No. 29971 (Amendment): R590-228. Submission of Credit Life and Credit Accident and Health Insurance Form and Rate Filings

DAR File No.: 29971
Filed: 05/25/2007, 01:31
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

Based on a need to store filings electronically and an increasing number of electronic filings, a policy change was made to require only electronic filings.

Summary of the rule or change:

The rule changes set standards for electronic filing. While reviewing the rule, numerous format and grammatical changes were suggested to enhance clarity.

State statutory or constitutional authorization for this rule:

Sections 31A-2-201, 31A-2-201.1, 31A-2-202, and 31A-22-807

This rule or change incorporates by reference the following material:

"NAIC Life, Accident and Health, Annuity, Credit Transmittal Document," dated March 1, 2007; "NAIC Uniform Life, Accident and Health, Annuity and Credit Coding Matrix," dated March 1, 2007; "NAIC Life, Accident and Health, Annuity, Credit Transmittal Document (Instructions)," dated March 1, 2007; "Utah Credit Life and Credit Accident and Health Filing Certification," dated July 2007; and "Utah Annual Credit Life and Credit Accident and Health Insurance Filing Checklist," dated July 2007

Anticipated cost or savings to:

the state budget:

There will be a mid-term savings due to reduced need to store paper and an immediate savings in time and workload due to less incoming mail and the need to handle paper filings. There will be no change in the fees coming into the department.

local governments:

The changes to this rule will have no effect on local governments since the rule deals solely with the relationship between the department and their licensees.

other persons:

For those insurers not already filing electronically, there will be a transaction fee of $6 to $15 per filing. Some of this will be offset by the elimination of printing and mailing costs. There will be minimal, if any, fiscal impact on consumers.

Compliance costs for affected persons:

For those insurers not already filing electronically, there will be a transaction fee of $6 to $15 per filing. Some of this will be offset by the elimination of printing and mailing costs. There will be minimal, if any, fiscal impact on consumers.

Comments by the department head on the fiscal impact the rule may have on businesses:

The fiscal impact of these changes on credit life and credit accident and health insurers will be minimal and will vary according to the size and number of filings an insurer sends to the department. D. Kent Michie, Commissioner

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]

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

07/16/2007

This rule may become effective on:

07/23/2007

Authorized by:

Jilene Whitby, Information Specialist

RULE TEXT

R590. Insurance, Administration.

R590-228. Submission of Credit Life and Credit Accident and Health Insurance Form and Rate Filings.

R590-228-3. Documents Incorporated by Reference.

(1) The department requires that documents described in this rule [must]shall be used for all filings.

(a) Actual copies may be used or you may adapt them to your word processing system.

(b) If adapted, the content, size, font, and format must be similar.

(2) The following documents are hereby incorporated by reference and are available at www.insurance.utah.gov.

(a) "NAIC Life, Accident and Health, Annuity, Credit Transmittal Document," dated [January 1, 2005]March 1, 2007;

(b) "NAIC Uniform Life, Accident and Health, Annuity and Credit Coding Matrix," dated [January 1, 2005]March 1, 2007;

(c) "NAIC [Instruction Sheet for ]Life, Accident and Health, Annuity, Credit Transmittal Document (Instructions)," dated [January 1, 2003]March 1, 2007;

[(d) "NAIC Instruction Sheet for Life, Accident and Health, Annuity, Credit Transmittal Document Form Filing Attachment," dated January 1, 2003;

(e)](d) "Utah Credit Life and Credit Accident and Health Filing Certification," dated [January 1,2004 ]July 2007;

[(f) "Utah Life, Annuity, Credit Life, and Credit Accident and Health Group Questionnaire," dated January 1, 2004;

(g)](e) "Utah Annual Credit Life and Credit Accident and Health Insurance Filing Checklist," dated [January 1, 2004]July 2007.

 

R590-228-4. Definitions.

In addition to the definitions of Section 31A-1-301, the following definitions shall apply for the purpose of this rule:

(1)[ "Alternate information" means:

(a) a list of the states to which the forms have been filed, the dates submitted, and any state actions;

(b) the reason for not submitting the form to the domicile state; and

(c) identifying any points of conflict between the form and domicile state laws or rules.

(2)] "Certification" means a statement that the filing being submitted is in compliance with Utah laws and rules.

[(3)](2) "Data page" means the page or pages in a policy and certificate that provide the specific data for the insured detailing the coverage provided and may be titled by the insurer as schedule page, schedule of benefits and premiums, etc.

