DAR File No. 38823

This rule was published in the September 15, 2014, issue (Vol. 2014, No. 18) of the Utah State Bulletin.


Insurance, Administration

Section R590-170-4

Establishing the Trust Account

Notice of Proposed Rule

(Amendment)

DAR File No.: 38823
Filed: 08/28/2014 01:59:56 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

This section is being updated to more closely follow the current way trust funds are being established.

Summary of the rule or change:

This section is being changed to allow the use of a Social Security number in the establishment of a trust account. Another change allows trust accounts to be identified as a "premium fund account". These changes come at the request of members of the insurance industry.

State statutory or constitutional authorization for this rule:

  • Subsection 31A-2-201(3)
  • Section 31A-23a-409
  • Section 31A-23a-411.1
  • Section 31A-23a-406
  • Section 31A-25-305
  • Section 31A-23a-410
  • Section 31A-23a-412

Anticipated cost or savings to:

the state budget:

The changes will have no fiscal impact on the department or state budget. The changes will not require licensees to make any special filings or pay additional fees. The changes give licensees more options in setting up trust accounts required by the insurance code.

local governments:

The changes will have no fiscal impact on local governments. It simply provides additional options to insurance licensees in setting up a trust account.

small businesses:

The changes provide additional options to licensees, including the small insurance agencies required to have trust accounts. The changes will provide additional options in the name of their trust account and now the use of a Social Security number or an EIN number in opening the account. Neither of these options will have a fiscal impact.

persons other than small businesses, businesses, or local governmental entities:

The changes provide additional options to insurance licensees; individuals, agencies, and companies required to have trust accounts. The changes will provide additional options in the name of their account and the use of a Social Security number or an EIN number in opening the account. Neither of these options will have a fiscal impact.

Compliance costs for affected persons:

The changes provide additional options to insurance licensees; individuals, agencies, and companies, that are required to have trust accounts. The changes will provide additional options in the name of their account and the option to use a Social Security number or an EIN number in opening the account. Neither of these options will have a fiscal impact.

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

These changes will have no fiscal impact on licensees. The ability to use a Social Security number will save a little time for those individuals and agencies previously required to obtain an EIN number.

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:

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:

10/15/2014

This rule may become effective on:

10/22/2014

Authorized by:

Todd Kiser, Commissioner

RULE TEXT

R590. Insurance, Administration.

R590-170. Fiduciary and Trust Account Obligations.

R590-170-4. Establishing the Trust Account.

(1) All records relating to a trust account shall be identified with the wording "Trust Account" or words of similar import[.], including "premium fund account." These records include checks, bank statements, general ledgers and records retained by the bank pertaining to the trust account.

(2) All trust accounts shall be established with a Federal Employer Identification Number [rather than]or a Social Security Number.

(3) A trust account shall be separate and distinct from operating and personal accounts, i.e., a separate account number, a separate account register, and different checks, deposit and withdrawal slips.

(4) A non-licensee may not be a signator on a licensee's trust account, unless the non-licensee signatory is an employee of the licensee and has specific responsibility for the licensee's trust account.

 

KEY: insurance

Date of Enactment or Last Substantive Amendment: [March 7, 2000]2014

Notice of Continuation: February 11, 2014

Authorizing, and Implemented or Interpreted Law: 31A-2-201; 31A-23a-406; 31A-23a-409; 31A-23a-412; 31A-25-305

 


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/b20140915.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.

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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.