No. 27685: R590-128. Unfair Discrimination Based Solely on the Failure to Maintain Auto Insurance (Revised)

DAR File No.: 27685
Filed: 01/31/2005, 03:22
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:

This rule gets its specific rulemaking authority from Subsection 31A23-302(3) and (8), which is now Subsections 31A-23a-402(3) and (8). The renumbering of this part of the code was a result of H.B. 374, Insurance Producers Amendments, in the 2003 Legislature. This legislation did not change the language in Subsections 31A-23a-402(3) and 31A-23a-402(8). Subsection 31A-23a-402(3) gives the commissioner authority to set guidelines for determining what is unfair discrimination and Subsection 31A-23a-402(8) allows the commissioner to make rules defining unfair marketing acts or practices. The rule identifies acts or practices classed as unfair discrimination when applied against an applicant who has failed to maintain auto insurance for a period of time. (DAR NOTE: H.B. 374 is found at UT L 2003 Ch 298, and was effective 05/05/2003.)

 

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 received no written comments 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 needs to continue in force to prevent auto insurers from discriminating against an applicant of automobile insurance based solely upon the fact that they failed to maintain auto insurance for a period of time. An insurer must demonstrate that there are other reasons for denying coverage or increasing their premium, such as, poor driving record, or loss history.

 

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