No. 29403: R590-121. Rate Modification Plan Rule

DAR File No.: 29403
Filed: 01/11/2007, 02:43
Received by: NL

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 right to write rules to implement the provisions of Title 31A. Section 31A-2-203 authorizes the commissioner to make rules pertaining to the financial condition and market regulation surveillance systems. Section 31A-2-204 deals with the conduct of an examination of an insurer by the department, what is contained in the order, accessing licensees records, compliance to the examiner's requests, resolving the issue of inadequate records, and the preparation and the issuance and distribution of the report. Section 31A-2-205 sets standards for setting the cost of the examination of an insurer and how and when it is to be paid. Sections 31A-19a-201 and 31A-19a-202 set rating standards and methods, as well as filing requirements. Section 31A-19a-203 requires a rule to set procedures for submitting rate filing electronically. Section 31A-23a-302 requires companies to report new and terminated designations and provide the name of a person to act in their behalf.

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 written notice regarding this rule in 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 gives guidance to licensees on how they can develop alternative ratings plans. The rule establishes criteria that must be applied to all policies written outside of a standard rating structure. This rule establishes guidelines that lessen the possibility of unfair rating. Therefore, this rule should be continued.

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]

Authorized by:

Jilene Whitby, Information Specialist