No. 32442: R590-220. Submission of Accident and Health Insurance Filings

DAR File No.: 32442
Filed: 03/12/2009, 06:46
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:

Subsection 31A-2-201(3) authorizes the commissioner to write rules to implement the provisions of Title 31A of the Utah Code. Section 31A-2-201.1 authorizes the commissioner to write rules setting requirements for the filing of forms, rates or reports. Subsection 31A-2-202(2) authorizes the commissioner to prescribe forms to collect necessary information and data from licensees. Subsection 31A-22-620(3)(f) authorizes the commissioner to adopt rules that prohibit policy provisions that are unfair and discriminatory under a Medicare supplement policy or certificate. Subsections 31A-30-106(1)(i) and (k) allow the commissioner to set health and accident rating requirements and auditing restrictions.

Summary of written comments received during and since the last five-year review of the rule from interested persons supporting or opposing the rule:

Within the past five years, the department received comments from an insurer regarding changes filed 05/31/2006. Concerns dealt with the requirement that all filings provide domicile state and filing status information. This requirement was later eliminated. Concern was also expressed about reducing the time requirement to make spelling and punctuation correction, from 30 to 15 days; and that when additional types of insurance products are offered by an insurer, the discretionary group has to be reauthorized. After three comment periods, all parties were satisfied with the rule and changes were put into effect 01/22/2007. Additional changes were filed 05/15/2007 which elicited written comments from two insurers. One insurers comments dealt solely with grammar and punctuation. The other insurer requested clarification on what constituted a rejected filing and its relation to a Filing Objection Letter; requested a definition for Rate Revision; and requested clarification regarding a new form filing versus a rate revision.

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 important in making sure the department receives policy rate and form information necessary to make sure there is no unfair discrimination in the coverage they provide and the rates charged. Therefore, this rule should be continued.

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