COBI 2014 - Insurance

Compendium of Budget Information for the 2014 General Session

Business, Economic Development, and Labor
Appropriations Subcommittee

(PDF)

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Agency: Insurance

Function

The Utah Insurance Department (UID) protects the public by regulating insurance companies and individual agents to assure equitable and competitive business practices. The UID also monitors the solvency of insurance companies domiciled in the State of Utah. The department is divided into eight divisions which are funded from various restricted funds. The department's primary operating account is the Insurance Department Restricted Account which is funded by fees, fines, and forfeitures collected by the department to support its regulatory functions. As detailed below, specific functions of the department are funded through certain restricted accounts. By statute, funds collected into the Insurance Department Restricted Account over the amounts appropriated are deposited in the General Fund.

In recent years, activity, function and structure for the department have been regrouped to reduce processing time, improve efficiency, and enhance customer service. These changes have been more fully reflected in the current budget structure.

The mission of the department is to foster a healthy insurance market by promoting fair and reasonable practices that ensure available, affordable and reliable insurance products and services.

The mission of the department is accomplished by educating, serving and protecting insurance consumers, governmental agencies and all insurance industry participants at a reasonable cost. The department cooperates with and serves state and other governmental agencies in fulfilling their responsibilities.

Statutory Authority

The general and specific authority to regulate all aspects of the insurance industry in Utah are found in the Utah Code Annotated Title 31A, chapters 1 through 42.

Issues/Analysis

Department of Insurance Federal Funds

Department of Insurance Current Year Budget Trends - FY 2014

Department of Insurance Restricted Fund Balances FY 2014

In Depth Budget Review Off Budget Funds - Insurance

Special Funds

The Department of Insurance administers the following special funds:

The Bail Bond Surety Administration Account is funded by fees established in the Bail Bond Act. Funding is used for administration of the act. UCA 31A-35-407

The Guaranteed Asset Protection Waiver Restricted Account funds are derived from fees established under UCA 31A-6b-201, 202, and 204. Funding is used to pay for costs or expenses incurred in the administration, investigation, and enforcement of the Guaranteed Asset Protection Waiver Act.

The Insurance Department Restricted Account is established in UCA 31A-3-103. Funding is used for overall administration of the Department of Insurance.

The Insurance Fraud Investigation Restricted Account is funded by assessments made under UCA 31A-31-108/9. Funds are used pay for a cost or expense incurred in the administration, investigation, and enforcement of the Insurance Fraud Act.

The Relative Value Study Restricted Account is established in UCA 59-9-105 and UCA 31A-2-208. Funds are used to pay for expenses incurred by the department in conducting, maintaining, and administering the relative value study.

The Health Insurance Actuarial Review Restricted Account is established in UCA 31A-30-115. Funds are used to pay for the actuarial review conducted by the department under the Individual, Small Employer, and Group Health Insurance Act.

The Criminal Background Check Restricted Account is funded through fees established under UCA 31A-3-105; 31A-16-103; 31A-23a-105(3); 31A-25-203(3); and 31A-26-203(3). Funds are used to defray the required costs related to obtaining criminal background information.

The Technology Development Restricted Account is funded through fees on requests for information: obtained from an electronic database of the commissioner; or derived from data that is generated by electronic means. The Insurance Department can also impose a supplemental fee on the issuance or renewal of any of the following issued by the department: (a) a license; (b) a registration; or a certificate of authority. Funding is used to provide services through use of electronic commerce or other similar technology.

The Captive Insurance Restricted Account is funded through fees imposed on captive insurance companies and certificates of authority. Funds are used to administer the Captive Insurance Companies Act (UCA 31A-37) and the Special Purpose Financial Captive Insurance Company Act, and to promote captive insurance in the state. UCA 31A-3-304

The Title Licensee Enforcement Restricted Account consists of assessments on title insurer and each title insurance agency to cover the costs of administration, investigation, and enforcement of the Insurance Marketing - Licensing Producers, Consultants, and Reinsurance Intermediaries Act. Funding cannot exceed $80,000. UCA 31A-23a-415

Funding Detail

The Department of Insurance contains five separate line items: Insurance Department Administration, Comprehensive Health Insurance Pool, Bail Bond Program, Title Insurance Program, and Risk Adjuster.