(3) "Electronic Filing" means;

(a) a filing submitted via the Internet by using the "System for Electronic Rate and Form filing: (SERFF) System; or

(b) a filing submitted via the Internet by using the Sircon system; or

(c) A filing submitted via an email system.

(4) "Eligible group" means a group that meets the definitions in Sections 31A-22-502 through 31A-22-508.

(5) "Endorsement" means a written agreement attached to a life insurance policy that alters a provision of the policy. An example is a company change of name.

(6) "File and Use" means a filing can be used, sold, or offered for sale after it has been filed with the department.

(7) "File for Approval" means a filing can be used, sold, or offered for sale after it has been filed and the filer has received written confirmation that the filing was approved.

(8) "Filer" means a person or entity that submits a filing.

(9) "Filing," when used as a noun, means an item required to be filed with the department including:

(a) a policy;

(b) a rate, rate methodologies;

(c) a form;

(d) a document;

(e) an application;

(f) a report;

(g) a certificate;

(h) an endorsement;

(i) a rider; and

(j) an actuarial memorandum and certification.

(10) "Filing Objection Letter" means a letter issued by the commissioner when a review has determined the filing fails to comply with Utah law and rules. The filing objection letter, in addition to requiring correction of non-compliant items, may request clarification or additional information pertaining to the filing.

(11) "Filing status information" means a list of the states to which the filing was submitted, the date submitted, and the states' actions, including their responses

[(10)](12) "Issue Ages" means the range of minimum and maximum ages for which a policy or certificate will be issued.

[(11)](13) "Letter of Authorization" means a letter signed by an officer of the insurer on whose behalf the filing is submitted that designates filing authority to the filer.

[(12)](14) "Market type" means the type of policy that indicates the targeted market such as individual or group.

[(13)](15) "Order to Prohibit Use" means an order issued by the commissioner that [forbids]prohibits the use of a filing.

[(14)](16) "Rejected" means a filing is:

(a) not submitted in accordance with applicable laws or rules; and

(b) returned to the insurer by the department with the reasons for rejection; and not considered filed with the department.

[(15)](17) "Rider" means a written agreement attached to a life insurance policy or certificate that adds a benefit. An example is a credit accident and health insurance rider.

[(16)](18) "Type of insurance" means a specific credit life and credit accident and health insurance product, as defined in the NAIC Coding Matrix, including, but not limited to, gross decreasing term, net decreasing term, level term, or truncated coverage.[ Refer to the NAIC Coding Matrix.]

(19) "Utah Filing Date" means the date provided to a filer by the Utah Insurance Department, that indicates a filing has been accepted pursuant to this subsection 6 or 7.

 

R590-228-5. General Filing Information.

(1) Each filing submitted must be accurate, consistent, and complete and contain all required documents in order for the filing to be processed in a timely and efficient manner. The commissioner may request any additional information deemed necessary.

(2) [Insurers]Licensees and filers are responsible for assuring that a filing is in compliance with Utah laws and rules. A [F]filing[s] not in compliance with Utah laws and rules are subject to regulatory action under Section 31A-2-308.

(3) A [F]filings that do not comply with this rule [may]will be rejected and returned to the filer. A [R]rejected filing[s are not considered filed with the department.]:

(a) is not considered filed with the department;

(b) must be submitted as a new filing; and

(c) will not be reopened for purposes of resubmission.

(4) A prior filing[Prior filings] will not be researched to determine the purpose of the current filing.

(5) The department does not review or proofread every filing.

(a) Filings may be reviewed:

(i) when submitted;

(ii) as a result of a complaint;

(iii) during a regulatory examination or investigation; or

(iv) at any other time the department deems necessary.

(b) If a filing is reviewed and is [found to be ]not in compliance with Utah laws and rules, a Filing Objection Letter or an [ORDER TO PROHIBIT USE]Order To Prohibit Use will be issued to the filer. The commissioner may require the filer to disclose deficiencies in forms or rating practices to affected insureds.

(6) Filing Correction.

(a) Filing corrections are considered informational.

(b) Filing corrections must be submitted within 30 days of the date "Filed" with the department.

(c) A new filing is required if a clerical [or typographical ]corrections [are]is made more than 30-days after the [filed ]date [of the original filing]"Filed" with the department. The filer [will need to]must reference the original filing.

(7) If responding to a Filing Objection Letter or an Order to Prohibit Use, refer to R590-220-XX for instructions.

(8) Filing withdrawal. A filer must notify the department when withdrawing a previously filed form, rate, or supplementary information.

 

R590-228-6. Filing Submission Requirements.

(1) All filings must be submitted as an electronic filing.

