31A-34-106 - Jurisdiction of the commissioner. - Utah Statutes

31A-34-106. Jurisdiction of the commissioner.
(1) The commissioner shall facilitate the creation and operation of alliances to ensure afair allocation of risk among contracted insurers and proper state oversight and to provideconsumer protection to members, enrollees, and the public through the active supervision andregulation of alliances with regard to:
(a) marketing through:
(i) standards for the development and approval of coordinated actuarial models andcoordinated underwriting and marketing methodologies that promote efficiencies of scale whilepreserving market competition;
(ii) limitations on the cooperation permitted among contracted insurers, the circumstancesunder which such cooperation may occur, and the nature of the information that may be sharedfor purposes of developing coordinated actuarial models as well as coordinated underwriting andmarketing methodologies;
(iii) reporting requirements; and
(iv) limitations on unfair marketing methods and practices;
(b) the financial stability of alliances and their contracted insurers regarding:
(i) financial solvency;
(ii) maintenance of trust accounts;
(iii) risk sharing methods; and
(iv) other matters relating to financial reporting and solvency; and
(c) the articles of incorporation and bylaws of alliances.
(2) An alliance shall submit proposed actuarial models and underwriting and marketingmethodologies to the commissioner for review, modification, if necessary, and approval prior touse.
(3) Financial and performance examinations of an alliance shall be conducted inaccordance with the provisions of Sections 31A-2-203, 31A-2-203.5, and 31A-2-204. Thealliance shall reimburse the Insurance Department for the reasonable costs of such audits orexaminations under Section 31A-2-205.

Enacted by Chapter 143, 1996 General Session