No. 40272 (Amendment): Rule R590-102. Insurance Department Fee Payment Rule

(Amendment)

DAR File No.: 40272
Filed: 03/18/2016 11:21:48 AM

RULE ANALYSIS

Purpose of the rule or reason for the change:

The purpose of this amendment is to codify new fees passed during recent General Sessions. Captive cell fees were passed in H.B. 24 (2015). Individual and Agency Navigator fees were passed in H.B. 160 (2013). The actuarial review assessment fee was passed in H.B. 128 (2011). The risk Adjustment Program insurer assessment was passed in H.B. 141 (2014).

Summary of the rule or change:

The rule adopts new fees for captive cells that include an initial renewal, late renewal, and commerce fee; fees for individual navigators and navigator agencies for initial renewal and reinstatement; an annual health insurance actuarial review assessment fee; and a risk adjustment program insurer assessment.

State statutory or constitutional authorization for this rule:

• Subsection 31A-3-103(3)

Anticipated cost or savings to:

the state budget:

The captive cell initial and renewal fees are $1,000. Utah currently licenses 83 captive cells for an annual budget of $83,000. Currently, there are 33 individual navigators whose initial application fee is $35 a year for an annual budget of $1,155. Currently, there are 9 agency navigators whose initial application fee is $40 a year for an annual budget of $360. The annual health insurance assessment funds the department health actuary and is capped at a total assessment of $150,000 a year. Currently, the department is not assessing the risk adjustment program fee. The department is still reviewing the impact of a state-based program.

local governments:

None--The fees and assessments included in the rule only impact budgets at the state level.

small businesses:

Currently, there are 33 individual navigators whose initial application fee is $35 a year. Currently, there are 9 agency navigators whose initial application fee is $40 a year.

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

Individuals could see a small increase in their insurance premium cost.

Compliance costs for affected persons:

The captive cell initial and renewal fees are $1,000. Utah currently licenses 83 captive cells. Currently, there are 33 individual navigators whose initial application fee is $35 a year. Currently, there are 9 agency navigators whose initial application fee is $40 a year. The annual health insurance assessment funds the department health actuary and is capped at a total assessment of $150,000 a year.

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

The captive cell fees are the lowest in the nation and will capture the monies required for the department's additional work. The individual navigator and agency navigator license fees are consistent with other similar entities. The annual health insurance assessment is spread amongst all individual and small employer health insurers and provides the department an invaluable resource in the complex regulation of these entities.

Todd E. Kiser, Commissioner

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:

• 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:

05/16/2016

This rule may become effective on:

05/23/2016

Authorized by:

Steve Gooch, Information Specialist

RULE TEXT

R590. Insurance, Administration.

R590-102. Insurance Department Fee Payment Rule.

R590-102-5. Admitted Insurer and Prescription Drug Plan Fees.

(1) Annual license fees:

(a) certificate of authority, initial license application - due with license application: $1,000;

(b) certificate of authority - renewal - due by the due date on the invoice: $300;

(c) certificate of authority - late renewal - due for any renewal paid after the date on the invoice: $350;

(d) certificate of authority - reinstatement - due with application for reinstatement: $1,000.

(2) Other license fees:

(a) certificate of authority - amendments - due with request for amendment: $250;

(b)(i) Form A - application for merger, acquisition, or change of control, due with filing: $2,000.

(ii) Expenses incurred for consultant(s) services necessary to evaluate a Form A will be charged to the applicant and due by the due date on the invoice;

(c) redomestication filing - due with filing: $2,000; and

(d) application for organizational permit for mutual insurer to solicit applications for qualifying insurance policies or subscriptions for mutual bonds or contribution notes - due with application: $1,000.

(3) The annual initial or annual renewal license fee includes the following licensing services for which no additional fee is required:

(a) filing annual statement and report of Utah business - due annually on March 1;

(b) filing holding company registration statement - Form B;

(c) filing application for material transactions between affiliated companies - Form D;

(d) application for: stock solicitation permit, public offering filing, but not an SEC filing; an SEC filing; private placement offering; and

(e) application for individual license to solicit in accordance with the stock solicitation permit.

(4) Annual service fee:

(a) Due annually by the due date on the invoice.

(b) A prescription drug plan is exempted from payment of a service fee.

(c) The fee is based on the Utah premium as shown in the latest annual statement on file with the National Association of Insurance Commissioners (NAIC) and the department. Fee calculation example: the 2004 annual service fee calculation will use the Utah premium shown in the December 31, 2003 annual statement.

