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Utah Code Title 31A. Insurance Code § 31A-30-106.7. Surcharge for groups changing carriers

Current as of May 05, 2022 | Updated by FindLaw Staff

(1)(a) Except as provided in Subsection (1)(b), if prior notice is given, a covered carrier may impose upon a small group that changes coverage to that carrier from another carrier a one-time surcharge of up to 25% of the annualized premium that the carrier could otherwise charge under Section 31A-30-106.1.

(b) A covered carrier may not impose the surcharge described in Subsection (1)(a) if:

(i) the change in carriers occurs on the anniversary of the plan year, as defined in Section 31A-1-301;

(ii) the previous coverage was terminated under Subsection 31A-22-618.6(5);

(iii) employees from an existing group form a new business;  and

(iv) the surcharge is not applied uniformly to all similarly situated small groups.

(2) A covered carrier may not impose the surcharge described in Subsection (1) if the offer to cover the group occurs at a time other than the anniversary of the plan year because:

(a)(i) the application for coverage is made prior to the anniversary date in accordance with the covered carrier's published policies;  and

(ii) the offer to cover the group is not issued until after the anniversary date;  or

(b)(i) the application for coverage is made prior to the anniversary date in accordance with the covered carrier's published policies;  and

(ii) additional underwriting or rating information requested by the covered carrier is not received until after the anniversary date.

(3) If a covered carrier chooses to apply a surcharge under Subsection (1), the application of the surcharge and the criteria for incurring or avoiding the surcharge shall be clearly stated in the:

(a) written application materials provided to the applicant at the time of application;  and

(b) written producer guidelines.

(4) The commissioner shall adopt rules in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, to ensure compliance with this section.

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Cite this article: FindLaw.com - Utah Code Title 31A. Insurance Code § 31A-30-106.7. Surcharge for groups changing carriers - last updated May 05, 2022 | https://codes.findlaw.com/ut/title-31a-insurance-code/ut-code-sect-31a-30-106-7/

Read this complete Utah Code Title 31A. Insurance Code § 31A-30-106.7. Surcharge for groups changing carriers on Westlaw. Westlaw subscription required.

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