DAR File No. 38803

Labor Commission, Industrial Accidents

Section R612-400-1

Notification of Workers' Compensation Insurance Coverage

Notice of Proposed Rule

(Amendment)

DAR File No.: 38803
Filed: 08/22/2014 08:32:00 AM

RULE ANALYSIS

Purpose of the rule or reason for the change:

Section 34A-2-205 of the Utah Workers' Compensation Act requires workers' compensation insurance carriers to file insurance policy and coverage information with the Labor Commission's Industrial Accidents Division. The Labor Commission's Rule R612-400 specifies the manner in which such information is to be submitted. The Commission proposes to amend Rule R612-400 in order to conform the rule to current practice by requiring all insurance carriers to submit the required information through an agent approved by the Division. The amendment also makes other nonsubstantive changes to simplify and clarify the rule.

Summary of the rule or change:

The new language for Section R612-400-1 continues the existing requirements that policy and coverage information be submitted electronically and in accordance with standards established by the International Association of Industrial Accidents Boards and Commissions (IAIABC). However, the proposed language eliminates the option provided by the current rule which allows insurance carriers to submit such information directly to the Division. As a result of this change, insurance carriers will be required to use an agent authorized by the Division to submit the information.

State statutory or constitutional authorization for this rule:

• Subsection 59-9-101(2)

Anticipated cost or savings to:

the state budget:

The proposed change to Section R612-400-1 conforms the section's content to current practice. It will not result in any additional administrative or enforcement costs to the Labor Commission, nor will the change have any effect to the state's workers' compensation coverage expenses as an employer.

local governments:

The proposed change to Section R612-400-1 conforms the section's content to current practice. It will not result in any additional expense to local governments.

small businesses:

The proposed change to Section R612-400-1 conforms the section's content to current practice. It will not result in any additional expense to small businesses.

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

The proposed change to Section R612-400-1 conforms the section's content to current practice. It will not result in any additional expense to other persons.

Compliance costs for affected persons:

The elimination of the direct submission option from the existing language is consistent with actual current practice. Consequently, it will not require any insurance carriers to change the manner in which they are now submitting the subject policy and coverage information, and will impose no new compliance costs on such carriers.

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

The proposed changes to Section R612-400-1 are part of the Industrial Accidents Division's comprehensive review of all its workers' compensation rules. The proposed substantive amendment to the section, which requires insurance carriers to use qualified agents to submit policy and coverage information, is consistent with current practice and will not require any additional expenditure by such carriers.

Sherrie Hayashi, Commissioner

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

Labor Commission
Industrial Accidents
HEBER M WELLS BLDG
160 E 300 S
SALT LAKE CITY, UT 84111-2316

Direct questions regarding this rule to:

• Ron Dressler at the above address, by phone at 801-530-6841, by FAX at 801-530-6804, or by Internet E-mail at rdressler@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:

10/15/2014

This rule may become effective on:

10/22/2014

Authorized by:

Sherrie Hayashi, Commissioner

R612. Labor Commission, Industrial Accidents.

R612-400. Workers' Compensation Insurance, Self-Insurance and Waivers.

R612-400-1. [Notification of Workers' Compensation Insurance Coverage.

Any insurance carrier subject to the policy reporting requirements of Section 34A-2-205 may satisfy such reporting requirements by either of the following methods:

1. The insurance carrier may directly file the required information electronically with the Industrial Accidents Division in accordance with the International Association of Industrial Accidents Boards and Commissions (IAIABC) standards and format.

2. Alternatively, the insurance carrier may use an agent to file the required information electronically with the Industrial Accidents Division in accordance with IAIABC standards and format, provided that the agent has been authorized by the Labor Commission as meeting its electronic filing standards.]Policy Reporting by Workers' Compensation Insurance Carriers.

An insurance carrier writing workers' compensation insurance in Utah shall report to the Division the information required by Section 34A-2-205 of the Utah Workers' Compensation Act as follows:

1. The report shall be filed on behalf of the insurance carrier by an agent that has been approved by the Division as meeting the Division's filing standards.

2. The insurance carrier's agent shall submit the information electronically in accordance with the standards and format established by the International Association of Industrial Accidents Boards and Commissions (IAIABC).

 

KEY: workers' compensation, insurance, rates, waivers

Date of Enactment or Last Substantive Amendment: [December 23, 2013]2014

Authorizing, and Implemented or Interpreted Law: 59-9-101(2)