(d) Fee schedule:

(i) $0 premium volume: no service fee;

(ii) more than $[zero]0 but less than $1 million in premium volume: $700;

(iii) $1 million but less than $3 million in premium volume: $1,100;

(iv) $3 million but less than $6 million in premium volume: $1,550;

(v) $6 million but less than $11 million in premium volume: $2,100;

(vi) $11 million but less than $15 million in premium volume: $2,750;

(vii) $15 million but less than $20 million in premium volume: $3,500; and

(viii) $20 million or more in premium volume: $4,350.

(e) The annual service fee includes the following services for which no additional fee is required:

(i) filing of amendments to articles of incorporation, charter, or bylaws;

(ii) filing of power of attorney;

(iii) filing of registered agent;

(iv) affixing commissioner's seal and certifying any paper;

(v) filing of authorization to appoint and remove agents;

(vi) filing of producer/agency appointment with an insurer - initial;

(vii) filing of producer/agency appointment with an insurer - termination;

(viii) report filing, all lines of insurance;

(ix) rate filing, all lines of insurance; and

(x) form filing, all lines of insurance.

(f) The annual service fee is for services that the department will provide for an admitted insurer during the year. The fee is paid in advance of providing the services.

(5) Other fees:

(a) E-commerce fee: (see R590-102- 21[8]).

(b) Insurer examination costs reimbursements from examined insurers - due by due date on the invoice: actual costs plus overhead expense.

 

R590-102-6. Surplus Lines Insurer, Accredited Reinsurer, Trusteed Reinsurer, and Employee Welfare Fund Administrative/Service Fees.

(1) Initial Fee - due with application, alien surplus lines insurers file Utah State Alien Surplus Lines Information Form $1,000.

(2) Annual Fee - due annually by the due date on the invoice: $500;

(3) Late annual payment - due for any annual payment paid after the due date on the invoice: $550;

(4) Reinstatement - due with application, alien surplus insurers submit request for reinstatement: $1,000;

(5) The initial or annual surplus line fee includes the surplus lines annual statement filing for:

(a) U.S. companies - due annually on May 1; and

(b) foreign companies - due within 60 days of the annual statement's filing with the insurance regulatory authority where the company is domiciled.

(6) The initial or annual accredited reinsurer and trusteed reinsurer license fee includes the annual statement filing - due annually on March 1.

(7) The annual fee includes the following services for which no additional fee is required and is paid in advance:

(a) filing of power of attorney; and

(b) filing of registered agent.

(8) Other fees: E-commerce fee: see R590-102- 21[8].

 

R590-102-7. Other Organization Fees.

(1) Annual license fee:

(a) initial - due with application: $250;

(b) renewal - due annually by the due date on the invoice: $200;

(c) late renewal - due for any renewal paid after the date on the invoice: $250;

(d) reinstatement - due with application for reinstatement: $250;

(e) The annual other organization initial or renewal fee includes the risk retention group annual statement filing - due annually on May 1.

(2) Annual service fee - due annually by the due date on the invoice: $200.

(a) The annual service fee includes the following services for which no additional fee is required:

(i) filing of power of attorney;

(ii) filing of registered agent; and

(iii) rate, form, report or service contract filing.

(b) The annual service fee is for services that the department will provide during the year. The fee is paid in advance of providing the services.

(3) Other fees: E-commerce fee: see R590-102- 21[8].

 

R590-102-8. Captive Insurer Fees.

(1) Initial license application - due with license application: $200.

(2) Initial license application review - due by the due date on the invoice: actual costs incurred by the department to review the application.

(3) Annual license fees:

(a) initial - due by the due date on the invoice: $5,000;

(b) renewal - due by the due date on the invoice: $5,000;

(c) late renewal - due for any renewal paid after the date on the invoice: $5,050;

(d) reinstatement - due with application for reinstatement: $5,050.

(4) Other fees:

(a) e-commerce fee: see R590-102-18.

(b) Examination costs reimbursements from examined captive insurers - due by due date on the invoice: actual costs plus overhead expense.

 

R590-102-9. Captive Cell Fees.

(1) Initial license application -- due with license application: $200.

(2) Annual license fees:

(a) initial -- due by the due date on the invoice: $1,000;

(b) renewal -- due by the due date on the invoice: $1,000;

(c) late renewal -- due for any renewal paid after the date on the invoice: $1,050.

