No. 43458 (5-year Review): Rule R590-248. Mandatory Fraud Reporting Rule  

  • DAR File No.: 43458
    Filed: 12/21/2018 02:33:06 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-31-110 authorizes a rule to provide a process by which a person shall report a fraudulent insurance act.

    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 Insurance Department 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:

    This rule must be continued because it establishes a process of reporting fraud for insurers who do business in Utah. Mandatory reporting of suspected fraud has been shown to be an effective anti-fraud tool. The Coalition Against Insurance Fraud promotes that mandatory reporting of suspected insurance fraud along with strong insurance civil immunity is the backbone between insurers and the state in the fight against insurance fraud. This rule provides the framework through which insurers report because it is required. Without this rule, insurers may choose to ignore fraud, pay claims, avoid possible bad faith lawsuits, and pass this cost onto consumers who already bear this burden. Largely the Insurance Department depends on this rule to receive referrals from insurers. Referrals are assigned for further investigation, which results in criminal prosecutions when warranted. This rule enables the Insurance Department to make sure insurers are looking for and reporting suspected fraud.

    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:

    Effective:

    12/21/2018

    Authorized by:

    Steve Gooch, Information Specialist


Document Information

Effective Date:
12/21/2018
Publication Date:
01/15/2019
Type:
Five-Year Notices of Review and Statements of Continuation
Filed Date:
12/21/2018
Agencies:
Insurance, Administration
Authorized By:
Steve Gooch, Information Specialist
DAR File No.:
43458
Summary:

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

CodeNo:
R590-248
CodeName:
{30621|R590-248|R590-248. Mandatory Fraud Reporting Rule}
Link Address:
InsuranceAdministrationRoom 3110 STATE OFFICE BLDG450 N MAIN STSALT LAKE CITY, UT 84114-1201
Link Way:

Steve Gooch, by phone at 801-538-3803, by FAX at 801-538-3829, or by Internet E-mail at sgooch@utah.gov

AdditionalInfo:
More information about a Five-Year Notice of Review and Statement of Continuation is available online. The Portable Document Format (PDF) version of the Bulletin is the official version. The PDF version of this issue is available at https://rules.utah.gov/publicat/bull_pdf/2019/b20190115.pdf. The HTML edition of the Bulletin is a convenience copy. Any discrepancy between the PDF version and HTML version is resolved in favor of the PDF version. For questions regarding the content or ...
Related Chapter/Rule NO.: (1)
R590-248. Mandatory Fraud Reporting Rule.