No. 29821: R590-85. Individual Accident and Health Insurance and Individual and Group Medicare Supplement Rates

DAR File No.: 29821
Filed: 04/16/2007, 11:24
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)(a) allows the commissioner to write rules to implement the provisions of Title 31A. Section 31A-2-201.1 gives the commissioner authority to set general filing requirements on forms, rates or reports. Subsection 31A-22-605(4)(e) allows for the writing of rules relating to accident and health rating practices. Subsection 31A-22-620(3)(e) authorizes the commissioner to adopt rules to conform Medicare supplement policies and certificates to the requirements of federal laws and regulations. General rate filing, previously filed forms, and experience record requirements are set in Sections R590-85-4 and R590-85-5 of the rule.

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

Comments were received on the rule during the comment periods provided for amendments made in the rule in 2003 and 2005. One written comment was received during in 2003 asking to clarify if the rule regulated small and individual health insurance plans. The comments received during the 2005 comment period expressed concern over the limitation of one rate increase per year. There was also a request to define "timely manner". No other comments have been received during this five-year period.

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

The rule provides standards for rating certain policies. The rule allows insurers to request increases as necessary to maintain a viable block of business and to protect consumers so that they are receiving a product that has benefits that are relative to the premiums they pay. Without the rule, there would be no standard for rating certain individual products. 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