Insurance

Administration

Rule R590-228: Submitting Credit Life and Credit Accident and Health Insurance Filings

Effective Date: 10/16/2023

Admin. Code Reference: R590-228

Rule Type: Current Rule

R590. Insurance, Administration.

R590-228. Submitting Credit Life and Credit Accident and Health Insurance Filings.

R590-228-1. Authority.

This rule is promulgated by the commissioner pursuant to Sections 31A-2-201 and 31A-2-201.1.

R590-228-2. Purpose and Scope.

(1) The purpose of this rule is to establish procedures for submitting a credit life insurance or credit accident and health insurance filing.

(2) This rule applies to an insurer offering credit life insurance or credit accident and health insurance, including group credit life insurance or group credit accident and health insurance issued to a nonresident policyholder, when a Utah resident is provided coverage under the policy.

R590-228-3. Definitions.

Terms used in this rule are defined in Sections 31A-1-301 and 31A-22-802. Additional terms are defined as follows:

(1) "Certification" means a statement that a submitted filing is compliant.

(2) "Compliant" means a filing that is complete and complies with Title 31A, Insurance Code, and Title R590, Administration.

(3) "Electronic filing" means a filing submitted using SERFF.

(4) "File and use" means a filing is used, sold, or offered for sale after it is filed with the department.

(5) "File for approval" means a filing is used, sold, or offered for sale after receiving written confirmation that the filing is approved.

(6) "Filing objection letter" means a letter issued by the commissioner when a review of the filing determines the filing is not compliant and may require:

(a) correction of non-compliant items;

(b) clarification; or

(7) "Letter of authorization" means a letter signed by an officer of the insurer giving authority to a third-party to submit a filing on behalf of the insurer.

(8) "NAIC Product Coding Matrix" means a numerical coding system developed by the NAIC that provides uniform naming convention, uniform terminology, and uniform description for a type of insurance product in a filing.

(9) "Order to prohibit use" means an order issued by the commissioner prohibiting the use of a filing.

(10) "Qualified actuary" means an individual who is qualified to sign the applicable state of actuarial opinion in accordance with the American Academy of Actuaries qualification standards.

(11) "Rejected" means a filing is:

(a) not compliant;

(b) returned to the insurer stating the reason for rejection; and

(12) "Resubmission" means a correction, modification, or replacement of a previously rejected, withdrawn, or prohibited filing.

(13) "SERFF" means the System for Electronic Rate and Form Filing.

(14) "Type of insurance" or "TOI" means:

(a) a specific credit life insurance or credit accident and health insurance product identified by the NAIC Product Coding Matrix including gross decreasing term, net decreasing term, level term, open end, closed end, single premium, or truncated coverage; and

(b) a TOI that can be selected in SERFF when submitting a filing in Utah.

(15) "Utah filing date" means the date the department indicates a paper filing is accepted.

R590-228-4. General Filing Information.

(1)(a) A filing shall be accurate, consistent, complete, and contain all required documents.

(b) The commissioner may request additional information, as necessary.

(2)(a) An insurer is responsible for assuring that any document in a filing is compliant.

(b) A filing that is not compliant is subject to regulatory action.

(3)(a) A filing that is not compliant may be rejected.

(b) A rejected filing:

(i) may be resubmitted under a new filing; and

(ii) may not be reopened for purposes of resubmission.

(4) A prior filing will not be researched to determine the purpose of the current filing.

(5) The department does not review every filing.

(a) A filing may be reviewed:

(i) when submitted;

(ii) when a complaint is received;

(iii) during a regulatory examination or investigation; or

(iv) when the department considers a review necessary.

(b) If a filing is reviewed and is found not compliant, the commissioner:

(i) shall issue a filing objection letter or an order to prohibit use; and

(ii) may require the insurer to disclose deficiencies in a form or a rating practice to each affected insured.

(6)(a) A correction to a filing that is in an open status may be made at any time.

(b) A correction to a filing that is in a closed status:

(i) may not be made;

(ii) requires a new filing; and

(iii) shall reference the original filing in the filing description.

(7) An insurer shall notify the department when discontinuing or withdrawing a previously filed form, rate, or supplementary information.

(8) If the Utah filed date is used for compliance with this rule, a complete copy with all subsequent amendments, including the Utah filed date, shall be attached as a supporting document.

R590-228-5. Filing Submission Requirements.

(1) General Filing Requirements.

(a) A filing shall be submitted:

(i) electronically through SERFF; and

(ii) using the NAIC Product Coding Matrix, including the:

(A) TOI; and

(B) sub-TOI.

(b) A filing may not include more than one:

(i) TOI; or

(ii) insurer.