(2) A [F]filings must be submitted by market type and type of insurance.

(3) A filing may not include more than one type of insurance; or request filing for more than one insurer.[ A complete filing consists of the following documents submitted in the following order:]

(4) SERFF Filings.

(a) Filing Description. Do not submit a cover letter. On the general information tab, complete the Filing Description section with the following information, presented in the order shown below.

(i) Provide a description of the filing.

(ii) Indicate if the filing:

(A) is new;

(B) is replacing or modifying a previous submission; if so, describe the changes made, if previously rejected the reasons for rejection, and the previous filing's Utah Filed Date;

(C) includes forms for informational purposes; if so, provide the Utah Filed Date; or

(D) does not include the base policy; if so, provide the Utah Filed Date of the base policy and describe the effect on the base policy.

(iii) Identify if any of the provisions are unusual, controversial, or have been previously objected to, or prohibited, and explain why the provision is included in the filing.

(iv) Explain any change in benefits or premiums that may occur while the contract is in force.

(v) List the types of coverage to be provided, such as gross, net, full term, truncated and critical period.

(vi) Indicate whether the insurer has a Rating and Benefits Plan on file with the department.

(vii) List the issue ages, which means the range of minimum and maximum ages for which a policy will be issued.

(viii) Identify the intended market

(ix) Identify the types and durations of loans to be insured.

(x) Describe the methods of premium charge.

(b) Certification. The filer must certify that a filing has been properly completed AND is in compliance with Utah laws and rules. The "Utah Credit Life and Credit Accident and Health Filing Certification" must be properly completed, signed, and attached to the supporting documentation tab. A false certification may subject the licensee or filer to administrative action.

(c) Domiciliary Approval and Filing Status Information. All filings for a foreign insurer must include on the supporting documentation tab:

(i) copy of domicile approval for the exact same filing;

(ii) filing status information which includes:

(A) a list of the states to which the filing was submitted;

(B) the date submitted; and

(C) summary of the states' actions and their responses; or

(iii) if the filing is specific to Utah and only filed in Utah, then state, "UTAH SPECIFIC - NOT SUBMITTED TO ANY OTHER STATE."

(d) Letter of Authorization.

(i) When the filer is not the insurer, a letter of authorization from the insurer must be attached to the supplementary documentation tab.

(ii) The insurer remains responsible for the filing being in compliance with Utah laws and rules.

(e) Statement of Variability. Any item or provision on the data page or within the form that is variable must be contained within the brackets. List the ranges of variable items or factors within the brackets. Each variable item must be identified and explained in a statement of variability. If the information contained within the brackets changes, the form must be refilled.

(f) Items being submitted for filing.

(i) Any forms must be attached to the form schedule tab.

(ii) Any rating documentation, including actuarial memorandums and rate schedules, must be attached to the rate/rule schedule.

(iii) Actuarial Memorandum, Demonstration, and Certification of Compliance. An actuarial memorandum and demonstration with sample rate calculations and a certification of compliance with Utah law are required in each filing. The memorandum must be currently dated and signed by the actuary.

(5) Sircon Filings.

[(1)](a) Transmittal. [Note: Based on the use of the NAIC Transmittal Form, a cover letter is not required. ]The "NAIC Life, Accident and Health, Annuity, Credit Transmittal Document," as provided in R590-228-3, must be [used]properly completed. [It can be found at www.insurance.utah.gov/LH_Trans.pdf.

(a) COMPLETE THE TRANSMITTAL BY USING THE FOLLOWING:]

(i) Completed the transmittal by using the following:

(A) NAIC Life, Accident and Health, Annuity, Credit Transmittal Document (Instructions); and

[(i)](B) ["]NAIC Uniform Life, Accident and Health, Annuity and Credit Coding Matrix.["] [www.insurance.utah.gov/LifeAandH_Matrix.pdf,

(ii) "NAIC" Instruction Sheet"

www.insurance.utah.gov/LH_Trans_Inst.pdf,

(iii) "Life Content Standards"

www.insurance.utah.gov/Life_STM.html

(iv)](ii) Do not submit the documents described in S[s]ection (a)(i) (A) and (B)[, (ii), and (iii)] with [a]the filing.

(b) Filing Description. Do not submit a cover letter. In Section 15 of the transmittal, complete the[The following information must be included in the ]Filing Description [section of the transmittal and must be ]with the following information presented in the order shown below.

[(i) Domicile Approval. Foreign insurers and filers must first submit filings to their domicile state.

(A) If a filing was submitted to the domicile state, provide a stamped copy of the approval letter from the domicile state for the filing.

