Utah Admin. Code R590-285-8 - Required Disclosure of Rating Practices to Consumers
(1) This section applies to:
(a) a policy or certificate issued in this
state on or after July 1, 2021; and
(b) a certificate issued under a policy that
was in force on July 1, 2021, that became effective on the policy anniversary
following January 1, 2022.
(2)
(a)
Except as provided in Subsections (2)(b) and (2)(c), an insurer shall provide
the information listed in this Subsection (2)(a) to the applicant at the time
of application or enrollment.
(i) A statement
that the policy may be subject to rate increases in the future.
(ii) An explanation of potential future
premium rate revisions, and the policyholder's or certificate holder's options
in the event of a premium rate revision.
(iii) The premium rate or rate schedule
applicable to the applicant that is in effect until a request is made for an
increase.
(iv) An explanation for
applying premium rate or rate schedule adjustments that include:
(A) a description of when premium rate or
rate schedule adjustments are effective, such as the next anniversary date or
the next billing date; and
(B) the
right to a revised premium rate or rate schedule as provided in Subsection
(2)(a)(iii) if the premium rate or rate schedule is changed.
(v)
(A) Information regarding each premium rate
increase on the policy form or similar policy forms in all states over the past
10 years that, at a minimum, identifies:
(I)
each policy form for which a premium rate has been increased;
(II) each calendar year the form was
available for purchase; and
(III)
the amount or percent of each increase expressed as a percentage of the premium
rate before the increase, or expressed as a minimum and maximum percentage if
the rate increase varies by rating characteristics.
(B) An insurer may provide additional
explanatory information related to a rate increase.
(C) An insurer has the right to exclude from
the disclosure a premium rate increase that only applies to blocks of business
acquired from other nonaffiliated insurers or the policies acquired from
another nonaffiliated insurer when increases occurred before the
acquisition.
(D)
(I) If an acquiring insurer files for a rate
increase on a policy form acquired from a nonaffiliated insurer or a block of
policy forms acquired from a nonaffiliated insurer, on or before the later of
July 1, 2021, or the end of a 24-month period following the acquisition of the
block or policies, the acquiring insurer may exclude that rate increase from
the disclosure.
(II) The
nonaffiliated insurer shall include the disclosure of that rate
increase.
(E) If an
acquiring insurer in Subsection (2)(a)(v)(D) files for a subsequent rate
increase on the same policy form acquired from a nonaffiliated insurer or block
of policy forms acquired from a nonaffiliated insurer referenced in Subsection
(2)(a)(v)(D), the acquiring insurer shall make all required disclosures
required by Subsection (2)(a)(v), including disclosure of the earlier rate
increase referenced in Subsection (2)(a)(v)(D).
(b) If the method of application does not
allow for delivery of the information in Subsection (2)(a) at the time of
application or enrollment, an insurer shall provide the information to the
applicant before or with the delivery of the policy or certificate.
(c) This Subsection (2) does not apply to a
policy if the insurer may not increase the premium rate or rate
schedule.
(3)
(a) An applicant shall sign an
acknowledgement at the time of application that the insurer made the disclosure
required under Subsections (2)(b)(i) and (2)(b)(v), unless the method of
application does not allow for signature at that time.
(b) If, due to the method of application, the
applicant cannot sign an acknowledgement at the time of application, the
applicant shall sign an acknowledgement no later than at the time of delivery
of the policy or certificate.
(4) An insurer shall use a form substantially
similar to Appendix A of the NAIC Limited Long-Term Care Insurance Model
Regulation to comply with the requirements of Subsections (2) and
(3).
(5)
(a) An insurer shall provide notice of an
upcoming premium rate schedule increase to all policyholders or certificate
holders, if applicable, at least 45 days before the implementation of the
premium rate schedule increase by the insurer.
(b) The notice shall include the information
required by Subsection (2) when the rate increase is implemented.
Notes
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