No. 28843 (Amendment): R590-102. Insurance Department Fee Payment Rule

DAR File No.: 28843
Filed: 06/26/2006, 03:59
Received by: NL

 

RULE ANALYSIS

Purpose of the rule or reason for the change:

This rule is being updated to comply with Subsection 31A-3-103(5), which requires the commissioner to establish the deadlines for payment of any fee established by the legislature. S.B. 4 passed in 2006 made changes in the Department's fees. (DAR NOTE: S.B. 4 (2006) is found at Chapter 4, Laws of Utah 2006, and was effective 07/01/2006.)

 

Summary of the rule or change:

Many of the changes being made in the rule are for clarification purposes such as the placing of "Annual" or "Biennial" at the beginning of subsections about fees. In Section R590-102-12, wording regarding nonelectronic filings is being referred to as "preferred process for receiving" filings or applications rather than a "mandated" process. Subsection R590-102-14(2) is being eliminated because the Sunset Provision for the technology services fees was repealed by the 2006 Legislature.

 

State statutory or constitutional authorization for this rule:

Section 31A-3-103

 

Anticipated cost or savings to:

the state budget:

The changes to this rule will not require the department to add or reduce personnel; however, there should be minimal impact on the state budget.

 

local governments:

This rule will have no effect on local governments since it deals solely with the relationship between the Department and its licensees and those using its services.

 

other persons:

The reduction in late and reinstatement fees will have a positive impact on any persons who have late or reinstatement applications.

 

Compliance costs for affected persons:

The reduction in late and reinstatement fees will have a positive impact on any persons who have late or reinstatement applications.

 

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

There will be a minimal fiscal impact to Utah businesses. 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
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]

 

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:

08/14/2006

 

This rule may become effective on:

08/21/2006

 

Authorized by:

Jilene Whitby, Information Specialist

 

 

RULE TEXT

R590. Insurance, Administration.

R590-102. Insurance Department Fee Payment Rule.

R590-102-3. Definitions.

For the purposes of this rule the following definitions will apply.

(1) "Admitted insurers" include: fraternal, health, health maintenance organization, life, limited health plan, motor club, non-profit health service, property-casualty, title insurers, and a prescription drug plan.

(2) "Agency" means:

(a) a person, other than an individual, including a sole proprietorship by which a natural person does business under an assumed name; and

(b) an insurance organization required to be licensed under Subsections 31A-23a-301, 31A-25-207, and 31A-26-209.

(3) "Captive insurer" includes association captive, branch captive, industrial insured captive, pure captive, and sponsored captive.

(4) "Deadline" means the date or time imposed by statute, order, or rule by which:

(a) a payment must be received by the department without incurring penalties for late payment or non-payment; or

(b) a filing must be received by the department without incurring penalties for late receipt or non-receipt.

(5) "Fee" means an amount set by the legislature for licenses, registrations, certificates, and other filings and services provided by the Insurance Department.

(6) "Full-line agency" includes producer, consultant, independent adjuster, managing general agent, public adjuster, reinsurance intermediary broker, and third party administrator.

(7) "Full-line individual" includes a producer, consultant, independent adjuster, managing general agent, public adjuster, reinsurance intermediary broker, and third party administrator.

(8) "Limited-line agency" includes bail bond and limited-line producer.

(9) "Limited-line individual" includes bail bond agent, limited-lines producer and customer service representative.

(10) "Other organizations" include: home warranty, joint underwriter, purchasing group, rate service organization, risk retention group, service contract provider, surplus line insurer, accredited reinsurer, trustee reinsurer, and health discount program.

(11) "Paper application" means an application that must be manually entered into the department's database because the application was submitted by paper, facsimile, or email when the department has provided an electronic application process and stated the electronic process is the preferred process for receiving an application.

