DAR File No. 38273

Insurance, Administration

Section R590-186-8

Investigating Unprofessional Conduct

Notice of Proposed Rule

(Amendment)

DAR File No.: 38273
Filed: 01/31/2014 03:14:09 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

The proposed changes to this rule have been discussed and agreed upon in Bail Bond Advisory Board meetings. Changes are an effort to clarify the responsibilities of the Board and the Commissioner in the investigation of unprofessional conduct.

Summary of the rule or change:

In the first subsection of Section R590-186-8 "and" is replaced with "or" to clarify that investigations can be done by either the department or the Commission, not both at the same time. Also, new wording is included to clarify that a bail bond producer may be subject to an investigation of unprofessional conduct as well as a bail bond company and agency. Subsection R590-186-8(1)(b) clarifies that the respondent in an investigation has 15 days to respond to a complaint. Subsection R590-186-8(1)(c) clarifies that the Board will be given an opportunity to provide input into an investigation of unprofessional conduct. In Subsection R590-186-8(1)(d) the word "or" is added to clarify that one, not all options listed, is to be chosen. Wording regarding the Board conducting its own investigation have been eliminated from Subsection R590-186-8(1). New wording is added requiring the Board to treat investigation information as confidential and provides a process when the Board requests additional investigation of a complaint.

State statutory or constitutional authorization for this rule:

• Section 31A-35-104
• Section 31A-35-301
• Section 31A-35-401
• Section 31A-35-406

Anticipated cost or savings to:

the state budget:

There will be no fiscal impact to the department or the state as a result of these changes. Changes are an effort to clarify the responsibilities of the Board and the Commissioner in the investigation of unprofessional conduct. Very few complaints result in violations of unprofessional conduct. The Board can request further investigation on a case, which would be handled by existing staff. Additional revenues or costs are not expected as a result of these changes.

local governments:

This rule deals with the relationship between the department and its licensees and has no impact on local governments.

small businesses:

The changes to Section R590-186-8 of this rule deal with the relationship between the Bail Bond Advisory Board and the department in regards to investigations of unprofessional conduct. These changes would have no fiscal impact on bail bond agencies.

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

The changes to Section R590-186-8 of this rule deal with the relationship between the Bail Bond Advisory Board and the department in regards to investigations of unprofessional conduct. These changes would have no fiscal impact on bail bond producers, insurers or their customers.

Compliance costs for affected persons:

The changes to Section R590-186-8 of this rule deal with the relationship between the Bail Bond Advisory Board and the department in regards to investigations of unprofessional conduct. The changes would have no fiscal impact on the bail bond industry, their clients, the department or the state.

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

The changes to this rule will have no fiscal impact on Utah or out of state businesses.

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:

03/17/2014

This rule may become effective on:

03/24/2014

Authorized by:

Todd Kiser, Commissioner

R590. Insurance, Administration.

R590-186. Bail Bond Surety Business.

R590-186-8. Investigating Unprofessional Conduct.

The Board [and]or the commissioner shall investigate allegations of unprofessional conduct on the part of any bail bond surety,[ or] bail bond surety agent, or bail bond producer. Complaints alleging unprofessional conduct shall be submitted in writing to the Department of Insurance.

(1) Investigations shall be completed in the following manner:

(a) Upon receipt of a complaint of unprofessional conduct, the commissioner shall provide a copy of the complaint to the person against whom the complaint was made, and, if warranted, to the person's surety. The commissioner may edit the copy of the complaint mailed under this subsection as may be necessary to protect the identity or interests of the person making the complaint if the complainant so requests.

(b) The subject of the complaint shall provide to the commissioner a written response to the complaint within 15 days of the date the complaint was mailed to [him]respondent.

(c) At the next meeting of the Board, the commissioner shall present [to the Board] the complaint and the action undertaken by the Department to [investigate the complaint]receive comment from the Board.

(d) After the investigation is completed, the commissioner shall present the findings and recommended disposition to the Board. The Board may concur with the commissioner's recommended disposition, recommend a different disposition, or request additional investigation[, or conduct its own investigation].

[ (i) If the Board conducts its own investigation it may take and record witness statements under oath and may request any documents or other evidence from any person, including necessary financial records.

(ii) Witnesses may be compensated for their appearances as specified in 31A-2-301.

(iii) The Board may request a Subpoena from the commissioner to compel the production of documents or other evidence or to compel the testimony of a witness.

(iv) After the Board completes its investigation, it shall:

(A) close the investigation if the allegations have been shown to be unfounded or if the matter complained of is satisfactorily resolved; or

(B) if the investigation shows that unprofessional conduct did occur that requires the imposition of sanctions, it shall compile the evidence necessary to pursue the matter in an administrative proceeding by the Department of Insurance, and shall make a written report of its findings and of its recommendations for the penalties to be applied, and forward the report and evidence to the commissioner for further action within 15 days of the conclusion of the investigation.

(2) Except for matters referred to the commissioner for further proceedings, the Board shall retain in the Utah Insurance Department a file on each of the investigations it conducts concerning unprofessional conduct for a period of 5 years. Files regarding investigations conducted by the Board shall be classified as protected under Governmental Records Access and Management Act (GRAMA).

](i) Disclosures made to the Board under Sections (c) and (d)shall be treated as confidential. Board members may not disclose or act upon any confidential information obtained pursuant to investigations conducted under this Section.

(ii) If the Board requests additional investigation, the commissioner shall reasonably conduct additional investigation in compliance with the policies and procedures of the Department.

(a) The commissioner shall present findings to the Board at the next scheduled board meeting, or at a meeting no sooner than 30 days after the Board's request, at the discretion of the Board.

(b) Upon hearing the results of any additional investigation by the commissioner, the Board shall provide to the commissioner its recommendation within 30 days.

 

KEY: insurance

Date of Enactment or Last Substantive Amendment: [February 10, 2011]2014

Notice of Continuation: July 12, 2013

Authorizing, and Implemented or Interpreted Law: 31A-35-104; 31A-35-301; 31A-35-401; 31A-35-406