Agency: Insurance Line Item: Insurance Department Administration Function Administration manages other programs within the Department and is responsible for budgeting, financial tracking, personnel, actuarial services, and managerial statistics.
Producer Licensing is responsible for the issuance and renewal of licenses to all Utah insurance agents and agencies. Licensees qualify through examination. Financial Examination Division licenses approximately 1,500 insurance companies in Utah. It also monitors financial strength and solvency. The division is responsible for the financial examination of insurers according to statute. Because not all of the companies are headquartered in Utah, the examiners may spend their time out of state. The Insurance Department is reimbursed by the insurer being examined for all costs incurred during the examination, which includes examiners salaries and benefits. These reimbursements are deposited into the General Fund. Property and Casualty, Health, and Life Divisions function by line of insurance. These divisions handle telephone and walk-in complaints and inquiries from the public. They review and analyze policy forms and rates filed by insurance companies and assist consumers with complaints about insurance products and companies. Market Conduct Division investigates and enforces the insurance code violations referred from the insurance industry and other divisions of the department. Intent Language The Legislature intends that the Department of Insurance is authorized to allow State Fleet Services to purchase three fleet vehicles for the Insurance Fraud Division. Funding Detail | Sources of Finance | 2007
Actual | 2008
Actual | 2009
Actual | 2010
Actual | 2011
Approp | | General Fund | $5,319,700 | $5,919,900 | $5,689,700 | $5,118,500 | $5,357,800 | | General Fund, One-time | $19,900 | $0 | $278,100 | $72,500 | ($25,000) | | Dedicated Credits Revenue | $3,128,400 | $3,695,800 | $2,718,400 | $2,830,500 | $4,180,900 | | GFR - Guaranteed Asset Protection Waiver | $0 | $0 | $0 | $11,800 | $89,000 | | Beginning Nonlapsing | $1,427,300 | $1,695,200 | $1,859,700 | $1,399,300 | $240,200 | | Closing Nonlapsing | ($1,724,800) | ($1,861,400) | ($1,399,300) | ($762,100) | ($461,000) | | Lapsing Balance | $0 | ($52,400) | ($34,400) | ($114,300) | $0 | | Total | $8,170,500 | $9,397,100 | $9,112,200 | $8,556,200 | $9,381,900 |
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| | Programs: | 2007
Actual | 2008
Actual | 2009
Actual | 2010
Actual | 2011
Approp | | Administration | $5,329,700 | $6,088,000 | $6,111,700 | $5,324,000 | $5,861,000 | | Relative Value Study | $179,400 | $33,000 | $69,200 | $192,100 | $85,700 | | Insurance Fraud Program | $2,214,800 | $2,662,300 | $2,144,200 | $2,086,100 | $2,125,100 | | Captive Insurers | $113,200 | $243,200 | $346,400 | $362,500 | $664,400 | | Electronic Commerce Fee | $333,400 | $370,600 | $440,700 | $586,900 | $645,700 | | Office of Consumer Health Assistance | $0 | $0 | $0 | $4,600 | $0 | | Total | $8,170,500 | $9,397,100 | $9,112,200 | $8,556,200 | $9,381,900 |
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| | Categories of Expenditure | 2007
Actual | 2008
Actual | 2009
Actual | 2010
Actual | 2011
Approp | | Personnel Services | $4,913,100 | $5,676,000 | $6,172,700 | $5,793,200 | $6,368,500 | | In-state Travel | $20,800 | $34,900 | $36,000 | $27,700 | $36,700 | | Out-of-state Travel | $117,700 | $149,200 | $102,800 | $36,300 | $43,600 | | Current Expense | $1,867,900 | $2,265,200 | $1,481,500 | $1,437,600 | $1,471,200 | | DP Current Expense | $1,219,200 | $1,239,300 | $1,310,400 | $1,261,400 | $1,461,900 | | DP Capital Outlay | $28,800 | $32,500 | $8,800 | $0 | $0 | | Other Charges/Pass Thru | $3,000 | $0 | $0 | $0 | $0 | | Total | $8,170,500 | $9,397,100 | $9,112,200 | $8,556,200 | $9,381,900 |
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| | Other Indicators | 2007
Actual | 2008
Actual | 2009
Actual | 2010
Actual | 2011
Approp | | Budgeted FTE | 85.0 | 95.0 | 91.0 | 91.0 | 91.0 | | Vehicles | 10 | 10 | 10 | 11 | 10 |
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Subcommittee Table of ContentsProgram: Relative Value Study Function Under UCA 31A-22-307, the Relative Value Study is to determine the reasonable value of medical expenses. It is funded by a 0.01 percent tax on motor vehicle liability, uninsured motorist, and personal injury protection insurance premiums. Funds are collected by the Tax Commission as Dedicated Credits and are made non-lapsing in the Utah Code. The study is produced by Relative Value Studies, Inc. of Denver. The contract to produce the study is re-bid every three years. The Department charges $10 per copy. Funding Detail | Sources of Finance | 2007