(4) Other fees:

(a) e-commerce fee: see R590-102-21.

(b) Examination costs reimbursements from examined captive insurers - due by due date on the invoice: actual costs plus overhead expense.

 

R590-102-10. Life Settlement Provider Fees.

(1) Annual license fees:

(a) initial - due with application: $1,000;

(b) renewal - due by the due date on the invoice: $300;

(c) late renewal - due for any renewal paid after the date on the invoice: $350;

(d) reinstatement - due with reinstatement application: $1,000.

(2) Annual service fee - due by the due date on the invoice: $600.

(a) The annual service fee includes the following service for which no additional fee is required: rate, form, report or service contract filing.

(b) The annual service fee is for services that the department will provide during the year. The fee is paid in advance of providing the services.

(3) Other fees:

(a) e-commerce fee: see R590-102- 21[8]; and

(b) examination costs reimbursements from examined viatical settlement providers - due by due date on the invoice: actual costs plus overhead expense.

 

R590-102-1[0]1 . Professional Employer Organization (PEO) Fees.

(1) Annual license fees:

(a) PEO - not certified by an assurance organization:

(i) initial - due with application: $2,000;

(ii) renewal - due by the due date on the invoice: $2,000;

(iii) late renewal - due for any renewal paid after the date on the invoice: $2,050;

(iv) reinstatement - due with reinstatement application: $2,050;

(b) PEO - certified by an assurance organization:

(i) initial - due with application: $2,000;

(ii) renewal - due by the due date on the invoice: $1,000;

(iii) late renewal - due for any renewal paid after the date on the invoice: $1,050;

(iv) reinstatement - due with reinstatement application: $1,050;

(c) PEO - small operator:

(i) initial - due with application: $2,000;

(ii) renewal - due by the due date on the invoice: $1,000;

(iii) late renewal - due for any renewal paid after the date on the invoice: $1,050;

(iv) reinstatement - due with reinstatement application: $1,050.

(5) E-commerce fee: see R590-102- 21[8].

 

R590-102-1[1]2 . Individual Resident and Non-Resident License Fees, Other Than Individual Navigators.

(1) Biennial resident and non-resident full-line individual initial license or renewal fee:

(a) initial license fee - due with application: $70:

(b) renewal license fee if renewed prior to license expiration date - due with renewal application: $70;

(c) reinstatement license fee if inactive license is reinstated within one year following the license expiration date - due with application for reinstatement: $120.

(2) Biennial resident and non-resident limited-line individual initial or renewal license fee:

(a) initial license fee - due with application: $45;

(b) renewal license fee if renewed prior to license expiration date - due with renewal application: $45;

(c) reinstatement license fee if inactive license is reinstated within one year following the license expiration date - due with application for reinstatement: $95.

(3) Other license fees: addition of producer classification or line of authority to individual producer license - due with request for additional classification or line of authority: $25.

(4) The biennial initial and renewal full-line producer and limited-line producer fee includes the following services for which no additional fee is required:

(a) issuance of letter of certification;

(b) issuance of letter of clearance;

(c) issuance of duplicate license;

(d) individual continuing education services.

(5) The biennial initial and renewal individual license fee includes services the department will provide during the year. The fee is paid in advance of providing the services.

(6) Other fees:

(a) e-commerce fee: see R590-102- 21[8]; and

(b) title insurance product or service approval for dual licensed title licensee form filing fee - due with filing: $25.

 

R590-102-13. Individual Navigator.

(1) Annual individual navigator per annual license period:

(a) initial license fee -- due with application: $35;

(b) renewal license fee if renewed prior to license expiration date -- due with renewal application: $35;

(c) reinstatement license fee if inactive license is reinstated within one year following the license expiration date -- due with application for reinstatement: $60.

(2) The annual initial and renewal individual license fee includes the following services for which no additional fee is required:

(a) issuance of letter of certification;

(b) issuance of letter of clearance;

(c) issuance of duplicate license;

(d) individual continuing education services.

(3) The annual initial and renewal individual license fee includes services the department will provide during the year. The fee is paid in advance of providing the services.

(4) E-commerce fee: see R590-102-21.

 

R590-102-1[2]4 . Agency License Fees, Other than Navigator or Bail Bond Agencies.

(1) Biennial resident and non-resident agency initial or renewal license for a full-line agency and for a limited-line agency:

(a) initial license fee - due with application: $75;

(b) renewal license fee if renewed prior to license expiration date - due with renewal application: $75;

(c) reinstatement license fee if inactive license is reinstated within one year following the license expiration date - due with application for reinstatement: $125;

(d) resident title license:

(i) initial license fee - due with application: $100;

(ii) renewal license fee, if renewed prior to license expiration date - due with renewal application: $100.

