No. 43133 (5-year Review): Rule R590-246. Professional Employer Organization (PEO) License Application Rule

DAR File No.: 43133
Filed: 08/03/2018 05:24:39 PM

NOTICE OF REVIEW AND STATEMENT OF CONTINUATION

Concise explanation of the particular statutory provisions under which the rule is enacted and how these provisions authorize or require the rule:

Subsection 31A-2-201(3)(a) authorizes the Insurance Commissioner to write rules to implement the provisions of the Insurance Code, Title 31A. Section 31A-40-103 requires a rule to prescribe requirements for forms required under Chapter 40, requirements and processes for correcting deficiency in working capital or negative working capital, and a process for correcting it under Section 31A-40-205. Section 31A-40-103 also allows the Insurance Commissioner to make rules to prescribe the requirements for the review and submission of a financial statement, and to prescribe the requirements and processes for when a PEO license is terminated. Section 31A-40-302 requires a rule to establish the procedure for submitting a licensing application form to the Insurance Commissioner. Section 31A-40-306 addresses how to comply with the requirements of Sections 31A-40-205, 31A-40-302, and 31A-40-305 on a combined or consolidated basis.

Summary of written comments received during and since the last five-year review of the rule from interested persons supporting or opposing the rule:

The Department of Insurance has received no written comments regarding this rule during the past five years.

Reasoned justification for continuation of the rule, including reasons why the agency disagrees with comments in opposition to the rule, if any:

It is important that this rule remain in force. It provides forms and instruction for the licensure of Professional Employer Organizations (PEOs), which are a unique group. Unlike other licensees of the Department, PEOs do not have other guidance contained within the Insurance Code. Therefore, this rule should be continued.

The full text of this rule may be inspected, during regular business hours, at the Office 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]

Effective:

08/03/2018

Authorized by:

Steve Gooch, Information Specialist

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