(2) SERFF Filing.

(a) Filing Description. The filing description on the general information tab shall contain the following information, in the sequence listed.

(i) Provide a summary, including:

(A) the intent of the filing; and

(B) the purpose of each document within the filing.

(ii) Indicate if the filing:

(A) is a first-time filing;

(B) is a new form revising an existing form;

(D) is a resubmission that includes a summary of the changes made and the previous filing's Utah filed date or SERFF tracking number;

(E) includes informational documents, referencing the Utah filed date or SERFF tracking number; or

(F) does not include the policy, and if so, provide the Utah filed date or SERFF tracking number of the policy and each amendment, summarizing the effect on the policy.

(iii) Identify any provision that is unusual, innovative, controversial, or that was previously objected to or prohibited, and explain why the provision is included in the filing.

(iv) List the range of minimum and maximum ages for which the policy will be issued.

(v) Identify the type and duration of any loan to be insured.

(b) Filing Certification.

(i) The insurer shall certify that a filing and all related documents are compliant.

(ii) The following statement shall be included in the filing description: "BY SUBMITTING THIS FILING I CERTIFY THAT THE ATTACHED FILING HAS BEEN COMPLETED IN ACCORDANCE WITH UTAH ADMINISTRATIVE RULE R590-228 AND IS COMPLIANT WITH APPLICABLE UTAH LAW."

(iii) The Utah Credit Life and Credit Accident and Health Filing Certification shall be attached to the supporting documentation tab.

(iv) A filing may be rejected if the filing certification is false, missing, or incomplete.

(v) A false certification may subject the insurer to administrative action.

(c) Domiciliary Approval and Filing Status Information. A filing for a foreign insurer shall include on the supporting documentation tab:

(i) filing status information including:

(A) a list of states where a similar filing is submitted;

(B) the date of submission; and

(ii) if the filing is specific to Utah and only filed in Utah, include:

(A) the phrase "UTAH SPECIFIC - NOT SUBMITTED TO ANY OTHER STATE"; and

(B) the reason the filing is only filed in Utah.

(d) Letter of Authorization.

(i) A filing submitted by a third party shall have a letter of authorization from the insurer attached to the supporting documentation tab.

(ii) The insurer is responsible for the filing being compliant.

(e) Variable Data.

(i)(A) Variable data is denoted by brackets and is defined either by embedding the variable data in the form or in a separate form with a unique form number and an edition date.

(B) Variable data submitted as a separate form shall be in a manner that follows the construction of the form, by page and paragraph, or page and footnote.

(ii) A certification statement of variability shall be attached to the supporting documentation tab and shall certify that:

(A) the final form does not contain brackets;

(B) the use of variable data is administered in a uniform and non-discriminatory manner and will not result in unfair discrimination;

(D) any changes to variable data shall be filed prior to implementation.

(iii) Any variation of the variable data shall be disclosed, for example "Deductible is $(xxx.xx) in $(xxx.xx) increments."

(iv) Variable data shall be reasonable, appropriate, and compliant.

(v) The use of unfiled variable data is prohibited.

(f) Items Submitted for Filing.

(i) A form shall be attached to the form schedule tab.

(ii) All rating documentation, including actuarial memoranda and rate schedules, shall be attached to the rate/rule schedule tab.

(g) Underline and Strikethrough. A resubmission or a new form revising an existing form shall include an underline and strikethrough version of the form and the final form on the form schedule tab.

R590-228-6. Procedures for Filings.

(1) Forms in General.

(a) A form is a file and use filing.

(b) A form shall be identified by a unique form number that may not be variable.

(d) Blank spaces within a form shall be completed to accurately represent the purpose and use.

(i) If the intended market is for a senior age market, the form shall be completed with data representative of senior insureds.

(ii) Any data in a form, including premium rates and benefits, shall be consistent with the actuarial memorandum and rate schedule.

(2) Application Filing.

(a) An application or enrollment form may be submitted as a separate filing or filed with its related policy or certificate filing.

(b) If an application was previously filed or is filed separately, an informal copy of the application shall be included with a policy or certificate filing.

(3) Policy Filings.

(a) Each TOI shall be filed separately.

(b) A policy filing consists of one policy form, including the application, certificate, rider, endorsement, actuarial memorandum, and rate schedule.

(4) Rider or Endorsement Filing.

(a) Related riders or endorsements may be filed together.

(b) A single rider or endorsement that affects multiple forms may be filed if the filing description references each affected form.

(i) a list of each policy form number, title, and Utah filed date or SERFF tracking number; and

(ii) a description of how each rider or endorsement affects the policy.

