2006 Utah Code - 31A-4-115 — Plan of orderly withdrawal.

     31A-4-115.   Plan of orderly withdrawal.
     (1) (a) When an insurer intends to withdraw from writing a line of insurance in this state or to reduce its total annual premium volume by 75% or more, the insurer shall file with the commissioner a plan of orderly withdrawal.
     (b) For purposes of this section, a discontinuance of a health benefit plan pursuant to one of 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 Health Insurance 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 approved by 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 approved by the commissioner.
     (3) The commissioner shall approve a plan of orderly withdrawal if the plan adequately demonstrates 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 for orderly withdrawal.
     (5) The commissioner may require an insurer to increase the deposit maintained in accordance with Section 31A-4-105 or Section 31A-4-105.5 and place the deposit in trust in the name 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 are best 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 having submitted 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 not resume 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