Utah Admin. Code R590-219-3 - Definitions

Current through Bulletin 2021-24, December 15, 2021

In addition to the definitions in Section 31A-1-301 and 31A-22-320, the following definition shall apply for the purposes of this rule:

(1)
(a) "Initial underwriting" shall include:
(i)deciding whether or not 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) those additional drivers related to the named insured or spouse by blood, marriage, adoption, or guardianship who were emancipated prior to becoming an additional driver in the named insured's household.
(b) "Initial underwriting" shall not include additional vehicles or drivers 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 persons related to the named insured by blood, marriage, adoption, or guardianship that are residents 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 those who usually make their home in the same household but temporarily live elsewhere.
(iii) a divorced spouse or child where an insurer has a record of the driving history from an existing policy.
(2) "Adverse action" shall have the same meaning as defined in the Fair Credit Reporting Act, 15 U.S.C. sec.1681 et seq. An adverse action includes the following:
(a) cancellation, denial or non-renewal of insurance coverage;
(b) 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:
(i) application of a rating rule;
(ii) 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;
(iii) placement with an affiliate insurer that does not offer the lowest rates available to the consumer within the affiliate group of insurers; or
(iv) 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.
(c) 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 benefits such as dividends that are available through affiliate insurers.

Notes

Utah Admin. Code R590-219-3

The following state regulations pages link to this page.



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.