effective on:

03/10/2010

Authorized by:

Jilene Whitby, 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) 63M-1-2506(5) 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.

 

R590-245-5. 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: 2010

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

 

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