DAR File No. 27556

Insurance, Administration

R590-147

Annual and Quarterly Statement Filing Instructions

NOTICE OF PROPOSED RULE

DAR File No.: 27556
Filed: 11/22/2004, 12:35
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

The purpose of this rule change is to consolidate three rules (current Rule R590-147 and Rules R590-163 and R590-174) into a new version of this one, Rule R590-147. (DAR NOTE: The proposed repeal of Rule R590-163 is under DAR No. 27554, and the proposed repeal of Rule R590-174 is under DAR No. 27555 in this issue.)

Summary of the rule or change:

Currently Rule R590-147 requires foreign and alien insurers to file annual and quarterly statements and related pages with the National Association of Insurance Commissioners (NAIC) and the Insurance Department and for domestic insurers to file two hard copies or their annual and quarterly statements and related pages with the NAIC and Utah Insurance Department. The reenacted version of this rule specifically requires insurers to follow the NAIC instruction in filing related forms and the annual and quarterly statements. All insurers are required to file their annual and quarterly statements and related forms with the NAIC. Foreign and alien insurers are no longer required to file hard copies or diskettes with the NAIC or Utah Insurance Department.

State statutory or constitutional authorization for this rule:

Sections 31A-2-201, 31A-2-202, and 31A-4-113

Anticipated cost or savings to:

the state budget:

The changes made in the reenacted rule will not financially impact the state's budget. It will not require the payment or elimination of fees, or require the addition or elimination of employees to manage these changes. It will reduce the time Insurance Department employees spend receiving, organizing, processing, and filing hard copies of the annual and quarterly statements filed by approximately 1,400 foreign insurers.

local governments:

This rule deals solely with the relationship between licensed foreign insurers and the Insurance Department and will have no impact on local government. Therefore, there are no costs or savings to local government.

other persons:

Foreign insurers will feel little impact from the reenacted version of this rule. Even though they are no longer required to file a hard copy or diskette of their annual and quarterly statements with the NAIC or Utah Insurance Department, other state insurance departments require them to file hard copies with them. At this point, the 1,400 foreign insurers licensed in Utah will save the cost of copying and mailing their annual and quarterly statements to the Utah Insurance Department and NAIC. This should have no fiscal impact on their insureds.

Compliance costs for affected persons:

Foreign insurers will feel little impact from the rewrite of this rule. Even though they are no longer required to file a hard copy or diskette of their annual and quarterly statements with the NAIC or Utah Insurance Department, other state insurance departments require them to file hard copies with them. At this point, the 1,400 foreign insurers licensed in Utah will save the cost of copying and mailing their annual and quarterly statements to the Utah Insurance Department and NAIC. This should have no fiscal impact on their insureds.

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

This rule will eliminate the requirement for 1,400 foreign and alien insurers doing business in Utah to supply the Utah Insurance Department with a hard copy of their annual or quarterly statements. The only fiscal impact will be that in savings from copying and mailing their annual and quarterly statements to the Utah Insurance Department. This is a very minor cost savings for these insurers.

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

Direct questions regarding this rule to:

Jilene Whitby at the above address, by phone at 801-538-3803, by FAX at 801-538-3829, or by Internet E-mail at jwhitby@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:

01/14/2005

Interested persons may attend a public hearing regarding this rule:

1/05/2005 at 9:00 AM, State Office Building, Room 3112, Salt Lake City, UT

This rule may become effective on:

01/17/2005

Authorized by:

Jilene Whitby, Information Specialist

RULE TEXT

R590. Insurance, Administration.

[R590-147. Annual Statement Instructions.

R590-147-1. Authority.

This rule is promulgated pursuant to the general rulemaking authority vested in the commissioner by Section 31A-2-201, and pursuant to the specific authority of Section 31A-4-113.

R590-147-2. Scope.

This rule applies to all insurers required to file an annual statement with the commissioner in this state.

R590-147-3. Definitions.

(1) For the purpose of this rule "Insurer" includes all licensees who are licensed under Chapters 5, 7, 8, 9, 14 or 15 of Title 31A of the Utah Code.

(2) For purposes of this rule "Timely Filed" means that the item being filed is postmarked on or before its due date or if the item is placed for delivery by a commercial delivery service, the delivery instructions are dated on or before the date the item is due to be filed and all required schedules, exhibits and documents are attached.

R590-147-4. Rule.

(1) All insurers shall file their annual statement with the National Association of Insurance Commissioners ("NAIC") on the form adopted by the NAIC. The statement shall be prepared in accordance with the latest edition of the annual statement instructions, and the accounting practices and procedures manual published by the NAIC. Annual statement filings are not complete until all supplemental schedules, exhibits and documents are filed as required by the instructions or as otherwise indicated by this rule, including the following:

(a) Actuarial Opinion;

(b) Management's Discussion and Analysis;

(c) SVO Compliance Certification; and

(d) Annual Audited Financial Reports.

