DAR File No. 41322

Insurance, Administration

Section R590-248-4

Mandatory Fraud Reporting Process

Notice of Proposed Rule

(Amendment)

DAR File No.: 41322
Filed: 02/15/2017 11:09:52 AM

RULE ANALYSIS

Purpose of the rule or reason for the change:

The section is being changed to update the email address that should be used for the mandatory reporting of fraud.

Summary of the rule or change:

The section is being changed to update the email address that should be used for the mandatory reporting of fraud.

Statutory or constitutional authorization for this rule:

• Section 31A-2-201
• Section 31A-31-110

Anticipated cost or savings to:

the state budget:

There will be a very minor savings to the state budget. Once the amendment is made effective, the previous email will be shut down, resulting in an annual savings of approximately $75.

local governments:

There is no anticipated cost or savings to local governments because the change is solely being done to update the email address that should be used for the mandatory reporting of fraud.

small businesses:

There is no anticipated cost or savings to small businesses because the change is solely being done to update the email address that should be used for the mandatory reporting of fraud.

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

There is no anticipated cost or savings to any other persons because the change is solely being done to update the email address that should be used for the mandatory reporting of fraud.

Compliance costs for affected persons:

There are no compliance costs for any affected persons because the change merely updates the email address that should be used for the mandatory reporting of fraud.

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

This change is being made to consolidate the vectors of contact the public has with the Utah Insurance Department. Updating this particular email address will save money and improve response times.

Todd E. Kiser, Commissioner

The full text of this rule may be inspected, during regular business hours, at the Office 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:

03/31/2017

This rule may become effective on:

04/07/2017

Authorized by:

Steve Gooch, Information Specialist

R590. Insurance Administration.

R590-248. Mandatory Fraud Reporting Rule.

R590-248-4. Mandatory Fraud Reporting Process.

(1) The following persons shall report a fraudulent insurance act to the commissioner if the person has a good faith belief on the basis of a preponderance of the evidence that a fraudulent insurance act is being, will be, or has been committed by:

(a) a person other than the person making the report:

(b) an insurer; or

(c) an auditor that is employed by a title insurer.

(2) An auditor employed by a title insurer shall report a fraudulent act to the title insurer and the title insurer shall report the fraudulent act in accordance with this subsection.

(3) An insurer shall submit mandatory fraud reports electronically.

(4) An insurer shall report a fraudulent insurance act by:

(a) submitting a report to the commissioner using the National Insurance Crime Bureau (NICB) fraud reporting system; or

(b) submitting a report directly to the commissioner using email sent to [mandatoryreporting]fraud@utah.gov.

 

KEY: insurance, mandatory fraud reporting

Date of Enactment or Last Substantive Amendment: [December 30, 2008]2017

Notice of Continuation: December 23, 2013

Authorizing, and Implemented or Interpreted Law: 31A-2-201; 31A-31-110