Actual | 2008
Actual | 2009
Actual | 2010
Actual | 2011
Approp | | Dedicated Credits Revenue | $91,200 | $93,500 | $100,200 | $100,100 | $85,700 | | Beginning Nonlapsing | $299,100 | $210,900 | $269,700 | $300,700 | $0 | | Closing Nonlapsing | ($210,900) | ($271,400) | ($300,700) | ($208,700) | $0 | | Total | $179,400 | $33,000 | $69,200 | $192,100 | $85,700 |
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| | Categories of Expenditure | 2007
Actual | 2008
Actual | 2009
Actual | 2010
Actual | 2011
Approp | | Personnel Services | $0 | $0 | $0 | $145,900 | $0 | | Current Expense | $59,200 | $23,500 | $63,200 | $39,600 | $24,700 | | DP Current Expense | $108,100 | $9,500 | $6,000 | $6,600 | $61,000 | | DP Capital Outlay | $12,100 | $0 | $0 | $0 | $0 | | Total | $179,400 | $33,000 | $69,200 | $192,100 | $85,700 |
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Subcommittee Table of ContentsProgram: Insurance Fraud Program Function The 1994 Legislature created the Insurance Fraud Act (UCA 31A-31-101 through 108) and the Department created the Insurance Fraud Division. It conducts criminal investigations and prosecutes insurance fraud violators. Nationwide, insurance fraud is estimated at over $3 billion. The program is funded by assessments made on insurers according to the amount of business they do in Utah. Funding Detail | Sources of Finance | 2007
Actual | 2008
Actual | 2009
Actual | 2010
Actual | 2011
Approp | | General Fund | $0 | $0 | $76,000 | $0 | $0 | | Dedicated Credits Revenue | $2,204,500 | $2,831,200 | $1,819,600 | $1,896,200 | $1,984,500 | | Beginning Nonlapsing | $374,800 | $343,500 | $512,400 | $263,800 | $140,600 | | Closing Nonlapsing | ($364,500) | ($512,400) | ($263,800) | ($73,900) | $0 | | Total | $2,214,800 | $2,662,300 | $2,144,200 | $2,086,100 | $2,125,100 |
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| | Categories of Expenditure | 2007
Actual | 2008
Actual | 2009
Actual | 2010
Actual | 2011
Approp | | Personnel Services | $816,500 | $911,200 | $1,107,400 | $1,041,400 | $1,033,500 | | In-state Travel | $12,400 | $29,200 | $30,000 | $25,700 | $30,100 | | Out-of-state Travel | $36,500 | $37,700 | $21,200 | $13,900 | $21,800 | | Current Expense | $1,315,800 | $1,636,500 | $917,500 | $920,100 | $979,200 | | DP Current Expense | $33,600 | $47,700 | $59,300 | $85,000 | $60,500 | | DP Capital Outlay | $0 | $0 | $8,800 | $0 | $0 | | Total | $2,214,800 | $2,662,300 | $2,144,200 | $2,086,100 | $2,125,100 |
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| | Other Indicators | 2007
Actual | 2008
Actual | 2009
Actual | 2010
Actual | 2011
Approp | | Budgeted FTE | 11.0 | 21.0 | 21.0 | 21.0 | 21.0 | | Vehicles | 10 | 10 | 10 | 11 | 10 |
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Subcommittee Table of ContentsProgram: Electronic Commerce Fee Function The Captive Insurance Division was created in 2003 when the Captive Insurance Companies Act was passed by the Legislature. The division licenses captive insurance companies formed by companies to manage their risk exposure. It licenses captive insurance companies, monitors their solvency and financial strength. The division is funded by fees dedicated to the program. Currently, the division regulates 40 Utah domiciled companies. Funding Detail | Sources of Finance | 2007
Actual | 2008
Actual | 2009
Actual | 2010
Actual | 2011
Approp | | Dedicated Credits Revenue | $486,800 | $479,700 | $415,000 | $448,300 | $645,700 | | Beginning Nonlapsing | $369,100 | $522,500 | $631,600 | $605,900 | $0 | | Closing Nonlapsing | ($522,500) | ($631,600) | ($605,900) | ($467,300) | $0 | | Total | $333,400 | $370,600 | $440,700 | $586,900 | $645,700 |
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| | Categories of Expenditure | 2007
Actual | 2008
Actual | 2009
Actual | 2010
Actual | 2011
Approp | | Out-of-state Travel | $0 | $1,200 | $0 | $0 | $0 | | Current Expense | $42,300 | $47,900 | $0 | $0 | ($60,300) | | DP Current Expense | $291,100 | $321,500 | $440,700 | $586,900 | $706,000 | | Total | $333,400 | $370,600 | $440,700 | $586,900 | $645,700 |
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Subcommittee Table of Contents |