Table 1: Operating and Capital Budget Including Expendable Funds and Accounts

Sources of Finance (click linked fund name for more info)
General Fund
General Fund, One-time
Federal Funds
Dedicated Credits Revenue
GFR - Bail Bond Surety Admin
GFR - Guaranteed Asset Protection Waiver
GFR - Insurance Department Account
GFR - Ins. Dep't, One-time
GFR - Insurance Fraud Investigation
GFR - Relative Value Study
GFR - Health Insurance Actuarial Review
GFR - Technology Development
GFR - Criminal Background Check
GFR - Captive Insurance
GFR - Title Licensee Enforcement
Beginning Nonlapsing
Closing Nonlapsing
Lapsing Balance
Total

2010 Actual	2011 Actual	2012 Actual	2013 Actual	2014 Approp	2014 Change	2014 Revised	2015 Change	2015 Approp
$13,623,700	$13,438,000	$8,078,900	$8,087,600	$8,087,900	$0	$8,087,900	($8,083,500)	$4,400
$72,500	($25,000)	$35,000	$0	$0	$0	$0	$0	$0
$2,040,600	$5,634,300	$1,774,800	$2,647,400	$3,047,600	$383,200	$3,430,800	($352,700)	$3,078,100
$23,878,800	$25,900,100	$22,840,500	$22,343,700	$25,185,000	($13,351,200)	$11,833,800	($11,784,900)	$48,900
$23,500	$23,500	$23,500	$23,500	$23,500	$0	$23,500	$0	$23,500
$11,800	$89,000	$89,000	$89,000	$89,000	$0	$89,000	$100	$89,100
$0	$0	$5,894,900	$6,217,100	$6,550,000	$0	$6,550,000	$1,154,200	$7,704,200
$0	$0	$0	$104,200	$14,600	$16,300	$30,900	($253,500)	($222,600)
$0	$0	$1,984,500	$2,732,400	$2,440,000	$2,000	$2,442,000	$121,800	$2,563,800
$0	$0	$90,000	$84,000	$84,000	$0	$84,000	$0	$84,000
$0	$150,000	$112,000	$147,000	$147,000	$0	$147,000	$0	$147,000
$0	$784,900	$645,700	$587,000	$621,400	$1,000	$622,400	$3,600	$626,000
$0	$162,500	$165,000	$165,000	$165,000	$0	$165,000	$0	$165,000
$0	$664,400	$688,900	$701,700	$963,500	$2,000	$965,500	$25,900	$991,400
$0	$75,000	$79,900	$81,300	$84,200	($700)	$83,500	$2,300	$85,800
$32,933,000	$28,268,300	$23,142,800	$21,410,300	$15,464,700	$3,261,900	$18,726,600	($1,051,900)	$17,674,700
($28,268,300)	($23,195,100)	($21,410,300)	($18,726,600)	($12,669,200)	($5,005,500)	($17,674,700)	($8,370,700)	($26,045,400)
($595,200)	($815,500)	($396,700)	($896,900)	($100)	$100	$0	$0	$0
$43,720,400	$51,154,400	$43,838,400	$45,797,700	$50,298,100	($14,690,900)	$35,607,200	($28,589,300)	$7,017,900

Line Items (click linked line item name to drill-down)
Insurance Department Administration
Insurance Fraud Victim Restitution Fund
Health Insurance Actuary
Comprehensive Health Insurance Pool
Bail Bond Program
Title Insurance Program
Total

