DAR File No. 39755
This rule was published in the January 15, 2016, issue (Vol. 2016, No. 2) of the Utah State Bulletin.
Commission Compensation Reporting
Change in Proposed Rule
DAR File No.: 39755
Filed: 12/17/2015 12:38:52 PM
Purpose of the rule or reason for the change:
Changes limit the scope to insurance placed with a large customer described in Subsections 31A�-23a-�501(4)(f)(A), (B), (C) or (D) to be consistent with Utah Code.
Summary of the rule or change:
The changes clarify that the report applies to insurance offered to a large customer described in Subsections 31A-23a-�501(4)(f)(A), (B), (C) or (D). (DAR NOTE: This change in proposed rule has been filed to make additional changes to a proposed new rule that was published in the October 1, 2015, issue of the Utah State Bulletin, on page 72. Underlining in the rule below indicates text that has been added since the publication of the proposed rule mentioned above; strike-out indicates text that has been deleted. You must view the change in proposed rule and the proposed new rule together to understand all of the changes that will be enforceable should the agency make this rule effective.)
State statutory or constitutional authorization for this rule:
- Subsection 31A-2-201(3)
- Subsection 31A-23a-501(4)
Anticipated cost or savings to:
the state budget:
There is no anticipated cost or savings to state budget because the change merely limits the rule's scope for consistency with current state law.
There is no anticipated cost or savings to local government because the change merely limits the rule's scope for consistency with current state law.
There is no anticipated cost or savings to small businesses because the change merely limits the rule's scope for consistency with current state law.
persons other than small businesses, businesses, or local governmental entities:
There is no anticipated cost or savings to any other persons because the change merely limits the rule's scope for consistency with current state law.
Compliance costs for affected persons:
There are no compliance costs for affected persons because the change merely limits the rule's scope for consistency with current state law.
Comments by the department head on the fiscal impact the rule may have on businesses:
There is no additional fiscal impact because the change merely limits the rule's scope for consistency with current state law.
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
Room 3110 STATE OFFICE BLDG
450 N MAIN ST
SALT LAKE CITY, UT 84114-1201
Direct questions regarding this rule to:
- Steve Gooch at the above address, by phone at 801-538-3803, by FAX at 801-538-3829, or by Internet E-mail at firstname.lastname@example.org
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:
This rule may become effective on:
Steve Gooch, Information Specialist
R590. Insurance, Administration.
R590-272. Commission Compensation Reporting.
This rule is promulgated pursuant to
Subsections 31A-2-201(3) and 31A-23a-501(4) that authorizes the
commissioner to adopt a rule to educate producers, consultants, and
affiliates of producers how to provide an annual accounting of
commission compensation as a result of the sale or placement of [
a health benefit plan from an insurer or a third party
administrator ] to a large customer.
This rule applies to all producers,
consultants, and affiliates of producers selling or placing [
a large customer health benefit plan coverage].
The purpose of this rule is to create a
format to provide an annual reporting of commission compensation
from an insurer or a third party administrator associated with the
sale or placement of [
a health benefit plan ] to a large customer.
R590-272-4. Annual Accounting of All Compensation for Sale or
a Large Customer[
Health Benefit Plan
(1) Any producer, consultant, or affiliate
of a producer selling or placing [
a health benefit plan ] to a large customer
, shall provide the large customer an annual accounting of
all commission compensation that has been received or shall be
received from an insurer or third party administrator as the result
of a sale or placement.
(2) The accounting shall be provided within fifteen days following the last day of the plan year.
(3) A copy of this annual accounting must be kept on file from inception until three years after the completion of the contract, and must be made available upon request of the commissioner.
(4) The annual accounting must include, at minimum:
(a) the following:
(i) plan sponsor;
(ii) name of plan;
(iii) name and address of the plan administrator;
(iv) name of the insurance company;
(v) effective date of the plan;
(vi) number of active participants at beginning of the plan year;
(vii) total commission compensation paid or due during the plan year, and shall include on separate reporting lines:
(D) contingent bonuses; or
(E) contingent commissions; and
(F) the name and address of each producer, consultant or affiliate to whom commissions are paid or due; and
(viii) signature lines for the plan administrator and the employer/plan sponsor for each producer, consultant or affiliate declaration; or
(b) a completed Department of the Treasury Internal Revenue Form 5500(2014), Annual Return / Report of Employee Benefit Plan, version 140124.
(5) Each item listed in R590-272-4(4)(a)(vii) shall be separately identified in the report.
(6) A sample form, The Large Customer Compensation Disclosure Form, is available at the department and online at http://www.insurance.utah.gov/legalresources/currentrules.html.
R590-272-5. Enforcement Date.
The commissioner will begin enforcing the provisions of this rule 45 days from the rule's effective date.
If any provision or clause of this rule or its application to any person or situation is held 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: agency compensation, agent compensation, insurance, producer compensation
Date of Enactment or Last Substantive Amendment: [
Authorizing, and Implemented or Interpreted Law: 31A-2-201(3); 31A-23a-501(4)
More information about a Notice of Change in 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/2016/b20160115.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 (). 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 Steve Gooch at the above address, by phone at 801-538-3803, by FAX at 801-538-3829, or by Internet E-mail at email@example.com. For questions about the rulemaking process, please contact the Division of Administrative Rules.