R590. Insurance, Administration.R590-144. Commercial Aviation Insurance Exemption From Rate and Form Filing.
R590-144-1. Authority.
This rule is promulgated by the commissioner pursuant to Sections 31A-2-201, 31A-19a-103, and 31A-21-101.
R590-144-2. Purpose and Scope.
(1) The purpose of this rule is to exempt commercial aviation insurance, as defined in this rule, from the rate filing requirements of Section 31A-19a-103 and the form filing requirements of Section 31A-21-101.
(2) This rule applies to:
(a) an insurer licensed to write commercial aviation insurance; and
(b) a rate service organization.
R590-144-4. Definitions.
Terms used in this rule are defined in Sections 31A-1-301 and 31A-19a-102. Additional terms are defined as follows:
(1) "Aviation insurance" means:
(a) Any type or class of property insurance on an aircraft and any class of property and interest with respect to, appertaining to, or in connection with any risk or peril of aerial navigation, transit, or transportation.
(b) Any type or class of casualty insurance in connection with the construction, repair, maintenance, operation, or use of an aircraft, and any type or class of casualty insurance in connection with the maintenance, operation, or use of an airport, including public liability and property damage.
(2) "Commercial aviation insurance" means any class of aviation insurance except insurance of aircraft used for private business and pleasure.
(3)(a) "Private business and pleasure" means the predominant use of an aircraft for pleasure or personal transportation purposes.
(b) The incidental use of an aircraft for an occupational or business interest is permissible.
R590-144-5. Findings.
(1) Pursuant to Subsection 31A-21-101(5), the commissioner finds:
(a) the commercial aviation market segment is highly specialized, competitive, and global in nature;
(b) aviation insurance premiums rely on individual risk analysis, underwriting judgment, and the negotiation of a sophisticated business transaction between the insurer and an informed insured; and
(c) commercial aviation insurance risks have individually tailored manuscript-type policies.
(2) The commissioner finds that exemption from the rate and form filing requirements of Title 31A, Insurance Code, will not harm Utah insureds, creditors, or the public, and is not necessary to the regulation of these insurance products.
R590-144-6. Rule.
(1)(a) An insurer or rate service organization is exempt from the rate filing requirements of Section 31A-19a-203 for commercial aviation insurance.
(b) This rule does not exempt an insurer or rate service organization from the rate standards of Section 31A-19a-201.
(2)(a) An insurer or rate service organization is exempt from the form filing requirements of Section 31A-21-201 for commercial aviation insurance.
(b) This rule does not permit an insurer or rate service organizations to issue a contract that does not conform to Section 31A-22-101.
(3) Each insurer shall maintain fully documented underwriting files that must be made available to the commissioner upon request and must show that:
(a) rates are not excessive, inadequate, or unfairly discriminatory; and
(b) contracts are not inequitable, unfairly discriminatory, misleading, deceptive, obscure, encourage misrepresentation, or otherwise in violation of Utah law.
R590-144-7. Severability.
If any provision of this rule, Rule R590-144, or its application to any person or situation is held invalid, such invalidity does not affect any other provision or application of this rule that 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
Date of Last Change: November 22, 2021
Notice of Continuation: February 6, 2026
Authorizing, and Implemented or Interpreted Law: 31A-2-201; 31A-19a-103; 31A-21-101