2010 Actual	2011 Actual	2012 Actual	2013 Actual	2014 Approp	2014 Change	2014 Revised	2015 Change	2015 Approp
$8,556,200	$8,357,600	$9,561,500	$10,544,300	$12,183,600	$679,000	$12,862,600	$1,391,300	$14,253,900
$0	$0	$0	$0	$322,300	$0	$322,300	$0	$322,300
$0	$90,800	$6,500	$0	$147,000	($147,000)	$0	$150,500	$150,500
$35,053,700	$42,626,900	$34,170,800	$35,152,600	$37,530,400	($15,222,300)	$22,308,100	($30,134,500)	($7,826,400)
$22,100	$1,300	$23,000	$17,000	$23,500	$0	$23,500	$0	$23,500
$88,400	$77,800	$76,600	$83,800	$91,300	($600)	$90,700	$3,400	$94,100
$43,720,400	$51,154,400	$43,838,400	$45,797,700	$50,298,100	($14,690,900)	$35,607,200	($28,589,300)	$7,017,900

Categories of Expenditure (mouse-over category name for definition)
Personnel Services
In-state Travel
Out-of-state Travel
Current Expense
DP Current Expense
Capital Outlay
Other Charges/Pass Thru
Total

2010 Actual	2011 Actual	2012 Actual	2013 Actual	2014 Approp	2014 Change	2014 Revised	2015 Change	2015 Approp
$5,885,600	$5,710,000	$6,183,200	$6,867,300	$7,531,700	$297,300	$7,829,000	$1,260,000	$9,089,000
$29,100	$6,100	$14,700	$26,100	$58,800	$16,300	$75,100	($7,900)	$67,200
$39,300	$57,800	$120,600	$167,700	$316,200	$27,500	$343,700	($60,800)	$282,900
$36,085,700	$43,693,900	$36,368,500	$36,260,900	$39,625,200	($15,054,100)	$24,571,100	($29,519,900)	($4,948,800)
$1,273,700	$1,325,500	$1,697,200	$1,805,000	$2,428,900	$37,100	$2,466,000	($260,700)	$2,205,300
$0	$8,300	$11,300	$100	$15,000	($15,000)	$0	$0	$0
$407,000	$352,800	($557,100)	$670,600	$322,300	$0	$322,300	$0	$322,300
$43,720,400	$51,154,400	$43,838,400	$45,797,700	$50,298,100	($14,690,900)	$35,607,200	($28,589,300)	$7,017,900

Other Indicators
Budgeted FTE
Actual FTE
Vehicles

2010 Actual	2011 Actual	2012 Actual	2013 Actual	2014 Approp	2014 Change	2014 Revised	2015 Change	2015 Approp
92.0	86.0	85.6	86.5	87.0	2.5	89.5	(0.5)	89.0
77.4	86.0	79.5	84.8	0.0	0.0	0.0	0.0	0.0
11	10	10	11	10	0	10	0	10

Subcommittee Table of Contents

Table 2: Operating and Capital Budgets

Sources of Finance (click linked fund name for more info)
General Fund
General Fund, One-time
Federal Funds
Dedicated Credits Revenue
GFR - Bail Bond Surety Admin
GFR - Guaranteed Asset Protection Waiver
GFR - Insurance Department Account
GFR - Ins. Dep't, One-time
GFR - Insurance Fraud Investigation
GFR - Relative Value Study
GFR - Health Insurance Actuarial Review
GFR - Technology Development
GFR - Criminal Background Check
GFR - Captive Insurance
GFR - Title Licensee Enforcement
Beginning Nonlapsing
Closing Nonlapsing
Lapsing Balance
Total

