No. 40725 (5-year Review): Rule R590-207. Health Producer Commissions for Small Employer Groups

DAR File No.: 40725
Filed: 08/31/2016 08:07:26 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) gives the commissioner the authority to write rules to implement the provisions of Title 31A. This rule implements the provisions of Subsection 31A-30-104(6) by establishing guidelines relating to commission structure for small group health insurance agents in the small employer group market. Commission structure can affect access to health insurance coverage for small employer groups. Section R590-207-5 of the rule requires that commission schedules not be set up by insurers to restrict or hinder agents from selling to small business owners.

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 has not received any 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:

This rule is important because it eliminates the pressure from insurers on agents from selling guarantee issue or renewal policies to small business owners. This way small employers are guaranteed health insurance coverage. 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:

08/31/2016

Authorized by:

Steve Gooch, Information Specialist

---