31A-30-106.7 - Surcharge for groups changing carriers.
31A-30-106.7. Surcharge for groups changing carriers.
(1) (a) Except as provided in Subsection (1)(b), if prior notice is given, a covered carriermay impose upon a small group that changes coverage to that carrier from another carrier aone-time surcharge of up to 25% of the annualized premium that the carrier could otherwisecharge under Section 31A-30-106.
(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 Section31A-1-301;
(ii) the previous coverage was terminated under Subsection 31A-30-107(3)(e); or
(iii) employees from an existing group form a new business.
(2) A covered carrier may not impose the surcharge described in Subsection (1) if theoffer 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 accordancewith 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 accordancewith the covered carrier's published policies; and
(ii) additional underwriting or rating information requested by the covered carrier is notreceived until after the anniversary date.
(3) If a covered carrier chooses to apply a surcharge under Subsection (1), the applicationof the surcharge and the criteria for incurring or avoiding the surcharge shall be clearly stated inthe:
(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, UtahAdministrative Rulemaking Act, to ensure compliance with this section.
Amended by Chapter 382, 2008 General Session