([11]12) "Paper filing" means[ each item of] a filing that must be manually entered into the department's database because the filing[it] was submitted by[ some method such as] paper, facsimile, or email[ rather than submitted electronically] when the department has provided an electronic filing process and stated the electronic process is the preferred process for receiving a filing[mandated an electronic filing method].

([12]13) "Received by the department" means:

(a) except as provided in Subsection R590-102-3(11)(b), the date delivered to and stamped received by the department, whether delivered in person or electronically; or

(b) if delivered to the department by a delivery service, the delivery service's postmark date or pick-up date unless a statute, rule, or order related to a specific filing or payment provides otherwise.

 

R590-102-5. Admitted Insurer[ Annual License and Annual Service] Fees.

(1) Annual license fees.

(a) certificate of authority, initial license application - due with license application: $1,002;

(b) certificate of authority - renewal - due by the due date on the invoice: $302;

(c) certificate of authority - late renewal - due for any renewal paid after the date on the invoice: $352;

(d) certificate of authority - reinstatement - due with application for reinstatement: $1,002;

(e) certificate of authority - amendments - due with request for amendment: $252;

(f) application for merger, acquisition, or change of control - Form A, due with filing: $2,002. Expenses incurred for consultant(s) services necessary to evaluate the Form A will be charged to the applicant and due when billed;

(g) redomestication filing - due with filing: $2,002; and

(h) 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: $1,002.

(2) 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.

(3) Annual service fee:

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

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

(ii) more than $zero 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.

(b) 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.

(c) 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.

 

R590-102-6. Surplus Lines Insurer, Accredited Reinsurer, Trusteed Reinsurer, Other Organizations[ Annual License and Annual Service] Fees.

(1) Annual license fee.

(a) other organization:

(i) other organization - initial - due with application: $252;

(ii) other organization - renewal - due annually by the due date on the invoice: $202;

(iii) other organization - late renewal - due for any renewal paid after the date on the invoice: $252;

(iv) other organization - reinstatement - due with application for reinstatement: $252;

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

(b) surplus line insurer, accredited reinsurer, and trusteed reinsurer:

(i) surplus lines insurer, accredited reinsurer, and trusteed reinsurer - initial - due with application $1,002.

(ii) surplus lines insurer, accredited reinsurer, and trusteed reinsurer - renewal - due annually by the due date on the invoice: $302;

(iii) surplus lines insurer, accredited reinsurer, and trusteed reinsurer - late renewal - due for any renewal paid after the date on the invoice: $352;

(iv) surplus lines insurer, accredited reinsurer, and trusteed reinsurer - reinstatement - due with application for reinstatement: $1,002;

(v) The annual initial or renewal surplus line license 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.

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

(2) Annual service fee:

(a) Other organization - due annually by the due date on the invoice: $200.

(b) Surplus lines insurer, accredited reinsurer, and trusteed reinsurer - due annually by the due date on the invoice: $200

(c) 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;

(iii) rate, form, report or service contract filing; and

(iv) any other services provided to the licensee.

(d) 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.

 

R590-102-7. Captive Insurer Fees.

(1) Initial license application - due with license application: $202.

(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: $5,002;

(b) renewal - due by the due date on the invoice: $5,002;

(c) late renewal - due for any renewal paid after the date on the invoice: $5,052;

(d) reinstatement - due with application for reinstatement: $[5,002]5,052.

 

R590-102-8. Viatical Settlement Provider Fees.

(1) Annual license fees:

(a) initial - due with application: $1,002;

(b) renewal - due by the due date on the invoice: $302;

(c) late renewal - due for any renewal paid after the date on the invoice: $352;

(d) reinstatement - due with reinstatement application: $1,002.

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

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

(i) rate, form, report or service contract filing; and

(ii) any other services provided to the licensee.

(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.

 

R590-102-9. Individual Resident and Non-Resident [Biennial ]License Fees.

