DAR File No. 43486

This rule was published in the May 1, 2019, issue (Vol. 2019, No. 9) of the Utah State Bulletin.


Insurance, Administration

Rule R590-155

Utah Life and Health Insurance Guaranty Association Summary Document

Change in Proposed Rule

DAR File No.: 43486
Filed: 04/15/2019 04:07:48 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

This rule is being changed to correct the name of the notice that shall be used by insurers in a disclosure to their policy or contract holders.

Summary of the rule or change:

This change corrects the name of the Notice of Protection Provided by the Utah Life and Health Insurance Guaranty Association that includes text that must be disclosed to policy or contract holders regarding the insurer's contractual guarantees. (EDITOR'S NOTE: The original proposed amendment upon which this change in proposed rule (CPR) was based was published in the February 15, 2019, issue of the Utah State Bulletin, on page 5. 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 CPR and the proposed amendment together to understand all of the changes that will be enforceable should the agency make this rule effective.)

Statutory or constitutional authorization for this rule:

  • Subsection 31A-28-119(3)
  • Subsection 31A-2-201(3)(a)

Anticipated cost or savings to:

the state budget:

There is no anticipated cost or savings to the state budget. This change merely corrects the name of a form that is included in this rule.

local governments:

There is no anticipated cost or savings to local governments. This change merely corrects the name of a form that is included in this rule.

small businesses:

There is no anticipated cost or savings to small businesses. This change merely corrects the name of a form that is included in this rule.

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

There is no anticipated cost or savings to any other persons. This change merely corrects the name of a form that is included in this rule.

Compliance costs for affected persons:

There are no compliance costs for any affected persons. This change merely corrects the name of a form that is included in this rule.

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

After conducting a thorough analysis, it was determined that this proposed rule change will not result in a fiscal impact to businesses.

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 [email protected]

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:

05/31/2019

This rule may become effective on:

06/07/2019

Authorized by:

Steve Gooch, Information Specialist

RULE TEXT

Appendix 1: Regulatory Impact Summary Table*

Fiscal Costs

FY 2019

FY 2020

FY 2021

State Government

$0

$0

$0

Local Government

$0

$0

$0

Small Businesses

$0

$0

$0

Non-Small Businesses

$0

$0

$0

Other Person

$0

$0

$0

Total Fiscal Costs:

$0

$0

$0





Fiscal Benefits




State Government

$0

$0

$0

Local Government

$0

$0

$0

Small Businesses

$0

$0

$0

Non-Small Businesses

$0

$0

$0

Other Persons

$0

$0

$0

Total Fiscal Benefits:

$0

$0

$0





Net Fiscal Benefits:

$0

$0

$0

 

*This table only includes fiscal impacts that could be measured. If there are inestimable fiscal impacts, they will not be included in this table. Inestimable impacts for State Government, Local Government, Small Businesses and Other Persons are described in the narrative. Inestimable impacts for Non - Small Businesses are described in Appendix 2.

 

Appendix 2: Regulatory Impact to Non - Small Businesses

This change in proposed rule is not expected to have any fiscal impacts on non-small businesses revenues or expenditures, because the change merely corrects the name of a notice that includes text that must be disclosed to policy or contract holders regarding the insurer's contractual guarantees. It requires no action or compliance by any persons.

 

The head of the Insurance Department, Todd E. Kiser, has reviewed and approved this fiscal analysis.

 

 

R590. Insurance, Administration.

R590-155. Utah Life and Health Insurance Guaranty Association Summary Document.

R590-155-1. Authority.

This rule is promulgated pursuant to:

(1) Subsection 31A-2-201(3)(a), in which the commissioner is empowered to administer and enforce this title and to make rules to implement the provisions of this title; and

(2) Subsection 31A-28-119(3), to provide guidelines for the Utah Life and Health Insurance Guaranty Association summary and disclaimer document.

 

R590-155-2. Purpose and Scope.

(1) The purpose of this rule is to specify the form and content of the summary and disclaimer document for insurers to disclose to policy or contract holders the extent that contractual guarantees are not covered or have limited coverage by the Utah Life and Health Insurance Guaranty Association as required by Section 31A-28-119.

(2) The rule shall apply to all insurance transactions in this state involving life and health insurance policies and annuity contracts as specified in Section 31A-28-103.

 

R590-155-3. Rule.

(1) An insurer authorized to do business in this state, which is subject to the Utah Life and Health Insurance Guaranty Association Act, shall disclose to its policy or contract holders that its contractual guarantees may not be covered by the Utah Life and Health Insurance Guaranty Association.

(2) For the purpose of this rule, the term "policy or contract holders" shall also mean insureds, subscribers, or certificate holders of group policies.

(3) Disclosure shall be made in writing using the text in the [Utah Life and Health Insurance Guaranty Association Disclaimer]Notice of Protection Provided by the Utah Life and Health Insurance Guaranty Association, which is available on the department website, https://insurance.utah.gov.

(4) Disclosure shall be given before or at the time of delivery of the policy, contract, or certificate. The summary and disclaimer document shall also be available upon request by a policy or contract holder.

(5) Each insurer shall file with the commissioner a copy of the summary and disclaimer document.

 

R590-155-4. Penalties.

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

 

R590-155-5. 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: insurance

Date of Enactment or Last Substantive Amendment: 2019

Notice of Continuation: December 8, 2017

Authorizing, and Implemented or Interpreted Law: 31A-2-201; 31A-28-119


Additional Information

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/2019/b20190501.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 (example).  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 protected].  For questions about the rulemaking process, please contact the Office of Administrative Rules.