DAR File No. 38308
This rule was published in the March 15, 2014, issue (Vol. 2014, No. 6) of the Utah State Bulletin.
Insurance, Administration
Rule R590-195
Car Rental Related Licensing Rule
Notice of Proposed Rule
(Repeal)
DAR File No.: 38308
Filed: 02/20/2014 09:50:23 AM
RULE ANALYSIS
Purpose of the rule or reason for the change:
This rule is being repealed because it has been codified as a result of legislation passed during the 2013 General Legislative Session in H.B. 47, Insurance Law Amendments. The language in the rule was codified into Section 31A-23a-118, Car rental related licensing requirements.
Summary of the rule or change:
The language in the rule was codified into Section 31A-23a-118, Car rental related licensing requirements. This rule is repealed in its entirety.
State statutory or constitutional authorization for this rule:
- Subsection 31A-2-201(3)
- Subsection 31A-23a-106(2)(b)
- Subsection 31A-23a-110(1)
- Subsection 31A-23a-111(10)
Anticipated cost or savings to:
the state budget:
No change in department or state budgets will occur as a result of this change since the requirements are the same, they have just been moved from a rule to the law.
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.
small businesses:
The repeal of this rule will have no fiscal impact on small businesses since the requirements in the rule have been moved to Section 31A-23a-118 of the Insurance Code.
persons other than small businesses, businesses, or local governmental entities:
The repeal of this rule will have no fiscal impact on large businesses or individuals since the same requirements in the rule have been moved to Section 31A-23a-118 of the Insurance Code.
Compliance costs for affected persons:
The repeal of this rule will have no fiscal impact on businesses or individuals since the same requirements in the rule have been moved to Section 31A-23a-118 of the Insurance Code.
Comments by the department head on the fiscal impact the rule may have on businesses:
The repeal of this rule will have no fiscal impact on business since the requirements are still in force in the law now, rather than a rule.
Todd E. Kiser, Commissioner
The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:
InsuranceAdministration
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:
04/14/2014
This rule may become effective on:
04/21/2014
Authorized by:
Todd Kiser, Commissioner
RULE TEXT
R590. Insurance, Administration.
[R590-195. Car Rental Related Licensing Rule.
R590-195-1. Authority.
This rule is promulgated pursuant to:
(1) Subsection 31A-2-201(3) that authorizes the
commissioner to adopt rules to implement the provisions of the
Utah Insurance Code;
(2) Subsection 31A-23a-106(2)(b) that authorizes car
rental related insurance as a limited line of authority of a
limited line producer license type;
(3) Subsection 31A-23a-110(1) that authorizes the
commissioner to prescribe the form in which licenses covered
under Chapter 23a are to be issued; and
(4) Subsection 31A-23a-111(10) that authorizes the
commissioner to prescribe by rule the license renewal and
reinstatement procedures for licenses covered under Chapter
23a.
R590-195-2. Purpose and Scope.
(1) The purpose of this rule is to establish uniform
criteria and procedures for the initial and renewal licensing of
car rental related insurance limited line producer individuals
and agencies, and to set standards of licensing and conduct for
those in the car rental related insurance business in the State
of Utah.
(2) This rule applies to all individuals and entities
engaged in the issuance of car rental related insurance contracts
or policies.
R590-195-3. Definitions.
For the purpose of this rule the commissioner adopts the
definitions as set forth in Sections 31A-1-301, 31A-23a-102, and
the following:
(1) "Car rental related insurance" means any
contract of insurance issued as a part of an agreement of rental
of passenger automobiles and trucks to a gross vehicle weight of
45,000 pounds, for a period of 30 days or less; and
(2) "Car rental related license" means a
limited line producer license type with a car rental related
insurance limited line of authority.
R590-195-4. Agency License and Renewal.
(1) A car rental related license is issued for a two year
license period and requires no examination or continuing
education.
(2) A car rental related license must be renewed at the
end of the two year licensing period in accordance with Chapter
23a of Title 31A and any applicable department rule regarding
license renewal.
(3) Licensing is applicable to an individual or entity
involved in the soliciting, quoting, marketing, or issuing of car
rental related insurance and must be licensed in accordance with
Chapter 23a of Title 31A and applicable department rules
regarding individual and agency licensing.
(a) A car rental related license may be held by:
(i) an individual; or
(ii) an entity.
(b) An individual licensed under this rule must
be:
(i) appointed by an insurer underwriting a car rental
related insurance policy that the individual sells; or
(ii) designated to act by an agency licensed under this
rule.
(c) An agency licensed under this rule must:
(i) be appointed by an insurer underwriting a car rental
related insurance policy that the agency sells; and:
(ii) have a designated responsible licensed individual at
each location at which the agency is soliciting, quoting,
marketing or selling car rental related insurance.
(4) An agency licensed under the terms of this rule may
employ a non-licensed individual employed as a rental counter
sales representative in soliciting, quoting, marketing or selling
car rental related insurance. Such non-licensed individual must
be:
(i) trained and supervised in the sale of car rental
related insurance products; and
(ii) responsible to a licensed individual designated by
the agency at each location where a car rental related insurance
product is sold.
R590-195-5. Penalties.
A person found to be in violation of this rule shall be
subject to penalties as provided under Section
31A-2-308.
R590-195-6. Enforcement Date.
The commissioner will begin enforcing this rule on the
effective date of the rule.
R590-195-7. Severability.
If any provision or clause of this rule or its
application to any person or situation is held to be invalid,
that 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.
KEY: insurance licensing
Date of Enactment or Last Substantive Amendment: November 17, 2011
Notice of Continuation: March 11, 2009
Authorizing, and Implemented or Interpreted Law: 31A-2-201; 31A-23a-106; 31A-23a-110; 31A-23a-111]
Additional Information
More information about a Notice of Proposed Rule is available online.
The Portable Document Format (PDF) version of the Bulletin is the official version. The PDF version of this issue is available at https://rules.utah.gov/publicat/bull-pdf/2014/b20140315.pdf. The HTML edition of the Bulletin is a convenience copy. Any discrepancy between the PDF version and HTML version is resolved in favor of the PDF version.
Text to be deleted is struck through and surrounded by brackets ([example]). Text to be added is underlined (example). Older browsers may not depict some or any of these attributes on the screen or when the document is printed.
For questions regarding the content or application of this rule, please contact 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]. For questions about the rulemaking process, please contact the Division of Administrative Rules.