No. 32800 (Repeal): R590-123. Additions and Deletions of Designees by Organizations

DAR File No.: 32800
Filed: 07/07/2009, 01:28
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

This rule sets procedures for the addition and deletion of designees or individual licensees by organizations. The department wanted the basic licensing requirements in one rule. As a result, this rule is being repealed and replaced with Rule R590-244, Individual and Agency Licensing Requirements.

Summary of the rule or change:

This rule is being repealed in its entirety and replaced with Rule R590-244. (DAR NOTE: The proposed new Rule R590-244 was published in the May 15, 2009, Bulletin under DAR No. 32541 and was effective 07/01/2009.)

State statutory or constitutional authorization for this rule:

Sections 31A-2-201 and 31A-23-215

Anticipated cost or savings to:

the state budget:

The only impact to the state's budget, as a result of the repeal of this rule and enactment of Rule R590-244, is the loss of the nonelectronic processing fee of $5. Very few licensees filed by paper so the impact will be slight.

local governments:

The repeal of this rule will have no fiscal impact on local governments since this rule applies to the relationship between the department and its licensees and will not have any fiscal impact on local governments.

small businesses and persons other than businesses:

The only fiscal impact on small agencies will be to those few who filed by paper. They will need to pay the vendor for the electronic processing fee, which is less than the state's paper processing fee. Also, they will no longer have costs associated with mailing paper forms.

Compliance costs for affected persons:

The only fiscal impact on large agencies will be to those few agencies who filed by paper. They will need to pay the vendor for the electronic processing fee, which is less than the state's paper processing fee. Also, they will no longer have costs associated with mailing paper forms.

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

The repeal of this rule will have little, if any, fiscal impact on Utah agencies since most already file electronically. 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:

09/14/2009

This rule may become effective on:

09/21/2009

Authorized by:

Jilene Whitby, Information Specialist

RULE TEXT

R590. Insurance, Administration.

[R590-123. Additions and Deletions of Designees by Organizations.

R590-123-1. Authority.

This rule is promulgated by the insurance commissioner under Section 31A-2-201(3) to adopt rules to implement the provisions of the Utah Insurance Code, and specifically Sections 31A-23a-302(2) authorizing the commissioner to establish by rule the form to be utilized by an organization when promptly reporting every change in the list of natural persons authorized to conduct business on behalf of the organization in this state.

 

R590-123-2. Purpose.

A. Organizations who conduct insurance transactions through natural persons in this state shall be licensed. The organization license shall identify the names of natural persons, also known as designees, authorized to act for the organization. Organizations are required to promptly report to the commissioner, in detail and form prescribed by rule, every change in their list of natural persons.

B. This rule is adopted for the purpose of stating the detail, form, and time by which an organization will either add or delete any natural person from their list of authorized designees who conduct business on behalf of the organization in this state.

 

R590-123-3. Rule.

A. Notice of addition or deletion of designees. All organizations shall file with the commissioner an Application For Amendment to Organization License which includes a section for changing the list of natural persons authorized to conduct business on behalf of the organization in this state. The forms necessary to effectuate such changes are available through the Insurance Department.

1. Procedure for amending an organization license:

a. Complete the application for amendment to organization license and include the information concerning designees to be added or deleted.

b. The date entered on the form will be the effective date of the change.

c. File the completed form with the department within five working days from the effective date. If the form is not filed within the five day period, the effective date of the amendment will be the date the form is received by the insurance department.

B. Fees. The organization shall pay the statutory filing fees for all Organization License applications and amendments submitted to the department.

 

R590-123-4. Penalties.

Any organization that fails to comply with this rule will be subject to the forfeiture provisions set forth in Sections 31A-2-308 and 31A-23-216.

 

R590-123-5. Separability.

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

 

KEY: insurance law

Date of Enactment or Last Substantive Amendment: 1993

Notice of Continuation: January 27, 2009

Authorizing, and Implemented or Interpreted Law: 31A-23a-302]