2010 Actual	2011 Actual	2012 Actual	2013 Actual	2014 Approp	2014 Change	2014 Revised	2015 Change	2015 Approp
$13,623,700	$13,438,000	$8,078,900	$8,087,600	$8,087,900	$0	$8,087,900	($8,083,500)	$4,400
$72,500	($25,000)	$35,000	$0	$0	$0	$0	$0	$0
$2,040,600	$5,634,300	$1,774,800	$2,647,400	$3,047,600	$383,200	$3,430,800	($352,700)	$3,078,100
$23,878,800	$25,900,100	$22,840,500	$22,343,700	$25,185,000	($13,351,200)	$11,833,800	($11,784,900)	$48,900
$23,500	$23,500	$23,500	$23,500	$23,500	$0	$23,500	$0	$23,500
$11,800	$89,000	$89,000	$89,000	$89,000	$0	$89,000	$100	$89,100
$0	$0	$5,894,900	$6,217,100	$6,550,000	$0	$6,550,000	$1,154,200	$7,704,200
$0	$0	$0	$104,200	$14,600	$16,300	$30,900	($253,500)	($222,600)
$0	$0	$1,984,500	$2,732,400	$2,117,700	$2,000	$2,119,700	$121,800	$2,241,500
$0	$0	$90,000	$84,000	$84,000	$0	$84,000	$0	$84,000
$0	$150,000	$112,000	$147,000	$147,000	$0	$147,000	$0	$147,000
$0	$784,900	$645,700	$587,000	$621,400	$1,000	$622,400	$3,600	$626,000
$0	$162,500	$165,000	$165,000	$165,000	$0	$165,000	$0	$165,000
$0	$664,400	$688,900	$701,700	$963,500	$2,000	$965,500	$25,900	$991,400
$0	$75,000	$79,900	$81,300	$84,200	($700)	$83,500	$2,300	$85,800
$32,933,000	$28,268,300	$23,142,800	$21,410,300	$15,464,700	$3,261,900	$18,726,600	($1,051,900)	$17,674,700
($28,268,300)	($23,195,100)	($21,410,300)	($18,726,600)	($12,669,200)	($5,005,500)	($17,674,700)	($8,370,700)	($26,045,400)
($595,200)	($815,500)	($396,700)	($896,900)	($100)	$100	$0	$0	$0
$43,720,400	$51,154,400	$43,838,400	$45,797,700	$49,975,800	($14,690,900)	$35,284,900	($28,589,300)	$6,695,600

Line Items (click linked line item name to drill-down)
Insurance Department Administration
Health Insurance Actuary
Comprehensive Health Insurance Pool
Bail Bond Program
Title Insurance Program
Total

2010 Actual	2011 Actual	2012 Actual	2013 Actual	2014 Approp	2014 Change	2014 Revised	2015 Change	2015 Approp
$8,556,200	$8,357,600	$9,561,500	$10,544,300	$12,183,600	$679,000	$12,862,600	$1,391,300	$14,253,900
$0	$90,800	$6,500	$0	$147,000	($147,000)	$0	$150,500	$150,500
$35,053,700	$42,626,900	$34,170,800	$35,152,600	$37,530,400	($15,222,300)	$22,308,100	($30,134,500)	($7,826,400)
$22,100	$1,300	$23,000	$17,000	$23,500	$0	$23,500	$0	$23,500
$88,400	$77,800	$76,600	$83,800	$91,300	($600)	$90,700	$3,400	$94,100
$43,720,400	$51,154,400	$43,838,400	$45,797,700	$49,975,800	($14,690,900)	$35,284,900	($28,589,300)	$6,695,600

Categories of Expenditure (mouse-over category name for definition)
Personnel Services
In-state Travel
Out-of-state Travel
Current Expense
DP Current Expense
Capital Outlay
Other Charges/Pass Thru
Total

2010 Actual	2011 Actual	2012 Actual	2013 Actual	2014 Approp	2014 Change	2014 Revised	2015 Change	2015 Approp
$5,885,600	$5,710,000	$6,183,200	$6,867,300	$7,531,700	$297,300	$7,829,000	$1,260,000	$9,089,000
$29,100	$6,100	$14,700	$26,100	$58,800	$16,300	$75,100	($7,900)	$67,200
$39,300	$57,800	$120,600	$167,700	$316,200	$27,500	$343,700	($60,800)	$282,900
$36,085,700	$43,693,900	$36,368,500	$36,260,900	$39,625,200	($15,054,100)	$24,571,100	($29,519,900)	($4,948,800)
$1,273,700	$1,325,500	$1,697,200	$1,805,000	$2,428,900	$37,100	$2,466,000	($260,700)	$2,205,300
$0	$8,300	$11,300	$100	$15,000	($15,000)	$0	$0	$0
$407,000	$352,800	($557,100)	$670,600	$0	$0	$0	$0	$0
$43,720,400	$51,154,400	$43,838,400	$45,797,700	$49,975,800	($14,690,900)	$35,284,900	($28,589,300)	$6,695,600

