H.B. 44 Enrolled

INSURANCE DEPARTMENT - HEALTH POLICY RESPONSIBILITIES
2001 GENERAL SESSION
STATE OF UTAH
Sponsor: Rebecca D. Lockhart
This act modifies the Insurance Code to require the insurance commissioner to prepare an
annual evaluation of the state's health insurance industry.
This act affects sections of Utah Code Annotated 1953 as follows:
AMENDS:
31A-2-201, as last amended by Chapter 316, Laws of Utah 1994
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 31A-2-201 is amended to read:
31A-2-201. General duties and powers.
(1) The commissioner shall administer and enforce this title.
(2) The commissioner has all powers specifically granted, and all further powers that are
reasonable and necessary to enable him to perform the duties imposed by this title.
(3) (a) The commissioner may make rules to implement the provisions of this title
according to the procedures and requirements of Title 63, Chapter 46a, Utah Administrative
Rulemaking Act.
(b) In addition to the notice requirements of Section 63-46a-4 , the commissioner shall
provide notice under Section 31A-2-303 of hearings concerning insurance department rules.
(4) (a) The commissioner shall issue prohibitory, mandatory, and other orders as necessary
to secure compliance with this title. An order by the commissioner is not effective unless the
order:
(i) is in writing; and
(ii) is signed by the commissioner or under the commissioner's authority.
(b) On request of any person who would be affected by an order under Subsection (4)(a),
the commissioner may issue a declaratory order to clarify the person's rights or duties.
(5) (a) The commissioner may hold informal adjudicative proceedings and public
meetings, for the purpose of investigation, ascertainment of public sentiment, or informing the

public.
(b) No effective rule or order may result from informal hearings and meetings unless the
requirement of a hearing under Section 31A-2-301 is satisfied.
(6) The commissioner shall inquire into violations of this title and may conduct any
examinations and investigations of insurance matters, in addition to examinations and investigations
expressly authorized, that he considers proper to determine:
(a) whether or not any person has violated any provision of this title; or
(b) to secure information useful in the lawful administration of any provision of this title.
(7) (a) Each year, the commissioner shall:
(i) conduct an evaluation of the state's health insurance market;
(ii) report the findings of the evaluation to the Health and Human Services Interim
Committee before July 31; and
(iii) publish the findings of the evaluation of the department website.
(b) The evaluation shall:
(i) analyze the effectiveness of the insurance regulations and statutes in promoting a healthy,
competitive health insurance market that meets the needs of Utahns by assessing such things as the
availability and marketing of individual and group products, rate charges, coverage and demographic
changes, benefit trends, market share changes, and accessibility;
(ii) assess complaint ratios and trends within the health insurance market, which assessment
shall integrate complaint data from the Office of Consumer Health Assistance within the department;
(iii) contain recommendations for action to improve the overall effectiveness of the health
insurance market, administrative rules, and statutes; and
(iv) include claims loss ratio data for each insurance company doing business in the state.
(c) When preparing the evaluation required by this section, the commissioner may seek the
input of insurers, employers, insured persons, providers, and others with an interest in the health
insurance market.

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