R590. Insurance, Administration.R590-128. Failure to Maintain Prior Owner's or Operator's Security.
R590-128-1. Authority.
This rule is promulgated by the commissioner pursuant to Section 31A-2-201.
R590-128-2. Purpose and Scope.
(1) The purpose of this rule is to identify permissible practices of an insurer when an applicant fails to maintain prior owner's or operator's security.
(2) This rule applies to an automobile insurance policy delivered or issued for delivery in this state.
R590-128-3. Definitions.
Terms used in this rule are defined in Section 31A-1-301. Additional terms are defined as follows:
(1) "Failure to maintain prior owner's or operator's security" means:
(a) operating a motor vehicle at any time during the prior three years in violation of any state's compulsory auto insurance law; or
(b) after representing that prior owner's or operator's security was maintained, failing to provide or failing to assist an insurer in obtaining evidence of prior owner's or operator's security.
(2) "Failure to maintain prior owner's or operator's security" does not mean a lapse in coverage of up to 30 days due to an applicant's reasonable reliance on information from a producer or an insurer that the applicant was insured.
(3) "Owner's or operator's security" has the same meaning as defined in Section 41-12a-103.
R590-128-4. Failure to Maintain Prior Owner's or Operator's Security.
(1) If an applicant fails to maintain prior owner's or operator's security, an insurer may:
(a) refuse to insure or refuse to continue to insure;
(b) limit the amount, extent, or kinds of coverage available;
(c) surcharge the applicant; or
(d) designate an applicant as a non-standard, sub-standard, or otherwise worse than average risk to place an applicant in a specific insurer or rating tier.
(2) An insurer shall demonstrate with objective evidence, which may include an applicant's statement, that an applicant failed to maintain prior owner's or operator's security.
R590-128-5. Severability.
If any provision of this rule, Rule R590-128, or its application to any person or situation is held to be invalid, such invalidity does not affect any other provision or application of this rule which can be given effect without the invalid provision or application. The remainder of this rule shall be given effect without the invalid provision or application.
KEY: insurance companies
Date of Last Change: November 22, 2021
Notice of Continuation: November 25, 2024
Authorizing, and Implemented or Interpreted Law: 31A-23a-402
