Utah Admin. Code R590-219-3 - Definitions
Terms used in this rule are defined in Sections 31A-1-301 and 31A-2-320. Additional terms are defined as follows:
(1) "Adverse action" is defined in the Fair
Credit Reporting Act, 15 U.S.C. Sec 1681 et seq.
(a) "Adverse action" includes:
(i) cancellation, denial, or non-renewal of
insurance coverage; and
(ii)
charging a higher premium than would have been offered if the credit history or
credit score had been more favorable, whether the charge is by:
(A) application of a rating rule;
(B) assignment to a rating category within a
single insurer, into which insureds with substantially like risk or exposure
factors and expense elements are placed for purposes of determining rate or
premium, that does not have the lowest available rates;
(C) placement with an affiliate insurer that
does not offer the lowest rates available to the consumer within the affiliate
group of insurers; or
(D) a
reduction or an adverse or unfavorable change in the terms of coverage or
amount of insurance owing to a consumer's credit history or insurance
score.
(b) A
reduction or an adverse or unfavorable change in the terms of coverage occurs
when:
(i) coverage provided to the consumer is
not as broad in scope as coverage requested by the consumer but available to
other insureds of the insurer or any affiliate; or
(ii) the consumer is not eligible for a
benefit, such as a dividend, that is available through an affiliate
insurer.
(2)
(a) "Initial underwriting" includes:
(i) the decision whether to issue a policy to
the consumer;
(ii) the amount and
terms of the coverage;
(iii) the
duration of the policy;
(iv) the
rates or fees charged; and
(v) the
additional drivers related to the named insured or spouse by blood, marriage,
adoption, or guardianship who were emancipated before becoming an additional
driver in the named insured's household.
(b) "Initial underwriting" does not include
an additional vehicle or driver added to the household of a current auto
insurance policyholder of the insurer, provided:
(i) the additional vehicle is owned by the
named insured, spouse, or a person related to the named insured by blood,
marriage, adoption, or guardianship that is a resident of the named insured's
household;
(ii) the additional
driver is related to the named insured or spouse by blood, marriage, adoption,
or guardianship and is a resident of the named insured's household, including a
person who usually makes their home in the same household but temporarily lives
elsewhere; or
(iii) the additional
driver is a divorced spouse or child for whom an insurer has a record of the
driving history from an existing policy.
Notes
State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare.
No prior version found.