No. 28551: R590-144. Commercial Aviation Insurance Exemption From Rate and Form Filing

DAR File No.: 28551
Filed: 03/14/2006, 01:54
Received by: NL

 

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:

Section 31A-2-201 provides general authority to adopt rules to implement Title 31A. Section 31A-19a-103 authorizes the commissioner to exempt any market segment from provisions of Title 31A, Chapter 19a, Rate Regulation. Subsection 31A-21-101(5) allows the commissioner to exempt any class of insurance contract or class of insurer from provisions of Title 31A, Chapter 21, Insurance Contracts in General. This rule exempts commercial aviation insurance from the requirement to file insurance policy rates and forms with the department.

 

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 has not received any written comments regarding this rule in the past five years.

 

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

Because of the unique nature of commercial aviation risks, aviation insurance premiums rely on individual risk analysis, underwriting judgment, and the negotiation of a sophisticated business transaction between the insurer and an informed insured. These types of risks also require individually tailored manuscript-type policies. Because of the uniqueness of each risk it is not reasonable to set general rates and forms for them. For this reason it is important that this rule continue in force, exempting commercial aviation insurance from the requirement to file policy rates and forms.

 

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]

 

Authorized by:

Jilene Whitby, Information Specialist