DAR File No. 40157

Insurance, Administration

Rule R590-227

Submission of Annuity Filings

Notice of Proposed Rule

(Amendment)

DAR File No.: 40157
Filed: 01/28/2016 03:14:14 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

The reason for the rule change is to remove an outdated section (R590-227-11) and to clarify language to bring another section (R590-227-10) into line with similar sections in Rules R590-220, R590-226, and R590-228. (DAR NOTE: The proposed amendment to Section R590-22-16 is under DAR No. 40155, the proposed amendment to Rule R590-226 is under DAR No. 40156, and the proposed amendment to Section R590-228-9 is under DAR No. 40158 in this issue, February 15, 2016, of the Bulletin.)

Summary of the rule or change:

The change removes Section R590-227-11, "Correspondence and Status Checks", which has been determined to be outdated. It also makes grammatical and clarifying changes to Section R590-227-10, "Classification of Documents", which relates to procedures for classifying certain documents as protected during the filing process.

State statutory or constitutional authorization for this rule:

• Subsection 31A-2-201(3)
• Subsection 31A-2-202(2)
• Section 31A-2-201.1

Anticipated cost or savings to:

the state budget:

There is no anticipated cost or savings to state budget. The change merely removes an outdated section and makes grammatical and clarifying changes to bring the section into line with similar sections in Title R590. There are no new requirements.

local governments:

There is no anticipated cost or savings to local government. The change merely removes an outdated section and makes grammatical and clarifying changes to bring the section into line with similar sections in Title R590. There are no new requirements.

small businesses:

There is no anticipated cost or savings to small businesses. The change merely removes an outdated section and makes grammatical and clarifying changes to bring the section into line with similar sections in Title R590. There are no new requirements.

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

There is no anticipated cost or savings to any other persons. The change merely removes an outdated section and makes grammatical and clarifying changes to bring the section into line with similar sections in Title R590. There are no new requirements.

Compliance costs for affected persons:

There are no compliance costs for any affected persons. The changes are clarifying and grammatical and make no new requirements.

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

This change will have no fiscal impact on businesses. The department is making this change to clarify the rule and bring it into line with similar rules in Title R590.

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:

• Steve Gooch at the above address, by phone at 801-538-3803, by FAX at 801-538-3829, or by Internet E-mail at sgooch@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:

03/16/2016

This rule may become effective on:

03/23/2016

Authorized by:

Steve Gooch, Information Specialist

R590. Insurance, Administration.

R590-227. Submission of Annuity Filings.

R590-227-10. Classification of Documents.

(1) In accordance with Section 63G-2-305, the only information the commissioner may classify as protected is:

(a) information deemed to be a trade secret. Trade secret means information, including a formula, pattern, compilation, program, device, method, technique, or process, that:

(i) derives independent economic value, actual or potential, from not being generally known to, and not being readily ascertainable by proper means by, other persons who can obtain economic value from its disclosure or use; and

(ii) is the subject of efforts that are reasonable under the circumstances to maintain its secrecy; or

(b) commercial information and non-individual financial information obtained from a person if:

(i) disclosure of the information could reasonably be expected to result in unfair competitive injury to the person submitting the information or would impair the ability of the commissioner to obtain necessary information in the future[ ]; and

(ii) the person submitting the information has a greater interest in prohibiting access than the public has in obtaining access.

(2) The person submitting the information under Subsection (1)(a) or (b) and claiming that such is or should be protected shall provide the commissioner with the information in S ubsection 63G-2-309(1)(a)(i).

(a) The filer shall request [which ]protected classification for the specific document the filer believes qualifies under Subsections 63G-2-305(1) or (2) when the filing is submitted; and

(b) the request shall include a written statement of reasons supporting the request that the information should be classified as protected.

(3) Once the filing has been received, the commissioner will review the documents the filer has requested to be classified as protected to determine if the request meets the requirements of Subsections 63G-2-305(1) or (2).

(a) If all the information in the document meets the requirements for being classified as protected and the required statement is included, the document will be classified as protected and the information will not be available to the public.

(b) If all the information in the document does not meet the requirements for being classified as protected, the commissioner will notify the filer of the denial, the reasons for the denial, and the filer's right to appeal the denial. The filer has 30 days to appeal the denial as allowed by Section 63G-2-401.

(c)(i) Despite the denial of [classifying the information as ]protected classification, the commissioner shall treat the information as if it had been classified as protected until:

(A) the 30 day time limit for an appeal to the commissioner has expired; or

(B) the filer has exhausted all appeals available under Title 63G, Chapter 2, Part 4 and the document has been found to be a public document.

(ii) During the 30 day time limit to appeal or during the appeal process, the filer may withdraw:

(A) the filing; or

(B) the request for [designation as ]protected classification.

(d) If the filer combines , in a document, information it wishes to be classified as protected with information that is public, the document will be classified as public.

 

R590-227-11. [Correspondence and Status Checks.

(1) Correspondence. When corresponding with the department, provide sufficient information to identify the original filing:

(a) type of insurance;

(b) date of filing;

(c) form numbers; and

(d) SERFF tracking number

(2) Status Checks.

(a) A complete filing is usually processed within 45 days of receipt.

(b) A filer can request the status of its filing 60 days after the date of submission. A response will not be provided to a status request prior to 60 days.

 

R590-227-12. ]Responses.

(1) Response to a Filing Objection Letter. When responding to a Filing Objection Letter a filer must:

(a) provide an explanation identifying all changes made;

(b) include an underline and strikeout version for each revised document;

(c) a final version of revised documents that incorporate all changes; and

(d) for filing submitted in SERFF, attached the documents in Subsections R590-227-11(1)(b)(c) to appropriate Form Schedule or Rate/Rule Schedule tab.

(2) Response to an Order to Prohibit Use.

(a) An Order to Prohibit Use becomes final 15 days after the date of the Order.

(b) Use of the filing must be discontinued no later than the date specified in the Order.

(c) To contest an Order to Prohibit Use, the commissioner must receive a written request for a hearing no later than 15 days after the date of the Order.

(d) A new filing is required if the licensee chooses to make the requested changes addressed in the Filing Objection Letter. The new filing must reference the previously prohibited filing.

 

R590-227-1[3]2 . Penalties.

Persons found, to be in violation of this rule shall be subject to penalties as provided under Section 31A-2-308.

 

R590-227-1[4]3 . Enforcement Date.

The commissioner will begin enforcing the revised provisions of this rule 15 days from the effective date of this rule.

 

R590-227-1[5]4 . Severability.

If any provision of this rule or its application to any person or situation is held to be 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: annuity insurance filings

Date of Enactment or Last Substantive Amendment: [April 9, 2014]2016

Notice of Continuation: March 18, 2014

Authorizing, Implemented, or Interpreted Law: 31A-2-201; 31A-2-201.1; 31A-2-202