(iii) reinstatement license fee, if reinstated within one year following the license inactivation date -- due with application for reinstatement: $150.

(2) Other license fees: addition of producer classification or line of authority to agency license - due with request for additional classification or line of authority: $25.

(3) The biennial initial and renewal agency license fee includes the following services for which no additional fee is required:

(a) issuance of letter of certification;

(b) issuance of letter of clearance;

(c) issuance of duplicate license;

(d) filing of producer designation to agency license - initial;

(e) filing of producer designation to agency license - termination;

(f) filing of amendment to agency license; and

(g) filing of power of attorney.

(4) Other fees: E-commerce fee: see R590-102- 21[8].

 

R590-102-15. Navigator Agency.

(1) Annual navigator agency per annual license period:

(a) initial license fee -- due with application: $40;

(b) renewal license fee if renewed prior to license expiration date -- due with renewal application: $40;

(c) reinstatement license fee if inactive license is reinstated within one year following the license expiration date -- due with application for reinstatement: $65.

(2) The annual initial and renewal agency license fee includes the following services for which no additional fee is required:

(a) issuance of letter of certification;

(b) issuance of letter of clearance;

(c) issuance of duplicate license;

(d) filing of producer designation to agency license -- initial;

(e) filing of producer designation to agency license -- termination;

(f) filing of amendment to agency license; and

(g) filing of power of attorney.

(3) E-commerce fee: see R590-102-21.

 

R590-102-1[3]6 . Bail Bond Agency.

(1) Annual bail bond agency per annual license period:

(a) initial license fee - due with application: $250;

(b) renewal license fee if renewed prior to license expiration date - due with renewal application: $250;

(c) reinstatement license fee if inactive license is reinstated within one year following the license expiration date - due with application for reinstatement: $300.

(2) The annual initial and renewal agency license fee includes the following services for which no additional fee is required:

(a) issuance of letter of certification;

(b) issuance of letter of clearance;

(c) issuance of duplicate license;

(d) filing of producer designation to agency license - initial;

(e) filing of producer designation to agency license - termination;

(f) filing of amendment to agency license; and

(g) filing of power of attorney.

(3) E-commerce fee: see R590-102- 21[8].

 

R590-102-1[4]7 . Health Insurance Purchasing Alliance.

(1) Annual license fee:

(a) initial - due with application: $500;

(b) renewal - due by the due date on the invoice: $500;

(c) late renewal - due for any renewal paid after the date of the invoice: $550; and

(d) reinstatement - due with application for reinstatement: $500.

(2) E-commerce fee: see R590-102- 21[8].

 

R590-102-1[5]8 . Continuing Education Fees.

(1) Annual continuing education provider license fees per annual license period:

(a) initial license fee - due with application: $250;

(b) renewal license fee if renewed prior to license expiration date - due with renewal application: $250;

(c) reinstatement license fee if inactive license is reinstated within one year following the license expiration date - due with application for reinstatement: $300.

(2) Continuing education course post-approval fee - due with request for approval: $5 per credit hour, minimum fee $25.

 

R590-102-1[6]9 . Non-electronic Processing or Payment Fees.

(1) Non-electronic filing processing fee - assessed on a non-electronic filing when the department has provided an electronic filing process and stated the electronic process is the preferred process for receiving a filing - due with each paper non-electronic filing or by the due date on the invoice: $5.

(2) Non-electronic application processing fee - assessed on a non-electronic application when the department has provided an electronic application process and stated the electronic process is the preferred process for receiving an application - due with each paper non-electronic application or by the due date on the invoice: $25.

(3) Non-electronic payment processing fee - assessed on a non-electronic payment when the department has provided an electronic payment process and stated the electronic process is the preferred process for receiving a payment - due with each non-electronic payment or by the due date on the invoice: $25.

 

R590-102-[17]20 . Dedicated Fees.