(1) Biennial [R]resident and non-resident full-line individual initial license or renewal fee for two-year period:

(a) initial license fee - due with application: $72:

(b) express initial license fee - due with application: $72;

(c) renewal license fee if renewed prior to renewal deadline - due with renewal application: $72;

(d) renewal license fee if renewed 1 through 30 days after renewal deadline and prior to license lapse - due with renewal application: $122[142];

(e) lapsed license reinstatement fee if reinstated 31 days through 730 days after renewal deadline - due with application for reinstatement: $122[192].

(2) Biennial [R]resident and non-resident limited-line individual initial or renewal license fee, for two-year period:

(a) initial license fee - due with application: $47;

(b) renewal license fee if renewed prior to renewal deadline - due with renewal application: $47;

(c) renewal license fee if renewed 1 through 30 days after renewal deadline and prior to license lapse - due with renewal application: $97[92];

(d) lapsed license reinstatement fee if reinstated 31 days through 730 days after renewal deadline - due with application for reinstatement: $97[142].

(3) Fee for addition of producer classification or line of authority to individual producer license - due with request for additional classification or line of authority: $27.

(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; and

(e) other services provided to the licensee.

(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.

 

R590-102-10. [Biennial ]Agency License Fees.

(1) Biennial [R]resident and non-resident agency initial or renewal license per two-year license period for a full-line agency and for a limited-line agency:

(a) initial license fee - due with application: $77;

(b) renewal license fee if renewed prior to renewal deadline - due with renewal application: $77;

(c) renewal license fee if renewed 1 through 30 days after renewal deadline and prior to license lapse - due with renewal application: $127[152];

(d) lapsed license reinstatement fee if reinstated 31 days through 730 days after renewal deadline - due with application for reinstatement: $127[202].

(2) Fee for addition of producer classification or line of authority to agency license - due with request for additional classification or line of authority: $27.

(3) Annual [B]bail bond agency per annual license period:

(a) initial license fee - due with application: $252;

(b) renewal license fee if renewed prior to renewal deadline - due with renewal application: $252;

(c) renewal license fee if renewed 1 through 30 days after renewal deadline and prior to license lapse - due with renewal application: $302[502]; and

(d) lapsed license reinstatement fee if reinstated 31 days after renewal deadline - due with application for reinstatement: $302[602].

(4) Annual [H]health insurance purchasing alliance annual license:

(a) initial license fee - due with application: $502;

(b) renewal license fee if renewed prior to renewal deadline - due with renewal application: $502;

(c) renewal license fee if renewed 1 through 30 days after renewal deadline and prior to license lapse - due with renewal application: $552[752]; and

(d) lapsed license reinstatement fee if reinstated 31 days after renewal deadline - due with application for reinstatement: $552[802].

(5) The annual or 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;

(g) filing of power of attorney; and

(h) any other services provided to the licensee.

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

(7) Title agency filing (rate, form, or report) - due with filing: $25.

 

R590-102-11. Continuing Education Fees.

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

(a) initial license fee - due with application: $252;

(b) renewal license fee if renewed prior to renewal deadline - due with renewal application: $252;

(c) late renewal license fee if renewed 1 through 60-days after renewal deadline and prior to license lapse - due with renewal application: $302; and

(d) Lapsed license reinstatement fee if reinstated 61 days after renewal deadline - due with application for reinstatement: $[352]302.

(2) Continuing education course post-approval fee - due with request for approval: $5 per credit hour, minimum fee $27.

 

R590-102-12. Non-electronic Processing Fees.

(1) Paper 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[mandated the use of an electronic filing process] - due with each paper filing or by the due date on the invoice: $5.

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

 

R590-102-14. Electronic Commerce Dedicated Fees.

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

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

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

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

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

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

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

(2) The e-commerce and internet technology services fees are authorized until July 1, 2006.]

([3]2) Database access fee - due when the department's database is accessed to input or acquire data: $3 per transaction.

 

KEY: insurance

Date of Enactment or Last Substantive Amendment: [December 28, 2005]2006

Notice of Continuation: February 21, 2002

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