Utah Admin. Code R590-70-18 - Transactions Subject to Prior Notice - Notice Filing

(1) An insurer required to give notice of a proposed transaction pursuant to Section 31A-16-106 shall furnish the required information on Form D.

(2) An agreement for cost sharing services and management services shall at a minimum and as applicable:

(a) identify the person providing services and the nature of the services;

(b) provide the methods used to allocate costs;

(c) require timely settlement, not less frequently than on a quarterly basis, and in compliance with the requirements in the Accounting Practices and Procedures Manual;

(d) prohibit the insurer from advancing funds to the affiliate except to pay for services defined in the agreement;

(e) state that the insurer will maintain oversight for services provided to the insurer by the affiliate and that the insurer will monitor services annually for quality assurance;

(f) define the insurer's books and records to include all books and records developed or maintained under or related to the agreement;

(g) specify that the insurer's books and records are and remain the property of the insurer and are subject to the insurer's control ;

(h) state that all of the insurer's funds and invested assets are the insurer's exclusive property , held for the insurer's benefit , and are subject to the insurer's control ;

(i) include standards for terminating the agreement with and without cause;

(j) include provisions for indemnification of the insurer in the event of gross negligence or willful misconduct on the part of the affiliate providing the services;

(k) specify that, if the insurer is placed in receivership or seized by the commissioner under Title 31, Chapter 27a, Insurer Receivership Act:

(i) all of the insurer's rights under the agreement shall extend to the receiver or the commissioner;

(ii) all books and records will immediately be made available to the receiver or the commissioner; and

(iii) all books and records shall immediately be turned over to the receiver or the commissioner upon the receiver or the commissioner's request;

(l) specify that the affiliate has no automatic right to terminate the agreement if the insurer is placed in receivership pursuant to Title 31, Chapter 27a, Insurer Receivership Act; and

(m) specify that the affiliate will continue to maintain any system, program, or other infrastructure notwithstanding a seizure by the commissioner under Title 31, Chapter 27a, Insurer Receivership Act, and will make any system, program, or other infrastructure available to the receiver, for so long as the affiliate continues to receive timely payment for services rendered.

Notes

Utah Admin. Code R590-70-18

Adopted by Utah State Bulletin Number 2017-3, effective 1/10/2017 Amended by Utah State Bulletin Number 2021-21, effective 10/25/2021