Insurance, Administration

Rule R590-207

Health Agent Commissions for Small Employer Groups

Five-Year Notice of Review and Statement of Continuation

DAR File No.: 35215
Filed: 09/01/2011 12:02:28 PM

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 authority to write rules to implement the provisions of Title 31A. This rule implements the provisions of Subsection 31A-30-104(6) by establishing guidelines relating to commission structure for small group health insurance agents in the small employer group market. Commission structure can affect access to health insurance coverage for small employer groups. Section R590-207-5 of the rule requires that commission schedules not be set up by insurers to restrict or hinder agents from selling to small business owners.

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

This rule was amended on 08/02/2011 to clarify acceptable and unacceptable commission structures. The department did not receive comments regarding this rule during the comment period or at any time during 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 is important because it eliminates the pressure from insurers on agents from selling guarantee issue or renewal policies to small business owners. This way small employers are guaranteed health insurance coverage. 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:

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]

Authorized by:

Jilene Whitby, Information Specialist

Effective:

09/01/2011