Other Indicators
Budgeted FTE
Actual FTE
Vehicles

2010 Actual	2011 Actual	2012 Actual	2013 Actual	2014 Approp	2014 Change	2014 Revised	2015 Change	2015 Approp
92.0	86.0	85.6	86.5	87.0	2.5	89.5	(0.5)	89.0
77.4	86.0	79.5	84.8	0.0	0.0	0.0	0.0	0.0
11	10	10	11	10	0	10	0	10

Subcommittee Table of Contents

Table 3: Expendable Funds and Accounts

Sources of Finance (click linked fund name for more info)
GFR - Insurance Fraud Investigation
Total

2010 Actual	2011 Actual	2012 Actual	2013 Actual	2014 Approp	2014 Change	2014 Revised	2015 Change	2015 Approp
$0	$0	$0	$0	$322,300	$0	$322,300	$0	$322,300
$0	$0	$0	$0	$322,300	$0	$322,300	$0	$322,300

Line Items (click linked line item name to drill-down)
Insurance Fraud Victim Restitution Fund
Total

2010 Actual	2011 Actual	2012 Actual	2013 Actual	2014 Approp	2014 Change	2014 Revised	2015 Change	2015 Approp
$0	$0	$0	$0	$322,300	$0	$322,300	$0	$322,300
$0	$0	$0	$0	$322,300	$0	$322,300	$0	$322,300

Categories of Expenditure (mouse-over category name for definition)
Other Charges/Pass Thru
Total

2010 Actual	2011 Actual	2012 Actual	2013 Actual	2014 Approp	2014 Change	2014 Revised	2015 Change	2015 Approp
$0	$0	$0	$0	$322,300	$0	$322,300	$0	$322,300
$0	$0	$0	$0	$322,300	$0	$322,300	$0	$322,300

Subcommittee Table of Contents

Table 4: Business-like Activities

Sources of Finance (click linked fund name for more info)
Federal Funds
Dedicated Credits Revenue
Beginning Nonlapsing
Closing Nonlapsing
Total

2010 Actual	2011 Actual	2012 Actual	2013 Actual	2014 Approp	2014 Change	2014 Revised	2015 Change	2015 Approp
$0	$0	$19,983,300	$34,912,500	$38,407,300	$0	$38,407,300	($37,248,900)	$1,158,400
$0	$0	$2,963,800	$5,406,300	$4,717,100	$0	$4,717,100	($4,717,100)	$0
$0	$0	$52,300	$14,700	$0	$14,700	$14,700	($14,700)	$0
$0	$0	($14,700)	($14,700)	$0	$0	$0	$0	$0
$0	$0	$22,984,700	$40,318,800	$43,124,400	$14,700	$43,139,100	($41,980,700)	$1,158,400

Line Items (click linked line item name to drill-down)
Federal HIPUtah
Total

2010 Actual	2011 Actual	2012 Actual	2013 Actual	2014 Approp	2014 Change	2014 Revised	2015 Change	2015 Approp
$0	$0	$22,984,700	$40,318,800	$43,124,400	$14,700	$43,139,100	($41,980,700)	$1,158,400
$0	$0	$22,984,700	$40,318,800	$43,124,400	$14,700	$43,139,100	($41,980,700)	$1,158,400

Categories of Expenditure (mouse-over category name for definition)
Out-of-state Travel
Current Expense
DP Current Expense
Total

2010 Actual	2011 Actual	2012 Actual	2013 Actual	2014 Approp	2014 Change	2014 Revised	2015 Change	2015 Approp
$0	$0	$1,000	$0	$800	$0	$800	($800)	$0
$0	$0	$22,983,700	$40,318,800	$43,123,500	$14,800	$43,138,300	($41,979,900)	$1,158,400
$0	$0	$0	$0	$100	($100)	$0	$0	$0
$0	$0	$22,984,700	$40,318,800	$43,124,400	$14,700	$43,139,100	($41,980,700)	$1,158,400

Subcommittee Table of Contents

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COBI contains unaudited data as presented to the Legislature by state agencies at the time of publication. For audited financial data see the State of Utah's Comprehensive Annual Financial Reports.