(2) Domestic insurers shall also file two hard copies of all documents required by Subsection 4(1) with the department.

(3) Foreign insurers shall NOT file a hard copy of documents required by Subsection 4(1) with the department, unless specifically requested by the commissioner.

(4) For foreign insurers, the department will consider the annual statement filings to be filed timely with the department if they are timely filed with the NAIC. For domestic insurers, the department will consider the annual statement filings to be filed timely if they are filed timely with both the NAIC and with the department. If any items required to be filed with the NAIC or the department are not filed by the date they are due without an extension approved by the domiciliary state, or are filed after the expiration of any approved extension, the department will consider the annual statement filing to be incomplete, filed late, or not filed, and the department may impose sanctions permitted by law.

(5) The dates by which annual statements and supplemental schedules, exhibits, documents or electronic filings are to be made shall be the date specified in the annual statement instructions and department filing instructions. These instructions may be found on the department's website.

R590-147-5. Separability.

If any provision of this rule or the application thereof to any person or circumstance is for any reason held to be invalid, the remainder of the rule and the application of such provision to other persons or circumstances shall not be affected thereby.

KEY: insurance

June 13, 2003

Notice of Continuation February 21, 2002

31A-2-201

31A-4-113]

R590-147. Annual and Quarterly Statement Filing Instructions.

R590-147-1. Authority.

This rule is promulgated pursuant to Subsection 31A-2-201(3), which authorizes the commissioner to establish by rule specific requirements for filing forms, rates, or reports required by the Utah Insurance Code; Section 31A-2-202, which authorizes the commissioner to require statements, reports and information to be delivered to the department or the National Association of Insurance Commissioners (NAIC) in a form specified by the commissioner; and Section 31A-4-113, which authorizes the commissioner to prescribe by rule the information to be submitted with and form of the annual statement.

R590-147-2. Purpose.

The purpose of this rule is to provide instructions for the filing of insurer annual and quarterly statements and required supplemental schedules, exhibits, and documents.

R590-147-3. Scope.

This rule applies to all insurers required to file annual and quarterly statements with the commissioner in this state.

R590-147-4. Definitions.

(1) For purposes of this rule:

(a) the commissioner adopts the definitions as particularly set forth in Section 31A-1-301; and

(b) "Insurer" includes all licensees who are licensed under Chapters 5, 7, 8, 9, 14 or 15 of Title 31A of the Utah Code.

R590-147-5. Rule.

(1) The annual statement, quarterly statements, and required supplemental schedules, exhibits, and documents shall be prepared in accordance with the latest edition of the NAIC annual and quarterly statement instructions and the accounting practices and procedures manual published by the NAIC.

(2)(a) All insurers shall file their annual statements, quarterly statements, and required supplemental schedules, exhibits, and documents electronically with the NAIC in accordance with the NAIC annual and quarterly statement instructions. The commissioner may allow insurers that operate only in Utah to file hard copy forms with the department and exempt them from filing electronically with the NAIC.

(b) Domestic insurers ONLY shall additionally file two paper copies of all documents required by Subsection R590-147-5(1) with the department, in accordance with the deadlines established in the NAIC annual and quarterly statement instructions.

(c) Foreign and alien insurers shall NOT file paper copies of documents required by Subsection R590-147-5(1) with the department, unless specifically requested by the commissioner.

(3) Administrative penalties, authorized by 31A-2-308, may be assessed to any insurer that:

(a) Fails to file an annual statement, quarterly statements, or required supplemental schedules, exhibits, and documents by the dates specified in the NAIC and department annual and quarterly statement instructions, or by the deadline established in any filing extensions granted by the department; or

(b) Fails to file a complete annual or quarterly statement filing.

(4) NAIC and department filing instructions, including due dates, may be found at the following websites: www.naic.org and www.insurance.utah.gov.

R590-147-6. Separability.

If any provision of this rule or the application thereof to any person or circumstance is for any reason held to be invalid, the remainder of the rule and the application of such provision to other persons or circumstances shall not be affected thereby.

R590-147-7. Enforcement Date.

The commissioner will begin enforcing the revised portions of this rule 45 days from the effective date of the rule.

KEY: insurance

2005

Notice of Continuation February 21, 2002

31A-2-201

31A-2-202

31A-4-113

ADDITIONAL INFORMATION

PLEASE NOTE:

• Text to be deleted is struck through and surrounded by brackets (e.g., [example]). Text to be added is underlined (e.g., example). Some browsers may not depict some or any of these attributes on the screen or when the document is printed.
• Please see the DISCLAIMER regarding information available from state web pages.

For questions regarding the content or application of this rule, please contact Jilene Whitby at the above address, by phone at 801-538-3803, by FAX at 801-538-3829, or by Internet E-mail at jwhitby@utah.gov

For questions about the rulemaking process, please contact the Division of Administrative Rules (801-538-3764). Please Note: The Division of Administrative Rules is NOT able to answer questions about the content or application of these administrative rules.