(B) If a filing was not submitted to the domicile state, or the domicile state did not provide specific approval for the filing, then alternate information must be provided.

(ii) Marketing Facts.

(A) List the issue ages.

(B) Identify the intended market.

(C) Identify and describe the type of group.

(D) Identify the types and durations of loans to be insured.

(E) Describe the methods of premium charge.

(F) Describe the marketing and advertising in detail, i.e. through mass solicitation, financial institutions, telemarketing, or individually through licensed producers.

(iii) Description of Filing.

(A)](i) Provide a [detailed ]description [of the purpose ]of the filing.

(ii) Indicate if the filing:

(A) is new;

(B) is replacing or modifying a previous submission; if so, describe the changes made, if previously rejected the reasons for rejection, and the previous filing's Utah Filed Date;

(C) includes forms for informational purpose; if so, provide the Utah Filed Date; or

(D) does not include the base policy; if so, provide the Utah Filed Date of the base policy and describe the effect on the base policy.

(iii) Identify if any of the provisions are unusual, controversial, or have been previously objected to, or prohibited, and explain why the provision is included in the filing.

[(B) Describe the benefits and features of each form.

(C)](iv) List the types of coverage to be provided, such as gross, net, full term, truncated and critical period.

[(D)](v) Identify and describe any new or nonstandard benefits or rating methodologies.

[(E)](vi) Indicate whether the insurer has a Rating and Benefits Plan on file with the department.

(vii) Explain any change in benefits or premiums that may occur while the contract is in force.

(viii) List the issue ages, which means the range of minimum and maximum ages for which a policy will be issued.

(ix) Identify the types and durations of loans to be insured.

(x) Describe the methods of premium charge.

[(F) Identify any unresolved previously prohibited provisions and explain why the provisions are included in the current filing.

(G) If the filing is replacing or modifying a previous submission, provide information that identifies the filing being replaced or modified, the Utah filed date, and a detailed description of the changes and highlight the changed provisions.

(H) if the filing includes forms for informational purposes, provide the dates the forms were filed.

(I) if filing a rider, endorsement or application and the filing does not contain a policy, identify the affected policy form number, the Utah filed date, and describe the effect of the submitted forms on the base policy.

(iv) Underwriting Methods. Provide an explanation of the underwriting applicable to the filing.

(2)](c) Certification. The filer must certify that a filing has been properly completed AND is compliance with Utah laws and rules. [In addition to completing the certification on the NAIC transmittal, the filer must complete and submit the]The "Utah Credit Life and Credit Accident and Health Filing Certification "must be properly completed and signed. [A filing will be rejected if the certification is missing or incomplete. ]A false certification [that is inaccurate ]may subject the licensee or filer to administrative action.

(d) Domiciliary Approval and Filing Status Information. All filings for a foreign insurer must include:

(i) a copy of domicile approval for the exact same filing;

(ii) a filing status information which includes:

(A) a list of the states to which the filing was submitted;

(B) the date submitted; and

(C) summary of the states' actions and their responses; or

(iii) if the filing is specific to Utah and only filed in Utah, then section 14 of the transmittal must be completed stating, "UTAH SPECIFIC - NOT SUBMITTED TO ANY OTHER STATE."

[(3)](e) Group Questionnaire. All group filings must include [a]signed and fully completed "Utah Life and Annuity Group Questionnaire"[group questionnaire].

[(4)](f) Letter of Authorization.

(i) When the filer is not the insurer, include a letter of authorization from the insurer.

(ii) The insurer remains responsible for the filing being in compliance with Utah laws and rules.

[(5)](g) Statement of Variability. Any information that is variable must be bracketed in the form and must be explained in a statement of variability. If after filing, the information contained within the brackets changes, the filing must be refiled.

[(6)](h) Items being submitted for filing. Any form or rate items submitted for filing must be attached to the product forms tab.[ Include all forms, rates, and reports to be filed. Refer to each applicable subsection of this rule for procedures on how to submit forms, rates, and reports with required filing documents.

(7)](i) Actuarial Memorandum, Demonstration, and Certification of Compliance. An actuarial memorandum with sample rate calculations and a certification of compliance are required in each filing. The memorandum must be currently dated and signed by the actuary representing the insurer.

[(8)](j) Rates. All rates must be filed prior to use. All rates must be in compliance with 31A-22-807 and R590-91. A rate filing is required with each form filing.

[ (9) Return Notification Materials.

(a) Return notification materials are limited to a copy of the transmittal and a self-addressed, stamped envelope.