The following are fees dedicated to specific uses:

(1)(a) annual fraud assessment fee as calculated under Section 31A-31-108 and stated in the invoice - due by the due date on the invoice;

(b) late fee -- due for any fraud assessment fee paid after the due date on the invoice: $50;

(2) annual title insurance regulation assessment fee as calculated under Section 31A-23a-415 and Rule R592-10 and stated in the invoice - due by the due date on the invoice;

(3) annual title assessment for the Title Recovery, Education, and Research Fund fee:

(a) individual title licensee applicant for initial license or renewal license - due with the initial application or the renewal application: $15;

(b) agency title licensee applicant - due with the initial application: $1,000;

(c) annual agency title licensee assessment based on annual written title insurance premium - due by the due date on the invoice:

(i) Band A: $0 to $1 million: $125;

(ii) Band B: more than $1 million to $10 million: $250;

(iii) Band C: more than $10 million to $20 million: $375;

(iv) Band D: more than $20 million: $500;

(4) [relative value study book fee - due when book purchased or by invoice due date: $10]annual health insurance actuarial review assessment fee as calculated under Section 31A-30-115 and stated in the invoice - due by the due date on the invoice;

(5) mailing fee for books - due if book is to be mailed to purchaser: $3;

(6) fingerprint fee - due with application for individual license:

(a) Bureau of Criminal Investigation (BCI): $20.00; and

(b) Federal Bureau of Investigation (FBI): $[16.50]14.75;

(7) annual health insurance actuarial review assessment fee as calculated under Section 31A-30-115 and stated in the invoice due by the due-date on the invoice ;

(8) Risk Adjustment Program insurer assessment per covered life per year: $0.96.

 

R590-102-[18]21 . Electronic Commerce Dedicated Fees.

(1) E-commerce and internet technology services fee:

(a) admitted insurer and surplus lines insurer - due with the initial, annual, renewal, or reinstatement application: $75;

(b) captive insurer - due with the initial, annual renewal, or reinstatement application: $250;

(c) other organization, professional employer organization, and life settlement provider - due with the initial, annual renewal, or reinstatement application: $50;

(d) continuing education provider - due with the initial, annual renewal, or reinstatement application: $20;

(e) agency - due with the initial, biennial renewal, or reinstatement application: $10;

(f) health insurance purchasing alliance - due with the initial, annual renewal, or reinstatement application: $10; and

(g) individual - due with the initial, biennial renewal, or reinstatement application: $5.

(2) Database access fees:

(a) information accessed through an electronic portal set up for that purpose - due when the department's database is accessed to input or acquire data: $3 per transaction;

(b) rate and form filing database access to an electronic public rate and form filing:

(i) a separate fee is assessed per line of insurance accessed (accident and health, life and annuity, or property-casualty);

(ii) each line of insurance accessed is charged the following fees:

(A) a base fee, which entitles the user up to 30 minutes of access, the assistance of staff during that time, and one DVD - $45;

(B) each additional 30 minutes of access time or fraction thereof, including the assistance of staff during that time - $45;

(iii) additional DVD - $2;

(iv) payment due at time of service or by the due date on the invoice.

 

R590-102-[19]22 . Other Fees.

(1) Photocopy fee - per page: $.50.

(2) Complete annual statement copy fee - per statement: $40.

(3) Fee for accepting service of legal process: $10.

(4) Fees for production of information lists regarding licensees or other information that can be produced by list:

(a) printed list, if the information is already in list format and only needs to be printed or reprinted: $1 per page;

(b) electronic list compiled by accessing information stored in the Department's database:

(i) a separate fee is assessed for each list compiled;

(ii) each list is assessed one or more of the following fees:

(A) a base fee, which entitles the requestor up to 30 minutes of staff time to draft the information query, compile the information, prepare a CD, and prepare a CD for mailing to the requestor - $50, due with request for information;

(B) each additional 30 minutes or fraction thereof to draft the information query, compile the information, prepare a CD, and prepare a CD for mailing to the requestor - $50, due by the due date on the invoice;

(iii) additional CD - $1.00, due by the due date on the invoice.

(5) Returned check fee: $20.

(6) Workers compensation loss cost multiplier schedule: $5.

(7) Address correction fee -- assessed when department has to research and enter new address for a licensee -- due by the due date on the invoice: $35.

(8) Independent Review Organization. Initial application fee -- due with application: $250.

 

R590-102-2[0]3 . Severability.

If any provision of this rule or its application to any person or circumstance is for any reason held to be invalid, the remainder of the rule and the application of this provision to other persons or circumstances shall not be affected.

 

KEY: insurance fees

Date of Enactment or Last Substantive Amendment: [May 14, 2013]2016

Notice of Continuation: December 29, 2011

Authorizing, and Implemented or Interpreted Law: 31A-3-103

 

---