31A-4-115 - Plan of orderly withdrawal. - Utah Statutes

31A-4-115. Plan of orderly withdrawal.
(1) (a) When an insurer intends to withdraw from writing a line of insurance in this stateor to reduce its total annual premium volume by 75% or more, the insurer shall file with thecommissioner a plan of orderly withdrawal.
(b) For purposes of this section, a discontinuance of a health benefit plan pursuant to oneof the following provisions is a withdrawal from a line of insurance:
(i) Subsection 31A-30-107(3)(e); or
(ii) Subsection 31A-30-107.1(3)(e).
(2) An insurer's plan of orderly withdrawal shall:
(a) indicate the date the insurer intends to begin and complete its withdrawal plan; and
(b) include provisions for:
(i) meeting the insurer's contractual obligations;
(ii) providing services to its Utah policyholders and claimants;
(iii) meeting any applicable statutory obligations; and
(iv) (A) the payment of a withdrawal fee of $50,000 to the Utah Comprehensive HealthInsurance Pool if:
(I) the insurer is an accident and health insurer; and
(II) the insurer's line of business is not assumed or placed with another insurer approvedby the commissioner; or
(B) the payment of a withdrawal fee of $50,000 to the department if:
(I) the insurer is not an accident and health insurer; and
(II) the insurer's line of business is not assumed or placed with another insurer approvedby the commissioner.
(3) The commissioner shall approve a plan of orderly withdrawal if the plan adequatelydemonstrates that the insurer will:
(a) protect the interests of the people of the state;
(b) meet the insurer's contractual obligations;
(c) provide service to the insurer's Utah policyholders and claimants; and
(d) meet any applicable statutory obligations.
(4) Section 31A-2-302 governs the commissioner's approval or disapproval of a plan fororderly withdrawal.
(5) The commissioner may require an insurer to increase the deposit maintained inaccordance with Section 31A-4-105 or Section 31A-4-105.5 and place the deposit in trust in thename of the commissioner upon finding, after an adjudicative proceeding that:
(a) there is reasonable cause to conclude that the interests of the people of the state arebest served by such action; and
(b) the insurer:
(i) has filed a plan of orderly withdrawal; or
(ii) intends to:
(A) withdraw from writing a line of insurance in this state; or
(B) reduce the insurer's total annual premium volume by 75% or more.
(6) An insurer is subject to the civil penalties under Section 31A-2-308, if the insurer:
(a) withdraws from writing insurance in this state; or
(b) reduces its total annual premium volume by 75% or more in any year without havingsubmitted a plan or receiving the commissioner's approval.

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(7) An insurer that withdraws from writing all lines of insurance in this state may notresume writing insurance in this state for five years unless:
(a) the commissioner finds that the prohibition should be waived because the waiver is:
(i) in the public interest to promote competition; or
(ii) to resolve inequity in the marketplace; and
(b) the insurer complies with Subsection 31A-30-108(5), if applicable.
(8) The commissioner shall adopt rules necessary to implement this section.

Amended by Chapter 308, 2002 General Session