No. 36458 (Amendment): Section R590-225-7. Procedures for Form Filings

(Amendment)

DAR File No.: 36458
Filed: 07/11/2012 08:07:04 AM

RULE ANALYSIS

Purpose of the rule or reason for the change:

This section is being changed due to passage this year of H.B. 29, Insurance Amendments, that changed Section 31A-35-607 requiring a 30-day waiting period after bail bond forms are filed before using them.

Summary of the rule or change:

This rule is being changed requiring a 30-day waiting period after filing bail bond forms before using them. Prior to this an insurer could file a bail bond form and then use it immediately.

State statutory or constitutional authorization for this rule:

• Section 31A-2-201.1
• Subsection 31A-2-201(3)
• Section 31A-19a-203
• Subsection 31A-2-202(2)

Anticipated cost or savings to:

the state budget:

This change will encourage the department to review bail bond form filings within 30 days of receiving them to make sure they are in compliance with the law and if not, notify the insurer so they can make the necessary changes before using them. Currently there are just nine surety insurance companies that do bail bond business in Utah. This will have little impact on the department's workload and no fiscal impact.

local governments:

Since this rule deals with the relationship between the department and its licensees, specifically bail bond suretys, it will have no fiscal impact on local governments.

small businesses:

This rule only affects bail bond agencies that are small businesses in that a surety insurer will no longer be able to issue bail bond forms for them to use that are not first reviewed by the department to make sure they are in compliance. Previously, new forms could be used when they were filed with the department. If they were not in compliance with the law they would have to then be retrieved from clients and replaced with compliant forms. The change will save what time and money is involved in replacing an incorrect form given to a client.

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

Surety insurers who sell bail bonds will now be required to file their new and amended forms with the Insurance Department and wait 30 days before using them. This will require them to wait 30 days when they were previously able to file and use immediately. However, it will also save them time and replacement issues when their forms are found to be out of compliance with Utah law. This will only affect nine surety insurance companies selling bail bonds in Utah. The change will save what time and money is involved in replacing noncompliant form given to an agency and client.

Compliance costs for affected persons:

Surety insurers who sell bail bonds will now be required to file their new and amended forms with the Insurance Department and wait 30 days before using them. This will require them to wait 30 days when they were previously able to file and use immediately. However, it will also save them time and replacement issues when their forms are found to be out of compliance with Utah law. This will only affect 9 surety insurance companies selling bail bonds in Utah. The change will save what time and money is involved in replacing non- compliant form given to an agency and client.

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

This rule may save bail bond insurers and agencies time and money replacing non-compliant forms. This will only affect nine surety insurers who are required to file their forms with us and wait 30 days before using them. The savings will likely be minimal.

Neal T. Gooch, 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:

08/31/2012

This rule may become effective on:

09/07/2012

Authorized by:

Jilene Whitby, Information Specialist

RULE TEXT

R590. Insurance, Administration.

R590-225. Submission of Property and Casualty Rate and Form Filings.

R590-225-7. Procedures for Form Filings.

(1) Forms in general:

(a) Forms are "File And Use" filings. EXCEPTION: service contracts, bail bonds, and guaranteed asset protection waivers are "File Before Use".

(b) Each form must be identified by a unique form number. The form number may not be variable.

(c) A form must be in final printed form or printer's proof format. A draft may not be submitted.

(2) If you have authorized a Rate Service Organization (RSO) to make form filings on your behalf, no filing by you is required if you implement the filings as submitted by the RSO.

(a) A filing is required if you delay the effective date, non-adopt or alter the filing in any way.

(b) Your filing must be received by the department before the RSO effective date.

(c) We do not require that you attach copies of the RSO's forms when you reference a filing.

(3) If you have NOT authorized an RSO to file forms on your behalf, you must include, in your filing a letter stating your intent to adopt any RSO forms for your use.

(a) Copies of the RSO forms are not required.

(b) Your filing must include a complete list of the RSO forms you intend to adopt by form number, title/name and filing identification number of the RSO.

(4) A "Me Too" filing, referencing a filing submitted by another insurer, bail bond agency, or service contract provider is not permitted.

(5) If a previously filed Utah amendatory endorsement will be used in connection with the form being filed, explain this in the Filing Description section of the transmittal form and include a copy with the filing.

(6) If the filing is for more than one insurer and all insurers included in the filing have submitted a transmittal:

(a) only one copy of each form is required;

(b) If the name of each respective company or unique insurer logo is printed on each separate set of the form, then a separate form must be filed for each insurer.

(7) Since a form may be used once it is "Filed" and must be "Filed" before it can be used, sold or offered for sale, you do not need to re-file or notify the department if the implementation date of the original filing changes.

 

KEY: property casualty insurance filing

Date of Enactment or Last Substantive Amendment: [December 8, 2011]2012

Notice of Continuation: March 12, 2009

Authorizing, and Implemented or Interpreted Law: 31A-2-201; 31A-2-201.1; 31A-2-202; 31A-19a-203

 

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