Section R590-285-21 - Right to Reduce Coverage and Lower Premiums(1)(a) A policy or certificate shall include a provision that allows the policyholder or certificate holder to reduce coverage and lower the policy or certificate premium in at least one of the following ways: (i) reducing the maximum benefit; or (ii) reducing the daily, weekly, or monthly benefit amount.(b) An insurer may also offer another reduction option that is consistent with the policy or certificate design, or the insurer's administrative processes.(c) If the reduction in coverage involves the reduction or elimination of an inflation protection provision, the insurer shall allow the policyholder to continue the benefit amount in effect at the time of the reduction.(2) The provision in Subsection (1) shall include the process to request and implement a reduction in coverage.(3) The premium for the reduced coverage shall:(a) be based on the same age and underwriting class used to determine the premium for the coverage currently in force; and(b) be consistent with the approved rate table.(4) An insurer may limit a reduction in coverage to a plan or an option available for a policy form and to the benefits available after consideration of a claim paid or a claim that is payable.(5) If a policy or certificate is about to lapse, an insurer shall provide a written notice to the policyholder or certificate holder of the policyholder's or certificate holder's right to reduce coverage and premiums under Subsection R590-285-6(1)(c).(6) The requirements of Subsections (1) through (5) shall apply to a policy issued in this state on or after January 1, 2022.(7)(a) A premium increase notice under Subsection R590-285-8(5) shall include: (i) an offer to reduce policy benefits provided by the current coverage consistent with the requirements of this section; and(ii) a disclosure stating that all options available to the policyholder may not be of equal value.(b) The requirements of this Subsection (7) apply to any rate increase implemented in this state on or after January 1, 2022.Utah Admin. Code R590-285-21
Adopted by Utah State Bulletin Number 2021-05, effective 2/23/2021Adopted by Utah State Bulletin Number 2024-21, effective 10/22/2024