NOTICE OF SUBSTANTIVE CHANGE
1. Agency Information
Insurance, Administration
Taylorsville State Office Building
Salt Lake City, UT 84114-6901
2. Contact Persons
Please address questions regarding information on this notice to the persons listed above.
3. General Information
A. Rule or section catchline:
R590-272. Commission Compensation Reporting
B. Purpose of the new rule or reason for the change:
The authorizing statute was repealed by HB 58 during the 2026 General Session.
C. Summary of the new rule or change:
The filing repeals the rule in its entirety.
4. Legislative Action Information
A. Are any changes in this filing because of state legislative action?
Changes are because of legislative action.
B. If yes, any bill number and session:
HB 58 (2026 General Session)
5. Fiscal Information
Provide an estimate and written explanation of the aggregate anticipated cost or savings to:
There is no anticipated cost or savings to the state budget.
This rule requires an insurance producer to create an annual accounting of compensation received for selling or placing a health benefit plan to a large customer.
It does not require this accounting to be filed with the Department of Insurance (Department), but rather requires that it be made available upon the request of the insurance commissioner. Any request by the insurance commissioner would involve an examination or investigation already in progress and would not require any extra cost or effort to integrate the requested accounting into the current workload.
There is no anticipated cost or savings to local governments.
This rule governs the relationship between the Department and its licensees and does not involve local governments in any way.
C. Small businesses ("small business" means a business employing 1-49 persons):
An individual insurance producer or small agency insurance producer that regularly sells or places health benefits with a large customer could see some minor savings by no longer being required to create the accounting in this rule.
However, the Department cannot know the aggregate anticipated savings because it would rely on business factors that vary from entity to entity.
D. Non-small businesses ("non-small business" means a business employing 50 or more persons):
A large agency insurance producer that regularly sells or places health benefits with a large customer could see some minor savings by no longer being required to create the accounting in this rule.
However, the Department cannot know the aggregate anticipated savings because it would rely on business factors that vary from entity to entity.
E. Persons other than small businesses, non-small businesses, state, or local government entities ("person" means any individual, partnership, corporation, association, governmental entity, or public or private organization of any character other than an agency):
There is no anticipated cost or savings to any other person.
This rule governs the relationship between the Department and its licensees and does not involve other persons in any way.
F. Compliance costs for affected persons:
There is no compliance cost for any affected persons.
This rule is being repealed.
6. Regulatory Impact Summary Table
Enter the cost or savings in the relevant cell. If there is no cost or savings, enter, "$0." If a cost or savings is inestimable, enter, "inestimable."
7. Regulatory Impact Analysis Approval
The Commissioner of the Insurance Department, Jonathan T. Pike, has reviewed and approved this regulatory impact analysis.
8. Family Impact Information
A. The agency has considered this rule's impact on family health, stability, and formation:
9. Citation Information
Provide citations to the statutory authority for the rule. If there is also a federal requirement for the rule, provide a citation to that requirement:
11. Public Notice Information
The public may submit written or oral comments to the agency identified in box 1.
A. Comments will be accepted until:
12. Effective Date Information
This rule change MAY become effective on:
(NOTE: This is the date the agency anticipates making the filing effective. It is NOT the effective date)
13. Agency Authorization Information
Agency head or
designee and title:
Steve Gooch, Public Information Officer
R590. Insurance, Administration.
[R590-272. Commission Compensation Reporting. This rule is promulgated by the commissioner pursuant to Sections 31A-2-201 and 31A-23a-501. R590-272-2. Purpose and Scope. (1) The purpose of this rule is to create a format to provide an annual report of commission compensation from an insurer or a third-party administrator associated with the sale or placement of a health benefit plan to a large customer. (2) This rule applies to a producer selling or placing a health benefit plan to a large customer. Terms used in this rule are defined in Sections 31A-1-301 and 31A-23a-501. R590-272-4. Annual Accounting of Compensation for Sale or Placement of Insurance to a Large Customer. (1) Any producer selling or placing a health benefit plan to a large customer shall provide the large customer an annual accounting of all commission compensation that has been received or shall be received from an insurer or third-party administrator as the result of a sale or placement. (2) The accounting shall be provided before the last day of the seventh month after the plan year ends. (3) A copy of this annual accounting shall be kept on file from inception until three years after the completion of the contract and shall be made available upon request of the commissioner. (4) The annual accounting shall include, at minimum, one of the following: (a) a completed Department of the Treasury Internal Revenue Form 5500, Annual Return / Report of Employee Benefit Plan, and its relevant attachments for the applicable plan year; or (ii) the name of the plan; (iii) the name and address of the plan administrator; (iv) the name of the insurance company; (v) the effective date of the plan; (vi) the number of active participants at beginning of the plan year; (vii) the total commission compensation paid or due during the plan year, and shall include on separate reporting lines: (D) contingent bonuses or commissions; and (E) the name and address of each producer to whom a commission is paid or due; and (viii) signature lines for the plan administrator and the employer or plan sponsor for each producer declaration. (5) Each item listed in Subsection R590-272-4(4)(b)(vii) shall be separately identified in the report. (6) A sample form, The Large Customer Compensation Disclosure Form, is available on the department's website, https://insurance.utah.gov. R590-272-5. Severability. If any provision of this rule, Rule R590-272, 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: agency compensation, agent compensation, insurance, producer compensation Date of Last Change: January 10, 2023 Authorizing, and Implemented or Interpreted Law: 31A-2-201(3); 31A-23a-501(4)] !--dar--
