No. 31647 (New Rule): R590-250. PEO Assurance Organization Designation

DAR File No.: 31647
Filed: 07/01/2008, 02:03
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

The purpose of this proposed rule is to establish a process by which an assurance organization can be designated for certifying the qualifications of a professional provider organization.

Summary of the rule or change:

This rule establishes a process by which an assurance organization can be designated for certifying the qualifications of a professional provider organization.

State statutory or constitutional authorization for this rule:

Section 31A-40-303

Anticipated cost or savings to:

the state budget:

This rule will require no change in filings or fees to the department.

local governments:

This rule will not affect local government since it deals only with the relationship between the department and its licensees.

small businesses and persons other than businesses:

Assurance organization certification is an alternative qualification process for a Professional Employer Organization (PEO). PEOs choosing this method will pay fees to the assurance organization for this service.

Compliance costs for affected persons:

Assurance organization certification is an alternative qualification process for a PEO. PEOs choosing this method will pay fees to the assurance organization for this service.

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

There will be no mandated fiscal impact on 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:

08/14/2008

This rule may become effective on:

08/21/2008

Authorized by:

Jilene Whitby, Information Specialist

RULE TEXT

R590. Insurance, Administration.

R590-250. PEO Assurance Organization Designation.

R590-250-1. Authority.

This rule is promulgated pursuant to Subsection 31A-40-303(2)wherein the commissioner is given authority to designate by rule one or more assurance organizations for certifying the qualifications of a professional employer organization.

 

R590-250-2. Purpose and Scope.

(1) The purpose of this rule is to establish a process by which an assurance organization can be designated for certifying the qualifications of a professional provider organization.

(2) This rule applies to any assurance organization certifying the qualifications of a professional employer organization with operations in Utah.

 

R590-250-3. Designation Process.

(1) An assurance organization desiring to be designated by the commissioner to certify professional employer organizations in Utah shall:

(a) apply by letter requesting designation by the commissioner;

(b) include in the letter or as an attachment to the letter:

(i) an explanation of how the assurance organization will certify each of the qualification criteria listed in Section 31A-40-303 (3); and

(ii) evidence that the assurance organization is licensed by one or more states to certify the qualifications of a professional employer organization.

(2) The commissioner will designate approved assurance organizations by rule.

 

R590-250-4. Enforcement Date.

The commissioner will begin enforcing this rule 45 days from the rule's effective date.

 

R590-250-5. 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 this rule and its application to other persons and circumstances are not affected.

 

KEY: insurance, assurance organization designation

Date of Enactment or Last Substantive Amendment: 2008

Authorizing, and Implemented or Interpreted Law: 31A-40-303(3)