DAR File No. 38441

Natural Resources, Parks and Recreation

Rule R651-409

Minimum Amounts of Liability Insurance Coverage for an Organized Practice or Sanctioned Race

Notice of Proposed Rule

(Amendment)

DAR File No.: 38441
Filed: 04/15/2014 04:24:38 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

Insurance standards are set by the Division of Risk Management. Those standards have changed so the Division is updating this rule to meet those standards. Also changes the rule to reflect a general statement so that the rule does not have to be changed each time the Division of Risk Management changes the standards.

Summary of the rule or change:

Insurance standards are set by the Division of Risk Management. Those standards have changed so the Division is updating this rule to meet those standards. Also changes the rule to reflect a general statement so that the rule does not have to be changed each time the Division of Risk Management changes the standards.

State statutory or constitutional authorization for this rule:

• Section 79-4-501
• Subsection 41-22-29(1)(a)
• Subsection 41-22-29(1)(b)

Anticipated cost or savings to:

the state budget:

These rule changes do not have a cost associated with them. The only savings resulting from these rule changes will be in saved staff time when the minimum insurance amounts change since we are now using generic wording in the rules that will not need any changes in the future.

local governments:

These rule changes do not have a cost associated with them. The only savings resulting from these rule changes will be in saved staff time when the minimum insurance amounts change since we are now using generic wording in the rules that will not need any changes in the future.

small businesses:

These rule changes are not applicable to small businesses.

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

These rule changes will not affect people conducting business with the State of Utah. The insurance requirements are the same. The wording is changed to reflect current and future standards.

Compliance costs for affected persons:

No compliance costs associated with these rule changes. This is a wording change to meet the needs of current, as well as future changes.

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

Should have no impact on business.

Michael R. Styler, Executive Director

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Natural Resources
Parks and RecreationRoom 116
1594 W NORTH TEMPLE
SALT LAKE CITY, UT 84116-3154

Direct questions regarding this rule to:

• Tammy Wright at the above address, by phone at 801-538-7359, by FAX at 801-538-7378, or by Internet E-mail at tammywright@utah.gov

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:

06/02/2014

This rule may become effective on:

06/09/2014

Authorized by:

Fred Hayes, Director

R651. Natural Resources, Parks and Recreation.

R651-409. Minimum Amounts of Liability Insurance Coverage for an Organized Practice or Sanctioned Race.

R651-409-1. Insurance Policy Requirements Maintained.

The insurance specifications for Subsections 41-22-29(1)(a) and (b) for an organization conducting "organized practices" or "sanctioned races" shall be a continuously maintained policy fully covering insurable responsibilities. This insurance policy shall be obtained from a reliable insurance company that is authorized to do business in Utah and is at all times A.M. Best Company rated "A" or better with a financial size category of XII or larger. The policy shall include Comprehensive General Liability Insurance, including coverage for premises and operations, products, combined single limit per occurrence, [and an aggregate of not less than $1,000,000 combined single limit per occurrence, and an aggregate of not less than $1,000,000,]meeting the minimum insurance requirements set by the Utah Division of Risk Management, which shall be designated as applying only to the organization conducted under Subsections 41-22-29(1)(a) and (b) U.C.A. 1953. If this coverage is written on a claims-made basis, the certificate of insurance shall so indicate. The policy shall also contain an extended-reporting-period provision or similar "tail" provision that keeps full insurance in force for claims reported up to three (3) years after the organization ceases activities covered by the policy. The insurance policy shall be endorsed to add all persons providing services or who own lands affected by the activities conducted.

 

KEY: parks, liability, insurance

Date of Enactment or Last Substantive Amendment: [July 4, 2000]June 9, 2014

Notice of Continuation: June 29, 2010

Authorizing, and Implemented or Interpreted Law: 79-4-501; 41-22-29(1)(a); 41-22-29(1)(b)