R590.
Insurance Administration. (Effective 5-20-05)
R590-231. Workers’ Compensation Market of Last Resort.
R590-231-1. Authority.
This rule is
promulgated pursuant to the following statutes:
(1) 31A-19a-404, rulemaking authority for the recording and reporting of
statistical data and experience rating data;
(2) 31A-20-103, rulemaking authority to define lines and classes of
insurance;
(3) 31A-22-1010, rulemaking authority for reporting requirements for
workers’ compensation deductible policies; and
(4) 31A-2-201, rulemaking authority to implement the provision of Title
31A.
R590-231-2. Findings and Interpretation.
(1) The
commissioner finds that the legislature intended that the Workers Compensation
Fund created under Title 31A, Chapter 33, was to provide workers’ compensation
insurance for Utah employers who are not able to obtain such insurance in the
voluntary marketplace.
(2) Based upon this finding, the commissioner interprets Section
31A-22-1001 to mean that the Workers Compensation Fund, created under Title 31A,
Chapter 33, is the insurer that provides workers’ compensation insurance for the
market of last resort in Utah.
R590-231-3. Purpose and Scope.
(1) The
purpose of this rule, regarding the workers’ compensation market of last resort,
is to:
(a) define the workers’ compensation market of last resort;
(b) provide eligibility criteria;
(c) provide requirements for designation of existing insured employers;
and
(d) provide reporting requirements to the department and the designated
rate service organization.
(2) This rule applies to the insurer for the market of last resort.
R590-231-4. Definitions.
(1) “Insurer
for the market of last resort” means the Workers Compensation Fund.
(2) “Market of Last Resort” means the workers’ compensation class of risk
that cannot be placed with a voluntary workers’ compensation insurer because of
certain underwriting restrictions or class codes.
(3) “Voluntary workers’
compensation insurer” means an admitted workers’ compensation insurer actively
seeking workers’ compensation business in Utah, including the Workers
Compensation Fund.
R590-231-5. Eligibility.
(1) To be
eligible for the workers’ compensation market of last resort, an employer must
meet the underwriting and rating criteria established by the insurer for the
market of last resort.
(2) An employer being insured by the insurer for the market of last resort
remains eligible for the market of last resort until the employer obtains
workers’ compensation insurance from a voluntary workers’ compensation insurer.
R590-231-6. Underwriting and Rating.
(1) The
insurer for the market of last resort shall file, for that market of
last resort, separate underwriting criteria, and:
(a) separate rating criteria; or
(b) a separate rating plan.
(2) Underwriting criteria for the market of last
resort shall include:
(a) premium size;
(b) class code and risk characteristics; and
(c) loss and payroll experience.
(3) Policy files for employers eligible for the market of last resort must
include the underwriting criteria or follow underwriting protocols used for
placement in the market of last resort.
R590-231-7. Designation and Reporting.
(1) Because the Workers Compensation Fund is a voluntary workers’
compensation insurer, and the insurer for the market of last resort, the Workers
Compensation Fund shall:
(a) Designate its existing insured employers as insured in the voluntary
workers’ compensation market or in the market of last resort; and
(b) Such designation can be done:
(i) immediately; or
(ii) as each employer renews; or
(iii) at the time a new application is made for workers’ compensation
coverage.
(2) The insurer for the market of last resort shall report its data,
including market of last resort data to the designated rate service
organization. Such reporting shall be timely and consistent with the designated
rate service organization’s reporting requirements for all workers' compensation
insurance carriers operating in Utah.
(3) Upon request, the insurer for the market of last resort shall make
available to the Insurance Department, information about the market of last
resort. Requested information may include the market of last resort data
reported to the designated rate service organization.
R590-231-8. Enforcement Date.
The commissioner will begin enforcing the revised provisions of this rule
45 days from the effective date of the rule.
R590-231-9. Severability.
If any provision or clause of this rule or the application of it to any
person is for any reason held to be invalid, the remainder of the rule and the
application of any provision to other persons or circumstances shall not be
affected.
KEY:
workers compensation insurance
2005
Effective 5-20-05
31A-2-201
31A-19a-404
31A-20-103
31A-22-1010
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