(d) Unrelated riders or endorsements may not be filed together.

(5) Rates. A rate is a file for approval filing.

R590-228-7. Additional Procedures for Credit Life and Credit Accident and Health Form and Rate Filings.

(1) An insurer filing a credit life or a credit accident and health form shall comply with:

(a) Title 31A, Chapter 21, Insurance Contracts in General;

(b) Title 31A, Chapter 22, Part 4, Life Insurance and Annuities;

(d) Title 31A, Chapter 22, Part 6, Accident and Health Insurance;

(e) Title 31A, Chapter 22, Part 7, Group Accident and Health Insurance;

(f) Title 31A, Chapter 22, Part 8, Credit Life and Accident and Health;

(g) Rule R590-91;

(h) Rule R590-191; and

(i) Rule R590-192.

(2)(a) A credit life or credit accident and health insurance policy, rider, or endorsement affecting a benefit shall be accompanied by a rate filing.

(b) A rate filing is not required if the form filing does not impact the rate, however the filing description shall explain the reason there is not a change in the rate.

(3) Actuarial Memorandum.

(a) An actuarial memorandum shall be included in a credit life and credit accident and health insurance rate filing.

(b) An actuarial memorandum shall demonstrate compliance with Section 31A-22-807.

(i) type of coverage, such as gross or net, level or decreasing, single or joint life, full term or truncated, or critical period;

(ii) type of loan to be insured, such as open end or closed end;

(iii) type of premium charge, such as single premium, monthly outstanding balance, or another method explained in detail;

(iv) duration of loan and duration of coverage;

(v) rates per unit, ratings, and premium methodologies, including;

(A) formulas used for each type of coverage and premium method; and

(B) sample calculations for each type of coverage and premium method;

(vi) refund method and calculation, including formulas for each type of coverage; and

(vii) reserve bases, including methods used.

(d)(i) An actuarial memorandum shall include certification of compliance with Section 31A-22-807 by a qualified actuary.

(ii) The certification shall confirm that the formulas and methods used produce rates that are compliant for each type of coverage and duration in the filing.

(4) Rate Schedules.

(a) A rate schedule shall be included for:

(i) each type of coverage; and

(ii) representative durations.

(b) Rates shall be identified as:

(i) prima facie rates;

(ii) deviated rates submitted pursuant to Section 31A-22-807; or

(iii) rates on nonstandard coverage pursuant to Subsection R590-91-6(1).

(5)(a) Each benefit shall be reasonable in relation to the premium charge.

(b) An insurer filing for approval of a rate higher than a prima facie rate shall comply with:

(i) Section 31A-22-807; and

(ii) Section R590-91-11.

R590-228-8. Classification of Documents.

(1) A record submitted under this rule is subject to Title 63G, Chapter 2, Government Records and Access Management Act.

(2) A record may be classified as protected if

(a) requested under Section 63G-2-309;

(b) the request in Subsection (2)(a) includes each required element of Subsections 63G-2-309(1)(a)(i)(A) and 63G-2-309(1)(a)(i)(B); and

(3) A filing may not be reopened to reclassify a previously filed document.

(4) A pattern of requesting that non-qualifying documents be protected, including putting both protected and public information in one document, may violate this rule.

R590-228-9. Objection Letter and Disposition Procedures.

(1) Response to a Filing Objection Letter. A response to a filing objection letter shall:

(a) be provided in SERFF under the filing correspondence tab;

(b) address each objection;

(d) include an underline and strikethrough version of each revised document;

(e) provide a final version of the revised document, incorporating all changes;

(f) attach each document under the appropriate tab; and

(g) reference any additional document attached under the supporting documentation tab if the content is not included in the response.

(2) Order to Prohibit Use.

(a) An order to prohibit use is final 15 days after the date of the order to prohibit use.

(b) A filing that is prohibited pursuant to an order to prohibit use shall be discontinued by the date specified in the order to prohibit use.

(c) To contest an order to prohibit use, the insurer shall request a hearing, in writing, no later than 15 days after the date of the order to prohibit use.

(d) Notwithstanding Subsection (2)(c), an insurer may submit a resubmission that shall:

(i) make the requested changes addressed in the filing objection letter; and

(ii) reference the previously prohibited filing.

(3) Filing Rejection.

(a) An insurer may submit a resubmission.

(b) A resubmission shall reference the previously rejected filing.

R590-228-10. Severability.

If any provision of this rule, Rule R590-228, 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: credit insurance filings

Date of Last Change: October 16, 2023

Notice of Continuation: March 7, 2024

Authorizing, and Implemented or Interpreted Law: 31A-2-201; 31A-2-201.1; 31A-2-202