DAR File No. 32667

Insurance, Administration

R590-211

Underinsured Motorist Insurer Notification

NOTICE OF PROPOSED RULE

DAR File No.: 32667
Filed: 05/13/2009, 12:05
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

This rule is being repealed as a result of the passage in 2009 of S.B. 172. The bill eliminated the language in Subsection 31A-22-305.3(5)(a) requiring the department to specify the manner in which notice of settlement is given, which is what Rule R590-211 does. This change in the code will take effect 07/01/2009, afterwhich this rule will be repealed.

Summary of the rule or change:

Rule R590-211 is being repealed in its entirety.

State statutory or constitutional authorization for this rule:

Sections 31A-2-201 and 31A-22-305

Anticipated cost or savings to:

the state budget:

The elimination of this rule will have no affect on the state's budget revenues or workforce. The rule requires insurers to specify how notification is made when policy limits are reached in a claim. It has no impact on the department or state government.

local governments:

The repeal of this rule will have no fiscal impact on local governments since it deals solely with the relationship between the department and its licensees and the consumers of its licensees.

small businesses and persons other than businesses:

The repeal of this rule will have no impact on small businesses since it relates to how insurers are to communicate with one another in the case of auto claims when underinsured policy limits are reached. Insurers are large businesses.

Compliance costs for affected persons:

The repeal of this rule will eliminate the requirement for auto insurers of an auto claimant to send notification by certified mail when the liability limits of their auto policy are reached in a claim. This will save insurers the cost of mailing by certified mail if they choose to notify by some other means, such as electronically.

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

This rule will have little fiscal impact on Utah businesses. It will save auto insurers the cost of sending notices by certified mail if they eliminate this form of notification. 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 [email protected]

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:

07/01/2009

This rule may become effective on:

07/08/2009

Authorized by:

Jilene Whitby, Information Specialist

R590. Insurance Administration.

[R590-211. Underinsured Motorist Insurer Notification.

R590-211-1. Authority.

This rule is promulgated pursuant to the general rulemaking authority vested in the commissioner by Subsection 31A-2-201(3). The authority to set minimum standards by rule for the manner in which notification shall be given between the claimant or a claimant's representative and underinsured motorist insurer is provided in Subsection 31A-22-305(5)(a).

 

R590-211-2. Purpose.

The purpose of this rule is to provide the manner in which a claimant, or a claimant's representative, shall give notification once liability policy limits have been tendered.

 

R590-211-3. Scope.

This rule applies to property and casualty insurers transacting business in Utah.

 

R590-211-4. Rule.

Notification by a claimant or a claimant's representative shall include particulars for proper identification not limited to the following:

(a) name and address of the insured;

(b) policy number;

(c) date of loss;

(d) date of the payment; and

(e) amount of the payment.

Notification shall be sent or delivered to the underinsured carrier by certified mail, return receipt requested, or by facsimile, or by other electronic means which provides verification of delivery to addressee.

 

R590-211-5. Severability.

If any provision or clause of this rule or its application to any person or situation is held invalid, such invalidity shall not affect any other provision or application of this rule which can be given effect without the invalid provision or application, and to this end the provisions of this rule are declared to be severable.

 

R590-211-6. Enforcement Date.

The commissioner will begin enforcing the provisions of this rule 45 days from the rule's effective date.

 

KEY: insurance

Date of Enactment or Last Substantive Amendment: January 10, 2002

Notice of Continuation: December 28, 2006

Authorizing, and Implemented or Interpreted Law: 31A-2-201; 31A-22-305]