Section R590-285-8 - Required Disclosure of Rating Practices to Consumers(1) This section applies to: (a) a policy or certificate issued in this state on or after July 1, 2021; and(b) a certificate issued under a policy that was in force on July 1, 2021, that became effective on the policy anniversary following January 1, 2022.(2)(a) Except as provided in Subsections (2)(b) and (2)(c), an insurer shall provide the information listed in this Subsection (2)(a) to the applicant at the time of application or enrollment.(i) A statement that the policy may be subject to rate increases in the future.(ii) An explanation of potential future premium rate revisions, and the policyholder's or certificate holder's options in the event of a premium rate revision.(iii) The premium rate or rate schedule applicable to the applicant that is in effect until a request is made for an increase.(iv) An explanation for applying premium rate or rate schedule adjustments that include: (A) a description of when premium rate or rate schedule adjustments are effective, such as the next anniversary date or the next billing date; and(B) the right to a revised premium rate or rate schedule as provided in Subsection (2)(a)(iii) if the premium rate or rate schedule is changed.(v)(A) Information regarding each premium rate increase on the policy form or similar policy forms in all states over the past 10 years that, at a minimum, identifies:(I) each policy form for which a premium rate has been increased;(II) each calendar year the form was available for purchase; and(III) the amount or percent of each increase expressed as a percentage of the premium rate before the increase, or expressed as a minimum and maximum percentage if the rate increase varies by rating characteristics.(B) An insurer may provide additional explanatory information related to a rate increase.(C) An insurer has the right to exclude from the disclosure a premium rate increase that only applies to blocks of business acquired from other nonaffiliated insurers or the policies acquired from another nonaffiliated insurer when increases occurred before the acquisition.(D)(I) If an acquiring insurer files for a rate increase on a policy form acquired from a nonaffiliated insurer or a block of policy forms acquired from a nonaffiliated insurer, on or before the later of July 1, 2021, or the end of a 24-month period following the acquisition of the block or policies, the acquiring insurer may exclude that rate increase from the disclosure.(II) The nonaffiliated insurer shall include the disclosure of that rate increase.(E) If an acquiring insurer in Subsection (2)(a)(v)(D) files for a subsequent rate increase on the same policy form acquired from a nonaffiliated insurer or block of policy forms acquired from a nonaffiliated insurer referenced in Subsection (2)(a)(v)(D), the acquiring insurer shall make all required disclosures required by Subsection (2)(a)(v), including disclosure of the earlier rate increase referenced in Subsection (2)(a)(v)(D).(b) If the method of application does not allow for delivery of the information in Subsection (2)(a) at the time of application or enrollment, an insurer shall provide the information to the applicant before or with the delivery of the policy or certificate.(c) This Subsection (2) does not apply to a policy if the insurer may not increase the premium rate or rate schedule.(3)(a) An applicant shall sign an acknowledgement at the time of application that the insurer made the disclosure required under Subsections (2)(b)(i) and (2)(b)(v), unless the method of application does not allow for signature at that time.(b) If, due to the method of application, the applicant cannot sign an acknowledgement at the time of application, the applicant shall sign an acknowledgement no later than at the time of delivery of the policy or certificate.(4) An insurer shall use a form substantially similar to Appendix A of the NAIC Limited Long-Term Care Insurance Model Regulation to comply with the requirements of Subsections (2) and (3).(5)(a) An insurer shall provide notice of an upcoming premium rate schedule increase to all policyholders or certificate holders, if applicable, at least 45 days before the implementation of the premium rate schedule increase by the insurer.(b) The notice shall include the information required by Subsection (2) when the rate increase is implemented.Utah Admin. Code R590-285-8
Adopted by Utah State Bulletin Number 2021-05, effective 2/23/2021Adopted by Utah State Bulletin Number 2024-21, effective 10/22/2024