(b) Notice of filing will not be provided unless return notification materials are submitted.

] (6) refer to each applicable Section of this rule for additional procedures on how to submit forms, rates, and reports.

 

R590-228-7. Procedures for Filings.

(1) Forms in General.

(a) Forms are "File and Use" filings.

(b) Each form must be identified by a unique form number. The form number may not be variable.

(c) Forms must be in final printed form or printer's proof format.

(d) Specific sections may be filed with variable data by placing brackets around affected information. Variable data must be identified within the specific section, or on a separate sheet included with the submission

[(d)](e) Blank spaces within the forms[The form] must be completed in John Doe fashion to accurately represent the intended market, purpose, and use. All John Doe data in the forms, including the premium rates and benefits, must be accurate and consistent with the actuarial memorandum and rate schedule.[ Forms may include variable data in brackets. All variable data must be identified within the brackets or a statement of variability must be included with the submission.]

(2) Policy Filings.

(a) Each type of insurance must be filed separately.

(b) A policy filing consists of one policy form, [for a single type of insurance and ]including its related forms, including the application, enrollment form, certificate, actuarial memorandum, certification, and rate schedule.

(c) Only one policy filing for a single type of insurance may be filed.

(3) Rider or Endorsement Filings. A rider or endorsement that provides benefits must include all filing documents required for a policy filing including:

(a) a listing of the base policy form number, title and Utah Filed Dates[dates filed with the department];

(b) a description of how the rider or endorsement affects the base policy; and

(c) appropriate actuarial memorandum and rate schedule.

(4) Application Filings. An application or enrollment form may be submitted as a separate filing or filed with its related policy and certificate. If an application has been previously filed or is filed separately, an informational copy of the application must be included with a policy or certificate filing.

(5) Rates. Rates are considered "File for Approval".

 

R590-228-9. Insurer Annual Reports.

(1) All insurer annual reports must be properly identified and must be filed separately from other filings. Each annual report must be submitted along with the properly completed report checklist.

(2) "Credit Life and Credit Accident and Health Annual Report."

(a) Filings must comply with R590-91-10. Every Credit Life, and Credit Accident and Health insurer marketing must file annually.

(b) The report must include:

(i) Utah Credit Life, and Credit Accident and Health Report Checklist;

(ii)[ a cover letter along with a self-addressed stamped envelope; and all required documents.

(iii)] Annual report filings are due May 1 each year.

 

R590-228-10.[ Additional Procedures for Electronic Filings.

Filers submitting electronic filings must follow the requirements for both the electronic system and this rule, as applicable.

 

R590-228-11.] Correspondence[, Inquiries, and Responses] and Status Checks.

(1) Correspondence. When corresponding with the department, filers must provide sufficient information to identify the original filing. Information should include:

(a) type of insurance;

(b) date of filing;

(c) form numbers; and

(d) [copy of the original transmittal.]Submission method, SERFF or Sircon; and

(e) tracking number.

(2) Status Checks. A complete filing is usually processed within 45 days or receipt. A [F]filers can request the status of [their]its filing by telephone, or email 60 days after the date of submission.[

(3) Response to an Order.

(a) A response to an order must include:

(i) a response cover letter identifying the changes made;

(ii) a copy of the Order to Prohibit Use;

(iii) one copy of the revised documents with all changes highlighted; and

(iv) return notification materials, which consist of a copy of the response cover letter and a self-addressed stamped envelope.

(4) Rejected Filings. A rejected filing is NOT considered filed. If resubmitted it is considered a new filing. If resubmitting a previously rejected filing, the new filing must include a copy of the rejection notice.]

 

R590-228-11. Responses.

(1) Response to a Filing Objection Letter. A response to a Filing Objection Letter must include:

(a) a cover letter identifying all changes made;

(b) revised documents with all changes highlighted; and

(c) revised documents incorporating all changes without highlights.

(2) Response to an Order to Prohibit Use.

(a) An Order to Prohibit Use becomes final 15 days after the date of the Order.

(b) Use of the filing must be discontinued not later than the date specified in the Order.

(c) To contest an Order to Prohibit Use, the commissioner must receive a written request for a hearing not later than 15 days after the date of the Order.

(d) A new filing is required if the company chooses to make the requested change addressed in the Filing Objection Letter. The new filing must reference the previously prohibited filing.

 

KEY: credit insurance filings

Date of Enactment or Last Substantive Amendment: [April 28, 2005]2007

Authorizing, and Implemented or Interpreted Law: 31A-2-201; 31A-2-201.1; 31A-2-202